{"id":15208,"date":"2023-01-03T08:53:13","date_gmt":"2023-01-03T12:53:13","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=15208"},"modified":"2023-01-03T08:53:13","modified_gmt":"2023-01-03T12:53:13","slug":"sushiswap-head-chef-suggests-cooking-up-new-token-model-will-the-dex-survive-2023","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/01\/03\/sushiswap-head-chef-suggests-cooking-up-new-token-model-will-the-dex-survive-2023\/","title":{"rendered":"SushiSwap Head Chef Suggests Cooking Up New Token Model \u2013 Will The DEX Survive 2023?"},"content":{"rendered":"

On December 7<\/a>, Jared Grey, the CEO and \u201cHead Chef\u201d of SushiSwap, suggested that the DEX is burning through cash like there is no tomorrow.<\/p>\n

According to the forum post<\/a> made by Grey, the DEX has, more or less, a year and a half in headroom which resulted in the exchange enacting<\/a> a 100% allocation from fees on its staking token xSUSHI.\u00a0<\/p>\n

This 100% allocation, however, is temporary until the DEX\u2019s situation improves or new tokenomics are enacted. Will this proposal be the answer to SushiSwap\u2019s urgent situation?\u00a0<\/p>\n

New Year, New Tokenomics\u00a0<\/strong><\/h2>\n

Grey\u2019s current proposal<\/a>, if passed, is a technical undertaking for the DEX which could save it from its current state. According to the proposal, liquidity providers, or LPs, will receive a share of the 0.05 % swap fee on the ecosystem.<\/p>\n\n

They can also lock their liquidity to earn emission-based rewards with a soft-lock system, meaning that they can pull their liquidity out before it reaches maturity but they lose their rewards.\u00a0<\/p>\n

xSUSHI rewards are also updated. The token would lose its previous cut on the fees and will be replaced with an emission-based rewards system. The soft-lock system will have differing rewards for different lock tiers.\n<\/p>\n

The emission APY, according to the forum post, will be around 1-3% if instated. The new tokenomics would also introduce token burning in the form of buy backs of SUSHI and burning off the rewards if the locked liquidity or xSUSHI is pulled out.\u00a0<\/p>\n

As I promised in Sunday\u2019s tweet regarding Sushi\u2019s Budget Snapshot for 2023, I am making the DAO operating costs public. Transparency is a critical component of a successful DAO. You can see most budget costs are salaries. 1\/ pic.twitter.com\/rVHXEJSfLR<\/a><\/p>\n

\u2014 Jared Grey (@jaredgrey) December 13, 2022<\/a><\/p>\n

<\/h2>\n

Issues Wafting In The Air For SushiSwap<\/strong><\/h2>\n

Although the new tokenomics look sound, a comment on the December 7<\/a> forum post shows something different. According to user GoldenNaim<\/a>, the platform is currently using $4 million of the calculated $5 million operating budget for wages.\u00a0<\/p>\n

This is incredibly troubling as this only leaves the team a measly $1 million for making SushiSwap better through innovation. Jared Grey\u2019s reply to this is just:<\/p>\n

\u201cYes, we need to pay people competitive wages to work at Sushi.\u201d<\/strong><\/p>\n\n

But it seems that the proposed tokenomics has an effect on SUSHI\u2019s price. According to CoinGecko<\/a>, SUSHI has jumped by 1.8% in the past 24 hours with the biggest rally in the weekly timeframe at 2.8%.\u00a0<\/p>\n

The DEX\u2019s fundamentals are also looking bullish as Cryptolaxy<\/a>, a crypto fundamental and technical analysis platform, show that SUSHI is undervalued to some degree. If SUSHI is to recover from 2022 market woes, the token must break through $0.9849 resistance.\u00a0<\/p>\n

As the year progresses forward, we\u2019ll see if SushiSwap will implement its proposed tokenomics and save it from its current state.\u00a0<\/p>\n

-Restaurant Business Magazine<\/em><\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

On December 7<\/a>, Jared Grey, the CEO and \u201cHead Chef\u201d of SushiSwap, suggested that the DEX is burning through cash like there is no tomorrow.<\/p>\n

According to the forum post<\/a> made by Grey, the DEX has, more or less, a year and a half in headroom which resulted in the exchange enacting<\/a> a 100% allocation from fees on its staking token xSUSHI.\u00a0<\/p>\n

This 100% allocation, however, is temporary until the DEX\u2019s situation improves or new tokenomics are enacted. Will this proposal be the answer to SushiSwap\u2019s urgent situation?\u00a0<\/p>\n

New Year, New Tokenomics\u00a0<\/strong><\/h2>\n

Grey\u2019s current proposal<\/a>, if passed, is a technical undertaking for the DEX which could save it from its current state. According to the proposal, liquidity providers, or LPs, will receive a share of the 0.05 % swap fee on the ecosystem.<\/p>\n

They can also lock their liquidity to earn emission-based rewards with a soft-lock system, meaning that they can pull their liquidity out before it reaches maturity but they lose their rewards.\u00a0<\/p>\n

xSUSHI rewards are also updated. The token would lose its previous cut on the fees and will be replaced with an emission-based rewards system. The soft-lock system will have differing rewards for different lock tiers.\n<\/p>\n

The emission APY, according to the forum post, will be around 1-3% if instated. The new tokenomics would also introduce token burning in the form of buy backs of SUSHI and burning off the rewards if the locked liquidity or xSUSHI is pulled out.\u00a0<\/p>\n

As I promised in Sunday\u2019s tweet regarding Sushi\u2019s Budget Snapshot for 2023, I am making the DAO operating costs public. Transparency is a critical component of a successful DAO. You can see most budget costs are salaries. 1\/ pic.twitter.com\/rVHXEJSfLR<\/a><\/p>\n

\u2014 Jared Grey (@jaredgrey) December 13, 2022<\/a><\/p>\n

<\/h2>\n

Issues Wafting In The Air For SushiSwap<\/strong><\/h2>\n

Although the new tokenomics look sound, a comment on the December 7<\/a> forum post shows something different. According to user GoldenNaim<\/a>, the platform is currently using $4 million of the calculated $5 million operating budget for wages.\u00a0<\/p>\n

This is incredibly troubling as this only leaves the team a measly $1 million for making SushiSwap better through innovation. Jared Grey\u2019s reply to this is just:<\/p>\n

\u201cYes, we need to pay people competitive wages to work at Sushi.\u201d<\/strong><\/p>\n

But it seems that the proposed tokenomics has an effect on SUSHI\u2019s price. According to CoinGecko<\/a>, SUSHI has jumped by 1.8% in the past 24 hours with the biggest rally in the weekly timeframe at 2.8%.\u00a0<\/p>\n

The DEX\u2019s fundamentals are also looking bullish as Cryptolaxy<\/a>, a crypto fundamental and technical analysis platform, show that SUSHI is undervalued to some degree. If SUSHI is to recover from 2022 market woes, the token must break through $0.9849 resistance.\u00a0<\/p>\n

As the year progresses forward, we\u2019ll see if SushiSwap will implement its proposed tokenomics and save it from its current state.\u00a0<\/p>\n

-Restaurant Business Magazine<\/em><\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-15208","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/15208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=15208"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/15208\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=15208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=15208"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=15208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}