SushiSwap establishes three DAOs in Panama and Cayman as part of corporate restructuring

Sushi DAO, the decentralized autonomous organization behind crypto exchange SushiSwap, approved a legal reorganization on Oct. 26 that creates three new decentralized entities to make its operations more flexible.

The proposal, which received 100% of the votes, calls for the establishment of the DAO Foundation, the Panamanian Foundation and the Panamanian Corporation, each serving different purposes.

Among other things, the DAO Foundation will be able to manage funding, grants, and on-chain governance processes, facilitating proposals and voting. The Panamanian foundation will manage the existing Sushi protocol (including smart contracts related to the automated market maker/orderbook, kashi and staking). Eventually, the Panamanian Corporation will operate the graphical user interface layer (or front end) of the protocol.

According to the discussion of the proposal, the entity structure setup process is expected to take four weeks. According to Sushi, the “purpose of the entity structure and framework is to provide Sushi with maximum flexibility to move in the direction that the DAO or governance is taking, while mitigating risk.”

The move comes as regulators in the United States and European Union continue to work on frameworks to regulate digital assets. The participants of the discussion forum agreed that a legal structure was necessary, but questioned the countries and the chosen model. As stated in a long line of comments by a user named Daimon:

“Do not select countries that are constantly at risk of political collapse, financial collapse, military coup, or North American bailout door, forcing you to force a hasty exit through the departure lounge.”

On Oct. 13, John Hickenlooper, a U.S. Senator representing Colorado, authored a letter to Gary Gensler urging the Securities and Exchange Commission (SEC) Chair to establish “clear rules” for the crypto market, including identification of eligible cryptocurrency securities, establishing registration policies for trading platforms and “determining what disclosures are required to ensure investors are properly informed”.

The SEC enhanced its ability to process specialized issuer filings by adding an Office of Crypto Assets in September, dedicated solely to cryptocurrency asset applications and services.