SushiSwap wants to bring about a legal structure in an effort to mitigate risks for token holders and members of its Sushi protocol. The legal structure will be based on a community-approved proposal that highlighted the need for a foundation to provide legal clarity and administrative support for SushiDAO.
The foundation, as per the proposal, will provide legal clarity regarding the rights and obligations of token holders and contributors. It will limit the liability of token holders and contributors and create an apparatus to see the administrative issues for SushiDAO.
A community member Tangle highlighted that a number of jurisdictions are under consideration for forming a DAO entity. It outlined Switzerland as in the lead – due to its favorable Swiss Association law. Experts say a foundation would introduce an official legal element that may involve some form of centralization. A one-time setup could cost around $85,000 – $100,000, with recurring costs of $10,000.
Its initial steps would be to determine and establish foundation members. It would then see token distribution and transfer, and draft articles of the association. Pegbit, a community member, said Sushi is at the crossroads. The path it takes will determine whether or not it becomes a top-tier project. A fellow member believes Sushi cannot afford to compromise its core crypto ethos in order to appease the ever-increasing global regulatory demands.
Community members feel that its important to define the foundation’s use. They said Sushi needs to update itself and have a legal shield ready for all contributors.