The community-led collection of decentralized finance tools, SushiSwap (SUSHI) has announced its plans on implementing a legal structure for minimizing risks for token holders and members of the Sushi protocol.
On March 20, the projects brought a community-approved new legal structure proposal, which cites the requirement for an association or foundation to help offer better legal clarifications and administrative support for SushiDAO.
Proposal: Sushi Legal Structure
To form an association or a foundation for Sushi DAO in order to provide clarity regarding the rights and obligations of token holders and contributors and limit their liability and mitigate the future risk.$SUSHI 🍣https://t.co/SHpKcpvjqP
— RSK (@0x_RSK) March 20, 2022
Tangle, a SushiSwap community member and proposer said that the intended foundation will play an important role in limiting for contributors and would lead to Sushi’s future growth.
The proposal received a 100% vote for integration of the legal structure, based on the chance of risk reduction and liability limitation for holders and contributors through legal clarity. Tangle believes that the project would require an upfront expense of $100,000 and a recurring cost of $10,000 for setting up the foundation:
“There are several jurisdictions which can be contemplated for forming a DAO entity, but Swiss Association law is currently the leading solution.”
Structured planning by SushiSwap
The SushiSwap community will use a four-step procedure to form the foundation, which includes determining and creating members, token distribution and transfer, and the foundation’s drafting articles.
Service entities, such as the “DevCo services entity and any other core contributor entities,” are also mentioned in the proposal. Individuals that live in cryptocurrency-friendly jurisdictions will be regarded as ideal members of the foundation.
As smaller crypto communities become more popular, foundations play an increasingly important role in determining the project’s future roadmap and relevancy. The Dogecoin Foundation registered “Doge,” “Dogecoin,” and its associated logos as trademarks in the European Union in an attempt to weed out imitators.
It's a small victory that seems so very irrelevant given all that's currently happening in the world, but it's an important step.
— Dogecoin Foundation (@DogecoinFdn) March 2, 2022
SushiSwap faced a downtrend several times last year, as we reported.
The Dogecoin Foundation has had multiple concerns with the usage of its name and imagery. Notably, as TheCoinRise reported, Vitalik Buterin also joined the Dogecoin Foundation for the creation of “community staking” in December last year.