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SushiSwap CEO Proposes New Token Model

by Blockchain NewsNovember 16, 2023

SushiSwap CEO Jared Grey has initiated a pivotal proposal titled “Deploy new tokenomics for Sushi.” This initiative, which seeks to overhaul the platform’s existing token economic model, has now entered the crucial stage of community voting on Snapshot. The voting process, critical for determining the future course of SushiSwap, began recently and is set to conclude on November 25, 2023, at 1:00.

The core of the proposal is to generate a consensus within the community. Its details and the initial draft can be found on the Sushi forum, providing comprehensive insights into the proposed changes. Grey’s initiative emphasizes the need to restructure Sushi’s token model to enhance its role in the protocol’s ongoing success and contribute to its growth trajectory. Since its inception, SushiSwap has been a front-runner in tokenomics with innovative initiatives like MasterChef and xSushi. The new proposal is a culmination of feedback from both the Sushi and DeFi communities, aiming to set the platform on a sustainable growth path.

The proposed model is built on three fundamental pillars: protocol sustainability, token utility enhancement, and treasury diversification. It addresses several key challenges, including improving rewards efficiency to reduce the annual cost of Sushi emissions, establishing a balanced approach to emissions distribution, addressing financial stability concerns, recalibrating LP incentives, and revising xSushi staking mechanisms.

Furthermore, the economic model proposed scales strategically through various innovations. These include generating primary revenue from LP transactions through trading fees, income from trade fees via aggregation, potential revenue from staking rewards, and forming strategic partnerships. The model also considers the interests of key stakeholders such as Liquidity Providers, xSushi holders, traders, token projects, DAOs, and the Sushi Treasury.

The objectives of the revised proposal are manifold. They include promoting decentralized ownership, amplifying liquidity, encouraging sustainable growth, enhancing the protocol’s sustainability, bolstering $SUSHI utility, and diversifying the treasury for robust financial operations. This new model aims to enhance liquidity, offer non-dilutive token rewards, institute a balanced supply, and ensure competitiveness in the evolving DeFi landscape.

The ongoing voting process is a decisive step for SushiSwap. A positive outcome will lead to the enactment of the proposed framework, reshaping Sushi’s token model to align with its ecosystem goals, increase decentralized ownership via the DAO, realign stakeholders optimally, and promote ecosystem growth with sustainable emissions and value.

Image source: Shutterstock

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Sushi Chef Addresses SEC Subpoena

by Blockchain NewsApril 9, 2023

Jared Grey, the head chef of Sushi, a Japan-based decentralized autonomous organization (DAO), recently issued a statement in response to a subpoena from the United States Securities and Exchange Commission (SEC). Grey reassured the Sushi community that, as far as he knows, no one associated with Sushi has violated U.S. federal security laws.

Grey also addressed the most frequently asked questions from the community regarding the subpoena in a FAQ format. He stated that he is cooperating with the SEC, but he has no knowledge of the SEC issuing subpoenas to anyone else associated with Sushi. However, Grey acknowledged that it is possible that the SEC may issue further subpoenas to others linked with Sushi in the future.

The SEC is responsible for regulating the securities markets and enforcing securities laws in the United States. The agency has recently taken an interest in the world of decentralized finance (DeFi) and blockchain-based financial instruments. In December 2020, the SEC filed a lawsuit against Ripple Labs, alleging that the company had sold unregistered securities in the form of its XRP cryptocurrency.

Grey’s statement comes at a time when DeFi is gaining significant traction and regulatory scrutiny. DAOs like Sushi are community-governed organizations that are collectively managed by their members. These organizations are designed to operate in a decentralized manner, with decision-making power distributed among their members.

Grey’s statement indicates that Sushi is taking the SEC’s inquiry seriously and is cooperating with the agency. The chef’s reassurance that no one associated with Sushi has violated U.S. federal security laws may ease the concerns of the Sushi community and other stakeholders.

However, the fact that Grey is cooperating with the SEC suggests that the agency is taking its investigation seriously. It is possible that the agency may uncover evidence of wrongdoing, either by individuals associated with Sushi or by the organization itself. If this were to occur, it could have significant implications for the wider DeFi ecosystem.

Overall, Grey’s statement provides some insight into the SEC’s inquiry into Sushi and the wider world of DeFi. While it is unclear at this stage whether the SEC will issue further subpoenas or take any other action, it is clear that the agency is taking a close interest in this emerging area of finance. As the DeFi ecosystem continues to evolve, it is likely that regulatory scrutiny will only increase, and DAOs like Sushi will need to ensure that they are operating within the bounds of applicable laws and regulations.

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Tagged : FEDERAL SECURITY LAWS / JARED GREY / News / SEC / Subpoena / Sushi

SushiSwap CEO Suggests New Tokenomics For Liquidity And Decentralization

by Blockchain NewsJanuary 4, 2023

According to a request that was presented on the 30th of December on the Sushi’s forum, Jared Grey, the Chief Executive Officer of the decentralized exchange SushiSwap, has plans to restructure the tokenomics of the SushiSwap token.

In the new model of tokenomics that has been presented, time-lock tiers will be implemented for emission-based incentives. Additionally, a token-burning mechanism and a liquidity lock will be included in order to provide price support.

According to Grey, the new tokenomics plan is to increase “treasury reserves to assure continued operation and growth.” Additionally, the plan seeks to improve the platform’s liquidity and decentralization.

According to the approach that is being suggested, liquidity providers (LPs) would get 0.05% of the money generated from swap fees, with bigger volume pools receiving the largest proportion.

LPs will also have the option to lock their liquidity in order to receive increased rewards that are depending on emissions.

Additionally, staked SUSHI (xSUSHI) will not earn any portion of the fee money; rather, it will receive awards determined by emissions and paid out in SUSHI tokens.

Emissions-based awards will be determined using time-lock levels, with longer time locks resulting in larger prizes than shorter time locks.

It is possible to make withdrawals prior to the expiration of time locks, albeit doing so will result in the rewards being lost and destroyed.

The decentralized exchange will utilize a configurable amount of the 0.05% swap charge in order to purchase the SUSHI token again and then destroy it.

The percentage will adjust itself according to the total number of time-lock levels that are chosen.

After disclosing that it had fewer than 1.5 years of runway left in its treasury, which means that a huge deficit was jeopardizing the exchange’s economic sustainability, SushiSwap decided to rework its tokenomics. This decision was made after the company made this revelation.

Due to the fact that the token-based emission approach caused SushiSwap to incur a loss of $30 million over the course of the previous 12 months on incentives for LPs, the firm made the decision to implement the new tokenomics model.

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Tagged : Decentralization / JARED GREY / News / SushiSwap