One of the leading decentralized exchanges SushiSwapthe team’s comprehensive proposal could have a new tokenomics if it gets the right community support.
The proposal was re-submitted by the exchange’s CEO, Jared Gray, who pointed out that a new system was needed as the current tokenomic model, Kanpai, would be eliminated by December. The proposal highlights key aspects to consider, including benefits, stakeholder consideration and challenges.
DeFi SushiSwap, one of the oldest exchanges in the world, wants to stand out with a more obvious sustainability regarding its economic models. The new tokenomics proposal is intended as a tool to help the protocol achieve this end goal.
The proposal aims to provide a solution to the “liquidity subsidy” issue among the challenges. With the new tokenomics, SushiSwap will provide efficiency in this regard and SUSHI It will help reduce the annual cost of emissions. In addition, the incentives set for Liquidity Providers (LPs) require recalibration to maintain competition.
Aside from these challenges, the new SUSHI tokenomics will also seek to improve the protocol’s staking mechanism and xSushi distributions. To achieve its ultimate goals, SushiSwap plans for its revenue to come from multiple sources, including fees collected from traders, stakers, and aggregation referral.
One of the important consequences of this new tokenomics is its potential impact on SushiSwap’s market valuation. SUSHI’s ultimate goal is to surpass Uniswap’s native token, UNI, as plans to maintain competition are also part of future goals.