SushiSwap Treasury Overhaul Proposal Stirs Controversy Amid Voting Process
Summary:
Despite public outcry, SushiSwap's team is set to implement a contentious proposal to change its treasury. The proposal aims for a Labs model which will grant Sushi Labs the control over the assets worth $42.5M, implement a 1.5% APR, and give them sole airdrops rights. The voting began on April 3 and will conclude on April 10. Of the 29M tokens pledged, the team is leading with 5.5M votes. Concerns were raised over potential vote manipulation, which the team denied.
The decentralized exchange, SushiSwap, may implement a contentious proposal to alter its treasury structure, despite significant outcry on social media platforms. On March 26, the SushiSwap team suggested an audacious governance reshuffle, intending a transformation into a Labs model. The proposal seeks to revamp the existing setup to improve operational performance and hasten protocol advancement. However, it stirs controversy by incorporating a sweeping tokenomics modification, planning to transfer 25 million Sushi Treasury's tokens, valued near $42.5 million, into Sushi Labs' control. A grant for the mentioned tokens is being sought for funding Sushi Labs, involving assets from the Arbitrum airdrop, business prospects, partner grants, Kanpai 2.0, Sushi 2.0, rewards, stablecoins, and Sushi House funds. This extensive reform will entail a one-time issuance of 25M tokens to Sushi Labs, supplemented by a 1.5% APR to encourage participation, enhance liquidity, and strengthen the Treasury. Presently, a maximum of 250 million Sushi tokens exist under the prevailing tokenomics paradigm. In the future, all airdrops from partners and protocols will solely benefit Sushi Labs. Voting commenced on April 3 and is set to conclude on April 10. Currently, around 29 million tokens, adequate to form a quorum, have been pledged. Voting was initially balanced, but it recently tilted towards the affirmatives. Currently, only 9.7 million tokens, approximately a third of total votes, have been cast against it. High-volume participants include the Sushi Labs team who proposed and pledged 5.5 million tokens supporting the proposal while a prominent protestor using 'sushicitizens.eth' address pledged 4.4 million tokens opposing it. Naïm Boubziz, a former SushiSwap associate, alleges the team voted for themselves using the protocol’s multi-signature wallet after attempting to garner 4 million Sushi from the treasury multi-signature earlier in March. There have been further claims of the Sushi team securing a loan to vote for their proposal. Boubziz stated on April 4, “They loaned money for a brief period to augment liquidity, consequently doubling their voting power for snapshots.” In response to these accusations, Sushi'Head Chef' Jared Grey insisted on defending his team against charges of manipulating votes by adding and removing liquidity around voting time, deleting snapshots, and voting via the multisig Ops address. Owing to potential hostile takeover threats, after legal consultation, I sanctioned the operations team to execute the YAY vote using the OPs wallet and its holdings," Grey proclaimed. Power struggle isn't new to SushiSwap, having surpassed industry leader Uniswap post a vampire attack just after being launched in 2020. Unfortunately, the original founder 'Chef Nomi' allegedly attempted a rug-pull shortly after, causing controversy, internal disagreements, and persistent chaos. As it stands, SUSHI tokens are being traded at $1.70, a 93% dip from their all-time high in March 2021. Based on a recent report, one in six newbie Base meme coins are fraudulent, with 91% containing vulnerabilities.
Published At
4/9/2024 8:18:06 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.