Members of the SushiSwap community are advocating for a departure from the Kanpai 2.0 model, which they believe is responsible for the crypto exchange's weakened tokenomics.
The decentralized crypto exchange (DEX), SushiSwap community, is suggesting a return to the previous model where all fees are allocated to holders of the xSUSHI token.
According to those engaged in the discussion, the introduction of the Kanpai 2.0 model in December of last year has significantly eroded the project's tokenomics. The native Sushi ecosystem token (SUSHI) has lost its primary function of receiving fees, as now all generated commissions are directed entirely to the project's treasury.
Furthermore, SushiSwap's Total Value Locked (TVL) has plummeted from its peak of $8 billion to the current level of $400 million.
The discussion participants also advocate for the implementation of a governing board within the crypto exchange. The proposal envisions a board comprising seven volunteers elected by xSUSHI holders. This Governing Council would be tasked with devising an updated roadmap and enhancing SushiSwap's tokenomics.
Last year, the platform's leader, Jared Gray, suggested a temporary redirection of all fee proceeds to SushiSwap's treasury. He pointed out that the exchange was grappling with a "significant deficit" that posed a threat to its operations. To address this issue, SushiSwap introduced the Kanpai fee distribution protocol, which diverts all fees to the DEX treasury.
