Sushi To Roll Unclaimed Governance Tokens Into DAO Treasury

Early liquidity providers will have until late April to claim rewards — or forfeit them

article-image

Subbotina Anna/Shutterstock.com modified by Blockworks

share

Community members at the DAO behind the SushiSwap decentralized exchange have voted in favor of retrieving 8.2 million SUSHI tokens (approximately $11 million) originally offered as rewards to early liquidity providers (LPs).

In the first six months after the launch of SushiSwap, LPs were rewarded with SUSHI tokens — two-thirds of the accrued rewards were locked up in a smart contract known as the Sushi Vesting Merkle Tree and could only be retrieved after an additional six months.

Now, over a year after the full release of these vested tokens, the Sushi community has decided that it will claw back the remaining SUSHI tokens from the smart contracts.

Clawback tokens will be deposited directly back into the Sushi treasury. LPs who still have locked up SUSHI tokens will have until April 23, 2023 at 9:00 am ET — exactly three months from today — to claim their tokens. After this date, the two Merkle Trees will be frozen.

This proposal received mixed responses from community members when it was first introduced in April 2022.

In a discussion forum, pseudonymous user CryptoLamer said the clawback did not seem like the right move. 

“People have earned these SUSHI fair and square and we should not deny them the right to claim whenever they want — it was never mentioned that there will be an end period, so changing the rules may have a negative effect on our image,” CryptoLamer said.

Other users agreed with this sentiment and said it would be important to reach out to those who still had tokens locked up.

“We should do everything in our power to contact those people,” user SCNightshade said.

In the Snapshot vote, which ended today, the proposal received over 6.8 million SUSHI (99.85%) in favor of the clawback, passing the quorum that was set to 5 million SUSHI, with only 0.14% of voters voting against it.

The proposal directs Sushi’s core developers to implement the clawback plan.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

MicroStrategy discloses the purchase of 16,000 bitcoin throughout November

article-image

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks

article-image

DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely

article-image

Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US

article-image

Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said