DeFi

SushiSwap CEO Reveals Plans To Change Tokenomics

According to SushiSwap CEO Jared Grey, the DEX has lost $30 million in the last year on liquidity provider incentives (LPs).

SushiSwap presently utilizes a token-based emission mechanism to incentivize LPs, as Grey said, but the current pace is “unsustainable.”

Grey also shifted his focus to advocating the “Kanpai” governance plan, which would redirect trading protocol fees received as SUSHI stakeholder incentives into the SushiSwap treasury. Grey previously revealed that the DEX treasury has only 1.5 years of runway remaining.

Grey intends to revamp the tokenomics so that LPs are no longer subsidized with emissions, as well as rethink the exchange’s overall approach of bootstrapping liquidity.

However, Gray still did not reveal too much about tokenomics, which raised suspicions in the community. In response to this, the CEO replied:

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.