Sushiswap establishes DAOs in Panama and the Cayman Islands

Sushiswap undergoing restructuring – Born from a fork of Uniswap, sushiswap is one of the most influential decentralized exchange platforms in the ecosystem. Deployed across a dozen blockchains, Sushiswap has fully embraced the multi-chain aspect of Challenge. From now on, the platform is carrying out a restructuring plan at various levels.

Sushiswap undergoing restructuring

Launched in 2020, sushiswap has become an essential DeFi platform. Thus, it generates a daily volume of nearly 40 million dollars.

Last September, the platform announced a major development with the deployment of thehas v2 of its interface. At the same time, the exchange is carrying out restructuring on several levels.

Thus, last October, the new leader of Sushiswap has been elected in the person of Jared Gray. His mission is to define the objectives and “lead Sushi towards its next chapter”. This election was unfortunately followed by a equestrian scandalto say the least surprising.

At the same time, the community proposed a modification of the mechanics relating to the SUSHI token. The objective being to grant him more importance in the ecosystem as well as to clean up and decentralize governance. The debates follow their course on the governance forum of the protocol.

In addition, version 2 of the protocol’s smart contracts is also in preparation.

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Sushiswap DAO restructuring

On September 22, Neil Bhasinone of Sushiswap’s compensation committee members, has opened the debate concerning the DAO of the protocol. Thus, in its publication on the governance forum, it offers several lines of thought regarding the creation of legal entities for the DAO.

“Sushi has engaged legal counsel to provide advice regarding the planning and execution of Sushi’s legal structure. […] The purpose of the entity structure and framework is to provide maximum flexibility for Sushi to go in any direction of the DAO or governance, while mitigating risk. »

Finally, after a month of debate, the proposal has been voted on through the governance module.

Thus, the discussions led to the proposal to create three entities. One being based in the Cayman Islands and two in Panama.

The entity based in the Cayman Islands, called DAO Foundation, will aim to administer Sushiswap’s DAO.

“The DAO Foundation will have a governance board that will have the flexibility to administer Sushi on-chain’s governance process and facilitate off-chain activities. »

One of the entities based in Panama, called the Panamanian Foundation, will be responsible for administering the protocol, namely the smart contracts.

“The Panamanian Foundation will enter into a service agreement with service providers to help develop the protocol. »

Finally, the second entity based in Panama, called Panamian Corporation, will take care of the development of the Sushiswap user interface.

“The Panimian Corporation will enter into a service agreement with service providers to assist in the development and maintenance of the UI layer of the protocol. »

A vote without appeal

After a week of voting, the proposal passed with flying colors. This received almost 100% of votes in favor.

Result of the vote regarding the creation of entities for the Sushiswap DAO.
Result of the vote regarding the creation of entities for the Sushiswap DAO.

It should be noted, however, that this decision was largely influenced by two whales. Indeed, the two biggest voters together represent 90% of the voting power deployed. These voters used 5.9 and 4.1 million SUSHI tokens respectively for the vote.

This still demonstrates a cruel lack of decentralization in the governance of the protocol. A situation of centralization which is not so surprising. Indeed, last June the company Chainalysis unveiled an edifying study on the centralization of DAOs.

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Sushiswap establishes DAOs in Panama and the Cayman Islands

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