Alabama has officially granted legal status to decentralized autonomous organizations (DAOs) under its new Decentralized Unincorporated Nonprofit Association (DUNA) Act.
The legislation, Senate Bill 277, was introduced by Republican Senator Lance Bell and signed into law by Governor Kay Ivey. It follows a similar measure in Wyoming, which became the first state to legally recognize a DAO in 2021.
DAOs qualifying under the act must have at least 100 members united for a common nonprofit goal, such as managing blockchain networks. Governance can be fully automated via smart contracts, with all decisions recorded onchain.
Under DUNA, these entities gain full legal recognition: they can own property, enter contracts, sue and be sued. Individual members are protected from personal liability.
Miles Jennings, head of policy at a16z Crypto, called the move a crucial step toward legitimizing decentralized governance within the broader crypto regulatory framework.
West Virginia’s legislature also passed a comparable DUNA bill in March 2026. It awaits gubernatorial approval.
Globally, over 13,000 DAOs manage collective treasuries exceeding $24.5 billion, with most operating on Ethereum-based platforms.
DAO treasury composition. Source: CoinLaw