Sushi DAO has unanimously approved a proposal to set up three legal entities in Cayman Island and Panama to manage the affairs of the protocol.
Development activities in SushiSwap are managed by its community DAO and the project team. However, the new approval will see three legal entities emerge to run the protocol.
Sushi’s new legal structure will include a Cayman Island-based DAO foundation, a Panamanian foundation, and a Panamanian corporation. The purpose of the legal structure is to provide flexibility and mitigate legal risks that may evolve in the future.
The Cayman Island foundation will have a governance council that administers the operations of Sushi. It will be responsible for issues related to distributing grants, administering the treasury, facilitating proposals, and on-chain voting.
The Panamanian Foundation will manage protocol development services related to Sushi’s smart contract, while the Panamian Corporation will oversee the development of Sushiswap’s frontend layer.
The three legal entities will enter into service agreements with service providers that will help develop the protocol.
Following the approval, the SushiSwap team has four weeks to establish the three new entities.
A new dawn for Sushi
Recent developments in the Sushi ecosystem indicate that the protocol is actively building despite the crypto winter.
At the start of October, the SushiDAO appointed blockchain consultant and former EONS CEO Jared Grey as the new Sushi Head Chief. Upon arrival, Grey donated about $250,000 to help the ecosystem’s growth.
Private asset management firm GoldenTree identified Sushi as a DeFi product with long-term potential leading to a $5.3 million investment.
“Sushi is what DeFi is all about: iterating and innovating, without artificial barriers to competition,” GoldenTree said.