Sushiswap Is Planning To Reorganize Its Governance With The Help Of The New DAO Structure

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Last Updated on October 21, 2022 by Bitfinsider

The Meiji Governance Rework Proposal

On Wednesday, a core contributor to the Sushi project put forward a new update proposal that seeks to bring a number of significant changes to SushiSwap’s Decentralized Autonomous Organization (DAO), which is managed by the protocol’s community. Specifically, the proposed update would allow for the creation of a new SushiSwap token. According to the new Sushi Head Chef, Jared Grey, the proposal, which has been given the name “Meiji Governance Rework,” has the potential to make the governance of SushiSwap more equitable and decentralized if it is approved.

According to data provided by DeFi Llama, the cryptocurrency exchange known as SushiSwap is currently the seventh largest decentralized exchange, with over $739 million in locked deposits.

The most significant alteration brought about by the new proposal is that voting in the Meiji DAO will be carried out with the assistance of “Sushi shares.” These shares give the holder the non-transferable right to participate in the governance of Sushi but do not give them voting rights. Users and other members of the community can secure these shares for themselves by putting their native Sushi tokens into a smart contract. The proposal also includes the provision that the shares may be abandoned at any time without penalty.

In addition, the proposal asserted that the utilization of the “Sushi shares” will prove to be quite helpful in assisting with helping to prevent Sybil actors or any user that accumulates large amounts of Sushi tokens from influencing the voting results of the DAO. This is because the usage of the “Sushi shares” will help to prevent the use of Sybil actors. The members will be required to wait until the double voting period before they are able to vote on the various proposals because the shares will not be issued immediately. According to the proposal, the implementation of “quadratic voting” will be made possible by the non-transferable design of the tokens. A form of voting known as quadratic voting is a form of governance that lessens the impact of subsequent votes cast by an individual user.

Even though this is a relatively new idea when it comes to the governance of DAOs, the goal behind it is to broaden participation in the decision-making process by giving average users a greater say in how things are run.

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