Crypto Exchange SushiSwap Approves Restructuring, Will Create 3 Firms for DAO
The development of the decentralized autonomous organization will be managed by three organizations, which will be based in Panama and the Cayman Islands.
Oct 26, 2022 at 1:47 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/UKPOSVVD4FB3JIWZW7BHBSFK2Q.jpg)
The entity that oversees the SushiSwap crypto exchange is reorganizing. (Unsplash)
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The decentralized autonomous organization (DAO) behind crypto exchange SushiSwap has approved a legal structuring by an overwhelming majority.
The Sushi DAO community passed the plan, which was proposed earlier this month, on Wednesday with 100% of the votes in favor of the proposition.
DAOs are entities with no central leadership, although SushiSwap is notable because it has a “head chef” to help run the show.
The proposal came after increased scrutiny over DAOs with the Commodity Futures Trading Commission suing Ooki DAO for alleged violations of U.S. investment laws. Crypto advocates have also come out in support of Ooki DAO.
A Cayman Island-registered foundation will be formed to look over the DAO and in turn the exchange. The foundation will be responsible for maintaining treasury reserves, approving grants and looking after other administrative functions.
A Panama-based foundation will be created to develop the existing Sushi protocol, and another Panama-based firm, which would be a subsidiary of the foundation, will also be created to develop the front end of the platform.
SushiSwap took advise from law firm Fenwick & West LLP to divide itself it into three legal entities based in Panama and the Cayman Islands.
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Parikshit Mishra is CoinDesk's Deputy Managing Editor responsible for breaking news coverage. He does not have any crypto holdings.