Categories: FintTech

SushiSwap Votes In Favor Of Landmark Restructuring Proposal

  • The SushiSwap DAO has voted in favor of a key restructuring proposal.
  • Increasing scrutiny of DAOs by market regulators likely contributed to this move.
  • The proposal will form three new entities which will be responsible for the management and development of the DAO.
  • The Sushi community voted overwhelmingly in favor of the proposal with virtually no opposition.

Decentralized exchange (DEX) SushiSwap is set to undergo a major legal restructuring after its decentralized autonomous organization (DAO) approved a landmark proposal with overwhelming support. 

The purpose of the entity structure & framework is to provide maximum flexibility for Sushi to proceed in whichever direction the DAO or governance takes it, while also mitigating risk.” the proposal read.

The restructuring was proposed on 23 September at SushiSwap’s governance forum. The increased scrutiny of DAOs by regulators, including the Commodities Futures Trading Commission (CFTC), likely contributed to the proposal. Fellow DeFi platform Ooki DAO was sued by the CFTC on 22 September for allegedly violating U.S investment laws.  

SushiSwap to be overseen by 3 new entities

The vote saw 100% of the community members in favor of the legal restructuring. As per the proposal, three new entities will be created, with each one catering to different elements of the SushiSwap DAO.

The first entity, which will be known as the DAO Foundation, will be set up in the Cayman Islands. This entity will have a governance council which will oversee Sushi DAO’s administration. This will include oversight of all matters related to the treasury, grants, proposals, and voting, among other things. 

The second entity will be set up in Panama and be known as the Panamanian Foundation. This entity will focus on the existing Sushi protocol and oversee all matters related to smart contracts, staking, Kashi, etc. 

The third entity will also be set up in Panama as a wholly-owned subsidiary of the Panamanian Foundation. This entity will be known as the Panamanian Corporation and it will be responsible for the development of the GUI layer or the front end of the protocol. 

SushiSwap Governance Forum

Another proposal will be brought forward soon, which will select service providers for the protocol. All the entities will enter into service agreements with the selected service providers. 

SushiSwap has estimated that the restructuring process will complete by the end of November 2022. The DAO had looked into other alternatives while weighing their options, including Swiss-based entities, but ruled them out due to unfavorable taxation and regulatory policies for Sushi products. 

Ryan Helton

A Stock enthusiast since childhood, Ryan is known for his impeccable knowledge in the technology and gadgets niche. He has been working with eTrendy Stock as a contributor for most stock category and his articles are always well-researched and accurate.

Share
Published by
Ryan Helton

Recent Posts

Unlock Passive Income Opportunities with ION Cloud Mining and Cryptocurrency

Scotland, UK, 30th December 2024, ZEX PR WIRE, ION Mining, a leading provider of cloud mining…

3 hours ago

ION Mining Introduces Profitable Cloud Mining Opportunities for Cryptocurrency Enthusiasts

Scotland, UK, 30th December 2024, ZEX PR WIRE, ION Mining, a leading provider of cloud…

3 hours ago

MemeHain Announces Token Airdrop with Plans to Launch

Berlin, Germany, Dec 30, 2024, ZEX PR WIRE, MemeHain is happy to share the exciting…

3 hours ago

Boost Lottery Set to Introduce Global Digital Lottery with Upcoming 2025 TGE

Road Town, Tortola, BVI, Dec 30, 2024, ZEX PR WIRE, The team from the Boost…

3 hours ago

Solana and Base See Massive Stablecoin Inflows Amid Market Slowdown

Two of the leading smart contract networks, Solana and Coinbase’s Layer-2 scaling solution Base, have…

4 hours ago

Australia Ranks Third in Bitcoin ATM Count Globally

Bitcoin ATMs in Australia have steadily increased for over two years, placing the country near…

16 hours ago