SushiDAO Seeks Shelter in Cayman Islands, Panama

The new legal structure will include the Cayman Islands DAO Foundation, the Panamanian Foundation and the Panamanian Corporation

article-image

Source: DALL·E

share

key takeaways

  • The implementation of the new legal structure received unanimous support from community members
  • DAO members cast 11 million voting tokens in favor of the proposal

SushiDAO, the governing body of decentralized cryptocurrency exchange SushiSwap, is implementing a new legal structure after receiving unanimous support from community members.

Sushi’s current administrative structure includes a DAO of community members with voting privileges, alongside an execution team that manages smart contracts and the front end of the protocol.

The new legal structure will split Sushi into three new entities: a Cayman Islands DAO Foundation, a Panamanian Foundation and a Panamanian Corporation.

The Cayman Island Foundation will oversee all administrative aspects of the DAO, including treasury, grants and on-chain governance management. It will also facilitate proposals and voting, and enter into agreements with service providers as part of the grant-making process.

Smart contracts related to Kashi — the exchange’s lending and margin trading platform and automated market maker — will be handled by the Panamanian Foundation, as well as staking.

The Panamanian Corporation, which will be a wholly owned subsidiary of the Panamanian Foundation, will manage and assist with developing and maintaining the web-facing apps that make Sushi’s protocol accessible to the public.

According to proposals, Sushi also looked into setting up governance in Switzerland but determined that it was inappropriate as the regulatory and taxation model was “not favorable to growth companies.”

SushiDAO opts to avoid “flawed” DAO legislation in Wyoming

Panama is an attractive place to incorporate due to its free economic zones, non-existent income and tax withholdings and physical proximity to the United States.

But Neil Bhasin, a community member of SushiDAO, said Panama was chosen to host its protocol governance as “Panamanian foundations are non-commercial in nature and do not have beneficial owners.” 

Further, Bhasin highlighted that “the corporate formation process results in two entities that can separately house the protocol and GUI [graphical user interface] layers, which reduces the need to form additional entities.” 

It is interesting to note that Wyoming, a US state which has catered to DAO LLCs, was not considered an appropriate home.

According to Bhasin, this was because “the Wyoming DAO legislation is widely accepted by those in the industry, including myself, as being flawed.” 

“It’s also untested in the courts. We’re meant to be offering protection to devs and ops [developers and operations] folks, not exposing them to experimental, untested, poorly drafted legislation,” he said.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report cover graphics (1).jpg

Research

Wormhole is a suite of open-source, permissionless protocols used to move assets and queries across blockchains.  Despite being a common misconception, Wormhole is not just a token bridge. Nevertheless, protocols can build token bridges on top of Wormhole by leveraging the cross-chain messaging provided.

article-image

Ether is a commodity just up until the point it is not, or, ether is not a commodity just up until the point it is — whichever you prefer

article-image

The bull-market conference was filled with good feelings but little clarity on where the crypto industry is headed next

article-image

The Friday ruling was issued as a default judgment because Sameer Ramani “appears to have fled the country”

article-image

Bitcoin’s previous record high against the Euro was set in September 2021

article-image

As bitcoin ETFs grow larger and more liquid, due diligence teams at wirehouses and other investment firms are more likely to clear them, Bitwise researcher says

article-image

Sponsored

The TRON DAO team attended ETH Denver, one of the leading events in the blockchain space