According to ChainCatce, Jared Grey, the new CEO of SushiSwap, announced a new token economics proposal, which aims to increase liquidity, create more utility for its native tokens, and maximize value for stakeholders. The formal proposal stated that "like the xSushi model that was originally hoped to be achieved, the main goal of the new economics is to promote decentralized ownership and reward liquidity growth through a holistic and sustainable reward mechanism that scales with volume and fees. Our goal is to incentivize long-term participation in the Sushi ecosystem while reducing the number of participants who extract."
The proposal outlines four key changes to the protocol's token economics. The biggest change is that staking Sushi (xSushi) will no longer be rewarded with transaction fee income, but will receive emission-based rewards paid in Sushi. Liquidity providers of the trading pool that generates the most trading volume will receive most of the swap fees. In addition, players can also choose a new time lock mechanism to increase rewards.
The floating proportion of transaction fees will also be used to repurchase and destroy Sushi from the open market and lock liquidity to provide more price support. The final change will change Sushi's emission to 1-3% APY to reduce inflation and balance the overall emission with repurchase, burning and locking liquidity, which is used for price support of transaction fees. (TheBlock)
