• Sushiswap is introducing a new tokenomics model designed to tackle the liquidity issues brought about by poor market conditions.
• The new model will promote decentralized ownership and reward liquidity growth via a holistic and sustainable system.
• The team plans to incentivize liquidity providers with scalable volume and non-dilutive token rewards, support the exchange’s product stack improvements, put in place an optimized reward mechanism and revamp its governance with a more equitable model.
Sushiswap, the decentralized exchange (DEX) has recently introduced a new tokenomics model in order to tackle the liquidity issues caused by the current bear market. The liquidity crunch has become a major concern for the platform and its head chef, Jared Grey, made it clear earlier this month that the current token economics and reward system were becoming unsustainable. With this in mind, the team set out to create a sustainable system that would provide long-term security and stability.
The newly proposed Sushi token model aims to properly incentivize behavior that benefits the platform and its users. To that end, the team has outlined four key measures that it plans to take to address the liquidity crisis. The first measure is to incentivize liquidity providers (LPs) with scalable volume and non-dilutive token rewards. This will help to reward those who provide liquidity and encourage more people to do the same. The second measure is to support the exchange’s product stack improvements so that LPs have more opportunities to earn rewards. The third measure is to put in place an optimized reward mechanism to grow Sushi’s market share. Finally, the team plans to revamp its governance with a more equitable model.
By introducing these new tokenomics, Sushiswap hopes to create a more sustainable system that will benefit both the platform and its users. The team believes that these measures will help to address the liquidity crunch and ensure that the DEX remains operational in the long-term. As Jared Grey stated, “We look forward to your questions and feedback” and the team will be monitoring the response to the proposal closely.