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As a lawyer (and a crypto VC) who recently joined the DAO, I thought I would chime in on the DUNA proposal, especially as we are in the process of appointing an administrator. 

I realize the DAO has chosen a path here, and my goal is not to change it but rather educate members and create greater transparency.

My take is that there are considerable eadvantages but also drawbacks to structuring as a DUNA (a Wyoming decentralized unincorporated non-profit association).

Web3 venture, policy & law. Noun 1077.📍The Base blockchain. https://finance.yahoo.com/news/united-states-crypto-capital-world-203015752.html

My take is that there are considerable eadvantages but also drawbacks to structuring as a DUNA (a Wyoming decentralized unincorporated non-profit association). https://a16zcrypto.com/posts/article/duna-for-daos/

The main disadvantages seem to be:

(1) no payments to anyone without KYC;

(2) all income of the DAO is subject to 21% corporate income tax;

(3) the DAO has to hire an accounting firm and pay quarterly estimated taxes; and 

(4) to comply with 2-3, the administrator will need to make sure he/she has access to the treasury to liquidate sufficient assets to fund both tax and service provider payments on an ongoing basis.

I actually don't know of any other DAOs that have decided to use a DUNA, which admittedly was legislated only recently.

Curious how others have analyzed these trade-offs and definitely open to being more involved here.

The main advantages seem to be:

(1) giving the DAO a legal existence so it can contract, etc.;

(2) bestowing limited liability to its members so they can't be held liable for actions of the DAO as general partners;

(3) forming a taxable entity in the U.S. (so it can pay tax); and

(4) positioning as a U.S. entity of purposes of Trump's crypto policy.