- SushiSwap will establish physical entities in Panama
- They aim to avoid future legal concerns
SushiSwap and other decentralized autonomous organizations (DAOs) are preparing to enhance their legal frameworks in response to regulators’ growing interest in cryptocurrencies in order to avoid costly fines or lawsuits.
Sushiswap, a yield farming-capable decentralized exchange (DEX), made the decision on October 26 to establish three legal entities in the Cayman Islands and Panama.
The statement from Sushiswap says that they have already hired legal counsel to help them plan and implement the legal structure of SushiDAO and organize the legal framework for the company and its products.
What methods will each foundation employ?
In order to make it easier for off-chain activities, the Cayman Islands Foundation (DAO Foundation) will manage SushiDAO IRL through a governance board that will have the flexibility to manage the governance process on the Sushi blockchain.
The new Foundation will also be in charge of other important things like managing the treasury, giving grants, managing the on-chain governance process, and making proposals and voting easier.
In addition to assisting service providers, the “Panama Foundation” manages the current protocol, which includes AMM/order book, Kashi, and staking-related contracts.
Finally, the GUI layer (Front-end) operations of the protocol will be managed by a new company called “Panamanian Corporation.”
As a wholly-owned subsidiary of the Panamanian Foundation, this company will assist service providers in developing and maintaining the protocol’s GUI layer.
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The SushiSwap Community Reacts
Despite the fact that the proposal has already been approved and the SushiSwap team is working on putting it into action, the scope of the changes has sparked a lot of debate among fans of the protocol.
Some users have wondered if the protocol is making the right choice in establishing its domicile between the Cayman Islands and Panama, as they must be ready to comply with its regulatory framework whenever problems arise.
In his opinion, any Head Chef must embody this fundamental ethos and allow that to guide any legal discussions or outcomes. They cannot, in any way, prevent any individual from making use of these open-source tools. If not, all you have to do is build on Amazon AWS, get a money transmitter license, and call it a day.
Nickjrishwain, on the other hand, suggested that the proposal was, by its very nature, Even though having a legal structure seems like a good idea, it could have an effect on how the protocol works in the long run.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/10/30/sushiswap-to-create-legal-entities-in-panama/