• The Uniswap Foundation proposes the DUNI framework to ensure regulatory compliance while maintaining decentralization.
• The DUNI framework will safeguard Uniswap’s governance while offering legal safeguards for DAO members.
• The Uniswap Foundation allocates 16.5 million UNI tokens to transition into DUNI framework and settle taxes.

Uniswap Foundation has come up with a new legal framework in order to fit to the Wyoming Decentralized Unincorporated Nonprofit Association (DUNA) statute. The move is also designed to guide the decentralized autonomous organization (DAO) of Uniswap through the regulatory and taxation requirements.

The decision is especially important to the biggest decentralized exchange, because it stabilizes between the two extremes of compliance and decentralization.

Uniswap will maintain its structure of governance using the DUNI system. It will enable the DAO to contract, make use of service providers, and settle the lawful requirements. Nonetheless, it will not be centralizing. 

Uniswap’s DUNI Proposal: Balancing Compliance with Decentralization

It is intended that the proposal made by the foundation be aimed at achieving the compliance without having to go against the principles of decentralization. This law framework will make Uniswap the first organization to employ this framework.

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The DUNI proposal will maintain Uniswap’s governance structure, with the foundation acting as the first Ministerial Agent.  This is strictly just an administrative role. It will not meddle to court decisions on rulership. The Ministerial Agent will make sure not to impose centralized control. This action does not interfere with the decentralized structure.

The foundation consulted the legal experts and stakeholders prior to the proposal of the DUNI model. It is due to their advice that the proposal was shaped. In Wyoming, the DUNA law came into effect in 2024 and allows the creation of legal entities that DAOs can operate within and at the same time respect federal laws. It provides Uniswap with a legal highway to overcome the regulatory and tax issues without weakening its governance system.

Legal security of the market participants is one of the main advantages of the DUNI framework. It will provide limited liability to the participants of governance, protecting them against the threat of lawsuits.

Such security is critical in the engagement to exercise long-term decentralized governance. It will promote the involvement of more participants in the decision-making. The model will also foster sustainability through the legal protection of the participants.

Uniswap Foundation Allocates UNI Tokens for DUNI Transition

To support the transition, the foundation will allocate 16.5 million UNI tokens. Back taxes will be paid with this money, as well as the creation of a legal defense fund. Unswap is optimistic it will pay the IRS less than 10 million. It will enable the DAO to pay financial demands and support the operations within the new framework.

The plan will present an additional Uniswap revenue structure. Uniswap will be able to profit off its protocols with DUNI. Part of the liquidity provider will trickle back into the DAO treasury. Such a flow of revenue will assist in making the organization sustainable in the long-term financial context.

The Uniswap Foundation will begin community discussions on August 12, 2025. It shall use a governance call to initiate the process of conversing with the delegates. This is the first stage of the official engagement of the proposal. The next process steps will be informed by community feedback.

An advisory group called Cowrie, co-founded by David Kerr, will assist in the management of the DUNI framework. Cowrie was one of the drafters of the DUNA statutes of Windy Wyoming and therefore played an important advisory role in this regard. It will cost $75,000 to change to the new structure, and this amount will cover the legal and operational costs. Such collaboration will assist in the seamless shift of Uniswap.

The attempt by Wyoming to regulate digital assets has been commended. U.S. Senator Cynthia Lummis termed the treatment in the state as best-in-class. Wyoming is at the forefront in promoting the innovations of decentralized finance. 

The adoption choice taken by Uniswap with the DUNI framework may be exemplary to other DAOs. This may determine the future of decentralized finance as increasing numbers of groups take up legal shape.

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