Blockchain intelligence platform Santiment warns that the massive rally recorded by a top-50 altcoin could be coming to an end. Santiment says that the governance token of the Ethereum (ETH)-based staking network Lido DAO (LDO) is showing a divergence between the price and the number of active addresses as well as network growth. “It’s [Lido […]
The post Crypto Analytics Firm Warns Traders About Ethereum-Based Altcoin That’s Exploded Over 164% in Two Weeks appeared first on The Daily Hodl.
As the FTX bankruptcy case and fraud charges against co-founder Sam Bankman-Fried continue to unfold, the value of the exchange’s token, FTX Token (FTT), has seen significant growth. Since Jan. 9, 2023, FTT has risen 28.42% and currently sits above the $1 range, following a dip below that threshold. FTT Token Jumps 28% Rising Above […]
The chief technology officer of decentralized exchange (DEX) SushiSwap (SUSHI) is looking back on 2022 while giving a roadmap for 2023. Matthew Lilley, who is also one of the key core developers behind SushiSwap, says that the DEX decided to put Kashi, a lending platform, and MISO, a token launchpad, on the back burner. Lilley […]
The post SushiSwap Executive Reveals Roadmap for 2023, Says ‘Interesting Suprise’ Coming to SUSHI appeared first on The Daily Hodl.
The new tokenomics intends to boost liquidity and decentralization in the platform, enabling SushiSwap to continue operations.
Jared Grey, CEO of the decentralized exchange Sushiswap, has plans to redesign the tokenomics of the SUSHI token, according to a proposal introduced on Dec. 30 in the Sushi's forum.
As part of the new proposed tokenomics model, 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 aims to boost liquidity and decentralization in the platform, along with strengthening "treasury reserves to ensure continual operation and development," noted Grey.
In the proposed model, Liquidity Providers (LPs) 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.
I am excited to share the vision for @SushiSwap's new token model. I've posted a brief tl;dr write-up on the Sushi forum & linked the entire proposal. We look forward to your questions & feedback.https://t.co/D9TO2Oi8ra pic.twitter.com/GBrQKPzfiH
— Jared Grey (@jaredgrey) December 30, 2022
Also, staked SUSHI (xSUSHI) 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 locks are permitted, but rewards will be forfeited and burned.
The decentralized exchange will use a variable percentage of the 0.05% swap fee to buy back and burn the SUSHI token. The percentage will change based on the total time-lock tiers selected. The proposal notes that:
"Because time locks get paid after maturity, but burns happen in “real-time” when a large amount of collateral gets unstaked before maturity, it has a sizable deflationary effect on supply."
The tokenomics redesign comes after SushiSwap's disclosed to have less than 1.5 years of runway left in its treasury, meaning that a significant deficit was threatening the exchange's operational viability. As reported by Cointelegraph, Sushiswap experienced a $30 million loss over the past 12 months on incentives for LPs due to the token-based emission strategy, leading the company to introduce the new tokenomics model.
According to an analyst on Dec. 29, 2022, the disgraced co-founder of FTX, Sam Bankman-Fried (SBF), may have cashed out $684,000 in crypto assets while under house arrest. If the funds were spent by SBF, it goes against the court’s release conditions that note the former FTX executive is not allowed to spend more than […]
Despite FTX’s collapse last month, the trading platform’s crypto token FTT had managed to not plummet all the way down to zero, and surprisingly it hovered below the $2 per unit region after Nov. 12, 2022. For 38 days FTT remained above the $1 per unit area up until Dec. 19, as the token suddenly […]
"Ultimately, we must harden the business model to produce more swap volumes & generate more fees," wrote CEO Jared Grey.
According to a new Twitter post by SushiSwap CEO Jared Grey, the decentralized exchange, or DEX, experienced a $30 million loss in the past 12 months on incentives for liquidity providers, or LPs. As explained by Grey, SushiSwap currently employs a token-based emission strategy to incentivize LPs, but the current rate is "unsustainable."
"We commissioned Flipside to build dashboards to showcase these results; we'll make them available by EOY."
Moving forward, 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. " In Q1 2023, we will bring innovation to scale swap volume & prioritize TVL. As LPs experience a more profitable swap experience, others should migrate to Sushi," wrote the DEX executive.
A Sunday @SushiSwap thread. I want to readdress the chatter regarding the Kanpai proposal & highlight upcoming tokenomics improvements. I want to emphasize key factors in Sushi's business model & how we plan to improve it in Q1 '23. 1/
— Jared Grey (@jaredgrey) December 11, 2022
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. Previously, Grey disclosed that the SushiSwap treasury had only 1.5 years of runway left.
"Put simply, [Kanpai] it allows the protocol to rebuild its cash reserves to continue to pay competitive wages, pay for critical infrastructure, & to diversify its Treasury with funds collected in the base pairs of assets, like ETH, stablecoins, etc. Kanpai is a temporary solution."
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. When pressed by a community member on the matter, Grey responded:
"I've discussed it at length in the Sushi Discord, on community calls, AMAs, and more. The official whitepaper comes out by EOY. No one is saying, "trust me, bro" I'm saying full details come out at that time."
The DEX's operating expenses currently amount to $5 million per year.
According to a new proposal dated Dec. 6, Jared Grey, CEO of decentralized exchange Sushiswap (SUSHI), disclosed that the project's Treasury has less than 1.5 years of runaway left, and the "significant deficit in the treasury threatens Sushi's operational viability, requiring an immediate remedy." Grey explained that Sushiswap's annualized operating expenses amounted to roughly $9 million in October, however, that has since been reduced to around $5 million.
"We made the reduction possible by renegotiating infrastructure contracts, scaling back underperforming or superfluous dependencies, and instituting a budget freeze on non-critical personnel and infrastructure."
To remedy the situation, Grey proposed setting Sushiswap's "Kanpai," or the amount of fees diverted to its Treasury, to 100% for "one year or until new tokenomics are implemented." This would come at the cost of SUSHI stakers, who typically earn the trading and protocol fee rewards in return for locking their tokens. In addition, Grey illustrated why it wasn't feasible to simply use SUSHI tokens to fund expenses:
"However, as previously stated, Sushi is currently near full distribution of its token supply and has yet to capitalize on opportunities to diversify its Treasury and provide the necessary liquidity for ongoing operations."
Going forward, Grey called for the implementation of "a holistic token model that allows for the rebuilding of the treasury and delivers value for all stakeholders while reducing the fiscal liability carried solely by the protocol." The CEO then warned that such measures "will take time to implement" and may not come online until the third quarter of 2023. Like similar projects, Sushiswap has been hit hard by the ongoing crypto winter, with its SUSHI tokens losing 79% of their value over the past year. It is currently ranked the 10th most popular decentralized exchange, with a 24-hour trading volume of $42 million.
A closely followed analyst is updating his forecast on Dogecoin (DOGE), Ethereum (ETH) and one altcoin that has outperformed the crypto markets at large this month. Pseudonymous crypto analyst Altcoin Sherpa tells his 185,600 Twitter followers that he thinks Dogecoin’s price rise remains strong due to the effect of Elon Musk buying Twitter. “Shrugged off […]
The post Top Crypto Trader Updates Outlook on Dogecoin, Ethereum and One Altcoin That’s Exploded 70% This Month appeared first on The Daily Hodl.
The proposal received 100% votes, establishing the DAO Foundation, the Panamanian Foundation, and the Panamanian Corporation.
The Sushi DAO, a decentralized autonomous organization behind crypto exchange SushiSwap, has approved a legal restructuring on Oct. 26 that creates three new decentralized entities, aiming to provide more flexibility to its operations.
The proposal, which received 100% votes in favor, will create the DAO Foundation, the Panamanian Foundation, and the Panamanian Corporation, each serving different purposes.
Among other things, the DAO Foundation will be able to administer treasury, grants and on-chain governance processes, and facilitate proposals and voting. The Panamanian Foundation will administer the existing Sushi protocol (including smart contracts related to the AMM/orderbook, Kashi and staking). Finally, the Panamanian Corporation will operate the GUI layer (front-end) of the protocol.
As per the preposition discussion, the process to set up the entity structure is expected to take four weeks. According to Sushi, the "purpose of the entity structure & framework is to provide maximum flexibility for Sushi to proceed in whichever direction the DAO or governance takes it, while also mitigating risk."
The move came as authorities in the United States and Union European continue to work on frameworks for regulating digital assets. Participants in the discussion forum agreed that a legal structure was necessary, but questioned the countries and the model selected. As stated in a long series of comments by a user named Daimon:
"Don’t pick countries which are constantly at risk of political collapse, financial collapse, military coups or North American bail-outs. Don’t pick countries in which you wake up one day and find presidential or royal decrees being plastered on your front door, forcing you to beat a hasty exit through the departure lounge."
On Oct. 13, John Hickenlooper, a United States Senator representing Colorado, penned a letter to Gary Gensler urging the Securities and Exchange Commission (SEC) chair to establish “clear rules” for the crypto market, including identifying the cryptocurrencies that will be considered securities, establishing registration guidelines for trading platforms, and “determining what disclosures are necessary for investors to be properly informed.”
The SEC boosted its ability to handle specialized issuer filings by adding an Office of Crypto Assets in September, dedicated solely to cryptocurrency asset applications and services.
