SushiSwap Reconsiders Plans On Token Release

The well-known decentralized exchange, SushiSwap, reconsiders its previous plans of releasing huge amounts of tokens for fear of crashing the asset’s price. The firm had previously planned to release around 47 million tokens worth around $880 million but might not do so due to the previous plans’ current debates. Crypto enthusiasts have been anticipating the firm’s release of the tokens as it had announced its release by April’s end.

The community is afraid that if a huge amount of tokens are released into the ecosystem, it could cause a significant price fall for the asset, which has a market cap of over $2 billion. On the other hand, sources claim that if the firm manages to release the asset, it could impress the space and critics who did not believe in the asset.

SushiSwap community considers token release

Scott Lewis, who is DeFi Pulse co-founder, explained that it would significantly affect SushiSwap’s reputation if it begins to ask people to earn what is already owed. The project is on the Ethereum blockchain and has some unique features which are only peculiar to decentralized exchanges (DEX). At first, Uniswap was the project’s support, but things have changed now.

📰  Mars Confectionery Products Promoting Dogecoin On Twitter

The decentralized exchange allows transactions between peers without interfering or letting third-parties interfere with the transactions. The platform also has its governance token, which is called SUSHI. Owning the token comes with additional benefits like staking the asset to get rewards called the XSUSHI.

This reward would give holders the capacity to vote and participate in the governing aspects of the platform. Another factor that led to SUSHI’s adoption is when Harvest Finance started supporting the token last year, and this gave people the opportunity to use SUSHI.

After Harvest Finance added SushiSwap’s token, other big names also added the token into their platform. The tokens have been locked on the network for around six months now, and by April’s ending, the token would have reached the staking period.

Community arrives at two options for the tokens

The community has been reconsidering all the tokens’ total release, which led to one of the community members’ discussions on the token’s distribution when it was finally released into the ecosystem. The two options that the community arrived at are either dropping all the tokens at once through airdropping or allowing holders to claim their assets weekly. The latter might be cost-intensive as holders would have to pay transaction fees weekly to claim their tokens. Despite the second option being difficult for many, the community arrived at 65% of the space agreeing to the second option.

📰  Eco-friendly BTC Alternatives

This leaves about 35% opting for other options, with 25% showing the airdrop option and others taking the alternatives. The community has changed its code, meaning that yield aggregators might no longer access the tokens. This code change would give those staking rewards, but those who interacted in other ways like smart contacts would not get rewards. The community defended the changes and said it was a way to prevent people from dumping Sushi to pump their tokens.

Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button