- Sushi community votes to strengthen DeFi treasury and long-term stability
- Two proposals passed using sushipowah and xsushi tokens on Sushi's governance forums
- Sushi is a DeFi application using smart contracts for financial services, currently holding $459m in tokens.
The token holders of the Sushi community have recently passed two proposals that aim to improve the decentralized finance (DeFi) service's treasury and long-term sustainability. The proposals were voted on using sushipowah and xsushi tokens on Sushi's governance forums.
Sushi, like other DeFi applications, uses smart contracts to offer financial services such as trading, borrowing, and lending to users. As of Tuesday, it had locked up over $459 million in tokens, down from a peak of $7.5 billion in 2021.
The first proposal, called the "Kanpai" proposal, directed all trading fees from xsushi holders to the Sushi treasury. The second proposal sought to recover unclaimed sushi tokens from a distribution in 2021 and return them to the treasury. As a result of the Kanpai proposal, 100% of all fees will now be sent to the treasury, leaving no rewards for xSushi holders. This model will last for nearly one year until December 19, 2023, during which time the community will propose a new rewards distribution model.
The Sushi community also voted to retrieve 8.2 million SUSHI, worth around $11 million, that were initially rewarded to early liquidity providers during SushiSwap's launch in 2020. These tokens were fully unvested last year, but over 8.2 million SUSHI remained unclaimed.
The community proposed and successfully voted to capture these unclaimed tokens to further boost its treasury. LPs have until April 23 to claim the tokens, after which unclaimed tokens will be sent to the treasury.