CEO SushiSwap Proposes New Tokenomics for SUSHI

The SushiSwap community is actively discussing a significant proposal aimed at changing the tokenomics of SUSHI, the platform’s native token. This proposal, introduced by CEO Jared Gray, seeks to enhance the utility of SUSHI and provide more sustainable benefits for participants.

Proposal Details

Background:

• With the vesting schedule of SUSHI nearing completion, all tokens are set to enter circulation. The new proposal aims to maintain stability and create sustainable value for SUSHI holders.

Key Issues and Solutions Proposed:

1. Liquidity Subsidies:
   • Improve the efficiency of liquidity subsidies to reduce annual SUSHI emissions.
2. Value Balance:
   • Current SUSHI emissions compared to Sushi Bar income are 1:1, which is not sustainable. A balanced approach is needed.
3. Financial Stability:
   • Address the emission-to-income ratio to enhance stability.
4. Incentives for Liquidity Providers (LPs):
   • Adjust incentives for LPs to remain competitive with other protocols.
5. Staking Mechanism:
   • Revise the xSushi staking mechanism to create more incentives.
6. xSushi Distribution:
   • Address fair distribution mechanisms for participants.

New Revenue Streams

To enhance protocol income beyond just transaction fees, the proposal introduces:

• Transaction Fees:
  • Continue as the primary revenue source.
• Routing Fees:
  • Income from transaction fees through the aggregation router.
• Staking Fees:
  • Revenue from staking activities.
• Partnerships:
  • Growth opportunities through strategic partnerships.

Benefits for Stakeholders

The proposed changes aim to provide sustainable benefits for all SushiSwap participants, including:

• Liquidity Providers (LPs):
  • Ensure long-term, sustainable benefits for LPs on SushiSwap.
• xSushi Holders:
  • Stable token supply, consistent rewards, and participation in project governance.
• Traders:
  • Improved trading experience with lower slippage.
• SushiSwap Ecosystem:
  • Establish long-term, stable partnerships.
• Treasury:
  • Ensure diverse and sustainable income sources.

Voting and Community Response

The proposal is currently open for voting, allowing SUSHI holders to cast their votes.

Market Reaction

The price of SUSHI has remained stable over the past 24 hours, trading around $0.99.

4-hour chart of SUSHI/USDT on Binance as of 11:50 AM, November 7, 2023.