TechFlow News, April 2, according to Cointelegraph, Alabama Governor Kay Ivey has officially signed the Decentralized Unincorporated Nonprofit Associations Act (DUNA Act, Senate Bill 277), making Alabama the second U.S. state—after Wyoming—to grant legal status to decentralized autonomous organizations (DAOs) under the DUNA framework. The bill was introduced in February by Republican State Senator Lance Bell and passed the House of Representatives with 82 votes in favor and 7 opposed.
Under the act, a DAO must have at least 100 members and operate for a shared nonprofit purpose; governance may be fully implemented via blockchain and smart contracts. Such organizations will attain full legal entity status, enabling them to own property, enter into contracts, and participate in litigation, while members and managers are shielded from personal liability. Miles Jennings, Head of Policy at a16z Crypto, stated that decentralized governance is central to the future of the crypto industry, and this legislation provides decentralized communities with legal certainty to build, govern, and scale in the real world. Additionally, a similar bill in West Virginia is currently awaiting the governor’s signature.
