SushiSwap head chef Jared Gray has launched a proposal to increase Treasury xSUSHI revenue from 10% to 100%.
SushiSwap is a decentralized exchange platform that generates revenue from transaction fees. Users who stake SUSHI tokens will be entitled to receive her xSUSHI and share revenue from transaction fees. xSUHSI holders will receive approximately 0.05% of transaction fees, with 10% going to Sushi’s Treasury (Kanpai).
Gray explained in his suggestion The bear market is forcing SushiSwap to rethink its revenue sharing model to avoid further liquidity crises.
Sushi’s Treasury currently has about a year and a half of runway. To extend the runway, Gray suggested allocating his 100% of Sushi’s earnings to the Treasury over the next 12 months to help Protocol rebuild the Treasury.
Here’s Gray’s suggestion:
“We propose to set Kanpai at 100% of the fees diverted to Treasury multisig for one year or until new tokenomics are implemented that will help bring Sushi’s financial resources back to competitive levels.”
To save costs, Sushi will reduce annual operating costs from about $9 million to $5 million, Gray added.
Long-term, Gray said, the protocol will adopt a new tokenomics model to address the long-term value of Sushi holders. His proposed Vote Escrow (VE) model will incentivize xSUSHI holders to lock their assets for the long term, increasing token rewards.
Loss of a sushi holder?
Of the 28 DAO members who have voted so far, about 75% support the proposal. However, some members have expressed dissatisfaction with the proposal.
“Depriving xSushi owners of their entitled fees is a breach of our primary commitment in front of the community.”
sushi holder pocket square This revenue is the reason many investors hold Sushi in a bear market, he added. Therefore, it is likely that more investors will throw away their Sushi tokens in an attempt to divert the proceeds.
SushiSwap’s native SUSHI token has fallen more than 6% in the last 24 hours, according to CryptoSlate data.