SUSHI Price In Free Fall, Down 15.9% In 24 Hours

On December 7th, SUSHI price decreased dramatically, down to 15.9% (at the writing time) in only 24 hours. One day before, SushiSwap Head Chef’s Jared Gray initiated a proposal to increase Treasury xSUSHI revenue from 10% to 100%.

Gray explained in his proposal that the bear market is forcing SushiSwap to rethink its revenue-sharing model to prevent a further liquidity crunch.

Sushi’s Treasury currently has a term of about 1.5 years. To expand its runway, Gray has proposed that 100% of Sushi’s revenue be allocated to the treasury over the next 12 months, to help the protocol rebuild its foundation.

Gray added that Sushi will reduce its annual operating costs from about $9 million to $5 million for cost savings.

In the long run, Gray said the protocol will adopt a new token model that will solve long-term value for Sushi holders. The proposed Vote Margin (VE) model would incentivize xSUSHI holders to lock their assets for longer periods and increase their token rewards.
This proposal was voted on by 28 DAO members, about 75% supported the proposal. However, some members expressed dissatisfaction with this proposal.

Graine commented:

“Depriving xSushi holders of the fees they are entitled to is a major breach of the community covenant.”

Sushi holder Pocketsquare added that revenue is a viable reason for many investors to hold Sushi during a bear market. Therefore, any move to redirect revenue could cause more investors to dump Sushi tokens.

According to CoinMarketCap data, $SUSHI has dropped more than 15.9% in the past 24 hours.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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