SushiDAO, a community behind decentralized tools ‘Sushiswap’ proposed to form a legal body for a community to mitigate risk factors for token holders and members of Sushi protocol.
The voting for the proposal was performed on 20th March. The need for legal infrastructure is to provide legal clarity and administrative support for SushiDAO.
One of the members of DAO who prepared this proposal, Tangle, disclosed that the legal body will play a crucial role in limiting the liability for contributors, which help to grow Sushi in a beneficial manner.
The proposal successfully passed through 100% voting as it could possibly reduce risk and liability limitations through legal terms for holders and investors.
Tangle has also attached an estimated budget of up to $100,000 and a recurring cost of $10,000 that would be used to create legal infrastructure.
“There are several jurisdictions which can be contemplated for forming a DAO entity, but Swiss Association law is currently the leading solution.”
To set up an efficient legal body, the community will go through a four-step process that includes determining and establishing the members, token distribution, and transfer along with the draft articles of the foundation.
Furthermore, the proposal also defines outlines for the need for service entities including “DevCo services entity and any other core contributor entities.” Individuals who are in crypto-friendly jurisdictions will be considered as ideal candidates for being a member of the foundation.
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