By
Chimamanda U. Martha
November 10th, 2023
In the past week, Sushi investors have seen returns of 16.48% on their investments after experiencing some bullish periods.
Sushi DAO, a Decentralized Autonomous Organisation behind the Sushiswap crypto exchange, is embarking on a legal restructuring after getting 100% votes. As part of this, the organization will create three new decentralized entities to ensure that flexibility is provided for its operation. Based on the Sushiswap restructuring proposal, there will be the creation of the DAO Foundation, Panamanian Foundation, and Panamanian Corporation serving different purposes. The Panamanian Foundation would for instance take charge of administering the existing sushi protocol. This includes “smart contracts related to the automated market maker/orderbook, Kashi, and staking.”
The DAO Foundation on the other hand would take charge of facilitating “treasury, grants and on-chain governance processes, and facilitate proposals and voting.” The last creation, the Panamanian Corporation, will operate the graphical user interface layer of the protocol.
Sushi explained the purpose of the entity structure:
“The purpose of the entity structure & framework is to provide maximum flexibility for Sushi to proceed in whichever direction the DAO or governance takes it, while also mitigating risk.”
According to reports, it will take four weeks for the process to set up the entity structure to be completed. The volatility and the risk attached to the crypto industry have forced authorities worldwide, especially the US and the European Union, to work on a framework to regulate the sector. The necessity of a legal structure was agreed upon by the participants of the discussion forum regarding the proposal. However, special caution was given to the countries selected.
“Don’t pick countries that are constantly at risk of political collapse, financial collapse, military coups, or North American bail-outs. Don’t pick countries in which you wake up one day and find presidential or royal decrees being plastered on your front door, forcing you to beat a hasty exit through the departure lounge,” said a user called Daimon.
Sushi is currently trading at $1.69 after surging by 6.59% in the last 24 hours. In the past week, Sushi investors have seen returns of 16.48% on their investments after experiencing some bullish periods. Regardless, analysts do not see a good sign as its Average Directional Index (ADX) is below 25.0 despite the uptrend being active for over two weeks now. This indicates that there is a lack of strength in the active trend.