The SushiSwap community is discussing a new update proposed by a core contributor of the protocol. The update proposes the creation of a new DAO structure called Meiji.
Other changes proposed in the update include using “non-transferable shares” in Sushi governance voting.
The Meiji Governance Rework Proposal
A Sushi core contributor on Wednesday proposed a new update that looks to bring a host of significant changes to SushiSwap’s Decentralized Autonomous Organization (DAO), which is managed by the protocol’s community. If passed, the proposal, dubbed the “Meiji Governance Rework,” could make SushiSwap governance more equitable and decentralized, according to new Sushi Head Chef Jared Grey.
Currently, SushiSwap is the seventh-largest decentralized exchange, with over $739 million in locked deposits, according to data from DeFi Llama.
Replacing The Sushi DAO
If the SushiSwap community passes the new proposal, then Sushi will be led by the Meiji DAO, a new group that will replace the original governance body for the project, SushiDAO. The proposal explained how the new Meiji DAO would supersede the original governance body, noting,
“The Sushiswap Meiji DAO will supersede all responsibilities currently held by the Sushi DAO. The Meiji DAO will bring governance on chain and kickstart the Meiji Restoration of Sushi, which will become a new phase of Sushi and a new grand vision to execute on.”
Details Of The Proposal
The most notable change included in the new proposal is that the Meiji DAO will conduct voting with the help of “Sushi shares.” These shares represent non-transferable governance rights to participate in the governance of Sushi. These shares can be obtained by users and community members by locking their native Sushi tokens in a smart contract. The proposal also states that exit the shares at any time by forfeiting them.
The proposal also claimed that the use of the “Sushi shares” will be quite useful in helping to prevent Sybil actors or any user that accumulates large amounts of Sushi tokens from influencing the voting results of the DAO. However, the shares will not be issued immediately, with members required to wait for the double voting period before being able to vote on different proposals. According to the proposal, the non-transferable design will allow the team to implement “quadratic voting.” Quadratic voting is a type of governance system which reduces the weight of additional votes by a single user.
While this is still a nascent concept in the governance of DAOs, it is designed to make the governance process more inclusive by increasing the voting power of average users.
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Sourced from cryptodaily.co.uk.
Written by Amara Khatri on 2022-10-21 06:20:00.
