The decentralized exchange SushiSwap has faced a “significant deficit” threatening its day-to-day operations. To address the issue, the platform’s head, Jared Grey предложил temporarily directing all fee revenue to the project’s treasury.
“The treasury is currently projected to cover roughly eighteen months. Therefore the situation requires immediate action to ensure resources adequate for smooth operations,” he wrote.
According to Grey, the project operates with an annual shortfall of $5 million. He noted that the initial estimate stood at $9 million, but it was reduced through renegotiation of infrastructure contracts, trimming “inefficient dependencies,” and freezing budgets for non-critical personnel.
The head of SushiSwap proposed configuring the Kanpai fee-distribution protocol to channel all fees to the DEX treasury. He explained that this temporary measure would last one year or until new tokenomics are implemented.
On his Twitter page, Grey explained that the revised reward-distribution model is in the final stages.
In my current proposal, I recommend Sushi and its community move the percentage to 100% for a one-year term or until new tokenomics pass. We’re currently in the final draft stages. Why the controversy? 10/
— Jared Grey (@jaredgrey) December 6, 2022
Grey emphasised that, if adopted, the proposal would allow the project to diversify its assets, limiting the need to sell SUSHI governance tokens on the market.
Earlier in October 2022, GoldenTree Asset Management disclosed data about the acquisition of SUSHI for $5.2 million. The firm manages $47 billion in assets.
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