Monday, January 30, 2023

Sushiswap chief says it only has 1.5 years of treasury runway left By Cointelegraph


According to a new proposal dated Dec. 6, Jared Grey, CEO of decentralized exchange Sushiswap (SUSHI), disclosed that the project’s Treasury has less than 1.5 years of runaway left, and the “significant deficit in the treasury threatens Sushi’s operational viability, requiring an immediate remedy.” Grey explained that Sushiswap’s annualized operating expenses amounted to roughly $9 million in October, however, that has since been reduced to around $5 million.

To remedy the situation, Grey proposed setting Sushiswap’s “Kanpai,” or the amount of fees diverted to its Treasury, to 100% for “one year or until new tokenomics are implemented.” This would come at the cost of SUSHI stakers, who typically earn the trading and protocol fee rewards in return for locking their tokens. In addition, Grey illustrated why it wasn’t feasible to simply use SUSHI tokens to fund expenses: