Uniswap's transformative shift: new governance proposal aims to redirect protocol fees to UNI token holders, fostering community engagement and fortifying sustainability.
SushiSwap, another decentralized exchange (DEX) built on Ethereum, is on the verge of a significant transformation within the decentralized finance (DeFi) landscape.
A recent governance proposition aims to reroute protocol fees to SUSHI token holders, representing a major step forward in democratizing the platform.
SushiSwap Community Backs Proposed Changes
Preliminary voting data indicates overwhelming community support for the fee distribution proposal, set to conclude by March 7.
The proposal involves updating the SushiSwapFactory contract and enabling seamless and automated collection of protocol fee earnings. This strategic initiative is designed to strengthen the governance structure, granting SUSHI token holders increased sway over decision-making processes.
Ultimately, the restructured governance model of SushiSwap seeks to incentivize active participation among SUSHI token holders, thereby enhancing the protocol’s sustainability and promoting its growth.
Currently, voters are overwhelmingly in favor of the proposal, with over 10 million SUSHI tokens pledged to support the upgrade.
According to analysis by blockchain analytics firm Token Terminal, the proposed changes could lead to substantial gains for SUSHI holders. Data suggests that if the fee redistribution had been activated, SUSHI holders could have earned approximately $58 million from the $588.3 million in trading fees generated by facilitating $437.7 billion in trading volume over the past year.
However, due to the inactive fee redistribution mechanism, SushiSwap has yet to capitalize on these fees, representing significant untapped potential.
SUSHI Price Forecast: Potential for Further Growth
SUSHI's value has experienced a notable surge in recent weeks, gaining significant momentum following the introduction of the governance proposal. Pricing data from BeInCrypto indicates that SushiSwap's market capitalization has increased by 100% over the past month.
It reached a peak of over $13 from its previous level below $5, and it currently sits at $12.43, reflecting a minor correction.
Read more: SushiSwap (SUSHI) Price Forecast for 2023 / 2025 / 2030
