Following the tweet from our Head Chef Jared, we would like to share official updates regarding Kanpai 2.0, Sushi’s Supply, Sushi Bar and the Revamped Tokenomics, ensuring our community stays well-informed and in line with our commitment to transparency.
The Expiration of Kanpai 2.0
Implemented amidst the bear market in 2022, Kanpai 2.0 was a strategic initiative to sustain the protocol. We navigated through a bear market and a substantial treasury drawdown by directing 100% of xSushi protocol fees (0.05% of the 0.3% standard trade fees) towards supporting the DAO. Although it was controversial at the time, by its completion, the Kanpai proposal had produced roughly 5M in proceeds, giving us a 4-year runway, which we are only 1.5 years into that mandate.
With the mission accomplished, it's time to return to the original xSushi model as the January 23rd expiry date for Kanpai 2.0 approaches.
Reopening the Sushi Bar
As we revert to the original xSushi model, the Sushi Bar is set to reopen. This move marks a return to our roots, honoring the promise of community ownership and participation. The Sushi Bar allows xSushi holders to earn a portion of the Sushi DEX’s trading fees. By staking Sushi at the Sushi Bar, Sushi holders receive xSushi, representing their share in the Sushi Bar and entitling them to receive 0.05% from the 0.3% standard trading fees. This model promotes active community participation, ensuring that the benefits of our platform are returned to Sushi holders who support and believe in it.
Sushi Supply & Emission
Excitingly, Sushi has completed minting its total supply of 250M. This marks a pivotal moment as we cease emissions and evaluate how well our liquidity mining activities have bootstrapped long-term liquidity. As a result, there will be no new Sushi emissions moving forward since all Sushi tokens are now in circulation.
Revamped Tokenomics Proposal
In our continuous effort to achieve sustainable growth and a long-term strategy, we introduced a proposal to update our token model. We aimed to enhance protocol sustainability, token utility, and treasury diversification. However, the community feedback was mixed. The lack of widespread support has led us to redirect this conversation to the community, reaffirming our commitment to decentralized decision-making.
As a result, the new tokenomics for Sushi will not be deployed.
What's Next
As we move forward, our focus is on innovation, community empowerment, and expanding our services, which we believe are the core pillars of success. Moving away from the constant emission of tokens and token rewards distribution, our aim is to create true value by enhancing the overall dex offering, trading/swapping, and LP experience, to attract traders and LPs.
Dex Offering:
Multi-chain & Cross-chain trading: Sushi is leading and expanding its multi-chain and cross-chain capabilities, currently operating across 30+ chains, pushing towards chain agnosticism and seamless swapping experiences.
Modular Architecture Integration: The Sushi x Algebra Proposal, introduces a modular architecture, enhancing DEX functionality and fostering a developer-friendly ecosystem for innovation, aiming to outpace and outperform Uniswap v4.
Technological Advancement: The core of Sushi’s technological innovation is its self-developed tech stack, including the Route Processor (RP4) and a series of protocol enhancements, optimizing trading across various liquidity pools and chains.
Trader:
Sushi is committed to expanding multi-chain and cross-chain offerings, focusing on maintaining a swapper-friendly experience. This includes features like a dex aggregator, protection against honeypot and scam tokens, and no front-end fees.
LP:
New LP tooling, such as native Smart Pools and the Merkl protocol for stakeless reward distribution, is being introduced to maximize efficiency for liquidity providers.
A bonds product is in development, aimed at diversifying investment options and enhancing yield generation.
The community's voice will continue to guide us as we embark on this new chapter, committed to transparency, inclusivity, and sustainable growth. We thank you for your support and belief in our vision. Together, we are not just building a platform; we are shaping the future of decentralized finance.
Welcome back to the Sushi Bar – let's continue this remarkable journey together.
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