Sushiswap introduces new tokenomics to tackle liquidity crunch

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The SushiSwap team aims to introduce new tokenometrics designed to tackle decentralized exchanges (DEX) liquidity problems due to adverse market conditions.

SushiSwap reimagined the sushi token economy

To deal with acute liquidity crunch SushiSwap DEX, the team is introducing a new Tokenomics model that promotes decentralized ownership and rewards liquidity growth through a holistic and stable system.

It will be remembered Sushiswap head chef Jared Gray made it clear earlier this month that the current bear market has made the program’s current token economy and reward system unsustainable. He added that if the problem is not permanently resolved, the protocol may soon become inactive.

As stated in the project’s new tokenonomics proposalThe team plans to nip the liquidity crisis in the bud through four key actions, including incentivizing liquidity providers (LPs) with scalable and non-dilutive token rewards, supporting product layer improvements of the exchange to improve LP opportunities, and optimizing. Reorganizing the reward mechanism and its management with a more equitable model to grow sushi’s market share.

The group said:

“The newly proposed Sushi Token model precisely incentivizes behavior that benefits the entire ecosystem and all stakeholders by promoting long-term liquidity, paying fees for profit-making activities, and supporting perpetual token principals.”

The developers are confident that the new model, if implemented successfully, will help Sushiswap remain solvent in all market segments, as it completely removes the pressure from the sushi coffers.

At press time, SushiSwap is the world’s 20th largest decentralized fund (DeFi) protocol, according to DefiLlama, has $454.12 million total value locked (TVL). On the other hand, according to CoinMarketCap, SUSHI is priced at $0.938 with a market capitalization of $208.4 million.

SushiSwap Introduces New Tokenomics To Overcome Liquidity Crisis – 1
SUSHI/USD Daily Chart. Source: CoinMarketCap

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