Uniswap DAO Goes Legal with Wyoming DUNA, Is UNI About to Unlock Wall Street & Trigger the Fee Switch?

Uniswap, the largest decentralized exchange globally, is making a significant move to connect decentralized finance (DeFi) with traditional legal systems. The Uniswap community is voting on a plan to establish a legal entity in Wyoming, called DUNI, which stands for Decentralized Unincorporated Nonprofit Association.

This step could provide Uniswap with better legal protection, simplify tax payments, and potentially enable the long-discussed “fee switch,” a feature that could create revenue for UNI token holders. Many believe this could be a pivotal moment, encouraging big institutional players, including cautious Wall Street firms, to engage with DeFi.

What Exactly Is DUNI?

Decentralized Autonomous Organizations (DAOs) like Uniswap are communities that run projects collectively without a traditional corporate structure. Decisions are made through on-chain votes, and anyone holding governance tokens like UNI can participate.

The challenge is that DAOs don’t fit neatly into existing legal frameworks. Without legal status, they can’t easily sign contracts, pay taxes, or hire professionals. This is where Wyoming’s DUNA (Decentralized Unincorporated Nonprofit Association) law, introduced in 2024, comes into play.

By registering as a DUNA in Wyoming, Uniswap DAO would gain:

• Legal recognition as an entity in the U.S.
• Limited liability protection, meaning participants aren’t personally responsible for lawsuits or debts.
• Nonprofit status, making it easier to comply with U.S. tax rules.

If approved, the new entity, DUNI, would act as the legal face of the DAO while leaving the Uniswap protocol itself unchanged. That means UNI tokens, liquidity pools, and permissionless trading would still work exactly as they do today.

Why Is This Important Now?

The Uniswap Foundation estimates that the DAO already owes $16.5 million in taxes related to past airdrops and grants. Creating DUNI would allow the community to handle these obligations properly, protecting members from personal liability. To cover these costs and set up the entity, the proposal suggests using UNI tokens from the DAO’s treasury. Based on current market prices, this allocation would be sufficient to settle past taxes and fund the new structure. On-chain governance data shows strong support for the proposal, with voting running until September 8, 2025. Early tallies suggest it is likely to pass.

The Fee Switch

Many traders are wondering if Uniswap’s legal move will lead to the activation of the “fee switch.” Right now, all trading fees on Uniswap, such as the 0.3% charged on swaps, go to liquidity providers who supply tokens to the pools. The DAO treasury does not receive any direct portion of these fees.

The fee switch, a topic of discussion for years, would redirect a small part of these fees to the DAO. This could create a revenue stream for UNI token holders or help fund ecosystem growth. The potential is significant; in July 2025, Uniswap generated $109 million in swap fees. Redirecting even a small portion could generate millions in monthly revenue.

In May 2025, a test was conducted with a 0.05% fee on select Uniswap V3 pools. The effect on liquidity was minimal, indicating that the system could handle such changes without losing users. If DUNI becomes official, the DAO would be in a stronger legal position to activate the fee switch. This could increase UNI’s value, attract institutional investors, and provide clearer financial benefits to token holders.

Timeline of Key Events

• March 2024 – Wyoming passes DUNA law, creating a path for DAOs to gain legal recognition.
• May 2025 – Uniswap runs a fee switch pilot on V3 pools.
• August 11, 2025 – The Uniswap Foundation introduces the DUNI proposal on governance forums.
• August 31, 2025 – Proposal moves to on-chain voting.
• September 2, 2025 – Official voting opens, showing strong early support.
• September 8, 2025 – Voting closes, with results expected to approve DUNI’s creation.
• Q4 2025 – If successful, the DAO could activate the fee switch and roll out legal operations.

Markets have already reacted to the proposal. Following the announcement, UNI’s price jumped by more than 8%, reflecting optimism that the DAO is becoming more professional and sustainable. If the fee switch goes live later this year, analysts believe UNI could see further gains, as the token would finally have a built-in revenue model.

What This Means for DeFi as a Whole

Uniswap’s move reflects a larger trend in the decentralized finance world. DAOs, once operating in a legal gray area, are now beginning to adopt “legal wrappers” that let them function like traditional organizations while keeping their decentralized principles. Projects like Aave and Compound are likely to watch closely. If DUNI proves successful, they may follow a similar path, giving the entire DeFi sector more credibility in the eyes of regulators, institutions, and mainstream investors.

At the same time, some purists argue that this could dilute decentralization. If DAOs begin looking too much like traditional corporations, they risk losing the trustless, permissionless spirit that made DeFi revolutionary. The challenge will be striking a balance between legal compliance and true decentralization.

Final Thoughts

The creation of DUNI could mark a turning point for Uniswap and its UNI token. By establishing a legal base in Wyoming, the DAO would gain protections, meet tax obligations, and potentially unlock one of its most anticipated features the fee switch. If executed smoothly, this could make Uniswap more attractive to major financial institutions, boost UNI’s value, and set a precedent for other DAOs. However, how the community handles the balance between compliance and decentralization will be closely watched across the crypto industry.

In simple terms, Uniswap is going legal to protect its community, pay taxes, and possibly activate a fee system that benefits UNI holders. If successful, it could change the future of DeFi.