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The SushiSwap community suggests a Swiss legal structure that would limit the liabilities of the DAO

According to the proposer Tangle, the proposed foundation will be critical in reducing donor liability and propelling Sushi’s future growth.

SushiSwap (SUSHI), a community-driven suite of decentralised financial (DeFi) tools, intends to establish a legal structure that will mitigate risks for token holders and Sushi protocol participants.

Sushi’s new legal structure will be based on a Mar. 20 community-approved petition that noted the need for an association or foundation to assist with legal clarity and administrative support for SushiDAO.

According to Tangle, the proposer and a SushiSwap community member, the proposed foundation will play a critical role in limiting contributor liability and, as a result, driving Sushi’s future growth.

Considering the prospect of risk mitigation and liability limitation for holders and contributors through legal clarity, the proposal obtained a unanimous vote in favour of implementing the legal framework.

Tangle predicts that setting up the foundation will cost up to $100,000 up front and $10,000 on an ongoing basis:

“There are a number of jurisdictions in which a DAO entity can be formed, but Swiss association law is currently the most popular.”

To form the foundation, the Sushi community will follow a four-step process, which will include identifying and creating members, token distribution and transfer, as well as the foundation’s draught articles.

Additionally, the proposal calls for the establishment of service companies, which include “DevCo services entities and any other essential contributor entities.” Individuals who reside in crypto-friendly jurisdictions will be preferred candidates for membership in the foundation.

Community members added to the conversation by emphasising the necessity of clarifying the foundation’s purpose and what it owns:

“It’s an absolute necessity; it’s past time for Sushi to modernise and provide a legal shield for all donors.”


As smaller crypto communities gradually gain mainstream acceptance, foundations play a critical role in shaping the project’s future trajectory and relevancy. To weed out imitators, the Dogecoin Foundation trademarked the terms “Doge,” “Dogecoin,” and associated emblems in the European Union.

“The Dogecoin Foundation encountered various challenges as a result of the misappropriation of its name and graphics. According to ex-director Ross Nicoll, multiple parties registered trademarks for Dogecoin, and “in the summer of 2021, there was a possibility of a lawsuit against the developers from someone claiming we were accountable for their cash.”


Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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