Decentralized exchange SushiSwap might get a new tokenomics if the comprehensive proposal from the team gains the right community support.
The proposal was re-introduced by the exchange’s CEO, Jared Grey, who pointed out the need to get a new system, as the current tokenomics model, Kanpai, will fade out by December. The proposal highlights key aspects for consideration, including the benefits, stakeholder consideration, and challenges.
The SushiSwap Rejuvenation
As one of the oldest DEXs in the DeFi world, SushiSwap strives to achieve more pronounced sustainability as it concerns its economic models. The new tokenomics proposal aims to help the protocol achieve this ultimate goal.
Among the challenges, the proposal aims to proffer a solution on “liquidity subsidization.” With new tokenomics in place, SushiSwap will pursue efficiency in this regard and help in reducing the annual cost of SUSHI emissions. Additionally, the incentives designated for Liquidity Providers (LP) demand recalibration to keep it competitive.
Besides these challenges, the new SUSHI tokenomics will also seek to enhance the protocol’s Staking mechanism and xSushi distributions. To achieve its ultimate goals, SushiSwap projects its revenue will come from multiple sources, including fees collected from traders, stakers, and aggregation routing.
One crucial aftermath of this new tokenomics is its potential impact on the market valuation of SushiSwap. With the plans to stay competitive also a part of the future goals, the question remains whether SUSHI is finally ready to take on Uniswap’s native token, UNI.
Catching Up With UNI’s Bullish Momentum
Presently, SushiSwap’s market valuation comes in at $0.9909 after printing 42.30% Week-to-Date (WTD). Despite this performance, SUSHI has a gloomy outlook in the trailing 24-hour period, a time frame that top market analyst Ali Martinez confirmed Uniswap’s exhibition of bullish momentum.
#Uniswap's bullish momentum is heating up! ?
On the daily chart, $UNI is eyeing the hypotenuse of a descending triangle, targeting around $6. Plus, the four-hour chart reveals #UNI breaking out of a bull flag, aligning with the $6 target.
Ready to trade #Uniswap? Join us at… pic.twitter.com/93HWJ9ivlg
— Ali (@ali_charts) November 7, 2023
Riding on backing from the technicals he shared, the analyst projects UNI might retest the $6 price level, a move that will mark a 21.95% surge from its current price of $4.95. With the target locked in, time will show whether the tokenomics proposal can stir a buying frenzy that will make SUSHI outrun UNI in the short term.
This SUSHI proposal lies in the hands of the community, which has a tendency to rebel against core team members. However, Jared confirmed cooperation since the introduction of the first draft earlier in the year, spelling a good omen ahead. So far, all votes are in favor of the proposal.
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