A controversial proposal by the SushiSwap team to change the decentralized exchange's treasury structure looks like it may go through despite vocal opposition on social media.
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The controversial proposal aims to “significantly evolve Sushi by adopting a Labs model,” i.e., transfer assets from the DAO-controlled treasury to a newly established entity called 'Sushi Labs.' All future airdrops by protocols and partners are also intended to be redirected to the new body instead of the DAO.
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These developments have triggered concerns regarding the community's role and transparency at SushiSwap. Moreover, discrepancies have been noted regarding the accuracy of wallet holdings detailed in the proposal, which has led to further scrutiny.
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Voting began on April 3 and will end on Wednesday, April 10. Around 29 million SUSHI has been pledged at the time of writing, which is generally more than enough to reach a quorum.
In the first couple of days of the signal vote, ~93% of participants voted ‘Nay,’ however, as on Tuesday, voting for either outcome was pretty evenly matched, tipping in favor of the “yays.” Among the whale voters, the Sushi Labs team, the authors of the proposal, have pledged 5.5 million tokens in favor, while a key opposer under the "sushicitizens.eth" address has pledged 4.4 million SUSHI against it.
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Proponents argue that updating the organizational structure is critical, emphasizing the need for legal guidance and streamlined decision-making processes.
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Conversely, critics, such as Naïm Boubziz, a former SushiSwap contributor, have accused the company and its 'head chef' Jared Grey, of carrying out a de facto “hostile takeover,” undermining the community and the DAO by attempting to gain complete control over the treasury," and “killing the community” and the DAO while aiming to seize 100% of the treasury.
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Sushi's 'Head Chef' Jared Grey, in his turn, defended against the critics who accused Sushi Labs of manipulating the vote.
“After consulting our legal counsel, I directed the operations team to execute the YAY vote with the OPs wallet and its holdings due to the threat of a hostile takeover,” Jared Grey explained on X.
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SushiSwap is no stranger to controversy and power struggles. Since its launch in 2020, the DEX gained attention by outperforming industry leader Uniswap following a vampire attack. However, its pseudonymous founder, “Chef Nomi,” reportedly attempted a rug-pull shortly after, plunging the protocol into controversy and infighting the internal chaos that has continued ever since.
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