SushiSwap CEO Jared Gary released a proposal in the community, proposing to raise the percentage of SushiSwap trading fee revenue allocated to the protocol Treasury from 10% to 100%, for one year or until new tokenomics is implemented. It means no rewards for $xSUSHI holders.
The proposal aims to provide financing for SushiSwap operations. Jared Gary said, "it's clear that a significant deficit in the Treasury threatens Sushi's operational viability, requiring an immediate remedy." According to his review, SushiSwap needs $5 million annually in order to sustain operations.
Currently, $xSUSHI holders can earn 90% of the protocol trading fees, with the other 10% allocated to the Treasury. If the proposal is implemented, the Treasury will get all the trading fees, and $xSUSHI holders will not be rewarded.
Jared Gary claimed it's a temporary solution. "A new tokenomics proposal is on the horizon, which will help address the long-term value proposition of Sushi for stakeholders. Sushi must implement a holistic token model that allows the rebuilding of the Treasury and delivers value for all stakeholders while reducing the fiscal liability carried solely by the protocol. New tokenomics will take time to implement and pass through governance and will take several weeks to implement technically, a process that could extend into Q2-Q3 of 2023."
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