Sushi was the darling of 2021, we as a community made a name for ourselves and established Sushi as a central product among our ecosystem. What started as a completely fair launch (90% of tokens released for the public, 10% for treasury), quickly transcended into a team & group of strangers that had no background with each other. We accomplished far more than we set out to in 2021 but the lack of operational efficiency & lack of focused attention towards the long-term was evident in the second half of 2021. Ultimately Sushi took a tumble, major turnover began and both the team and community was left a shell of itself.
What’s happened since the turmoil
With the failed Frog Nation takeover, the remaining team was left to keep Sushi running with major question marks. Community members took the lead to sort out the issues and establish a way forward along with a team motivated to keep Sushi alive. Thereafter, immense change and progress has been made in a short amount of time. Several months have been dedicated to picking up the pieces and working through tough discussions. What came of those trials is a long-term vision for what we believe is a bright future for Sushi and its community.
Product and feature releases during the reorganization:
- Release of Trident
- Release of MISO v2 & MultiChain launch
- Shōyu 2.0 redesign proposed and nearing completion
- Limit orders introduced
- Sushi Guard implemented
- Kashi UI design update
- SAKE is nearing distribution
Organizational progress happening in parallel:
- A reorganization was conducted and a strong, loyal team has been retained and installed. Additionally, several new team members have been added.
- Rekindled key stakeholder relationships and an external operations advisor has been appointed.
- A fair compensation structure has been set-up, proposed, negotiated and completed across all departments.
- A legal structure (SushiDAO) has been proposed and recently passed snapshot.
- Emissions have continually been reduced to current levels, where on average Sushi is generating 3-4x in fees across its networks & protocols relative to sushi emissions.
- Monthly spend from Ops has been cut in half from what was averaged during the previous summer and fall.
- Prior proposals to introduce stability to the Treasury have been re-hashed, and brought to Snapshot. We’ll be emphasizing a disciplined approach to capital allocation & spend while ensuring requisite funding for innovative product development.
Coming Soon! Reasons to be excited:
- Long term commitments by a comprehensive Sushi team
- Executive & leadership search process
- Increased transparency to budgets & checks via committee & community oversight
- Concentrated liquidity on Trident
- Stableswap on Trident
- Stargate implementation for Omnichain Token Swaps
- Furo Stream & Furo Vesting
- Shōyu 2.0 Beta
- Kashi Optimizer & Improvements
- Adoption of Sushi 2.0 interface
This proposal is the first step to a promising & accountable future for Sushi. The proposal is effectively broken down into three actionable items to be voted on. First, retaining the talent required to bring Sushi into the future covering the entire functional spectrum of Engineering, Design, Business Development, Marketing, Community Engagement, Shōyu, Operations, and Advisory. Second, the establishment of a formal compensation committee to serve as a check in transparency and accountability for all budgetary matters. Third, with implementation of the proposal a formal executive & leadership search process will commence to compliment the team being retained.
This proposal will earmark 6M $SUSHI with a 4 year time horizon to allocate toward:
- Current contributors allocation
- Future hire allocation
- A portion of the funds to fund future project strategy and leadership.
We will immediately retain a cohesive team over all functional areas required for true value creation. This proposal immediately expands the team from 4 to 10 vetted full time software developers across Sushi & Shōyu:
List of Team Members Retained:
I’m Software - Engineering Team Lead, Compensation Committee
JiroOno - Software Engineer
Sarang - Software Engineer
Chillichelli - Software Engineer
Ross - Software Engineer
Ilya - Software Engineer
CleanUpGuy - Software Engineer
Lufy - Software Engineer
Tangle - Community Manager, Business Development
0xBella - Marketer
Unagi - Marketer
Cabbage - Designer
Kastrye - Designer
Chester LaCroix - Designer
APE - Business Development
Pegbit - Samurai
RSK - Samurai
Maka - Samurai
Trudahmzik - Samurai
Zapacheenie - Samurai
Salman - Shōyu
Masayoshi - Shōyu
H4v1g - Shōyu
fejk/Ryan - Shōyu
Neil - Compensation Committee
We align the community and team with market rate compensation to reward long term value creation over the next 4 years.
The Compensation Committee will have several main jobs:
- Compensation negotiations
- Track TWAP and as well as approve the Roadmap based vested Sushi once the Roadmap is complete/or when individual items on the roadmap are complete.
- Help with compensation negotiations on future hires
- Observe the establishment of formal roles & responsibilities.
- Negotiate future compensation plans after the outlined ones expire.
- Review individual performance evaluations for pathways to contributor promotion, probation, or termination.
- Vet, approve, & disclose budget requests.
Initially we propose Matthew Lilley & Neil to sit on this committee as they have each been helping with the restructuring plan, interviewed all current sushi contributors, and have already begun negotiating Sushi contributor contracts.
The Compensation Committee will use a simple unanimous voting system for all committee matters.
- To determine if roadmap items have been completed in a satisfactory manner & in a reasonable amount of time.
- For distribution regarding price oriented incentive targets defined by 30 day TWAP price targets.
- For validation of performance reviews.
- Similarly, a Compensation committee will also support a unanimous voting system in the event a contributor relationship requires formal termination & offboarding.
Sushi will commence a formal leadership & executive talent search. We believe the road ahead includes great executive talent joining Sushi. Over the next 90 days we’ve ideated a process to allow leadership & executive talent to surface and ultimately be appointed via governance vote. The leadership & exec talent candidate pool will be sourced through the community, through the team, through token holders, or through self nomination in Sushi discord & forums. We have a process to vet candidates and allow them to meet various stakeholders (team, investors, engaged community members) and evaluate for a strong mutual fit. Formally undertaking a leadership & executive talent search will allow Sushi to evolve long into the future and is a necessity for any growing organization.
Allocation for Leadership & Future hires
The 6m block of Sushi will enable Sushi to seek and retain new external talent & executive leadership talent to deliver on Sushi 2.0 Formal roles, responsibilities, budgets and hiring process will be established and approved by the compensation committee. Future hires & candidates for leadership may be sourced via existing contributors, via self nomination on the forum, or by nomination within the Sushi discord.
For community accountability, any contributor relationship including leadership or advisory can be terminated at any time via resignation or via governance vote. Any unvested, unallocated sushi that is not paid out to a contributor will be returned back to the Sushi treasury.
Forecasted compensation costs (retained contributors + roles needed to fill): 5.75m USDC (annual salaries) + 2.3m multi-year vested $SUSHI outlay (1 time) + 2.4m performance incentive $SUSHI (1 time if deliverables are met).
Though this is a large portion of the treasury, we would argue that there is no better use of the treasury than attracting and retaining talent to contribute to the protocol over the next several years. Currently Sushi has 4 fully employed developers across the Sushi & Shōyu products. A larger team is needed to build out the full scope of the community’s goals.
Expected Impact on Treasury
Current Treasury Balance:
Expected Inflows to Sushi Treasury from block reward: ~800K SUSHI
Expected Max allocation to current contributors, future hires, and future leadership: 6,000,000 SUSHI
Additionally, we believe that Sushi is actually in a healthy position based on remaining treasury and our recent treasury diversification initiatives. Sushi is currently generating, at a conservative estimate, based on last three months of data roughly $41.04 million a year in revenue that is completely being distributed to xSushi holders. With Kanpai, we have the optionality to further optimize our treasury strategy and effectively invest in future profitable growth of the DAO and its products.
With the current implementation of Kanpai that recently passed, the Treasury will have $4.1 million in additional inflow.
This proposal addresses the most practical necessities to deliver a promising future for Sushi, enabling Sushi to operate on a multi year time horizon to deliver value for sushi stakeholders. It is not a stop-gap measure. It is the first of a series of proposals and governance matters required to usher in the next chapter in Sushi. This is the starting point for a fruitful road ahead for all Sushi stakeholders & the Sushi community. The expectation to follow is constant progress, operational excellence, long term value creation, and first rate transparency for Sushi & the community.
In addition to this proposal, the team has collectively worked together on a long term roadmap & vision for what we would like to accomplish for Sushi. The roadmap will be located below, and is separate from the three components that will be a part of the formal proposal to be voted on.
We look forward to everyone working through our proposal, our plan, and the subsequent discussions to follow. The team is highly committed, hungry, and excited to get to work on bringing Sushi back to where it was and well beyond.
- LFG Sushi 2.0