The proposed governance changes introduced by SushiSwap have received backlash from users and a former associate who oppose the changes. The contentious proposal suggests moving assets from the Decentralized Autonomous Organization (DAO)-controlled treasury to a new entity named "Sushi Labs," while directing all future airdrops to the new entity instead of the DAO. These alterations have sparked concerns about community engagement and transparency within SushiSwap.

The exchange has requested a grant of 25 million Sushi tokens to Sushi Labs as part of the governance changes, including assets from various sources like the Arbitrum (ARB) airdrop, business development, partner grants, Kanpai 2.0, Sushi 2.0, rewards, stablecoins, and "Sushi House" funds. Sushi Labs would be the sole recipient of future airdrops from protocols and partners. However, discrepancies in the wallet holdings mentioned in the proposal have brought about additional scrutiny.

The Sushi DAO had previously approved a ballot window to create a baseline legal entity structure, but the proponents of the proposal argue that updating the organizational structure is necessary as the project evolves. They stress the need for competent legal guidance to effectively represent Sushi's global presence. The proposal also aims to give Sushi Labs full operational responsibility for core product development to streamline decision-making processes.

A former SushiSwap member, Naïm Boubziz, has accused the company of executing a hostile takeover in response to these changes. He criticizes Jared Grey, the head chef of SushiSwap, for allegedly planning to take control of the treasury and sideline the community and DAO. Despite Boubziz's warnings and concerns being dismissed, he continues to express disappointment in the unfolding situation.

The accusations and controversy surrounding the governance proposal have created divisions within SushiSwap, with concerns emerging about the project's future. While a significant majority of participants have voted against the proposal in an ongoing signal vote, a second vote is scheduled for April 9th to determine its implementation. The native token of the exchange, SUSHI, is currently trading at $1.59, showing a 12% decline over the past month.