SushiSwap To Found Three DAOs As It Restructures

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DeFi
SushiSwap To Found Three DAOs As It Restructures

The founders of SushiSwap have signed up for organizational remodeling. Hence, they will establish three new Decentralized Autonomous Organizations (DAOs) as they upgrade. 

SushiSwap To Undergo Organizational Revamp

Earlier this month, Sushi DAO submitted a proposal requesting organizational restructuring. Every member of the community supported the decision with one hundred percent votes. So it was the community that proposed the action in the first place.

Decentralized Autonomous Organizations are entities with no central authority. Hence, decisions are made by the members of the organization via voting. For example, SushiSwap is a Decentralized Autonomous Organization.

Meanwhile, the firm has a head chief who manages the organization’s affairs. 

The Commodity Futures Trading Exchange Commission sued Ooki DAO after scrutinizing the company. As a result, the organization got charged with breaching the United States’ investment regulations. 

On the bright side, several crypto entities have extended support for Ooki.

Following the Ooki DAO case, the SushiSwap community passed the remodeling proposal. The community will form a Cayman island registered foundation. This group will oversee the activities of the DAO

The activities in the talk include approving grants, and managing treasury reserves, among other management obligations. Afterward, it will establish another foundation situated in Panama. 

Its job will be to grow the subsisting Sushi blockchain. In addition, it will build an offshoot company also in Panama to oversee the firm’s frontend activities.

Sushi DAO got the idea to split from Fenwick and West LLP, a law practicing firm. The legal practitioner advised the platform to occupy the locations it plans to settle. Doing so will deplete the risks faced by DAOs for Sushi.

Meanwhile, Sushi demonstrated a high level of decentralization than Ooki, given the rate of support the former had from its community. For the past six months, 1,800 Sushi wallets had voted to approve the proposal, unlike the 9 in Ooki.

Jared Grey, the newly appointed SushiSwap head, commented on the DAO issue on discord. Jared stated that referring to an organization as a DAO is wrong because the members vote on governance. He added that Sushi is currently not registered and requires legal backing instantly.

With Fenwick’s suggestion, the firm can experience a new structural dawn. Under the leadership of 0xMaki, Sushi DAO was a muddled-up firm faced with legal challenges. Further, Neil Bahsin acknowledged this unique effect as a turning point for Sushi.

Neil shared on Telegram that he would love to see the firm take a civilized legal route. As expected, the old Sushi would ignore regulatory guidelines, but hopefully, the new one won’t. 

Ooki DAO’s legal issue triggered Sushi’s legal restructuring within months. The unexpected Ooki case spurred core community members to act on procuring legal protection for Sushi.

Bhasin warned that achieving this legal milestone would demand time. However, the estimated time of realization should fall within one month, as long as the community stays with it. 

Several varying calls have come from members, with some demanding quick action. Meanwhile, others request a duly assessment of the situation for possible outcomes. Some were worried about disheveling the ethical arrangement of the crypto space through uncouth decentralized oversight. 

A similar controversy spread across the decentralized finance industry. Bhasin further stated that it is nearly impossible to become entirely degen. 

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.