SushiSwap's Buru No Shinka Proposal Sparks Uproar and Vote Manipulation Allegations

SushiSwap's proposed Labs model has sparked controversy, with former contributors alleging FUD and misinformation. The proposal aims to restructure Sushi, enhance efficiency, and accelerate development by creating Sushi Labs as an autonomous company responsible for product management and development. However, concerns have arisen over the alleged manipulation of voting by the Sushi Labs team, the allocation of 25 million Sushi tokens to the Labs, and the potential reduction of DAO powers in favor of Sushi Labs. SushiSwap's head chef, Jared Grey, has defended the proposal, stating that it will improve governance efficiency and is not an "End of DAO."

SushiSwap's Burū No Shinka Proposal Stirs Controversy

Amidst an ongoing debate within the SushiSwap community, the protocol's head chef, Jared Grey, has attributed the controversy surrounding the proposed Burū No Shinka transition to a Labs model primarily to "former contributors who like to propagate endless FUD and misinformation."

The Contentious Proposal

On March 26, a proposal titled "Evolving Sushi—Burū no Shinka" was introduced, aiming to restructure SushiSwap's current organizational structure by adopting a Labs model. The proposal highlights the need for greater flexibility in governance procedures to enhance development pace.

Accordingly, it suggests establishing Sushi Labs as an autonomous administrative, technical, and operational entity responsible for product development and management within the Sushi ecosystem.

Community Concerns

The proposal has sparked heated discussions among community members due to proposed changes that empower Sushi Labs while potentially limiting the DAO's decentralized on-chain governance capabilities, including token allocation voting.

Furthermore, the proposal allocates 25 million Sushi tokens and other funds to Sushi Labs, making it the exclusive beneficiary of future airdrops. This has raised concerns, as the amount in the treasury differs from the proposed figures.

Allegations of Vote Manipulation and Hostile Takeover

Naïm Boubziz, a former SushiSwap contributor, has raised allegations of potential vote manipulation by the Sushi Labs team, claiming that they might be using liquidity to vote in their favor. He has labeled SushiSwap's actions as a "hostile takeover."

SushiSwap's Response

In response to the allegations, Grey has defended the proposal as a necessary upgrade to reduce friction and inefficiencies in the current DAO model. He dismissed the characterization of the proposal as an "End of DAO," stating:

"Labeling it as the 'End of DAO' seems melodramatic when many view it as a needed upgrade... Still, you're entitled to your opinion, and sharing is encouraged."

Grey has emphasized the streamlined governance that Burū No Shinka will bring to the Sushi DAO, eliminating the need for a head chef figurehead. He has outlined Sushi Labs' goal of fostering a multi-product-and-token ecosystem, remaining under the control of the governance council structure with increased on-chain and decentralized controls.

Regarding the alleged vote manipulation, Grey has debunked the claims, revealing that a whale purchased a significant amount of SUSHI tokens to disrupt the Sushi team's progress.

Conclusion

The Burū No Shinka proposal has become a polarizing issue within the SushiSwap community, with varying perspectives on the potential implications for the protocol's governance and future development. The controversy highlights the delicate balance between centralized and decentralized decision-making in decentralized autonomous organizations (DAOs).

As the voting period for the proposal draws near, the community remains divided, with some anticipating an upgrade that will enhance efficiency, while others fear a shift toward centralization. The outcome of the vote will shape the future of SushiSwap and set a precedent for the evolution of governance models in the DeFi ecosystem.