REINSTATED: Increase Kanpai Treasury Allocation to 100%
I withdrew the original proposal to take into consideration the feedback from the community to help make it more focused and time-specific.
Over the past two months as Head Chef, I’ve spent most of my time analyzing the operational and budgetary expenses and liabilities to ensure the project’s long-term success. After reviewing expenditures, it’s clear that a significant deficit in the Treasury threatens Sushi’s operational viability, requiring an immediate remedy.
In my original proposal, Sushi operated with an annual runway of 9M USD. However, after my detailed review, we reduced that requirement to 5M USD. We made the reduction possible by renegotiating infrastructure contracts, scaling back underperforming or superfluous dependencies, and instituting a budget freeze on non-critical personnel and infrastructure.
However, as previously stated, Sushi is currently near full distribution of its token supply and has yet to capitalize on opportunities to diversify its Treasury and provide the necessary liquidity for ongoing operations. The Treasury currently provides for ~1.5 years of runway. Therefore, the situation requires immediate action to ensure sufficient resources for uninterrupted operation.
Bear market environments present multiple challenges for projects and teams, and recently, we’ve seen many notable projects lay off substantial personnel or go bankrupt. It makes little sense for Sushi to follow a similar path when it has an opportunity to capture its singular significant source of revenue and direct it back to the Treasury for the benefit of all.
So, I propose setting Kanpai to 100% of fees diverted to the Treasury multisig, for one year or until new tokenomics are implemented, helping return Sushi’s fiscal resources to a competitive level. An additional benefit of Kanpai’s solution to the Treasury is the diversification of assets, which limits the need for market selling Sushi, which is a net positive for all stakeholders.
In addition to Kanpai’s revenue, the Sushi team increased its funding by securing several multi-million dollar partner deals. Yet, relying on business development deals is only part of a successful business model to secure Sushi’s future.
Kanpai is a temporary solution to a long-term problem, and a new tokenomics proposal is on the horizon, which will help address the long-term value proposition of Sushi for stakeholders. Sushi must implement a holistic token model that allows the rebuilding of the Treasury and delivers value for all stakeholders while reducing the fiscal liability carried solely by the protocol. New tokenomics will take time to implement and pass through governance and will take several weeks to implement technically, a process that could extend into Q2-Q3 of 2023.
In closing, it’s important to note the success of Sushi is everyone’s desired outcome. But unfortunately, many projects face similar obstacles in the current market cycle, and we should seize the opportunity to secure the future of Sushi by acting in its best interests together.
- Yes - Secure Sushi’s Future with Kanpai
- No - Do Not Secure Sushi’s Future with Kanpai
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