SushiSwap proposes creating a legal structure to reduce risks.

Community members of SushiSwap were invited to vote on creating a nonprofit organization. Its aim is to provide legal clarity and reduce risks for token holders and developers.

The SushiSwap community initiated the proposal \”Sushi Legal Structure\”, planning to establish an association or foundation to reduce future risks. SushiDAO will provide legal clarity regarding the rights and obligations of token holders and contributors. https://t.co/J5oycLKhBH

— Wu Blockchain (@WuBlockchain) March 21, 2022

The structure would also enable the creation of an organ to handle administrative matters within SushiDAO.

The advocate of the initiative, known by the nickname Tangle, proposed Switzerland as the country of registration for the organization.

According to his estimates, implementation would entail one-off costs of $85,000-$100,000 and ongoing expenses of $10,000. The amount covers legal services, deal structuring, registration, and launch.

If approved, the participants of the organization would need to be identified, tokens distributed among them, and a draft charter developed.

To create additional advisory bodies, it will be necessary to draft agreements outlining their interactions with the nonprofit organization.

At the time of writing, 32 community members had voted. All supported the proposal.

A user going by the nickname pegbit noted that creating a nonprofit organization would keep SushiSwap on the right track while limiting liability for its participants. As noted by user GoldenNaim, US residents face increasing difficulties participating meaningfully in the project’s development.

In December, SushiSwap left the CTO Joseph Delong amid disagreements within the team.

The conflict arose after the unexpected departure of the project leader known as 0xMaki, possibly at Delong’s instigation. He, along with some other developers, aired the disagreements in public.

Earlier, the Bank for International Settlements called the decentralization of DeFi protocols an illusion. Experts expressed confidence that there will be cases where projects will require restructuring or assessment.

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