<p><strong>Summary</strong><br />
Update on Sushi Legal Structure &amp; Advice from Sushi Legal</p>
<p>Sushi has engaged <a href="https://www.fenwick.com/">legal <span>183</span></a> counsel to provide advice regarding the planning &amp; execution of Sushi’s legal structure. Based on the previous discussions of Sushi organizing an entity framework for the DAO &amp; products, the purpose of this post is to serve as an updated plan, seek community dialogue, and ultimately make its way to governance for execution.</p>
<p>The purpose of the entity structure &amp; framework is to provide maximum flexibility for Sushi to proceed in whichever direction the DAO or governance takes it, while also mitigating risk.</p>
<p>Below is the advice from legal counsel regarding the creation and implementation of an entity structure and framework for Sushi.</p>
<p><strong>Sushi Legal Structure</strong></p>
<p>The following entities will initially be formed for the Sushi ecosystem:</p>
<ul>
<li>
<p>A Cayman Islands foundation (“DAO Foundation”) will be formed to administer the SushiDAO IRL. The DAO Foundation will have a governance council that has the flexibility to administer the Sushi on-chain governance process and facilitate off-chain activities.</p>
<ul>
<li>The DAO Foundation will be able to (among other things):
<ul>
<li>Administer a treasury,</li>
<li>administer grants,</li>
<li>administer on-chain governance process,</li>
<li>facilitate proposals, and</li>
<li>facilitate voting.</li>
</ul>
</li>
</ul>
</li>
<li>
<p>A Panamanian Foundation (“Panamanian Foundation”) will be formed to administer the existing Sushi protocol (including smart contracts related to the AMM/orderbook, Kashi and staking).</p>
<ul>
<li>The Panamanian Foundation will enter into a services agreement with service providers to assist with developing the protocol.</li>
</ul>
</li>
<li>
<p>A Panamanian Corporation (“Panamanian Corporation”) will be formed to operate the GUI layer (front-end) of the protocol.</p>
<ul>
<li>The Panamanian Corporation will be a wholly-owned subsidiary of the Panamanian Foundation.</li>
<li>The Panamanian Corporation will enter into a services agreement with service providers to assist with developing and maintaining the GUI layer of the protocol.</li>
</ul>
</li>
<li>
<p>The DAO Foundation and the Panamanian Foundation and Corporation will enter into service agreements with service providers which will be selected via proposal at a later date.</p>
</li>
</ul>
<p><strong>Visual</strong><br />
</p><div><a href="https://global.discourse-cdn.com/business7/uploads/sushiswapclassic/original/2X/b/b41679351636efc61828adce90f37994802ceeb4.png"><div>
<span>structure_visual</span><span>1280×720 404 KB</span>
</div></a></div><p></p>
<p><strong>Steps (total 4 weeks):</strong></p>
<ol>
<li>Formation of Panamanian Foundation and Panamanian Corporation</li>
<li>Formation of Cayman DAO Foundation</li>
</ol>
<p><strong>Alternatives considered?</strong><br />
Sushi looked into Swiss based entities. The use cases for Foundations &amp; Verein (i.e., associations) were inappropriate given the current activities of Sushi. The regulatory stance toward Sushi products was less than ideal &amp; the taxation model was not favorable to growth companies.</p>
<p><strong>Timeline?</strong><br />
This whole process to set up the entity structure summarized in this post should take 4 weeks after confirmation via governance vote.</p>
<p><strong>Poll</strong></p>
<div><div><ul><li><div><p><span>87%</span><span>Yes, let’s get this implemented.</span></p></div><div><div></div></div></li><li><div><p><span>13%</span><span>No, we shouldn’t.</span></p></div><div><div></div></div></li></ul></div><div><div><div><span>15</span><span>voters</span></div></div><ul></ul></div><div></div></div>

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