SushiSwap, a decentralized exchange, has received approval to potentially adopt a more centralized business structure, despite controversy surrounding this decision.
Based on the results of a vote held on April 10, over 62% of the voters favored the proposal for the exchange to adopt a model referred to as the ‘labs model.’
On March 26, SushiSwap put forth a proposal for the creation of Sushi Labs. This suggestion sparked considerable discussion among the platform’s user base. Essentially, SushiSwap aims to set up Sushi Labs as an independent entity responsible for overseeing the administrative, technical, and operational aspects of the Sushi ecosystem.
The power to determine how the treasury funds are distributed remains with the tokenholders. However, they won’t need to delve into the specifics of operations. Sushi Labs is entitled to 25 million SUSHI tokens, which equate to approximately $39 million based on current market prices. Furthermore, Sushi Labs is the sole beneficiary of any future airdrops originating from associated protocols and partnerships.
“We request that Sushi DAO award a grant of 25 million Sushi tokens to Sushi Labs, including assets from the Arbitrum airdrop, business development, and partner grants, Kanpai 2.0, Sushi 2.0, rewards, stablecoins, and ‘Sushi House’ funds.”
By April 17, Sushi’s community members will have the opportunity to cast their votes on the proposed implementation. With almost 7 million tokens expressing their support, this plan currently enjoys a robust approval rating of approximately 92%.
A “signal vote” is a preliminary expression of the community’s sentiment or preference regarding a proposal, without any actual modifications being made yet. In contrast, an “implementation vote” comes next, allowing the community to decide whether they want to put the proposal into action.
Sushi’ community reacts
During the discourse at Sushi’s governing body, some community participants spoke out against the suggested scheme. They raised worries about the fiscal soundness of the Treasury and accused potential manipulation of voting authority.
“In my opinion, a significant portion of all earnings, including airdrops, should be channeled directly into the DAO treasury. This would not affect hiring, firing, or other functions. The treasury should not be overlooked. Instead, I propose an allocation of revenues for both the treasury and operational expenses.”
In simple terms, Naïm Boubziz from the SushiSwap community argued on X (previously Twitter) that the team’s actions were a hostile takeover. He believed that before the vote, the core development group made new wallets to boost their voting influence.
“Another forum participant expressed the view that the journey of Sushi DAO may be coming to a close,” or “According to a comment made in the governance forum, it seems that Sushi DAO is nearing its end.”
In response to accusations of manipulation, Jared Grey, the leading sushi chef at Sushi, spoke out. He revealed that after seeking advice from our lawyers, he instructed the team in charge of operations to carry out the YAY vote using the OPs wallet and its assets. This move was taken due to the potential for a hostile takeover. Furthermore, Grey expressed optimism that Sushi’s Labs model would aid in regaining lost market share.
“Much of the current product development roadmap’s limitations and delays stem from the DAO’s outsized ambition, unrealistic expectations, and budget constraints endorsed through snapshot votes from when Sushi’s resources were multitudes greater.”
SushiSwap’s earnings have taken a downturn since the beginning of 2022, even amidst the ongoing cryptocurrency market uptrend. As per DefiLlama’s statistics, the decentralized exchange raked in $11.65 million in fees and made $1.5 million in revenue in March 2023. In contrast, it only managed to earn $3.5 million in fees and a meager $531,640 in revenue the previous month.
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2024-04-10 20:56