Using this article, we are aiming to show how the Sushi governance proposals seem to follow any patterns? And how many Sushi governance proposals actually pass?
Governance
An English concept of governance is a pattern of rule or an activity of ruling.Governance is often viewed as distinct from or exceeding the centralized authority of modern states.Organizational governance impacts values, how goals are set and achieved, how risks are monitored and addressed, and how efficiency is achieved.The core characteristics of a successful organization include management of risk, strategic planning, and performance management. It is essential to successfully implement a good governance strategy.
In the case of business, Governance is very important as it maintains and strengthens stakeholder confidence. It sets the foundation for a high-performance business. It adapts to changing external environments.
Blockchain Governance
Unlike traditional networks, however, blockchain is a decentralized network with lots of moving parts and features. It is a system that is constantly adapting and adjusting to the needs and requirements of its users so as to provide better user benefits.So blockchain governance refers to how to keep up with the times and remain relevant when the needs of the blockchain change.
The four communities typically involved in blockchain governance have varying degrees of involvement depending on the blockchain: the Core developers, Node operators, The Blockchain Team, and Token holders.
Sushiswap’s Governace
The community can vote with SUSHIPOWAH to determine the outcome of your proposal if it gains enough traction to be presented to our Snapshot voting platform by the core team. Here we can refer a sushiswap’s Snapshot voting platform can be found at https://snapshot.page/#/sushi.
The Sushiswaps vote metric is SUSHIPOWAH, and is decided as follows:
- Each SUSHI in the SUSHI-ETH pool is worth 2 SUSHIPOWAH
- Each SUSHI held via xSUSHI tokens equal 1 SUSHIPOWAH
For a vote to pass and become binding, it must gain a quorum of at least 5 million SUSHIPOWAH.
Sushinomics
As a fork of Uniswap, SushiSwap offered both a governance token (SUSHI) and liquidity mining at the time of launch and prior to the airdrop of Uniswap’s governance token.
As SushiSwap’s native governance token, SUSHI can be staked in exchange for xSUSHI (which receives voting rights as well as fees). SUSHI earned through staking in xSUSHI pools is time-locked for 6 months.The SushiBar allows users to withdraw their SUSHI and receive their SUSHI back as well as any fees they received during the time they held xSUSHI.
LPs have been able to earn SUSHI tokens as a reward for their contributions since Ethereum block 10,750,000. In the first 100,000 blocks of the implementation, 1000 SUSHI were minted per block in order to encourage early adopters. SUSHI were not premined; it had a supply of zero and began being minted at Ethereum block number 10,750,000. Following that period, 100 SUSHI were created for each subsequent block number.A total of 60 SUSHI are minted per Ethereum block, and 10% of all emissions go to the multi-sig development fund.
As a result of the community vote, $SUSHI now has a hard cap of 250M tokens, so the inflation rate won’t go up infinitely.
There is a 250 million hard cap approved, but no contract changes have yet been approved to establish this hard cap.
Earned $SUSHI will be locked up, and 2/3rds of the earned $SUSHI money will be put into a lock-up account and then distributed to the LP’s who earned it.
In accordance with the official Sushiswap Snapshot document, here are various Governance proposals.In the following graph, we can see the percentage of Sushi governance proposals that have been approved. Among all these proposals, only 31.7% passed and all the rest failed.
We can see below the monthly passed and failed proposals on Sushiswap governance.We can see on the graph that the most proposals were submitted in September 2021.The Proposals were mostly rejected compared to the ones that passed.
The following chart shows the number of votes received by passed proposals. Here, the proposal “Sushi on Solana” received the highest number of votes. Based on the Majority Scores shown, we find that the lowest score is 5.05M (Team Proposal Add more Chefs) and the highest score is 22.92M (Sushi on Solana).
Reference
- https://docs.sushi.com/governance/proposals-and-voting
- https://messari.io/asset/sushiswap/profile
- https://snapshot.org/#/sushigov.eth