The lead developer of SushiSwap has launched a proposal to extend Sushi’s rink beyond the next 1.5 years. Accordingly, he proposed that 100% of Sushi’s revenue be allocated to the Treasury for the next 12 months. There are those who support the proposal as well as those who oppose it. Meanwhile, the market did not like this news very much. Because, after the news, the altcoin price went down.
Jared Gray comes up with a new offer, altcoin price drops
SushiSwap head chef Jared Gray has launched a proposal to increase Treasury’s xSUSHI revenue from 10% to 100%. SushiSwap is a decentralized exchange platform that generates revenue from trading fees. Users who stake SUSHI tokens receive xSUSHI, which grants revenue sharing rights from trading fees. xSUHSI holders receive approximately 0.05% of the transaction fees, while 10% goes to the Sushi Treasury (Kanpai).
In his proposal, Jared Gray explained that the bear market has forced SushiSwap to rethink its revenue-sharing model to avoid further liquidity crises. cryptocoin.com As you follow, Sushi Treasure has had a track for about 1.5 years now. To expand his runway, Gray wants to rebuild the treasury of protocol. To help with this, he proposes that 100% of Sushi’s revenue be allocated to the Treasury over the next 12 months. Here’s Gray’s quote:
I recommend that 100% of Kanpai’s fees go to the Treasury multisig, helping to return Sushi’s finances to a competitive level for a year or until new tokens are introduced.
Also, Gray plans to have Sushi’s cost savings. For this, he says he will reduce the annual operating cost from about $9 million to $5 million. Over the long term, Gray notes that the protocol will adopt a new tokenomic model that will address long-term value for Sushi holders. The proposed Vote Escrow (VE) model will encourage xSUSHI holders to lock their holdings longer and increase token rewards. Meanwhile, the altcoin price has fallen by nearly 9% in the last 24 hours due to the news.
What does it mean for SUSHI holders?
According to SushiSwap core developer Matthew Lilley, the current build will be reinstated after a year. He also agrees with Gray’s suggestion that this will only be a temporary fix. In this context, Lilley says:
The timeline is 12 months. If nothing changes after 12 months, we will default back to the original model. It is also possible to terminate early if the tokenomic refresh is completed earlier. I hope this happens.
About 75% of the 28 DAO members who voted so far supported the proposal. However, some members expressed their dissatisfaction with the proposal. Member Graine commented:
Depriving xSushi owners of the wages they deserve is a breach of primary contract with the community.
SUSHI holder Pocketsquare noted that the income is a valid reason for many investors to hold SUSHI in a bear market. Therefore, he stated that any move to divert revenue will cause more investors to abandon SUSHI.
