The Uniswap Foundation has announced the adoption of a new legal status for protocol governance. This is aimed at strengthening decentralized governance and providing legal protection for its participants.
New DUNA Legal Status
The Uniswap Governance proposed to register a Decentralized Unincorporated Nonprofit Association (DUNA) in Wyoming as a new legal status. This structure will allow the protocol to maintain decentralized governance while achieving legal clarity. The success of decentralized finance in the past year has been facilitated by clear regulatory frameworks established in the US and other major jurisdictions.
Impact on Uniswap Protocol and UNI Token
The new legal entity DUNA will impact protocol governance and will involve the transfer of $16.5 million worth of UNI to fund legal defense and tax compliance budgets. Participants believe this step will enhance protection from potential legal or tax liabilities.
UNI Price Outlook
Following the announcement, UNI price increased by about 2% to around $11.17. Over the past week, the asset has risen over 14%, and technical analysis suggests that the UNI price may rally at least 100% in the coming weeks, following an inverted head and shoulders pattern.
The Uniswap Foundation's announcement about the new DUNA legal status highlights the commitment to achieving legal clarity and protecting governance participants. This could positively affect the future of the protocol and its UNI token.
