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A few days after receiving control over the popular SushiSwap protocol, FTX CEO Sam Bankman-Fried revealed his personal ideas regarding its future. Those included gradually reducing the total supply after efficiently executing the multi-sig wallet transition.
The Backstory: Transferring Control Over SushiSwap
The drama started the past weekend when SushiSwap’s lead developer, going by the Twitter handle Chef Nomi, cashed out his SUSHI tokens and exchanged them for millions worth of ETH. The community condemned his actions, claiming that he was pulling a classic “exit scam.”
After a prolonged Twitter discussion, the developer decided to transfer control over the protocol to Sam Bankman-Fried – the CEO of the popular cryptocurrency derivatives exchange FTX.
Bankman-Fried firstly noted he will transfer the admin control to a multi-signature wallet. To keep the decentralized nature, he put it to a vote, which ended yesterday. The results read that 98.41% have agreed with his vision, and 1.59% voted “no.”
Earlier today, he confirmed that Sushi is “being transferred to community control.” He offered his suggestions on how the project could continue and, similarly to Band Protocol’s CTO, refuted the claims that he is actually Chef Nomi.
FTX CEO Offers His Views On SushiSwap’s Future
According to Bankman-Fried, the project faces three main challenges that need to be prioritized. Namely, those are “making sure the migration is successful, making sure multisig transition happens, and getting as much TVL through the transition as possible.”
The total value locked (TVL) in the protocol exceeds $1,3 billion, at the time of this writing.
3) First, I think the top priorities right now are:
a) making sure migration is successful
b) making sure multisig transition happens
c) getting as much TVL through the transition as possible. You can support the cause by keeping your stake! Plus 2mm SUSHI reward.
— SBF (@SBF_Alameda) September 8, 2020
FTX’s CEO also said that the token supply should be reduced. He revealed that part of this process “will happen naturally as the inflation dies down.” However, he believes that some of the SUSHI rewards need to be locked.
“Maybe take the current schedule, but make 1/6 of the SUSHI unlocked, 1/3 locked for a year, and reduce the rate by 50%.
That means that SUSHI stakers have a long-term interest in the health of the platform, and also that circulating supply is lowered.”
Taker fees could be reduced “from 30bps to 20bps, maker rebate of 15bps, and 5bps -> Sushi holders.” Bankman-Fried also offered a potential collaboration with Compound Finance and Aave to “create seamless margin trading on SushiSwap.”
Lastly, and somewhat expectedly, he doubled-down on his proposition to build a SushiSwap branch on Serum. He pointed out that the FTX DEX platform will offer “1-second orders, $0.00002 gas, and 100% on-chain order book/matching engine.”