In a recent signal vote, more than 62% of SushiSwap’s voters supported a proposal to transition to a ‘labs model,’ allowing the exchange to have a less decentralized business model. This proposal, introduced on March 26, has sparked significant debate within the SushiSwap community. Under the plan, SushiSwap aims to establish Sushi Labs, an autonomous company responsible for managing the Sushi ecosystem. Tokenholders would still have a say in treasury allocations but would not be involved in operational details. Sushi Labs would receive 25 million SUSHI tokens, valued at around $39 million.
Sushi Labs would also become the exclusive recipient of future airdrops from affiliated protocols and partners. The community will now have until April 17 to vote on the implementation proposal. Currently, nearly seven million tokens support the proposal, indicating a 92% approval rate.
Not all members of the SushiSwap community are in favor of the proposed plan. Some have expressed concerns about the financial stability of the Treasury and allegations of voting power manipulation. Suggestions have been made to split revenues between the Treasury and operations. Some community members believe that the proposal is a hostile takeover, claiming that the core development team created new wallets to increase their voting power.
In response to these criticisms, SushiSwap’s “Head Chef” Jared Grey defended the proposal. Grey stated that the decision to execute the vote with the OPs wallet was necessary to prevent a hostile takeover. He also argued that the Labs model would help SushiSwap regain lost market share by addressing limitations and delays caused by the DAO’s ambitious yet unrealistic expectations.
SushiSwap’s revenue has been declining despite the current bull market. Data from DefiLlama shows that in March 2023, the decentralized exchange generated $11.65 million in fees and $1.5 million in revenue. This is compared to $3.5 million in fees and $531,640 in revenue the previous month.
SushiSwap has received support for its proposal to transition to a ‘labs model’ in a recent signal vote. There are concerns and criticisms within the community regarding the Treasury’s financial stability and allegations of voting power manipulation. The community will have the opportunity to vote on the implementation proposal in the coming days, and the outcome will determine the future direction of SushiSwap.
I’m happy to see SushiSwap taking steps to address limitations and delays. This will make the exchange even better for all users!
This proposal is a blatant disregard for the community’s opinions and concerns. We should have a say in operational details!
Wow, this proposal seems like a great step forward for SushiSwap! Exciting times ahead!
It’s essential for SushiSwap to adapt and evolve, and the labs model seems like a step in the right direction. Ready for the next chapter!