Alabama Grants DAOs Legal Status Under DUNA Law

Decentralized autonomous organizations coordinate ownership and governance through blockchain-based rules, but their lack of conventional legal personhood has often complicated contracts, asset ownership and member liability. Alabama’s Decentralized Unincorporated Nonprofit Association framework addresses that gap by recognizing qualifying groups as legal entities while generally shielding participants from personal liability. The move follows Wyoming’s adoption of a DUNA structure in 2024 and could help internet-native communities compete with established technology companies.

Governor Kay Ivey signed Senate Bill 277 on April 1, 2026, after the Alabama House approved it 82-7, with 16 abstentions, on March 17. Introduced in February by Republican Senator Lance Bell, the law takes effect Oct. 1. A qualifying DUNA must have at least 100 members joined around a nonprofit purpose; it may own property, enter contracts and use blockchain technology or smart contracts for governance, but cannot distribute profits to members.