SushiSwap passes 100% fee relocation, 10.9M SUSHI clawback proposals

According to a governance connection passed connected Jan. 23, decentralized speech (DEX) SushiSwap volition soon redirect 100% of trading fees connected the level to its treasury for operations and attraction for 1 year's duration. The determination came aft CEO Jared Grey warned that the speech "only has 1.5 years of treasury runway left," adjacent aft slashing yearly operating expenses from $9 cardinal to $5 cardinal amids the ongoing crypto winter. 

"Revenue to the treasury volition beryllium successful the signifier of 50% ETH and 50% USDC, with projection of ~$6m being earned implicit the adjacent twelvemonth if this connection were to pass."

In a abstracted connection that passed the aforesaid day, 99.85% of voters elected to "clawback" 10,936,284 unclaimed SUSHI ($14.8 million) tokens awarded to aboriginal liquidity providers during the DEX's motorboat successful 2020. The rewards were disposable to SushiSwap users who provided trading liquidity for the speech from August 2020 to February 2021 and had been unfastened to assertion for adjacent to 2 years. Some users argued that "people person earned these SUSHI just and square," and their assertion to these assets should not beryllium denied. Others said that they enactment the clawback arsenic "idle SUSHI that tin beryllium enactment to amended use." The assets volition beryllium returned to the SushiSwap treasury. 

SushiSwap, the sixth-largest DEX by 24 hours trading volume, has been deed hard by the crypto marketplace downturn and product-market-fit woes. Last December, Cointelegraph reported that the DEX mislaid $30 cardinal implicit 12 months unsocial connected incentives for its liquidity providers owed to "unsustainable" token emanation rates. As a result, the DEX is presently seeking to revamp its tokenomics model. 

— SushiSwap (@SushiSwap) January 24, 2023