Sushi DAO Consents to Adopt a New Corporate Legal Framework
The decentralized exchange project SushiSwap’s community, Sushi DAO, has approved a new legal framework to establish three new companies to supervise the DAO and the protocol.
According to the firm, at a later time and after a request for proposals, the DAO Foundation and the Panamanian Foundation and Corporation will choose service providers with whom they will engage in service agreements.
Sushi’s Proposal Garnered 11 Million Unanimous Votes
The proposal for the cryptocurrency exchange project received a unanimous yes vote from the Sushi DAO. With a total of 11 million voting tokens, participants supported the new legislative framework. Previous posts on the SushiSwap forum claimed that the new structure was a means of dividing risk across the three organizations as they each manage a separate component of the SushiSwap product stack.
Currently, the administration of SushiSwap is divided between a project team that looks after the protocol and a DAO made up of community members with voting rights. This arrangement will establish three new organizations: a Cayman Islands-based DAO foundation, a Panamanian foundation, and a Panamanian business.
What Will the Organizations Be in Charge Of?
Five months after SushiSWap 2.0 Unveiled Its Restructuring Plans, the new DAO organization will now manage the governance responsibilities typically handled by a standard DAO. These include allocating gifts to beneficiaries, managing the treasury, promoting governance ideas, and enabling on-chain voting. The Meiji DAO, a new governance structure being considered by the community, may manage the DAO foundation.
Panamanian organizations will supervise the protocol itself. An earlier plan for governance stated that the Panamanian firm would manage the front end of the protocol while the Panamanian foundation would take care of SushiSwap’s smart contracts. According to the governance plan, the Panamanian corporation will serve as the parent firm of the Panamanian business.
The Block was informed by Jared Grey, the new head chef of SushiSwap, that the initiative sought counsel from Silicon Valley legal firm Fenwick & West before developing this new framework. The action is being taken at a time when American authorities are closely monitoring DAO. Ooki DAO became the first among the DAO community to be the target of legal action brought by the U.S. Commodity Futures Trading Commission in September.
Due to the vote’s success, the SushiSwap team has four weeks to set up the three new businesses. Additionally, all three organizations will sign service contracts with particular service providers. The plan claimed that the Sushi DAO would vote to choose these service providers later.
Sushi’s Actions Stir up Responses From Customers
One customer made heavy remarks regarding Sushi’s move on the corporate legal framework. According to the consumer, that wasn’t enough information to choose from. In his opinion, going to Panama, Cayman, Switzerland, etc., is secondary to the flexibility that the DAO will have when dealing with state-level threats against DeFi goods.
In the respondent’s opinion, lawyers advising Panamanian registration don’t necessarily share the same crypto-ethos and are only formalizing a protracted, arduous decline into conformity with state-level assaults.
The client feels that any Head Chef should uphold this fundamental philosophy and allow it to guide any legal talks or decisions. He claims that we cannot, under any circumstances, forbid people from using these open-source technologies. If not, go on to Amazon AWS development, apply for a money transmitter license, and call it quits.
