•SushiSwap has been approved to retrieve 6.2 million SUSHI tokens from early liquidity providers who have yet to claim their rewards.
•Members of the Sushi DAO have voted to give early liquidity providers a 3-month grace period to claim their SUSHI rewards before the tokens are clawed back to the Treasury.
•The DAO has also passed a proposal to allocate 100% of xSUSHI revenue to the Kanpai Treasury for the next 12 months.
SushiSwap, the decentralized exchange protocol, has recently received approval to clawback 6.2 million SUSHI tokens to the Treasury. This decision was reached after members of the Sushi DAO voted on a proposal initiated in April 2022 to retrieve the unclaimed rewards from early liquidity providers.
The voting period, which began on Jan. 16 and ended on Jan. 23, resulted in a unanimous agreement from DAO members to support the proposal with 99.85% votes. Additionally, the DAO also voted for a 3-month grace period before the clawback is executed. This means that early Sushi liquidity providers have until April 23 to claim their rewards or forfeit them to the Treasury.
The Merkle Distributor address revealed that about 6.2 million SUSHI tokens, worth approximately $8.36 million, were yet to be claimed. As such, the DAO’s decision to retrieve the unclaimed rewards will help to ensure the long-term sustainability and security of the SushiSwap protocol.
To further bolster the protocol’s runway for the next 12 months, Sushi Head Chef Jared Grey had earlier initiated a proposal to allocate 100% of xSUSHI revenue to the Kanpai Treasury. After due consideration, this proposal also received overwhelming support from the DAO with 99.9% of the total votes.
With the recent approval to clawback 6.2 million SUSHI tokens from unclaimed rewards and the allocation of 100% of xSUSHI revenue to the Kanpai Treasury, SushiSwap is one step closer to achieving its long-term sustainability and security. As such, the protocol is well on its way to becoming an industry leader in the decentralized exchange space.