Decentralized exchange SushiSwap’s treasury has less than 1.5 years left, according to a Dec. 6 proposal.offer“Significant treasury deficits threaten SushiSwap’s ability to operate, which needs to be addressed immediately,” said DEX CEO Jared Gray.
Gray explained that SushiSwap’s annual operating expenses were about $9 million in October. But after that it dropped to about $5 million.
To remedy the situation, Gray proposes setting SushiSwap’s “Kanpai” or treasury amount from the fee to 100% for “one year or until new tokenomics”. This comes at the cost of those who stake SUSHI. Trading rewards and fees are generally received in return for locking the token. Gray also outlined why it is not possible to use SUSHI tokens as expenses:
As stated earlier, Sushi is currently close to a full token distribution. And it hasn’t taken advantage of the opportunity to diversify the Treasury and provide the liquidity needed to continue its operations.”
SushiSwap has been hit hard by the ongoing crypto winter, with the SUSHI token losing 79% of its value over the past year. It is currently ranked in the top 10 of the most popular decentralized exchanges. Its 24-hour trading volume is $42 million.
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