Dunn was due to become an unrestricted free agent at the end of this season, before agreeing to a three-year contract extension with the Demons.
Also a club delegate for the AFL Players' Association, Dunn said the proposal would be "a bit strange" if implemented.
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"In the NRL they do that, and it's accepted. It is strange, because in our game, compared to other sports, there is a lot of loyalty between player to club and club to player as well," Dunn said on Friday.
"And because we've only got the one league, you can't really move around the world like soccer, rugby league and rugby union.
"I don't think it's going to work, but having said that, people said there'd never be free agency and that's working really well I feel, so you can never rule it out."
"In the NRL they do that, and it's accepted. It is strange, because in our game, compared to other sports, there is a lot of loyalty between player to club and club to player as well," Dunn said on Friday.
"And because we've only got the one league, you can't really move around the world like soccer, rugby league and rugby union.
"I don't think it's going to work, but having said that, people said there'd never be free agency and that's working really well I feel, so you can never rule it out."
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The Demons have been under the free agency spotlight this year, with key position player James Frawley out of contract and yet to make clear his intentions for next year.
Dunn said the club was supportive of Frawley leaving his call until the end of the season.
"The players don't hold it against him, he's entitled to that, that's what we fought for as a players' association. And it's really important blokes make the right decision. It's obviously a big career move, whatever decision he does make, and we're really hoping that he stays a Demon," Dunn said.
The Demons have been under the free agency spotlight this year, with key position player James Frawley out of contract and yet to make clear his intentions for next year.
Dunn said the club was supportive of Frawley leaving his call until the end of the season.
"The players don't hold it against him, he's entitled to that, that's what we fought for as a players' association. And it's really important blokes make the right decision. It's obviously a big career move, whatever decision he does make, and we're really hoping that he stays a Demon," Dunn said.
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With the departure of Mitch Clark during the season, and youngster Jesse Hogan yet to make his AFL debut, Dunn said the Demons could do with more key forwards at the club.
Dunn, who has turned himself into one of the most consistent key defenders in the competition this year, joked they could entice star Sydney Swan Lance Franklin on an even longer-term deal.
"We've struggled up forward this year…I think if we can get a couple of forwards that'd be great. Really I don't mind who we draft or get in, as long as the ball doesn't come back as much which has been the case this year," he said.
"Maybe get Tex Walker and Josh Kennedy…we'll get Buddy over, we'll give him 15 years."
The Demons are placed 17th on the ladder, and face the Brisbane Lions on Sunday at Etihad Stadium.
Melbourne has lost its past 18 games at the venue, its last win being in round 19, 2007, but Dunn is confident they can break their run at the ground.
"It's obviously been spoken a fair bit in the past, our Etihad hoodoo, but we have won games there in the NAB Cup against Richmond and Collingwood in the past," he said.
"We've won interstate this year at Adelaide Oval and we almost beat Port last week as well [interstate] and probably should've beaten them. We don't really worry about the ground, it's more about the process."
With the departure of Mitch Clark during the season, and youngster Jesse Hogan yet to make his AFL debut, Dunn said the Demons could do with more key forwards at the club.
Dunn, who has turned himself into one of the most consistent key defenders in the competition this year, joked they could entice star Sydney Swan Lance Franklin on an even longer-term deal.
"We've struggled up forward this year…I think if we can get a couple of forwards that'd be great. Really I don't mind who we draft or get in, as long as the ball doesn't come back as much which has been the case this year," he said.
"Maybe get Tex Walker and Josh Kennedy…we'll get Buddy over, we'll give him 15 years."
The Demons are placed 17th on the ladder, and face the Brisbane Lions on Sunday at Etihad Stadium.
Melbourne has lost its past 18 games at the venue, its last win being in round 19, 2007, but Dunn is confident they can break their run at the ground.
"It's obviously been spoken a fair bit in the past, our Etihad hoodoo, but we have won games there in the NAB Cup against Richmond and Collingwood in the past," he said.
"We've won interstate this year at Adelaide Oval and we almost beat Port last week as well [interstate] and probably should've beaten them. We don't really worry about the ground, it's more about the process."
