Sushi DAO’s DAO governance and protocol administration will be divided among three new entities.
Sushi DAO, the community in charge of the decentralized exchange (DEX) project SushiSwap, has approved a new legal structure that will establish three new corporations to operate the DAO and the protocol.
SushiSwap’s management is now split between a DAO comprised of community members with voting rights and a project team that maintains the protocol.
This new arrangement will result in the formation of three new entities: a Cayman Island-based DAO foundation, a Panamanian foundation, and a Panamanian business.
The Sushi DAO approved the plan unanimously. Participants supported the new legal structure with a total of 11 million voting tokens.
Previous SushiSwap forum postings said that the new structure was implemented to compartmentalize risk across the three organizations because they manage various components of the SushiSwap product stack.
SushiSwap’s new DAO foundation will supervise the governance functions typically performed by a DAO. These tasks include managing the treasury, facilitating governance proposals, supporting on-chain voting, and providing grants to recipients.
Meiji DAO, a new governance architecture under development by the community, may end up running the DAO foundation.
The protocol will be overseen by Panamanian companies. According to an earlier governance plan, the Panamanian foundation will be in charge of SushiSwap’s smart contracts, while the Panamanian firm will be in charge of the protocol’s front end.
According to the governance proposal, the Panamanian foundation will serve as the parent company of the Panamanian corporation.