Sushi DAO’s New Legal Structure Will Split Sushi Into Three New Entities
Sushi DAO, the community in charge of the decentralized exchange project SushiSwap, has approved a new legal structure that will establish three new corporations to operate the DAO and the protocol.
SushiSwap’s management is now split between a DAO comprised of community members with voting rights and a project team maintaining the protocol. This new structure will result in the formation of three new entities: a Cayman Island-based DAO Foundation, a Panamanian Foundation, and a Panamanian Corporation.
The Sushi DAO approved the idea unanimously. Participants supported the new legal framework with 11 million voting tokens. Previous SushiSwap forum postings said that the new structure was implemented to compartmentalize risk across the three organizations because they manage various components of the SushiSwap product stack.
SushiSwap’s new DAO foundation will supervise the governance functions typically performed by a DAO. These tasks include managing the treasury, facilitating governance proposals, supporting on-chain voting, and providing funds to beneficiaries. Meiji DAO, a new governance architecture under development by the community, may end up running the DAO foundation.
After the voting, the SushiSwap team will have four weeks to form the three new organizations. In addition, the three businesses will enter into service agreements with various service providers. The Sushi DAO will vote on these service providers later, according to the plan.
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