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News

Sushi Treasury Tokens Proposed to Sell 100% to Diversify Assets

December 7, 2024 - Around 2 mins mins to read

Key Points:

  • Sushi DAO plans to diversify Sushi treasury tokens from 100% SUSHI to a mix of 70% stablecoins, 20% blue-chip tokens, and 10% DeFi tokens.
  • The proposal includes using the new assets for staking, lending, and liquidity provision to generate additional yield.
The DAO of the decentralized exchange Sushi, Sushi DAO, is now set to implement changes in its treasury management.
Sushi Treasury Tokens Proposed to Sell 100% to Diversify Assets

Read more: Sushi DAO Financial Proposal Passes Preliminary Signal Vote With 62.5% Support

Diversification of Sushi Treasury Tokens

Head Chef Jared Grey has now led the introduction of a new plan that significantly changes overreliance on holding 100% SUSHI tokens to diversified holdings such as stablecoins, blue-chip cryptocurrencies, and DeFi tokens.

The proposed rebalancing would redistribute the Sushi treasury tokens to include 70% stablecoins, such as USDT and USDC; 20% blue-chip tokens, like Bitcoin and Ethereum; and 10% DeFi tokens, like AAVE.

In his view, this redistribution will minimize volatility exposure and enhance liquidity while generally increasing overall returns. The strategy includes staking, lending, and liquidity provision as ways of generating yield with the new assets, according to Grey.

The move represents a significant policy shift because the proposal advocates for a full liquidation of Sushi treasury token holdings. Sushi DAO leadership thinks that diversification of the treasury will improve the financial stability and operational efficiency of the protocol.

Community Feedback and Governance Vote to Decide Proposal

The Sushi community now has the important job of assessing the proposed treasury strategy and determining whether it aligns with the platform’s long-term objectives.

The community-driven approach ensures that this proposal is subject to feedback and refinement through DAO discussions before undergoing a governance vote. If approved, the plan would be implemented via a structured liquidation process designed to minimize market disruptions.

The new plans follow a tough year for Sushi. In April, Grey spearheaded an unpopular restructuring; the SUSHI token dropped in value by nearly 20%. However, these changes did not keep it down, as it rose more than 100% in the last month alone.

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.

DeFi

SUSHI

Sushi DAO

Sushi Treasury Tokens

Author

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.
News

Sushi Treasury Tokens Proposed to Sell 100% to Diversify Assets

Key Points:

  • Sushi DAO plans to diversify Sushi treasury tokens from 100% SUSHI to a mix of 70% stablecoins, 20% blue-chip tokens, and 10% DeFi tokens.
  • The proposal includes using the new assets for staking, lending, and liquidity provision to generate additional yield.
The DAO of the decentralized exchange Sushi, Sushi DAO, is now set to implement changes in its treasury management.
Sushi Treasury Tokens Proposed to Sell 100% to Diversify Assets

Read more: Sushi DAO Financial Proposal Passes Preliminary Signal Vote With 62.5% Support

Diversification of Sushi Treasury Tokens

Head Chef Jared Grey has now led the introduction of a new plan that significantly changes overreliance on holding 100% SUSHI tokens to diversified holdings such as stablecoins, blue-chip cryptocurrencies, and DeFi tokens.

The proposed rebalancing would redistribute the Sushi treasury tokens to include 70% stablecoins, such as USDT and USDC; 20% blue-chip tokens, like Bitcoin and Ethereum; and 10% DeFi tokens, like AAVE.

In his view, this redistribution will minimize volatility exposure and enhance liquidity while generally increasing overall returns. The strategy includes staking, lending, and liquidity provision as ways of generating yield with the new assets, according to Grey.

The move represents a significant policy shift because the proposal advocates for a full liquidation of Sushi treasury token holdings. Sushi DAO leadership thinks that diversification of the treasury will improve the financial stability and operational efficiency of the protocol.

Community Feedback and Governance Vote to Decide Proposal

The Sushi community now has the important job of assessing the proposed treasury strategy and determining whether it aligns with the platform’s long-term objectives.

The community-driven approach ensures that this proposal is subject to feedback and refinement through DAO discussions before undergoing a governance vote. If approved, the plan would be implemented via a structured liquidation process designed to minimize market disruptions.

The new plans follow a tough year for Sushi. In April, Grey spearheaded an unpopular restructuring; the SUSHI token dropped in value by nearly 20%. However, these changes did not keep it down, as it rose more than 100% in the last month alone.

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.