- SushiSwap CEO proposes controversial solution amid treasury that is expected to expire in the next 1.5 years
- Gray suggested turning all fees over to SushiSwap’s financial department
Gray, the man who came to the rescue of popular decentralized exchange company SushiSwap, sheds light on some troubling economics. The CEO or as the sushi community refers to this title “Chef” actively analyzed the expenses and liabilities of DEX. An analysis of the past two months has led to the CEO making a somewhat controversial proposal.
Proposal to transfer all fees to Treasury Sushi Swap
Executive Chef Gray revealed that SushiSwap is currently operating with an annual runway of $5 million. This figure has been reduced from $9 million. But the bear market coupled with DEX spending still poses a major threat to Sushi’s business going forward. According to the CEO, at the current rate, it is estimated that SushiSwap will run out of stock in 1.5 years.
To solve this problem, Gray Suggestion That the percentage of fees sent to the exchange, or Kanpai, has been increased to 100%. This move would give DEX liquidity required to maintain its operations in the future.
In addition, this will also eliminate the need to sell SUSHI on the open market. According to the suggestion, the token was currently close to fully distributing its supply. Although transferring all fees from the exchange to the treasury is likely to be at the expense of sushi operators, it will also avoid selling SUSHI in the market. This is expected to offset to some extent the damages caused to the stakeholders.
In addition to the proceeds from Kanpai, Team Sushi increased its funding by securing several multi-million dollar partner deals. However, relying on business development deals is only one part of a successful business model for securing Sushi’s future,” said the executive chef.
New SushiSwap tokens
Executive Chef Gray explained that Kanpai’s solution was temporary. The fee reorganization has been proposed to last for a year or so until the new tokens are implemented. While noting that a new token model is in the works, Gray notes that such a plan may take some time to implement.
The CEO also estimated that due to the development of a new model and the time needed to pass board votes, the new tokens could become effective between the second quarter and the third quarter of 2023. The proposal received mixed reactions from the community. While 68% supported Gray’s proposal, 32% voted against it.
Data from CoinMarketCap showed that SUSHI has fallen by more than 15% since the proposal was issued. The token was trading at $1.20 at the time of writing.