Sushi, a popular Decentralised Finance (DeFi) platform on the Ethereum Ecosystem, is now in talks to remove its DAO or Decentralized Autonomous Organisation from its ecosystem. 

The team behind Sushi wants to change how the project is run from being a fully decentralised DAO to a Labs model, potentially creating an entity called Sushi Labs. 

Sushi DAO Removal Plan

Sushi, a DeFi that has been running for a couple of years through its DAO, is now trying to change how the platform is being run. 

It went through a voting period on its DAO where there was a proposal submitted by the core team to eliminate the existence of DAO in the project. 

In exchange for removing its DAO, Sushi will create a new entity that will be called Sushi Labs, which is a company that is run by a centralised entity, or the core team, to control how Sushi will work in the future. 

The plan seems to be in motion after the proposal was agreed on on April 10th, 2024 with 62.61% of the voters agreeing to it. 

However, the vote was not entirely fair as there was one wallet that had the most votes out of all voters who agreed on this proposal. 

The vote came from Sushigov.eth, the operational multisig for SushiSwap, which is the core team of Sushi and the one who made the proposal. 

The wallet agreed on the proposal which made up almost a third of all the votes, essentially rendering all the “Nay” votes that was the majority vote, useless. 

This vote made headlines in the crypto space as community members are outraged by the decision, saying that Sushi will be more centralised in the future, as displayed by what happened during the voting process. 

More and more people seem to be complaining on social media, saying that the core team will steer this project into a centralised project, some even saying it would be a centralised exchange that will take advantage of the current liquidity it has. 

What Will Sushi Labs Be Able To Do?

DAO members seem to be targeting one problem, which is that if the DAO were to disappear then Sushi Labs would have control over all the treasury funds. 

Two highlights are being talked about by the community, which are the funds will be used for the team’s benefit, giving ways only for what they think is best in their interest and not the Sushi’s interest, and potential manipulation of funds for useless marketing like airdrops. 

In the proposal, it is stated that when Sushi Labs manages the treasury fund of the DAO, the money will be used for product development. 

However, that can all be done through a DAO since developments are usually agreed on by the members, which hinders the urgency of creating a “labs” model. 

Aside from that, there are also speculations of potential launchpad liquidity, where the treasury fund will be used for airdrops of upcoming Sushi products as well as other projects partnering with Sushi. 

While this can be good for Sushi’s dominance in the DeFi market, it can also be misused for the core team’s benefit as the Sushi Labs will have full access to the allocation, which is why there are accusations from community members now. 

It is worth noting that these are all still accusations as there are no clear plans yet on when the transition is going to happen, let alone what the outcome will be like. 

For now, the holders are not reacting well to the news, as SUSHI has been going down by more than 50% since the start of April before most of the cryptocurrencies went down. 

As of right now, the community is not happy with the lack of transparency that is happening in the core team, which is why it is better to shy away from SUSHI when looking for short-term opportunities.