Alabama Becomes Second State to Grant DAOs Legal Status Under DUNA

Overview

• Gov. Kay Ivey signed the Decentralized Unincorporated Nonprofit Association (DUNA) Act, confirming legal recognition for decentralized autonomous organizations in Alabama.
• The law gives qualifying DAOs full entity status that lets them own property, sign contracts, and appear in court under the DAO’s name while shielding members from personal liability.
• To qualify, a DAO must have at least 100 members who share a nonprofit purpose such as governing a protocol, and it cannot distribute profits to members.
• Alabama’s statute recognizes on-chain governance as valid, so votes, proposals, and rules encoded in smart contracts count for legal purposes.
• Lawmakers passed the bill by an 82–7 vote with 16 abstentions after sponsor Sen. Lance Bell introduced it in February, as other states move too, with Wyoming already on the books and West Virginia’s bill awaiting the governor’s signature; CoinLaw counts about 13,000 DAOs overseeing roughly $24.5 billion.