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SushiSwap: The Battle for Treasury Control

SushiSwap: The Battle for Treasury Control

TL;DR

  • SushiSwap’s Governance Controversy: The DeFi platform SushiSwap is in the midst of a heated debate over a proposal that could lead to the main team assuming control over the project’s treasury process. The proposal’s approval is uncertain due to a lack of consensus within the community.
  • Voting Manipulation Accusations: Accusations have been made that individuals, suspected to be members of the SushiSwap team, may have manipulated the voting outcomes. Former team member Naïm Boubziz accused the team of using their multi-signature wallet to vote in favor of the proposal.
  • SushiSwap’s Performance: SushiSwap, initially a derivative of Uniswap V2, has experienced significant fluctuations in its performance. As of now, its total value locked (TVL) stands at $371.83 million, with a trading volume of just $3.79 million, a significant downturn from its peak in November 2021.

The decentralized finance (DeFi) platform, SushiSwap, has recently been embroiled in controversy surrounding the future powers of its treasury. The voting process, which started on April 3 and is set to conclude next Friday, has become the epicenter of a heated debate.

The plan under discussion could potentially lead to the SushiSwap main team assuming control over the project’s treasury process. This has underscored the importance of governance and transparency in the crypto industry. However, the proposal’s approval appears uncertain due to a lack of consensus within the community.

Despite these objections, the majority of board members seem to favor the approval, which continues to draw significant criticism on media platforms. Approximately 29 million SUSHI tokens have been approved by users, surpassing the required 20% quorum for decision-making. Conversely, around 9.7 million tokens have been cast in opposition.

Leading the support was the Sushi Labs team, who contributed 5.5 million tokens. On the other hand, the ‘sushicitizens.eth’ address pledged 4.4 million SUSHI against the proposal. Accusations have surfaced alleging that individuals suspected to be members of the SushiSwap team may have manipulated the voting outcomes. Naïm Boubziz, a former team member, accused the team of using their multi-signature wallet to vote in favor of the proposal.

Accusations of SushiSwap’s Voting Manipulation

SushiSwap: The Battle for Treasury Control

Boubziz highlighted certain activities that took place just hours before the snapshot’s generation. He observed that new wallets had increased liquidity before the snapshot was established. Interestingly, these same wallets reduced their liquidity following the creation of the snapshot. As a result, he advises everyone to be vigilant of these transactions.

SushiSwap, initially a derivative of Uniswap V2, has experienced a rollercoaster of ups and downs. In its heyday in November 2021, SushiSwap boasted a total value locked (TVL) of $8.07 billion and a trading volume of $849.14 billion. However, SushiSwap’s prosperity took a significant downturn thereafter. At the time of writing, its TVL stands at a mere $371.83 million, with a trading volume of just $3.79 million.

These developments have highlighted broader issues of governance and power concentration within decentralized network communities. As SushiSwap grapples with these complex governance issues, the integration of voting mechanisms emerges as one of the most challenging problems to overcome, along with the potential for manipulation.

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