SushiSwap team wants to kill DAO to benefit themselves

A new governance proposal for SushiSwap proposes moving the assets from the ‘DAO’ controlled treasury to a new ‘Sushi Labs’ and will make sure that all future airdrops are directed to the ‘Labs’ instead of the ‘DAO.’

The funds the proposal would transfer to the new entities are effectively the entire treasury for the project. However, the proposal also seems to include assets that aren’t included in the ‘Treasury’ wallet listed on the governance page for SushiSwap. Indeed, the proposal lists both 168 ether and 1,228 ether, but the wallet in question only seems to contain 168. Additionally, it doesn’t seem to contain any of the Dai or WBTC mentioned in the proposal. 

Screenshot of asset transfers described in the proposal.

Jared Grey, the ‘Head Chef’ of Sushi reached out to Protos to claim that the additional assets are located in an “operations wallet since before my time as Head Chef. FYI, the operations multisig is publicly well-known and readily available for review.” This “operations wallet” is still not listed on the ‘Treasury’ page on the Snapshot DAO governance platform for Sushi.

Furthermore, this proposal intends to “empower Sushi Labs with exhaustive and sole operational responsibility for core product development.”

This comes a little over a month after Naïm Boubziz, formerly associated with SushiSwap, took to X to highlight that the governance forum for SushiSwap had been deleted. Grey claims that this forum had not been deleted but instead claims Sushi “migrated forum software providers to reduce user spam, and some historical links do not auto-redirect to the new archive.” Grey provided a link to the discussion in question, which interestingly, had never before been archived on Wayback Machine or Archive Today.

This was followed by a change to the DAO, which made it so only core team members could create new proposals. Grey claimed in an email to Protos that this “has been the DAO precedent for years; the core team has not recently changed it.” However, the page linked by Grey does not claim that only Core team members can submit proposals, it states that “only proposals posted to the Snapshot voting system by the CORE can be considered binding if passed with a quorum.”

This change apparently included removing snapshot votes, which were challenging the treasury management of the Sushi team.

More recently, Boubziz took to X to criticize the new proposal, claiming that it was intended to “kill the DAO.” 

Read more: MakerDAO could back a billion Dai with Ethena’s ‘synthetic dollar’ USDe

The signal vote on this proposal currently has approximately 93% of participants voting ‘Nay.’ The vote will run until April 9. Despite the large proportion of votes against this idea, there is also a snapshot pending that covers the ‘implementation’ of this proposal, scheduled to begin voting on April 9.

Update 2024-06-10 14:24: Added comments from Jared Grey of Sushi.

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