The Uniswap Foundation proposed the "DUNA DAO" structure to pave the way for fee switches

ChainCatcher news, according to The Block, the Uniswap Foundation recently proposed to establish a new legal entity named "DUNI" under the "Decentralized Nonprofit Corporation Association" (DUNA) legal framework in Wyoming for its governance organization.

The foundation is responsible for overseeing the world's largest decentralized cryptocurrency spot trading platform. This new legal entity will provide a legal shell while retaining the existing governance structure of Uniswap DAO, enabling it to retain service providers, enter into contracts, and fulfill regulatory and tax compliance obligations.

If the proposal is approved, Uniswap DAO will become the largest decentralized organization adopting this legal framework. According to the terms of the proposal, the entity will receive UNI tokens valued at $16.5 million to cover past tax obligations and establish a legal defense budget. Since Uniswap has never opted to be taxed as a corporation, the foundation expects to pay less than $10 million to the IRS to settle historical tax debts and penalties.

The Uniswap Foundation noted in the announcement that adopting the DUNA framework will pave the way for initiating protocol fees, at which point a portion of the liquidity provider fees will be transferred to the DAO treasury.