DeFi Protocol SushiSwap Proposes 'Immediate' Action to Support Its Treasury
The decentralized SushiSwap exchange is facing a "significant deficit" that threatens its operations. To solve the problem, platform head Jared Grey suggested temporarily directing all commission revenues to the project's coffers.
According to Grey, the project is operating with an annual deficit of $5 million. He noted that the original estimate was $9 million, but it was reduced by revising infrastructure contracts, reducing "inefficient dependencies" and freezing the budget for non-critical personnel.
The head of SushiSwap suggested adjusting Kanpai's fee allocation protocol to deduct all fees to the DEX treasury. He explained that this is a one-year temporary measure, or until new tokenomics are implemented.
On his Twitter page, Grey said that a draft of the updated fee distribution model is in the final stages.
Grey stressed that if adopted, the proposal would allow the project to diversify its assets by limiting the need to market SUSHI management tokens.
To recap, GoldenTree Asset Management disclosed its $5.2 million acquisition of SUSHI in October 2022. The company manages $47 billion in assets.