Proposed SushiSwap’s new “head chef” could pocket more than a third of total SUSHI coins allocated to crypto exchange staff over the next four years, according to analysis of compensation packages by The Defiant have a nature.
Tokens must complete some ambitious goals to trigger performance bonuses and reach Hat levels. Using current prices, the salary, guaranteed SUSHI, and incentives add up to a potential $10.6 million payday.
The news could increase tensions in the SushiSwap community as they clash over the proposed hiring of Jonathan Howard to head the fifth-largest decentralized exchange, easing a leadership crisis that has been going on since last year.
donnybrook also shines a spotlight on the thorny governance challenges faced by the DAO as the bear market increases financial pressure on the project. SushiSwap is governed by a decentralized autonomous body.
The Defiant reported on July 27 that many in the SushiSwap community were surprised by the size of the new chief’s salary package. Veteran cryptocurrency expert Howard has pledged to bolster SushiSwap’s development team and invest in his fledgling NFT market, but DeFi analysts say the uproar has eroded trust in the platform. I warned you that you might damage it.
Cam Crossley, an analyst at Web3 venture studio NotCentralized, told The Defiant: “If the vote is passed as proposed, the new head chef won’t necessarily get off to a good start.”
The potential election of Jonathan Howard as Sushi’s new head chef, which the protocol’s governance forum participants are voting through August 4, also allocates a stablecoin base salary of $800,000. USDC.
If passed, the bill will escalate to a community-wide snapshot vote to determine whether Howard will be elected.
So far, the poll has received 125 votes, with 57% in favor of Howard becoming the new head chef.
However, Howard’s proposed salary sparked backlash, with many members on social media denouncing the proposal as a sign declaring that SushiSwap was no longer a community-driven project. He argues that the terms could turn much of the project’s war chest over to one individual.
The proposed retirement package is a real sticky point. If fired, Howard could have millions in his pocket.
SushiSwap currently boasts over $1 billion in total locked value and was a darling in the DEX space during the 2021 bull market. However, SUSHI is down 84% this year and rival Uniswap is down 49% of him.
Appointing a new head chef was one of the top priorities outlined in a recent report. Sushi 2.0: Reinvented for the future A governance proposal passed by the sushi community in May. The proposal was intended to create a roadmap for a fresh start after months of infighting and instability.
The main objectives of the roadmap initially included the creation of a formal compensation committee by core team members Neil and Matthew Lilley and the establishment of a formal legal structure for SushiDAO.
If elected, Howard will be paid an annual base salary of $800,000 in stablecoins and 600,000 SUSHI tokens (currently trading at $1.56 each) over a four-year vesting period, with $350,000 in new Allocated to bonuses awarded upon product shipment.
An additional 1.2 million SUSHI has been allocated as an incentive if the price of SUSHI exceeds a certain threshold during Howard’s tenure, increasing the price of SUSHI from $3, $5, $7, $9, Above $11, payouts steadily increase. Through an incentive scheme, Howard will receive a bonus worth $8.35 million if SUSHI’s price exceeds $11 for him under his leadership.
Sushi also offers a severance package worth 24 months of base salary should Howard be fired. A head chef is not subject to dismissal if he/she resigns or is dismissed due to “criminal or other professional misconduct.”
In an interview with The Defiant, Neil of Sushi’s core team and compensation committee said the SUSHI portion of Howard’s proposed compensation was allocated to fund current and future staff on the Sushi 2.0 roadmap. I have confirmed that 6M SUSHI will pay.
Base salaries will be paid out of an operational multisig wallet, Neil said. He said that Sushi “was able to exchange some of the Treasury’s altcoins before the recent market crash,” adding that “the Treasury will also sell one $SUSHI to fund it.” No need,” he said. [Howard’s] salary. “
However, some community members persist in the argument that giving a head chef a significant portion of Sushi’s operating budget is a mistake.
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“Assuming the funding for this proposal comes from an operational multisig with 2.67 million USDC and 250,000 SUSHI, if this guy leaves on day 1, he will have 60% of USDC and still 50,000 of all sushi. Dranon911 posted on the Sushi governance forum.
C3 Group, a Web3-focused compensation consulting firm, said the proposed retirement package was “meaningless.”
“Stock-based incentives are never included in severance pay, and non-vested incentives are typically forfeited completely if terminated without cause,” a company representative said on a forum. “Otherwise, equity provides no retention or motivational value.”
Neal said the head chef’s reward could be tweaked if it becomes an unacceptable roadblock for the community. Still, Neal added, “candidates have to be open to it,” and warned that changing the package could “risk a tremendous candidate resigning.”
It’s not just salaries that are confusing the community. The process of nominating Howard has also been condemned.
Notable Sushi contributor BoringCrypto questioned why the community hadn’t had a chance to vote on the proposed reward package for the head chef position before voting on whether to elect Howard.
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Boring also noted that the exception to the clause regarding Howard’s nomination would be that the core sushi team’s current price-based bonus would be reduced to the same price range and ratio that was offered to Howard. .
“This has a hidden renegotiation on team incentives,” they said.
The proposal argues that the current threshold was set during a bull market and is “so high that it doesn’t put too much weight on motivation.”
However, Sushi’s “friendship community”, Mountain_Goat, said that if the proposal passes, members of its compensation committee (with Howard expected to be nominated to participate) will be able to independently determine future token allocations. I warned you that it would be
“It’s like a blank check,” they said.
On Discord, Mountain_Goat claimed the voting process was “manipulated” by the core Sushi team. “When this or their 2.0 comp deal goes live, it will be preloaded with team upvotes before the community sees it live,” they said.
unfair head start
“Fucking around at the ballot box is low. This is a temporary check recommended by the team, but they feel they need to manipulate the optics to make this temporary check. [an] Unfair head start. “
Neil dismissed the claim, telling Defiant that there was “no truth” to the claim. , it is very reasonable for teams to vote before people with other priorities,” he said.
The latest chapter in Sushi’s leadership drama rekindles concerns that once-community-driven projects are being captured by the interests of a very small number of stakeholders.
Sushi core developer Pegbit said the roadmap for Sushi 2.0 will only be approved by the project’s investors, with the added clause that the team will quickly select a new head chef. “They put pressure on the existing team to pick one as soon as possible or they wouldn’t vote…Hundreds of investors believed Sushi would be a VC run rather than community-run. I would like to move to the pass.”
“It’s time to drop the ‘community’-centric charade. Temporary checks are flooded with new users and governance is flooded with VC bags,” he says Graine.
No puppet show
When asked about accusations that Sushi’s governance is centralized among a small number of investors and core team members, Neil told The Defiant that Sushi’s token-based voting “is, naturally, the most costly. , whoever put the most skins into the game, please vote more.”
“There’s no puppetry going on. They run businesses, they vote on things, Sushi builds DeFi and web3 products,” Neil said. If you don’t have one, I know how bad it sucks, but there’s no perfect governance. Most of these were established long before many of the current contributors joined, so they need to be addressed.”