SushiSwap Boosts Financial Stability, Claws Back Unclaimed Tokens25. January 2023
• SushiSwap passed a proposal to redirect 100% of its trading fees to its treasury for operations and maintenance for one year.
• A separate proposal to “clawback” 10,936,284 unclaimed SUSHI tokens that were awarded to early liquidity providers was also passed.
• The unclaimed tokens will be returned to the SushiSwap treasury.
SushiSwap, the sixth-largest decentralized exchange (DEX) by 24-hour trading volume, recently passed two important proposals that will have a major impact on the platform. The first proposal will redirect 100% of the platform’s trading fees to its treasury for operations and maintenance for one year. This move comes after CEO Jared Grey warned that the exchange “only has 1.5 years of treasury runway left”, even after slashing annual operating expenses from $9 million to $5 million amid the crypto winter. The second proposal, which was passed the same day, is to “clawback” 10,936,284 unclaimed SUSHI tokens that were awarded to early liquidity providers during the DEX’s launch in 2020. The rewards were available to SushiSwap users who provided trading liquidity for the exchange from August 2020 to February 2021 and had been open to claim for close to two years.
The move to redirect 100% of trading fees to the treasury will provide much-needed financial support to the platform. Revenue to the treasury will be in the form of 50% ETH and 50% USDC, with projections of around $6 million being earned over the next year. This will give SushiSwap the financial stability it needs to continue operations and help it reach its goals.
As for the second proposal, the unclaimed tokens will be returned to the SushiSwap treasury. While some users argued that people have earned these SUSHI fair and square and thus, their claim to these assets should not be denied, the majority of users supported the clawback, saying that idle SUSHI can be put to better use. The decision to clawback these tokens will help the platform to use its resources more efficiently and increase liquidity for the DEX.
The recent proposals passed by SushiSwap are a positive sign for the future of the platform. The 100% fee relocation will provide the financial stability that the platform needs to continue operations and reach its goals, while the clawback of unclaimed tokens will help the platform use its resources more efficiently. With these two major changes, SushiSwap is well on its way to becoming a leading player in the decentralized exchange market.