SushiSwap CEO Reveals Plans To Change Tokenomics

December 13, 2022 - Around 1 mins mins to read

According to SushiSwap CEO Jared Grey, the DEX has lost $30 million in the last year on liquidity provider incentives (LPs).

SushiSwap CEO Reveals Plans To Change Tokenomics

SushiSwap presently utilizes a token-based emission mechanism to incentivize LPs, as Grey said, but the current pace is “unsustainable.”

We expect emissions-based rewards to incur some loss to bootstrap liquidity, but this rate is unsustainable. We commissioned Flipside to build dashboards to showcase these results; we'll make them available by EOY. 4/
— Jared Grey (@jaredgrey) December 11, 2022

Grey also shifted his focus to advocating the “Kanpai” governance plan, which would redirect trading protocol fees received as SUSHI stakeholder incentives into the SushiSwap treasury. Grey previously revealed that the DEX treasury has only 1.5 years of runway remaining.

How do the new tokenomics help align value to make Sushi more profitable for stakeholders, & how does Kanpai help us accomplish this goal? 7/
— Jared Grey (@jaredgrey) December 11, 2022

Grey intends to revamp the tokenomics so that LPs are no longer subsidized with emissions, as well as rethink the exchange’s overall approach of bootstrapping liquidity.

Then, in Q1 2023, I will provide full financial transparency by releasing public dashboards for DAO & Treasury activity. My goal is to help rebuild Sushi with maximum financial transparency, innovate the DEX, & set Sushi up for long-term success. 20/
— Jared Grey (@jaredgrey) December 11, 2022

However, Gray still did not reveal too much about tokenomics, which raised suspicions in the community. In response to this, the CEO replied:

I've discussed it at length in the Sushi Discord, on community calls, AMAs, and more. The official whitepaper comes out by EOY. No one is saying, "trust me, bro" I'm saying full details come out at that time.
— Jared Grey (@jaredgrey) December 11, 2022

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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