Controversial Proposal May Restructure SushiSwap's Governance

Despite social media backlash, SushiSwap's team is pushing forward with a contentious proposal to overhaul its treasury structure.

A Radical Shift in Governance

On March 26, the SushiSwap team introduced a divisive governance proposal, aiming to transform the platform by adopting a Labs model. The proposal seeks to streamline operations and expedite protocol development.

Central to the proposal is a controversial tokenomics restructuring, involving the transfer of approximately 25 million SUSHI tokens — valued at around $42.5 million — from the Sushi Treasury to Sushi Labs.

The proposed revisions entail a one-time minting of 25 million tokens allocated to Sushi Labs, along with the introduction of a 1.5% APR to bolster liquidity and incentivize participation.

Contentious Voting Process

Voting commenced on April 3 and is scheduled to conclude on April 10. Despite significant opposition, the 'yay' votes have gained momentum, with over 29 million tokens pledged, surpassing the quorum.

#Sushsiwap : Lol .

Sushiswap voted for themselves with the Ops multisig wallet.

Does this seem clearer to you now? https://t.co/NHtOQOXtt9pic.twitter.com/OlDPSJ0BfN
— Naïm Boubziz (@BrutalTrade) April 8, 2024
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Concerns have been raised regarding the voting process, with accusations of self-voting by the Sushi Labs team using the protocol's multi-signature wallet.

In response to allegations, Sushi 'Head Chef' Jared Grey defended the team's actions, stating they took measures to prevent a hostile takeover.

The decentralized exchange (DEX) landscape is no stranger to power struggles. In 2020, SushiSwap made headlines by surging past industry leader Uniswap following a so-called vampire attack.

However, the project faced turmoil when its pseudonymous founder, known as 'Chef Nomi', reportedly attempted a rug-pull, causing controversy, infighting, and internal chaos that has persisted to this day.