Sushi Meiji Restoration: A VEry Interesting Proposal
On August 3, a group of respected Sushi contributors proposed to revamp SUSHI’s utility. The Sushi Meiji proposal aims to decentralize the protocol, streamline governance, and overhaul tokenomics in hopes of increasing the token’s value accrual mechanism. A vote is expected to occur in the next month. Further discussion is still required on some parameters for the new DAO before final implementation. So far, the DAO discussion has signaled almost 90% approval for the proposition.
Sushi Meiji would make two key changes to the protocol: an on-chain, share-based DAO and vote escrow (ve) tokenomics. Vote escrowed oSUSHI will be similar to the vote escrowed veCRV, with one key difference: the separation of protocol governance from price speculators. Gauges, receiving the majority of protocol revenue and token emissions, will be governed by the ve token dubbed oSUSHI. The protocol will be governed by Meiji DAO shares. SUSHI holders can choose to lock their tokens for oSUSHI or Meiji DAO shares.
The Meiji DAO
The Sushi protocol today is governed by multisigs and off-chain token holder voting through snapshot. The proposed Meiji DAO will be deployed to Ethereum mainnet with the option to cast votes from rollups. SUSHI holders will be able to lock their tokens for shares in order to participate in the DAO. The Meiji DAO will usher Sushi governance into true decentralization.
Meiji Shares
Non-transferable (soulbound) shares will be allocated in exchange for SUSHI according to the following equation:
Matt leads coverage on DEXs, derivatives, governance, and the Avalanche ecosystem. Previously he worked as an Analyst at Ikigai Asset Management and Teller Finance.