The decentralized exchange (DEX) and automated market maker (AMM) protocol SushiSwap has been at the center of a significant controversy as users and a former associate express their opposition to proposed governance changes.
The controversial proposal aims to transfer assets from the Decentralized Autonomous Organization (DAO)-controlled treasury to a new entity called “Sushi Labs,” while redirecting all future airdrops to the new body instead of the DAO. These developments have raised concerns about community involvement and transparency within SushiSwap.
SushiSwap Faces Backlash Over Proposed Changes
The proposed governance changes put forward by the exchange request a grant of 25 million Sushi tokens to be awarded to Sushi Labs, including assets from various sources such as the Arbitrum (ARB) airdrop, business development, partner grants, Kanpai 2.0, Sushi 2.0, rewards, stablecoins, and “Sushi House” funds.
Sushi Labs would become the sole beneficiary of future airdrops awarded to Sushi by protocols and partners. However, discrepancies have been noted regarding the wallet holdings mentioned in the proposal, which has led to further scrutiny.
The Sushi DAO had previously approved a ballot window to establish a baseline legal entity structure. However, as the project’s needs evolve, the proposal’s proponents…
