SushiSwap to Redirect Trading Fees to its treasury
Zach Anderson Jan 25, 2023 09:18
SushiSwap will shortly transfer all trade fees to its treasury. 99.85% of voters "clawbacked" 10,936,284 unclaimed SUSHI ($14.8 million) tokens.
The decentralised exchange (DEX) SushiSwap will, in the near future, reroute one hundred percent of the trading fees that are collected on the platform to its treasury in order to pay for ongoing operations and maintenance for a period of one year. This decision was made in accordance with a governance proposal that was approved on January 23.
After receiving a warning from the CEO that the market could potentially become unstable, the decision to take action was made "Even after lowering annual operational expenses from $9 million to $5 million in the midst of the protracted crypto winter, barely has enough runway in its treasury to last for another 1.5 years.
In the event that this proposal is accepted, the income that is brought into the treasury will be divided between ETH and USDC in a manner that is equal to each other, and it is anticipated that this revenue will total around $6 million over the course of the next year."
In a second motion that was put to a vote and passed on the same day, 99.85 percent of voters decided to "clawback" 10,936,284 SUSHI tokens with a total value of $14.8 million. These tokens had been distributed to early liquidity providers at the launch of the DEX in 2020 but no one had claimed them. The motion was approved.
Users of SushiSwap who provided trading liquidity for the exchange throughout the months of August 2020 and February 2021 were eligible to claim the rewards, which had been made available to users for more than two years at that time.
Several of the commentators said that "people have earned their SUSHI fair and square," and that their title to these assets should not be denied because of this fact. In addition, they stated that "people have earned their SUSHI fair and square."
Others have voiced their support for the clawback on the basis that it removes "idle SUSHI that may be put to higher use."
The money will be transferred over to the common account that SushiSwap uses.
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