- Sushi Labs will spearhead the rapid release of new products.
Decentralized exchange SushiSwap is launching a multi-token model and establishing Sushi Labs, a new council structure, to function in conjunction with the decentralized autonomous organization (DAO) of the protocol.
The new company will function as an independent administrative agency with the responsibility of managing and supervising the whole Sushi ecosystem.
According to Jiro, a pseudonymous Sushi developer, Sushi changed from its prior approach because of burdensome governance. This should allow for an unrestricted expansion plan.
The idea was made on May 26 and caused a lot of discussion. On June 11, it was adopted with 230,000 votes against and 19 million (98%) in favor.
The change is an attempt to revitalize a dying protocol. Total Value Locked (TVL) for SushiSwap dropped from $8 billion in November 2021 to $295 million.
According to DeFiLlama, it currently stands 10th in the DEX category and 69th overall among all DeFi protocols in TVL. Leading the DEXs is Uniswap, with $6 billion in TVL.
The team stated on their blog yesterday that Sushi Labs is intended to support Sushi DAO, promote quicker, more effective development, and assist us in maintaining our competitive edge in the DeFi market.
Redesigning Tokenomics
Sushi Labs is going to rework the tokenomics of Sushi DAO. The original proposal said that the newly established organization would mint 25 million tokens to fund its grant request from SushiDAO and would also implement a 1.5% APR to increase liquidity, encourage participation, and strengthen the Treasury. Furthermore, any upcoming airdrops designated for Sushi will only go to the newly established group.
The market is still responding positively to the news. The native token of the protocol, SUSHI, has increased 4% to $0.99 since the announcement of the modification. SUSHI is up 77% this year and down 5% over the last 30 days.
The Sushi High Kitchen, the Treasury Council, the Grants Council, and the Ambassador Council will be the four key bodies that make up Sushi Labs’ council-like organizational structure.
Comprising six to eight participants, the “High Kitchen” will function as the primary regulatory body for the system and manage a multi-sig wallet configured for transactions.
The structure is comparable to the seven groups of the Synthetix derivatives procedure.
Uniswap’s more decentralized variant gave rise to SushiSwap. However, the leadership team is indicating that more centralization is necessary for the organization to grow after four years of operation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
