SushiSwap is currently experiencing an intense discussion about governance in its community. The SushiSwap team has proposed restructuring the protocol’s treasury and tokenomics. The proposal aims to establish a “Labs model” to enhance operational efficiency and accelerate development.
The main issue centers on the proposed changes to the token system, which include minting 25 million SUSHI tokens, worth approximately $42.5 million, to be granted to the newly formed Sushi Labs entity. Also, Sushi Labs would get all future airdrops from partners, gaining full control of the protocol’s funds.
Voting on the proposal commenced on April 3rd and is set to conclude on April 10th. With around 29 million SUSHI tokens pledged, the required quorum has been surpassed. However, the community remains deeply divided, with concerns raised over centralized power and potential misalignment with the principles of decentralized governance.
Allegations of impropriety have further fueled the controversy, with former SushiSwap contributor Naïm Boubziz claiming that the team voted for themselves using the protocol’s multi-signature wallet and borrowed funds to increase their voting power through liquidity provisioning.
Head Chef Jared Grey of Sushi defended the team’s recent actions, citing concerns over a potential hostile takeover. He explained that the decision was made after consulting legal experts. If the proposal succeeds, Sushi stands to gain a well-funded R&D arm, which could address past product issues within the DAOs.
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