By George Ward
The Sushi DAO protocol is set to implement its following governance action to see all fees generated from its decentralized exchange trade shift to the DAO’s treasury. The latest development follows the unanimous vote of approval from the community.
Sushi’s Kanpai Protocol Is Live
According to reports, the Sushi Kanpai protocol has been launched following the latest community vote. The Kanpai protocol is SushiSwap’s fee-moving system that will enable the DAO to determine the amount of the exchange’s trading fees to be transferred to the treasury.
Meanwhile, the default ratio for the Kanpai protocol is 10%, but the latest vote has raised this figure by 100%. However, it is reported that the Kanpai ratio is expected to last for one year, coinciding with when the DAO adopts a new token model.
The previous signal vote took place on December 19, 2022, which the network chose as the starting date for the new token ratio. Therefore, the Kanpai ratio is expected to return to its previous figure on December 19, 2023, subject to adopting a new tokenomic balance.
As a result, Sushi token holders will not be able to redeem rewards from transaction fees during this period. Jared Grey, the Head Chef at Sushi, has previously stated that the Kanpai ratio is a temporary solution for a long-term issue.
According to Grey, the problem is that DAO is yet to ensure that the project’s resources have reached a competitive stage. Consequently, Grey noted that diverting transaction fees to the treasury is better than selling Sushi tokens to raise funds.
Meanwhile, the Sushi DAO treasury holds $17 million worth of crypto assets in its reserves. In addition, the bulk of the tokens, worth $16 million, are in the native Sushi assets. Moreover, the DAO also holds significant amounts of USDC stablecoins and Ether.
The Role of GoldenChain
Furthermore, Monday’s vote was concluded, with the majority having a say on the next course of action regarding the Sushi DAO fees diversion. Data from the voting page shows that 747 participants in the recently concluded poll made up 99% of the voters in support of the move.
However, the one player solely responsible for the success of the plan is GoldenChain, the digital investment subsidiary of Golden Tree. The firm’s wallet supplied a whopping 5.9 million votes out of the total 6.7 million votes in support of the planned action.
Interestingly, the role of GoldenChain in the DAO voting process caused another controversy in the previous voting session. According to reports, many community members consider the signal vote that started before Monday’s vote as a power play by the big players within the DAO ecosystem.