SushiSwap is debating a new proposal that would direct all fees paid to xSUSHI holders into its treasury wallet for a year in order to fund its operations.
New Head Chef Jared Grey said:
“After reviewing expenditures, it’s clear that a significant deficit in the Treasury threatens Sushi’s operational viability, requiring an immediate remedy.”
Grey said that the squad requires $5 million to continue operations amid the present bad market. SushiSwap, he says, need urgent action to provide appropriate funding.
The plan is to seize all of the cash earned by the exchange’s trading fees. Those that stake the Sushi governance token sushi receive xSUSHI, which offers them a reward fee on all trades on the platform. Currently, xSUSHI holders earn 0.05% of all swaps, with 10% going to the SushiSwap treasury wallet.
Grey proposed that SushiSwap raise the treasury fee ratio from 10% to 100%, resulting in no more token rewards for xSUSHI holders.
The suggestion comes at a time when SushiSwap is striving to turn around its failing fortunes under new management. Grey is attempting to re-profit the project and extend its runway.
If enacted, the proposal may have far-reaching consequences for investors.
If the reward fee allocated for xSUSHI holders is removed, that money is lost. The plan has already prompted discussion among community members, with some users expressing outrage at what they perceived as an unjustified action.
Cinneamhain Ventures partner Adam Cochran chimed in on the situation.
SushiSwap is seeking to improve its fortunes with a proposed proposal dubbed Meiji, which aims to establish a new decentralized autonomous organization (DAO) supported by protocol fees and regulated by non-transferable voting shares.
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