The head of SushiSwap talked about a “significant deficit” in the project’s coffers
The decentralized SushiSwap exchange is facing a “significant deficit” that threatens its operations.
To solve the problem, platform head Jared Gray suggested temporarily directing all commission revenues to the project’s coffers.
“Currently, the treasury is designed for about a year and a half. Therefore, the situation requires immediate action to ensure sufficient resources for uninterrupted operations,” he wrote.
According to Gray, the project operates with an annual deficit of $5 million. He noted that the original estimate was $9 million, but it was reduced by reviewing infrastructure contracts, reducing “inefficient dependencies,” and freezing the budget for non-critical personnel.
The head of SushiSwap suggested adjusting Kanpai’s fee allocation protocol to deduct all fees for the DEX treasury. He explained that this is a one-year temporary measure, or until new tokenomics are implemented.
On his Twitter page, Gray said that a draft of the updated fee distribution model is in the final stages.
Gray stressed that, if accepted, the proposal would allow the project to diversify its assets by limiting the need for market sales of SUSHI management tokens.
To recap, GoldenTree Asset Management disclosed a $5.2 million acquisition of SUSHI in October 2022. The company manages $47 billion in assets.