The Sushi community has voted on two separate proposals, including Kanpai, in an effort to strengthen the DeFi’s service’s treasury and long-term staying power. The proposals were passed independently. The majority of the votes were from token holders who staked sushipowah and xsushi on Sushi’s governance forums.
Like other DeFi applications, Sushi relies on smart contracts to provide financial services like trading, borrowing and lending to users. Sushi dApp was one of the earliest applications. It locked over $459 million in tokens – down from a lifetime peak of $7.5 billion in 2021.
Sushi through the Kanpai will direct all trading fees from xsushi holders to the Sushi treasury. Users who staked tokens on SushiSwap were given xSushi tokens. It gave users 0.05% as reward from each trade, and 10% was directed to the SushiSwap treasury. Now, with the proposal 100% of all fees will be sent to the treasury; xSushi holders will get no rewards. This model will last for a year – until December 19, 2023. During this period, the community will propose and pass a new rewards distribution model.
Meanwhile, the SushiDAO also voted in favor of retrieving 8.2 million SUSHI. These tokens were initially rewarded to early liquidity providers (LPs) during SushiSwap’s launch in 2020. The LPs were rewarded with SUSHI tokens during the first six months. Majority of the accrued rewards was locked up and vested for another additional six months, and fully unvested in 2022. But more than 8.2 million tokens remained unclaimed.
