Key Takeaways
In a new essay, a16z crypto argues the DUNA, or decentralized unincorporated nonprofit association, is the natural next step in how organizations are built, after the corporation and the LLC.
A DUNA gives a decentralized group legal existence, limited liability for its members, and the ability to contract, pay taxes, and appear in court, without a central board or management team.
Wyoming enacted the first DUNA law in 2024, three states now recognize it, and a16z says it is the only structure named for decentralized governance in current drafts of the federal CLARITY Act.
What a16z is arguing
a16z crypto, one of the most active crypto investors in Washington policy fights, published an essay tracing how business structures evolved from the medieval trading partnership to the corporation, and arguing the next form has arrived in the DUNA. Short for decentralized unincorporated nonprofit association, a DUNA gives an online, community-run group the things a company gets by default: legal existence, limited liability for members, and the ability to sign contracts, pay taxes, and go to court. The difference is that it does this without officers, a board, or a central management team, letting token holders govern through onchain votes. Wyoming, the first state to adopt the LLC decades ago, passed the first DUNA law in 2024, and a16z says the structure is the only one recognized for decentralized governance in current drafts of the CLARITY Act.
Why it matters
The reason this lands for WYDE is simple. WYDE runs as a Wyoming DUNA, the same legal form the essay describes, so the argument is not abstract here. For years, crypto projects that wanted to decentralize were pushed into offshore foundations and convoluted structures that a16z now calls "decentralization theater," a way of appearing decentralized rather than being it. A purpose-built legal home changes the math for any group that wants to hold money, run a treasury, and answer to its members instead of a founder. WYDE has covered where this leads, from an onchain ledger where donations cannot change purpose to the stablecoin rulebook Congress still has not finished. None of this is new. What is new is that the legal form is finally catching up to the software. Worth watching which states move next.
People Also Ask
What is a DUNA?
A decentralized unincorporated nonprofit association, a legal structure that gives a community-run organization legal existence and limited liability for its members while it governs through onchain votes.
Which states have enacted the DUNA?
Wyoming was first in 2024, and three states now recognize the DUNA, with more considering it, according to a16z crypto.
Why does a16z crypto support the DUNA?
The firm argues decentralized groups were forced into offshore foundations and other workarounds, and that a purpose-built legal form lets them operate legally without central control.
Is the DUNA in the CLARITY Act?
a16z says the DUNA is the only legal structure recognized for decentralized governance in current drafts of the federal CLARITY Act.