Despite intense debate, it appears highly probable that the SushiSwap team treasury will be taken over.

Despite strong opposition on social media, the team behind the decentralized exchange SushiSwap is pushing forward with a controversial proposal to change the platform’s treasury structure. The proposal, made on March 26, aims to “significantly evolve Sushi by adopting a Labs model” in order to enhance operational efficiency and accelerate protocol development. However, it includes a tokenomics overhaul that has sparked controversy. Under the proposal, around 25 million tokens worth approximately $42.5 million would be deployed to Sushi Labs, controlled by a decentralized autonomous organization (DAO). This would be accompanied by the introduction of a 1.5% APR to boost liquidity and incentivize participation. Currently, there is a maximum supply of 250 million SUSHI tokens. Sushi Labs would also become the sole beneficiary of future airdrops from protocols and partners. Voting on the proposal began on April 3 and will end on April 10. So far, over 29 million SUSHI tokens have been pledged, surpassing the required quorum. Initially, the votes were evenly split, but recently, the ‘yays’ have gained the upper hand. Only 9.7 million tokens, or a third of the votes, have been lodged against the proposal. Notably, the Sushi Labs team, which made the proposal, pledged 5.5 million tokens in favor, while a prominent opponent pledged 4.4 million tokens against it. Former SushiSwap contributor Naïm Boubziz has accused the team of voting for themselves using the protocol’s multi-signature wallet, alleging that they had previously attempted to access 4 million SUSHI from the treasury. There have also been allegations that the Sushi team took out a loan to vote for their own proposal. However, Sushi ‘Head Chef’ Jared Grey defended against these claims, stating that the team added liquidity to double their voting power to counter a potential hostile takeover. SushiSwap has faced power struggles in the past, with its launch in 2020 overshadowing industry leader Uniswap. However, the project faced controversy and internal conflicts after its founder, ‘Chef Nomi,’ attempted a rug-pull. Currently, SUSHI tokens are trading at $1.70, down 93% from their all-time high in March 2021.