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The Sushi legal structure
The proposal was posted on the SushiSwap forum on March 20 under "Sushi Legal Structure." It aims to add a legal layer to the current DAO for current token holders and contributors. According to the proposer and SushiSwap community member Tangle, the proposed foundation will play a key role in limiting contributor liability, thus supporting Sushi Swap's progress. Given the opportunity to mitigate risk and limit liability through legal clarity for holders and contributors, the proposal currently has a 100% approval rating for implementing the legal structure.It is estimated that one-time setup costs would be approximately $85,000 to $100,000, and ongoing costs would be $10,000. The proposal says that the first steps will be to identify the members of the foundation, establish the foundation, handle the distribution and transfer of the tokens, and draft the articles of association. The proposal also calls for the need for service providers, including DevCo Services Entity and other major contributors. Individuals residing in crypto-friendly countries are considered ideal candidates for membership in the foundation.
Why do projects create foundations?
Most foundations support blockchain development and projects, as we see with the Ethereum Foundation and the Solana Foundation. Due to the lack of regulatory clarity for DAOs, a foundation is one way to represent a central authority that can provide both financial and non-financial support without operating in a grey area. The SushiSwap community also states that it is essential that the foundation does not gain too much control over the protocol, as this could lead to centralization.It is prevalent for projects in the crypto industry to have foundations. One of the reasons for this is that companies and businesses are structured to visible operations and profits, which means they have to pay taxes. If a blockchain and cryptocurrency company is registered as a non-profit foundation, it cannot be taxed.
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