What’s Going On With Sushi?
by Martin Gaspar
Proposal To Create A DAO To Support SushiSwap
The Formation Of An On-Chain DAO
The proposal called for forming an on-chain DAO and a legal entity for certain Sushi assets, both governed by SUSHI holders. More importantly, it suggested a sushi development fund of approximately $15 million to pay for Sushi development and compensate core contributors. The $15 million would be sourced from stablecoin issuer Frax and other yet to be announced contributors. Moreover, the proposal called for stronger partnerships between Sushi and protocols such as Ondo, Synapse, Frax, and UMA.
Stemming The Losses
My initial take is that if this proposal were to pass, this could potentially be a significant positive for SushiSwap, which has seemed to languish over the past year (SUSHI price is down ~70% YoY as of writing), especially since losing ground to Uniswap v3 and drama between Sushi’s core contributors. The protocols behind the proposal such as Ondo and Frax have products that are dependent on Sushi in some way, so it makes sense they want to provide a boost to Sushi. If the DAO formed is indeed effective, it is possible they will be able to help Sushi streamline many of its product efforts. Moreover, the fund should be able to ensure competitive compensation for new and current Sushi developers, alleviating the loss of talent Sushi saw last year.
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