Since the last update, we've made progress across several fronts:

• Published a clear, step-by-step guide to the KYC verification process.

• Opened a new community Topic to encourage open discussion and questions from the broader Nouns ecosystem.

• Continued working closely with tax advisors to ensure compliant onboarding for the new DUNA entity.

• Collaborated with accountants to reconcile and clarify treasury and operational accounting details, and prepare financial reports.

• Refined Persona-based onboarding workflows based on community and user feedback for smoother experiences.

• Continued working with our selected banking service provider to establish offchain financial infrastructure. The DUNA entity structure has posed some challenges with banking partners, but we are inching closer to being accepted through our provider.

• Transferred nouns.eth to the treasury.

• We've been working in collaboration with Volky to set up some new infrastructure for nouns.wtf: Ankr is our new RPC as it accepts USDC onchain.

Below are the questions we've received on our DUNA Discussion Topic on Camp. Please post more questions as they arise!

1. If a multisig is receiving a grant, does everyone on the multisig need to complete KYC?
No, not necessarily. If the funds are being distributed as compensation to multiple entities, each of those entities must complete KYC/KYB. For any portion of the funds allocated to project expenses, at least one entity must complete KYC/KYB to claim and manage those funds.

2. Are there plans to integrate an onchain KYCComplete flag or similar mechanism? Otherwise, wouldn't onchain actions make the KYC process moot since funds could be distributed regardless?
Yes, this was actually implemented into the Data Contract in the Proposal 747 upgrade. However, no governance clients currently support or display this information, so it hasn't been used for signaling in practice.

This observation is valid, the KYC process today happens entirely offchain, and admins have no ability to block onchain fund transfers. We collect KYC to ensure the DAO isn't liable for taxes on distributed funds, particularly when recipients are in the US or receiving larger grants. If a recipient were to receive funds and then refuse to complete KYC, there's currently no mechanism to prevent that, though this scenario hasn't occurred so far.

Adding a true compliance hold on distributions would require smart contract upgrades and audits. For now, we've avoided that complexity to keep our process lean, but it's something we'll continue to evaluate as time goes on.

3. Can we make the process clearer for proposers with more documentation and examples?
Yes, expanded documentation is in the works. We’re preparing an FAQ to cover more edge cases (multisigs, smart contracts, U.S. vs international, legal entities, etc.) and working on improving visual guides to help proposers understand the path that applies to them. The goal is to make it easier for proposers to plan ahead and avoid surprises after approval.

For now, our KYC guide is the most comprehensive resource: https://paragraph.com/@nouns/kyc-guide

4. Can a DAO with 100+ members receive a grant directly from Nouns DAO?
Yes. A large DAO can receive a grant, but the funds must be claimed by a designated entity or wallet controlled by one or more individuals who complete KYC/KYB. To satisfy compliance requirements, we also request a signed statement certifying that the grant is being accepted on behalf of the DAO and that the signer(s) have the authority to represent the DAO in this capacity.

Below are the financial reports prepared by our accountants for public release.