SushiSwap Plans to "Abolish" DAO for Self-Benefit?
A governance proposal on SushiSwap aims to transfer assets from the DAO treasury to "Sushi Labs," directing future revenues to Labs instead of the DAO.
SushiSwap Plans to "Abolish" DAO for Self-Benefit?
In a recent reorganization proposal for SushiSwap, the DEX aims to enhance operational efficiency and accelerate development. The proposal suggests transferring full control to Sushi Labs, including moving all treasury funds from Sushi DAO to Sushi Labs.
Critics argue this move effectively "kills" the DAO, the heart of any DeFi project, concentrating power in the hands of a few core team members.
They have added the same amount of liquidity in SUSHI-ETH few hours ago to vote for themselves.
— Naïm Boubziz (@BrutalTrade) April 3, 2024
16 hours ago : add liquidity, create snapshot, remove liquidity.
Jared's plan :
🟢Kill the community
🟢Kill the DAO
🟢Get 100% of the treasury
Investigative news site Protos highlighted discrepancies in the proposal, noting that it includes assets not present in the treasury wallet. Specifically, it lists 168 ETH and 1,228 ETH, but the wallet only holds 168 ETH. Additionally, the treasury wallet lacks the DAI and WBTC mentioned in the proposal.
Asset List Proposed for Transfer from DAO to Labs
Twitter user @BrutalTrade pointed out authoritarian actions by the SushiSwap team, such as deleting the project's forum, eliminating community discussion, and changing DAO rules to allow only the development team to create new proposals.
#Sushiswap :
— Naïm Boubziz (@BrutalTrade) March 4, 2024
🚩🚩🚩 The Sushiswap Core Team, after deleted the forum, just deleted the last four snapshots 🚩🚩🚩@Mable_Jiang @0xSami_ @nickjrishwain @0xChop @DeFi_Ted @0xMaki : IT'S TIME TO SHOW YOUR VOICE. pic.twitter.com/jKeeJ9bMxg
@BrutalTrade also accused the SushiSwap team of sending SUSHI from the treasury to newly created wallets to vote in favor of the proposal.
I invite everyone to watch these movements a few hours before the snapshot is created:
— Naïm Boubziz (@BrutalTrade) April 3, 2024
- New wallets add liquidity
- The snapshot is created
- The same wallets withdraw liquidity
If that's not manipulation, what is it haha ?https://t.co/83l1obzyF1 pic.twitter.com/6lP9feHMAs
Voting on the proposal closes on April 9, followed by another vote to implement it. However, the proposal has faced significant opposition, with 72% of participants voting against it so far.
SushiSwap has struggled in recent years, plagued by internal conflicts since late 2020. The project has lost direction and frequently adjusts its governance structure. Most recently, CEO Jared Gray proposed changing SUSHI's tokenomics after the entire token supply entered circulation.
SUSHI, the token of the DEX, is currently priced at $1.50, following a downward trend in line with the broader market on April 5, 2024.
SUSHI/USDT 1D Chart as of 11:00 AM April 5, 2024, on Binance
This proposal, if passed, could significantly alter SushiSwap's governance structure and community engagement, leading to further scrutiny and debate within the DeFi space.
