SushiSwap: Sushi DAO Treasury proposal passes amid wallets creation controversy

A contentious proposal by the SushiSwap (SUSHI) team to restructure its treasury appears set to advance, despite facing vocal opposition and accusations of voting manipulation.

The proposal, put forth by the SushiSwap team on March 26, aims to transition the protocol to a “Labs model” to enhance operational efficiency and accelerate protocol development. It proposes a significant tokenomics overhaul, involving the transfer of approximately 25 million SUSHI tokens, valued at around $42.5 million, the DAO-controlled treasury to a new one controlled by Sushi Labs while also directing all future airdrops to the Sushi Labs vault.

The proposal passes first stage

A signal vote on the proposal commenced on April 3 and concluded on April 10, with around 29 million SUSHI tokens pledged, surpassing the required quorum.

Initially, voting was evenly divided, but it ultimately tipped in favour of the proposal, with only around 9.7 million tokens opposing it.

Key players in the vote included the Sushi Labs team, which proposed the change and pledged 5.5 million tokens in favour, and opposing parties such as “sushicitizens.eth,” which pledged 4.4 million SUSHI against the proposal.

After passing the signal vote stage, voting on the proposal’s implementation has already started and is scheduled to conclude on April 17. At press time, 5.8 million SUSHIPOWAH votes had been cast in favour representing 96.17% of the total votes cast. Only about 296K SUSHIPOWAH votes had been cast against the implementation of the proposal.

Vote manipulation allegations

The proposal has sparked heated debate within the community, with vocal opposition emerging on social media platforms.

Former SushiSwap contributor Naïm Boubziz raised concerns about potential manipulation of the voting process, alleging that the team created fresh wallets and borrowed funds to increase their voting power temporarily.

#Sushiswap : Here is how the Sushiswap team is trying to manipulate the vote:

– They added liquidity by borrowing money between 01:52 and 02:07 AM
– The next snapshot was created at 02:23
– Immediately afterwards, all liquidity was removed between 2:38 and 3:14 pic.twitter.com/kFiurbwa7N

— Naïm Boubziz (@BrutalTrade) April 4, 2024

These accusations added fuel to the already intense debate surrounding the proposal.

Addressing the allegations, Sushi “Head Chef” Jared Grey defended the team’s actions, stating that using the OPs wallet and its holdings for the vote was necessary to counter the threat of a hostile takeover, following consultations with legal counsel.

Grey also added that if the proposal passes, SushiSwap will have a well-funded R&D company that can help rectify the DAOs’ previous product woes while enabling a more robust council-structured and on-chain governance model and that the Sushi DAO will retain significant treasury value and be managed by a suitable council.

The DAO will retain significant treasury value and be managed by a suitable council.

— Jared Grey (@jaredgrey) April 8, 2024

SushiSwap (SUSHI) token price reaction

At press time, SushiSwap (SUSHI) token, a cornerstone of the SushiSwap ecosystem, was trading at $1.51, down 6.67% over the past 24 hours and

Today’s plunge has erased all the gains that the token had made over the past week to resume its prior bear trend. Its price is now 25% lower compared to where it was 30 days ago.

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