SushiSwap Community Proposes Reverting to Previous Model to Address Weak Tokenomics
The SushiSwap community is seeking to abandon the Kanpai 2.0 model due to its negative impact on the crypto exchange’s tokenomics. Instead, they propose returning to the previous model where all commissions are transferred to xSUSHI token stakers. Since implementing Kanpai 2.0 in December last year, the project’s tokenomics have significantly weakened, with the native token SUSHI losing its primary purpose of receiving generated commissions. Currently, 100 percent of commissions go to the project treasury. This decline is evident in SushiSwap’s Total Value Locked (TVL), which dropped from $8 billion to $400 million. The community also suggests establishing a governing board composed of seven volunteers elected by xSUSHI holders to develop an updated roadmap and improve tokenomics.
Reversing the Decline
The SushiSwap community is concerned about the weakening tokenomics caused by the Kanpai 2.0 model, leading them to propose a return to the previous system where all commissions are directed towards xSUSHI token stakers. Currently, all generated commissions go directly to the project treasury, rendering the native SUSHI token without a clear purpose. As a result, SushiSwap’s Total Value Locked (TVL) has plummeted from $8 billion at its peak to just $400 million presently. To address these issues, the community suggests establishing a governing board consisting of seven volunteers elected by xSUSHI holders. This council would be responsible for developing an updated roadmap and enhancing SushiSwap’s overall tokenomics.
Governing Board and Improved Tokenomics
To combat the weakened tokenomics caused by the Kanpai 2.0 model, the SushiSwap community proposes the introduction of a governing board. This board would comprise seven volunteers elected by xSUSHI holders and would play a crucial role in developing an updated roadmap and improving the tokenomics of SushiSwap. The current model has resulted in the loss of SUSHI’s main purpose as all generated commissions now flow into the project treasury, leaving token holders without incentives. Furthermore, SushiSwap’s Total Value Locked (TVL) has experienced a significant decline from $8 billion to $400 million. By implementing a governing board, the community aims to address these issues and revitalize the exchange’s tokenomics.
Hot Take: Restoring Strength to SushiSwap’s Tokenomics
The SushiSwap community is advocating for a return to its previous model in order to restore the strength of its tokenomics. The Kanpai 2.0 model has weakened the project, causing a decline in SushiSwap’s Total Value Locked (TVL) and the value of its native token, SUSHI. By reverting to a system where commissions are transferred to xSUSHI stakers and establishing a governing board elected by xSUSHI holders, SushiSwap aims to revitalize its tokenomics and regain its position as a leading decentralized exchange (DEX). This proposed shift reflects the community’s commitment to addressing the challenges faced by SushiSwap and ensuring its long-term success in the crypto market.
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