SushiSwap made some difficult calls this week, as it navigates the ongoing bear markets.
Jared Grey was the project lead on December 5, proposed that all staking fees on the platform be redirected to the project’s treasury for a year. He added that a new tokeonomics model for the project is also “on the horizon,” suggesting quite a shake-up for SushiSwap.
Currently, users that stake their SUSHI—the project’s native governance token—get the xSUSHI token in return and also trading fees on the platform for doing so. Grey’s proposal would put an end to that, with those trading fees being redirected to the project’s treasury.
The platform charges 0.3% per trade. 0.2% goes to the liquidity provider to sustain the pool, and 0.5% to the SUSHI stakers. If passed, this proposal would divert that 0.5% back to SushiSwap’s coffers.
What is the reason for this move? Shore up the project’s treasury in these tumultuous times.
Grey said that SushiSwap currently has roughly 18 months of runway, and that this proposal is a means to “secure the future of Sushi by acting in its best interests together.”
Vote so far shows that majority of voters approve.
However, there is also vocal resistance. Stakers stand to lose a share of the funds if this bill is passed. “Depriving xSushi holders of the fees they are entitled to is a breach of primary covenant before the community,” wrote One user.
These stakers may be un-staking their money quite dramatically, despite the heated debate. Dune data shows a significant drop in SUSHI staked around the time Grey proposed it. Others have pointed to the Sushi team’s current salaries, too, which allegedly amount to over $3.8 million per year. “So, I was right,” wrote Another user. “You just want to cover your salaries.”
It’s a bold move to essentially take money from your investors, and the concern is that Sushi might be in big trouble if this proposal (or something similar) doesn’t get passed.
When asked in the forum what happens if stakers don’t funnel their funds to the treasury, Grey responded: “I think I’ve made it very clear what the purpose of this proposal is meant to accomplish: shore up Treasury to extend the runway so that Sushi continues operation.”
Are there enough Sushi lovers to convince?
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