- SushiSwap recently voted in favor of a proposal to divert exchange trading fees to its Treasury.
- A second proposal to claw back millions of SUSHI tokens vesting in the Merkle Tree was also approved.
- A new tokenomics model has been proposed by SushiSwap’s CEO.
SushiSwap recently approved two key proposals that were submitted to its governance forum last month. The proposals seek to strengthen the decentralized exchange’s (DEX) Treasury, which took a hit after the downturn in the crypto market last year.
Jared Grey, SushiSwap’s CEO also known as the “head chef,” proposed last year that the payout from the DEX to the Treasury be increased from 10% to 100%. This proposal saw some resistance from the community initially but was ultimately approved in the interest of the Treasury. The approval will ensure that all the trading fees are allocated to the Treasury.
The community also voted in favor of a proposal that sought to claw back outstanding SUSHI tokens vesting in the Merkle Tree. According to the proposal, 10.9 million SUSHI tokens are currently sitting in the Merkle Distributor. At the time of writing, the tokens were worth $13.7 million.
Furthermore, these proposals are a part of SushiSwap’s efforts to revamp its finances and boost its Treasury as the DEX navigates the ongoing crypto winter. Both the measures will bring revenue into the Treasury, something that Head Chef Jared Grey has stressed since last year.
Grey’s initial proposal to divert trading fees to the DEX’s Treasury revealed some crucial metrics about SushiSwap’s finances. Despite bringing down the annual operational expenses from $9 million to $5 million, the Treasury only held enough runway for 1.5 years as of December 2022.
Grey previously pointed out that diverting fees would be a temporary solution to a long-term problem. To that end, a new tokenomics model was revealed by him yesterday. Grey stated that Sushi must implement a holistic token model that allows the rebuilding of the Treasury. Moreover, Grey also mentioned that Sushi delivers value for all stakeholders while reducing the fiscal liability carried solely by the protocol.
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