According to a governance proposal approved on January 23, decentralized exchange (DEX) SushiSwap will soon redirect 100% of the platform’s trading fees to its treasury for operations and maintenance for one year. The move came after CEO Jared Gray warned that the exchange “only had a year and a half to go in its treasury,” even after cutting annual operating expenses from $9 million to $5 million in half. of the current crypto winter.
“Treasury revenue will be in the form of 50% ETH and 50% USDC, with a projection of ~$6 million to be earned over the next year if this proposal is approved.”
In a separate proposal that was approved on the same day, 99.85% of voters chose to “recover” 10,936,284 unclaimed SUSHI tokens ($14.8 million) awarded to early liquidity providers during the DEX’s 2020 launch. The rewards were available to SushiSwap users who provided trading liquidity for the exchange from August 2020 to February 2021 and had been open for claiming for close to two years. Some users argued that “people have earned these SUSHI fairly” and should not be denied the right to these assets. Others said they support the return as “idle SUSHI that can be put to better use.” The assets will be returned to the SushiSwap treasury.
SushiSwap, the sixth largest DEX by 24-hour trading volume, has been hit hard by the cryptocurrency market crash and product-to-market issues. Last December, Cointelegraph reported that the DEX had lost $30 million in just 12 months in incentives for its liquidity providers due to “unsustainable” token issuance rates. As a result, the DEX is trying to revamp its tokenomics model.
Calling all Sushi community members
We’ve just released our new tokenomics calculators and we would love your input
Let’s continue the tokenomics dialogue and make Sushi even better together!
New Tokenomics Calculators:
https://t.co/Tji2ScDKYi—SushiSwap (@SushiSwap) January 24, 2023
Calling all members of the Sushi community
We’ve just released our new tokenomic calculators and we’d love to hear from you.
Let’s continue the tokenomy dialogue and make Sushi even better together!
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