SushiSwap Unveils New Business Model Under Sushi Labs
In a recent update on June 11 at 15:58, SushiSwap announced a significant transformation in its ecosystem with the introduction of Sushi Labs. This new era will integrate a decentralized autonomous organization (DAO) with a council structure, managed by Sushi Labs under the SushiSwap brand. The goal is to address market demands and enhance liquidity on the Sushi decentralized exchange.
The Sushi Labs model, proposed in March, aims to streamline governance processes and ensure a more agile response to market changes. Under this new structure, Sushi will operate under a council system similar to that of Synthetix, consisting of four councils: the Sushi High Kitchen, the Treasury Council, the Grants Council, and the Ambassador Council. The High Kitchen, comprised of six to eight members, will serve as the central governing body overseeing transactions through a multisig setup.
Jared Grey, the managing director of Sushi Labs, expressed confidence in the revamped organizational structure’s ability to address liquidity issues and stimulate growth on the Sushi DEX. With a multimillion-dollar budget at its disposal, Sushi Labs aims to enhance operational efficiency and leverage successful products like the Route Processor.
Tokenholders will retain decision-making power over treasury allocations but will not be involved in operational matters. Sushi generated $1.62 million in fees in May, a sharp decline from previous performance, prompting the need for a new multitoken product suite to distribute costs and increase reward opportunities for tokenholders.
Despite the centralized nature of the new model, Sushi Labs emphasized that the community will play an active role in governance through council discussions and decision-making processes. The protocol believes that this structured approach will provide a more efficient governance framework for the Sushi community.
As SushiSwap continues to evolve, the introduction of Sushi Labs marks a significant milestone in its journey towards sustainability and growth. The community’s engagement in governance will be crucial in shaping the future direction of the platform and ensuring its success in the rapidly changing crypto landscape.