Sushi DAO Approves 100% Treasury Payout Amid Controversy

Proposal Overview

Sushi DAO recently concluded a significant proposal to increase the treasury payout ratio to 100%, with over 58% of votes in favor. This decision will redirect trading fees from xSUSHI holders to the project's treasury for the next year. The shift, projected to add $6 million to the treasury, is intended to address immediate funding needs and ensure long-term sustainability.

Voting Dynamics and Community Reaction

The proposal, however, has sparked substantial backlash within the Sushi community. A high voter turnout was noted, with more than 780 wallets participating. Notably, over 90% of the voting power in favor originated from two wallets linked to major investors, GoldenChain and Cumberland. This concentration of power raises concerns about the influence of a few stakeholders over decentralized governance.

Financial and Strategic Implications

The current payout ratio of 10% to the treasury will increase to 100%, with funds split between ETH and USDC. The decision reflects Sushi's urgency to secure financial stability. The new team has taken steps to revamp the protocol, cutting operating costs from $9 million to $5 million, discontinuing unprofitable ventures, and launching new products like cross-chain swaps.

Challenges and Opportunities

While the proposal offers developers the resources to navigate the bear market, it highlights challenges in balancing community interests with financial strategy. Despite management changes, Sushi's history of governance issues continues to pose questions about its future. The community's strong reaction underscores ongoing tensions and the critical need for transparent decision-making.

Looking Forward

The proposal's one-year timeline allows for potential adjustments based on the evolving tokenomics. The ongoing developments in Sushi's management and strategic direction will be crucial in determining the protocol's success and community trust. With new investments and a focus on sustainable growth, Sushi aims to overcome past challenges and secure its place in the DeFi landscape.