Alabama Governor Signs DUNA Act, Grants Legal Status to Decentralized Autonomous Organizations

Alabama Governor Kay Ivey has officially signed the Decentralized Unincorporated Nonprofit Association Act (DUNA Act, Senate Bill 277), establishing Alabama as the second U.S. state, following Wyoming, to confer legal entity status upon decentralized autonomous organizations (DAOs). The bill, introduced in February by Republican Senator Lance Bell, passed the House with significant bipartisan support. Under the DUNA Act, DAOs must comprise at least 100 members and operate for a shared nonprofit purpose, with governance potentially managed entirely on-chain via blockchain and smart contracts. This recognition grants DAOs the ability to own property, enter into contracts, and participate in legal proceedings, while also extending liability protection to members and managers. Miles Jennings of a16z Crypto emphasized the legislation's role in providing legal certainty for decentralized communities. A similar measure is currently awaiting signature in West Virginia, according to Cointelegraph.