Top Crypto News: Will SushiSwap’s new proposed tokenomics save SUSHI price?
SushiSwap, the popular decentralized exchange built on Ethereum, is planning a major change to its tokenomics. The new plan, which is designed to increase the price of SUSHI, has caused some controversy. We take a look at the plan and whether it will be successful.
Key Takeaways:
- The CEO of the popular DEX has come up with new tokenomics which is believed to save the platform from liquidity crunch.
- The proposal consists of multiple new features like token burn, time-lock tiers, stop revenue with non-liquidity providers, etc.
- The new model is believe to give a larger boost for the SUSHI price which stands declined by more than 95% from the previous highs.
The crypto space experience hefty losses with multiple bankruptcy reported in 2022 which was fueled by fallouts of the industry giants. Meanwhile, the value of the popular tokens underwent significant drop which compelled the altcoins like SUSHI to lose larger share of its value. However, to save the token from drowning in the ocean, the CEO of the popular DEX, Jared Grey has come up with a new proposal to revive the ecosystem.
Read More: Top Altcoins To Watch Out In 2023
The CEO, recently, has announced some modification to the tokenomics which may help the protocol to rise above the ongoing liquidity crunch.
I am excited to share the vision for @SushiSwap's new token model. I've posted a brief tl;dr write-up on the Sushi forum & linked the entire proposal. We look forward to your questions & feedback.https://t.co/D9TO2Oi8ra pic.twitter.com/GBrQKPzfiH
— Jared Grey (@jaredgrey) December 30, 2022
According to the new proposal being introduced on the Sushi’s forum, a time-lock will be introduced for the emission-based rewards. Along with this a token-burning mechanism and a liquidity lock will also be introduced.
The liquidity providers (LPs) are eligible to receive 0.05% of swap fees revenue where-in the higher volume may receive a larger share. The LPs may also lock their liquidity to earn rewards and if they wish to withdraw before maturity, then the rewards will be burnt. While the 0.05% swap fees will be utilized by the platform to buy back the SUSHI tokens which is variable and tends to change based on total time lockers selected.
As of now, the Sushiswap’s treasury has dried up to some extent as it has experienced loss of about $30 million in 2022. Therefore, the new tokenomics proposed is believed to boosts the liquidity and decentralization. Additionally, the treasury reserves may also be strengthened which may ensure the continuity of operation and development of the platform.
Additional Read: Top Crypto Communtities
However, the proposal is said to be the first draft and the final version is said to include the suggestions and best ideas received as a feedback.
“Less than 24 hours after release & we’ve received a lot of positive feedback, helpful suggestions, & some trolling. FYI, this is the first draft, & we expect the final version to include an optimal model that considers your best ideas to improve it. Keep the ideas coming,”
