A week ago, the Sushi 2.0 reorganization proposal was released in the Sushi community forum. Today, the proposal has been voted on and the author organizes it as follows.
background
Sushi is the darling of 2021, making a name for itself as a community and establishing Sushi as a core product in our ecosystem. What started as a completely fair launch (90% of tokens released to the public and 10% to the treasury) quickly turned into a team with no background and a bunch of strangers. Our achievements in 2021 have far exceeded the goals we set in 2021, but there is a clear lack of operational efficiency and long-term development focus in the second half of 2021. In the end, Sushi suffered a serious setback and major changes began to occur, leaving only a shell of the team and community.
what happened since the turmoil
With the FrogNation takeover falling through, the remaining team was left to keep Sushi running, leaving a big question mark. Community members took the lead in addressing the issues and building the way forward with a team motivated to keep Sushi alive. Since then, great progress has been made in a very short period of time. Months have been devoted to picking up the pieces and having difficult discussions. The outcome of these trials is our long-term vision for a bright future for Sushi and its community.
Product and feature releases during reorganization:
Trident released
MISOv2 release 10 & multi-chain release
Proposal to redesign shoyu2.0 and close to completion
Limit Order Launched
SushiGuard implementation
Kashi UI design update
SAKE will be distributed soon
Organizational advances occurring in parallel are:
Restructured, retained and installed a strong, committed team. Additionally, several new team members have been added.
Key stakeholder relationships were rekindled and an external operational advisor was appointed.
A fair compensation structure has been established, proposed, negotiated and finalized across all departments.
A legal structure was proposed (SushiDAO), which recently passed a snapshot.
The output is continuously reduced to the current level, and on average, Sushi generates 3-4 times the fees in its network and protocol than the sushi output.
Ops monthly spend was cut in half from last summer and fall averages.
Proposal 14, the previous proposal to introduce stability to the Treasury, has been redeployed. A disciplined approach to capital allocation and spending will be emphasized, while ensuring the necessary funding for innovative product development.
Reasons to be excited about what will happen:
The long-term commitment of the integrated Sushi team
Executive and Leadership Search Process
Improve budget and inspection transparency through committee and community oversight
Concentrated Liquidity on Trident
Stable Swap on Trident
Stargate Implementation of Omnichain Token Swap
FuroStream and FuroVesting
Shoyu 2.0Beta
Kashi optimizer and improvements
Adopt Sushi2.0 interface
proposal
This proposal is Sushi's first step towards a hopeful, responsible future. The proposal is actually divided into three actionable items for voting. First, retain the talent needed to bring Sushi into the future, across the full spectrum of functions including engineering, design, business development, marketing, community engagement, Shoyu, operations and consulting. Second, establish a formal compensation committee to check for transparency and accountability in all budgetary matters. Third, with the implementation of the proposal, a formal executive and leadership search process will begin to complement the retained team.
team retention
The proposal would designate $6 million in SUSHI to be allocated over a 4-year timeframe to:
Current Contributor Allocation
future employment assignments
A portion of the funding is used to fund future program strategy and leadership.
We will immediately retain a cohesive team in all the functional areas needed to truly create value. The proposal immediately expanded Sushi & Shoyu's team from four vetted full-time software developers to ten. We link the community and team to market compensation to reward long-term value creation over the next 4 years.
Remuneration Committee
The Remuneration Committee will have several main tasks:
compensation negotiation
Track TWAP and approve vested SUSHI based on the roadmap once the roadmap is completed and/or the various items on the roadmap are completed.
Help with salary negotiations for prospective employees
Observe the establishment of formal roles and responsibilities.
Negotiate future compensation plans after the plan expires.
Review individual performance reviews to see how contributors can be promoted, probated, or terminated.
Review, approve and disclose budget requests.
The Compensation Committee will use a simple unanimous vote system for all committee matters.
Determine whether the project roadmap has been satisfactorily completed within a reasonable time period.
Used to allocate price-driven incentive targets defined by 30-day TWAP price targets.
Used to validate performance evaluations.
Likewise, the Compensation Committee will support a unanimous voting system should a contributor relationship require formal termination and departure.
Leadership Search
Sushi will begin a formal leadership and executive search. We believe the path ahead includes joining Sushi with great executive talent. Over the next 90 days, we conceived a process for surfacing leadership and executive talent, culminating in appointments through a governance vote. The pool of leadership and executive talent candidates will be acquired through community, team, token holders or self-nominations in the Sushi discord and forums. We have a process for vetting candidates that allows them to meet various stakeholders (team, investors, engaged community members) and assess whether there is a strong mutual fit. Formalizing the leadership and executive search will allow Sushi to grow long into the future and is necessary for any growing organization.
Leadership and Future Hiring
The allocated funds will enable Sushi to source and retain new external talent and executive leadership to achieve Sushi 2.0, with formal roles, responsibilities, budget and hiring process to be identified and approved by the Compensation Committee. Future staff and leadership candidates are available through existing contributors, self-nominations on the forums, or nominations within the Sushi discord.
For community accountability, any contributor relationship, including leadership or consulting, can be terminated at any time by resignation or by a governance vote. Any unvested, unallocated SUSHI not paid out to contributors will be returned to the Sushi Vault.
cost
Estimated Compensation Cost (contributors retained + roles to be filled): $5.75M (annual salary) + $2.3M multi-year established $SUSHI payout (1 time) + $2.4M performance award (1 time if deliverables are met ).
While this is a large portion of the pool, we believe there is no better use of the pool than attracting and retaining talent to contribute to the protocol for years to come. Currently Sushi has 4 full-time developers working on Sushi and Shoyu products. A larger team is needed to build out the full scope of the community's goals.
Expected maximum distribution to current contributors, future employees and future leadership: 6,000,000 SUSHI
Also, based on the remaining funding and our recent funding diversification initiatives, we believe Sushi is actually in a healthy position. Based on conservative estimates based on data from the past three months, Sushi currently generates approximately $41.04 million in annual revenue, which is fully allocated to xSushi holders. With Kanpai, we have the option to further optimize our funding strategy and effectively invest in the future profitable growth of the DAO and its products.
With the recently passed current Kanpai implementation, there will be an additional inflow of $4.1 million to the Treasury.
This proposal addresses the most practical needs to bring about a bright future for Sushi, enabling Sushi to operate over a multi-year time frame, creating value for SUSHI stakeholders. This is not a stopgap measure. This is the first in a series of proposals and governance matters needed to start the next chapter of Sushi. This is the starting point for a fruitful outcome for all Sushi stakeholders and the Sushi community. With that comes the expectation of continued progress, operational excellence, long-term value creation, and best-in-class transparency for Sushi and the community.
In addition to this proposal, the team has come together to develop a long-term roadmap and vision for what we want to achieve for Sushi.
Alex
Miyuki
Weiliang
Catherine
Anais
Kikyo