Friends With Benefits (FWB) DAO has quickly passed a proposal seeking to form an Unincorporated Nonprofit Association (UNA) around the operations of the DAO. The decision comes amid growing concerns over a possible clampdown on DAO activities by regulators.
Authored by David Kerr and Derek Colla, the proposal was approved by the DAO on Sunday night. More than 90% of the voting power rallied behind the idea, with just 4.5% rejecting the move.
According to the association agreement, the UNA will exist to pay taxes and enhance liability protections to members of the DAO while maintaining “anonymity for members who do not receive compensation from the DAO.”
The move to create a legal wrapper does not come as a surprise given the U.S. Commodity Futures Trading Commission’s recent legal victory against Ooki DAO. Months after dragging the DAO to court for offering illegal leverage and margin trading services, the CFTC secured a favorable court ruling on June 9.
A U.S. District Court ruled that Ooki DAO should pay a civil monetary penalty of $643k. Furthermore, the DAO was asked to shut down its website and remove its content from the internet.
