SushiDAO approves new legal structure, establishes 3 sub-organizations
The SushiSwap DEX will delegate the responsibility of administering the DAO and its protocol to three newly established sub-organizations.
SushiDAO, the organization behind the decentralized exchange SushiSwap, approved the new legal structure with 11 million SUSHI, equivalent to 100% of votes in favor of the proposal.
From here, the SushiSwap administration is split into a DAO of voting community members and a project team that maintains the protocol. Specifically, the operating apparatus will now revolve around 3 entities: a DAO foundation based in the Cayman Islands, a foundation in Panama and a Panama corporation.
– DAO foundation: in charge of the administrative tasks of a typical DAO. Includes treasury management, governance proposal coordination and on-chain voting, as well as project funding. The DAO foundation is run by Meiji DAO, a new governance architecture being reviewed by the community.
– Panamanian entities: protocol monitoring. According to an earlier governance proposal, the Panamanian Foundation will be in charge of the SushiSwap smart contract, while the Panamanian Corporation will maintain the protocol's user interface. The proposal also states that the Panamanian Foundation will act as the parent company of the Panamanian Corporation.
Jared Gray, the new CEO of SushiSwap, said the project sought advice from the Silicon Valley law firm Fenwick & West before building this new legal structure.
Today's move by SushiSwap takes place in the context of many DAOs falling into the sights of US officials. Over a month ago, Ooki DAO was the first DAO organization to be the subject of a lawsuit from the US Commodity Futures Trading Commission (SEC).
However, SushiSwap will have 4 weeks to establish 3 new organizations. All three are responsible for entering into agreements with selected service providers, which will soon hold a vote to select these service providers.
Oct 27, 2022