The Uniswap Foundation has proposed a new legal and governance structure for its DAO, named DUNI, under Wyoming’s Decentralized Unincorporated Nonprofit Association (DUNA).
This structure aims to provide legal clarity, liability protections, and operational capabilities for Uniswap Governance, setting the stage for activating the long-debated “fee switch.” The fee switch would allow Uniswap’s governance to redirect a portion of liquidity provider (LP) fees—potentially 10-25% on a pool-by-pool basis—to the DAO’s treasury or UNI token holders who stake and delegate their tokens, without increasing costs for traders.
DUNI would maintain Uniswap’s decentralized governance while enabling off-chain activities like contracting, tax compliance, and legal defense. The Uniswap Foundation would act as the ministerial agent, handling filings and appointing service providers, with Wyoming-based firm Cowrie as the administrator.
The proposal allocates $16.5 million in UNI tokens to cover past tax obligations (estimated under $10 million) and fund a legal defense budget, plus $75,000 in UNI for Cowrie’s services through 2026. The fee switch could enhance UNI token value by redistributing fees, incentivizing governance participation (currently under 10% of UNI supply votes).
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However, it may reduce LP rewards, potentially impacting liquidity provision, and raise regulatory risks, particularly around securities laws and tax compliance. UNI rallied 6-9% after the August 11, 2025, proposal announcement, reflecting market optimism. Uniswap’s $5.4 billion treasury and $20 billion weekly trading volume underscore the proposal’s significance.
Critics highlight governance centralization, with some delegates controlling significant voting power, and past fee switch proposals failing due to regulatory concerns or voter apathy. The DUNA structure aims to mitigate these by offering legal protections, but concerns about institutional influence persist.
The fee switch has been debated since at least 2022, with prior proposals failing due to regulatory fears and stakeholder conflicts. A 2025 summer vote is planned, potentially bundled with DUNA adoption, to finalize the mechanism.
The DUNA structure could formalize Uniswap’s DAO, enabling the fee switch while addressing legal risks, but its success hinges on community approval and navigating regulatory complexities.
A proposal by Tane allocated $113 million for a treasury delegation program to boost Uniswap’s ecosystem, with a plan to evaluate its effectiveness every three months. This follows the $165M funding plan and focuses on operational and growth initiatives.
The proposal passed, indicating continued efforts to mobilize Uniswap’s substantial treasury for strategic purposes. A proposal aimed to distribute 10 million UNI tokens (worth ~$60M) to underrepresented DAO delegates with less than 2.5 million UNI in voting power but over 80% voting participation. The goal is to enhance accountability and governance participation.
The proposal passed a temperature check vote in November 2023 and is awaiting an on-chain vote. A proposal to amend Uniswap DAO’s governance process was voted on between December 14 and December 21, 2024, aiming to streamline decision-making. The proposal passed with nearly 100% community supported.
The Uniswap community approved two governance proposals allocating $165 million to support the growth of the Unichain network and Uniswap V4 protocol. These initiatives, dubbed “Uniswap Unleashed,” include funding for a new grants program, liquidity incentives, and initial steps toward a “fee switch” mechanism, which would redirect a portion of trading fees to UNI token holders.