SushiSwap evaluates a new DAO structure using non-transferable shares
SushiSwap is debating a new planned upgrade that intends to create a new Meiji DAO structure.
On Wednesday, the main contributor to Sushi floated a suggested update titled “Meiji Governance Rework” with the intention of bringing a variety of modifications to Sushi’s decentralised autonomous organisation, which is cooperatively owned and administered by its members.
The Meiji upgrade might make the project’s administration “more egalitarian and decentralised,” according to Jared Grey, the recently hired head chef at SushiSwap. SushiSwap is the seventh-largest decentralised exchange, according to DeFiLlama, with over $739 million in locked deposits.
If the proposal is approved, Meiji DAO, a new organisation, would replace Sushi DAO as the project’s governing body.
“The Sushiswap Meiji DAO will assume all present obligations of the Sushi DAO. The Meiji DAO would implement governance on the blockchain and launch the Meiji Restoration of Sushi, which will usher in a new era for sushi and a new grand vision to implement, according to the plan.
The most significant modification suggested is that the Meiji DAO body would conduct voting using Sushi “shares,” which reflect nontransferable governance rights to participate in Sushi governance. The shares may be acquired by locking DEX Sushi tokens in a smart contract. According to the plan, shareholders may abandon their shares at any moment by forfeiting them.
The proposal, which is currently in the debate phase, asserts that the usage of so-called Sushi shares will be effective in preventing Sybil players or users with high token holdings from influencing DAO voting outcomes. Shares will not be distributed instantly, and members would be required to wait twice as long to vote on various propositions.
According to the proposal, the non-transferable design will assist the team in implementing “quadratic voting,” a governance method that diminishes the weight of extra votes cast by a single voter.
While quadratic voting is a relatively new idea in DAOs, it is intended to make governance processes more inclusive by increasing the voting power of the ordinary voter.