SushiSwap will send money from xSUSHI to the Treasury wallet as a "temporary solution"

Decentralized exchange SushiSwap is considering a new idea that would funnel all fees paid to xSushi holders into its cash pocket for an entire year to fund its operations.

The proposal comes as SushiSwap, now under new management, strives to improve its deteriorating financial situation.

Jared Grey, the project's new head chef, says the project's track has been reduced to just 18 months and is working to extend it.

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"After reviewing spending, it is clear that a significant Treasury deficit is threatening Sushi's operational viability, requiring an immediate solution," Gray says, adding that the team needs $5 million to keep it running.< /p>

To provide sufficient funds, SushiSwap needs "immediate action", he says.

The plan is to take all the money the exchange earns from trading commissions.

A token called xSushi, which grants them a reward commission for all trades on the platform, is given to those who stake the sushi governance token of the Sushi platform.

Currently, 0.05% of each transaction goes to xSushi holders, and 10% goes to the SushiSwap cash wallet.

Grey suggested in the proposal that SushiSwap increase the cash expense ratio from 10% to 100%, thereby eliminating any token benefit for xSushi owners.

The current cost-sharing structure will be reinstated after one year, according to Matthew Lilley, lead developer at SushiSwap, concurring with Grey's suggestion that it would only be a temporary solution.

"The timeline is 12 months, if nothing has changed after 12 months, it will default back to the original model. Hopefully it can be finished sooner if the redesign of tokenomics is over before,” Lilley said.

If approved, the idea could have a significant impact on investors.

The reward fees paid to xSushi encourage community members to hold on to their SUSHI tokens by providing them with a second source of income on top of any growth in value they may experience.< /p>

If the xSushi owner reward fee is eliminated, that money is lost.

Community members have already commented on the plan, with several users expressing their anger at what they consider a wrongful action.

"Depriving xSushi holders of the fees to which they are entitled is a violation of the core commitment to the community," one community member said of the proposal.

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