A famous decentralized exchange, SushiSwap, made a tough call a few days ago aiming to keep its operations going through the current bear market. Project lead Jared Grey proposed on December 5 that all staking fees on the platform get channeled to the project’s treasury for twelve months.
Grey also says that a new tokenomics model for SushiSwap is on the way, thus suggesting there could be a significant shake-up for the exchange. Today, users that stake their SUSHI earn XSUSHI tokens in return and trading fees on the platform. However, Grey’s proposal would end that as trading fees get redirected to the project’s treasury.
Fees on this decentralized exchange amount to 0.3% of each trade. 0.25% goes to the liquidity provider sustaining the pool, and the remaining 0.5% goes to the SUSHI stakers. Therefore, if the proposal is approved, the 0.5% meant for stakers would be funneled back to SushiSwap coffers.
SushiSwap’s Project Lead Says Changes Needed for Sustainability
Grey defends the move saying that the proposal is a way to secure the future of SushiSwap by acting in its best interests together. Currently, the vote shows that the majority approves. However, there is also some resistance. One user notes that depriving XSushi holders of the fees rightfully entitled to them is a breach of the covenant before the community.
Stakers Continue to Un-Stake Their Funds on SushiSwap Following Recent Announcement
As the heated debate continues, some stakers are rushing to un-stake their funds. Data from Dune indicates a drop in the SUSHI amount staked since Grey’s proposal went public. Some stakers believe SushiSwap is trying to cover up its team’s salaries which allegedly amount to $3.5 million per year, using the trading fees.
In a forum, a user asked Grey what would happen if the stakers failed to funnel their funds to the project’s treasury. He responded by saying he expects support from the community since he clearly explained the purpose of his proposal, which is to strengthen the treasury’s position and extend the runway so that SushiSwap continues to operate.
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