SushiSwap DEX has experienced a $30 million loss over the past 12 months on incentives for liquidity providers. As explained by SushiSwap currently employs a token-based emission strategy to incentivize LPs, but the current rate is unsustainable.
Moving forward, CEO Jared Grey plans to rework SushiSwap’s tokenomics so that LPs are no longer subsidized with emissions and redesign the entire model of bootstrapping liquidity on the exchange.
Grey also turned his attention to promoting the “Kanpai” governance proposal, which will divert trading protocol fees earned as rewards from SUSHI stakers into the SushiSwap treasury.
Curiously, Grey has remained opaque concerning the design of the new SushiSwap for now, stating that he will provide “full financial transparency by releasing public dashboards for DAO & Treasury activity” in Q1 2023.
