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SushiSwap to Undergo Major Changes to Boost Liquidity.

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Jared Grey, CEO of SushiSwap, wants to redesign the tokenomics of the SushiSwap token. The decentralized exchange will see the introduction of emission-based rewards, a token-burning mechanism, and a liquidity lock for price support.

Grey aims to boost liquidity and decentralization in the platform, as well as strengthen treasury reserves to ensure continual operation and development. He highlighted liquidity providers would receive 0.05% of swap fees revenues with higher volume pools receiving the biggest share. As such, they will be able to lock their liquidity to earn boosted, emissions-based rewards. The rewards if removed before maturity are forfeited and burned.

However, staked SUSHI will not get any share of the fee revenue. Emissions-based rewards will be paid in SUSI tokens. Grey said time-lock tiers will be used to establish emissions-based rewards, with longer time locks resulting in bigger rewards. The platform will use a variable percentage of the 0.05% swap fee to buy back and burn the SUSHI token. But the percentage will change based on the total time-locked tiers selected. According to the proposal, time locks get paid after maturity and burns happen in real-time when a large amount of collateral gets unstacked before maturity and has a sizable deflationary effect on supply.

The redesign follows SushiSwap’s disclosed to have less than 1.5 years of runway left in its treasury – a significant deficit was threatening the exchange’s operation viability.

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