Recent developments within the SushiSwap community have led to growing tensions and concerns, as accusations emerge about the core team’s governance actions. In late February, allegations surfaced regarding the deletion of the governance forum and the neglect of snapshot votes, particularly in light of disagreements over treasury fund management.
Naim Boubziz, a notable contributor to SushiSwap, highlighted on social media that the core team had removed the platform’s governance forum amid critique of its treasury fund usage.
#Sushiswap : The $sushi core-team have just completely deleted the https://t.co/JAgiNpHAOS, where the proposals were debated.
Even the subdomain below no longer exists.
After contacting Discourse, they confirm the only way to do this was to contact them by e-mail.
Bad day. pic.twitter.com/alzswTgqAB
— Naïm Boubziz (@BrutalTrade) February 29, 2024
Days later, Boubziz pointed out that the Sushi Operations Team had also removed several governance proposals from the snapshot voting system. These proposals demanded the forum’s reinstatement and called for increased transparency in the handling of the treasury funds. Additionally, it was revealed that new Snapshot votes could only be initiated by core team members, a move that further fueled community dissent.
Edit : Since 2020, anyone with 200,000 SUSHIPOWAH was able to create a proposal.
Today, after deleting the forum, after censuring the discord, and after deleting 4 snapshots, they just changed the rules to : only-core member can create proposal.
— Naïm Boubziz (@BrutalTrade) March 4, 2024
The governance forum was eventually restored on March 5, yet discussions on the platform unearthed profound disagreements between the community and the team, with the snapshot votes still missing. Community members have expressed grave concerns over the management of Sushi’s treasury funds, criticizing the operations team for retaining control over the funds contrary to governance votes. Proposals have been made demanding action to enhance transparency and justify the operations team’s stewardship of the funds within the DAO’s framework.
The proposals have particularly taken issue with the lack of access to information regarding team compensation and the operations team’s authority to approve their own remuneration without DAO governance oversight. Calls for the suspension of the compensation committee’s functions, along with the demand for full disclosure of salaries and any legal entities established by the team, underscore the community’s push for accountability.
In response, core team members, including Sushi’s head chef Jared Grey and compensation committee member Neil Bhasin, have dismissed these allegations, suggesting that the proposal’s author had motives rooted in competition rather than genuine concern for governance.
The backdrop to these events includes a report from an anonymous community source, claiming attempts by the core team to undermine DAO governance. This source alleged a power struggle within the community, with significant token holders pushing for governance restructuring. The core team’s response, according to the source, involved limiting community interaction on forums and social media, alongside accusations of unapproved compensation practices.
An open letter dated March 5 resonated with these concerns, urging multi-sig signers of Sushi’s treasury to safeguard the DAO’s interests against potential mismanagement by the operations team.
SushiSwap has navigated a tumultuous journey since its inception in 2020, with its share of leadership challenges and governance disputes. Despite early successes and innovations in the decentralized exchange space, the platform has faced scrutiny over its governance practices and financial transparency, particularly under its recent leadership. The community’s ongoing efforts to resolve these issues highlight the inherent challenges in balancing effective governance with the decentralized ethos of blockchain projects.
