The SushiSwap community initiated the proposal “Sushi Legal Structure”, planning to establish an association or foundation to reduce future risks. SushiDAO will provide legal clarity regarding the rights and obligations of token holders and contributors.
Overview
SushiDAO should form an association or foundation in order to mitigate future risks. In doing so, the SushiDAO will provide legal clarity regarding the rights and obligations of token holders and contributors, limit the liability of token holders and contributors, and create an apparatus to manage administrative issues for SushiDAO. In addition, various services entities can be created for contributors to the Sushi Protocol.
There are several jurisdictions that can be contemplated for forming a DAO entity, but Swiss Association law is currently the leading solution.
Budget
They estimate a one-time set up cost of US $85,000 – $100,000 and a recurring cost of $10,000.
- General Counsel and Structuring: $40,000
- Swiss Foundation Set Up: $25,000
- Development Company Set Up: $2,000 – $13,000 per entity (depending on jurisdiction)
Steps for Foundation
- Determine foundation members
- Establish members
- Token Distribution & Transfer
- Draft Articles of Association
Steps for Service Entities
- Form DevCo services entity and any other core contributor entities
- Draft any Service Level Agreements between service entities and association
“As we will need members to form the foundation, it would be optimal to have individuals who are in crypto-friendly jurisdictions. Nominations or suggestions can be addressed in this Forum post,” they said.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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