BlockBeats News, August 12, according to The Block, the Uniswap Foundation recently proposed to establish a new legal entity named "DUNI" for its governance organization under the Wyoming "Decentralized Autonomous Nonprofit Association" (DUNA) legal framework.
The foundation is responsible for overseeing the world's largest decentralized cryptocurrency spot exchange. This new legal entity will retain Uniswap DAO's existing governance structure while providing it with a legal wrapper to enable 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 to adopt this legal framework. Under the proposal terms, the entity will receive $16.5 million worth of UNI tokens to pay outstanding tax obligations from previous years and establish a legal defense budget. Since Uniswap has never elected to be taxed as a corporation, the foundation expects to pay the Internal Revenue Service (IRS) less than $10 million to settle historical tax debts and penalties.
The Uniswap Foundation stated in the announcement that adopting the DUNA framework would pave the way for protocol fees, at which point some of the liquidity provider fees will be directed to the DAO treasury.
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