SushiSwap Eyes a Less Decentralized Business Model

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  • SushiSwap is contemplating reducing the decentralization on its platform by embracing a “Labs model”
  • The move will introduce Sushi Labs which will handle operational issues
  • The move has received a positive reception from the protocol’s community during the preliminary vote

DeFi platform SushiSwap is seeking the community’s views on the introduction of Sushi Labs to handle operational matters while the protocol’s DAO governs treasury allocations. The platform refers to the model as a “Labs model” which is expected to lead to a less decentralized business model. More than 60% of the community supported the idea during the initial voting, an indication that the community is comfortable with trading control for expedited development.

Development Speed Increase Eyed

According to a proposal tabled on March 26 and whose voting closed on April 10, the decision to reduce the protocol’s decentralization is meant to “significantly evolve Sushi” by enhancing operations and accelerating development.

The protocol disclosed that its current operating model hinders it from rapidly responding to market conditions, slows development and makes it difficult to attract and retain talent.

SushiSwap intends to use Sushi Labs to boost its “competitiveness” in the DeFi world by working to “innovate and expand” the protocol’s product line. The protocol noted that having a higher ranking in the DeFi space is beneficial “for all Sushi holders.”

Sushi Labs and Sushi DAO will work together with each having predetermined roles. Sushi Labs, for example, will handle technical roles while the DAO focuses on “asset and resource management.”

Core Team Manipulating the Vote?

In a separate proposal seeking the implementation of the new model, 98% of voters have agreed to the introduction of Sushi Labs. However, not everyone is comfortable with the “Labs model.”

According to some community members, the move is part of the protocol to ignore the community and make critical decisions by themselves. Some have even accused the SushiSwap core team of creating extra wallets to manipulate the vote.

With a majority embracing the model in the two proposals, the introduction of Sushi Labs seems inevitable.