CEO of SushiSwap, Jared Grey has plans to redesign the tokenomics of the SushiSwap token, according to a proposal introduced on the Sushi’s forum.
The new proposed tokenomics model shows that time-lock tiers will be introduced for emission-based rewards, as well as a token-burning mechanism and a liquidity lock for price support. The new tokenomics plans to boost liquidity and decentralization in the platform, along with strengthening “treasury reserves to ensure continual operation and development.
In the proposed model, liquidity providers would receive 0.05% of swap fees revenue, with higher volume pools receiving the biggest share. LPs will also be able to lock their liquidity to earn boosted, emissions-based rewards. The rewards are forfeited and burned, however, if they are removed before maturity. Staked SUSHI won’t receive any share of the fee revenue, but emissions-based rewards paid in SUSHI tokens. Time-lock tiers will be used to determine emissions-based rewards, with longer time locks resulting in bigger rewards. Withdrawals before the maturity of time
