Alabama has become the second U.S. state, following Wyoming, to grant legal status to decentralized autonomous organizations (DAOs) under the Decentralized Unincorporated Nonprofit Association (DUNA) Act. The legislation, introduced by Senator Lance Bell, was passed by the House with an 82-7 vote and signed by Governor Kay Ivey. This act provides DAOs with legal entity status and limited liability protections, allowing them to own property, enter contracts, and shield members from personal liability. To qualify under the DUNA Act, a DAO must have at least 100 members with a common nonprofit purpose, such as governing a blockchain network. Governance can be conducted entirely through blockchain technology and smart contracts. Miles Jennings of a16z Crypto highlighted the importance of decentralized governance for the future of crypto, noting that the bill offers DAOs the certainty to operate and scale in the real world. Meanwhile, a similar bill in West Virginia awaits the governor's signature.