{"address":"0x19B3Eb3Af5D93b77a5619b047De0EED7115A19e7","sig":"0x","hash":"0x9c4dd678c47020b2d308bb6876a9140f17f120c1b324727025703cb92186362e","data":{"types":{"Proposal":[{"name":"from","type":"string"},{"name":"space","type":"string"},{"name":"timestamp","type":"uint64"},{"name":"type","type":"string"},{"name":"title","type":"string"},{"name":"body","type":"string"},{"name":"discussion","type":"string"},{"name":"choices","type":"string[]"},{"name":"labels","type":"string[]"},{"name":"start","type":"uint64"},{"name":"end","type":"uint64"},{"name":"snapshot","type":"uint64"},{"name":"plugins","type":"string"},{"name":"privacy","type":"string"},{"name":"app","type":"string"}]},"domain":{"name":"snapshot","version":"0.1.4"},"message":{"app":"snapshot-v2","end":1766340000,"body":"This proposal’s expectation is to produce an implementation. Full details and discussions thus far can be found at:\n\nhttps://forum.sushi.com/discussion/1312021-increase-sushi-annual-emissions-rate-aer-for-amm-liquidity-listings-private-capital-deals-implementation\n\nSynopsis:\n\nThis proposal seeks to raise the SUSHI Annual Emissions Rate (AER) from 1.5% to up to 5% of total annualized SUSHI supply, with emissions primarily focused on:\n\nDeepening AMM liquidity on core networks\nIncentivizing highquality token listings\nStructuring private liquidity deals with aligned capital partners\nFunding growth initiatives such as aggregator rebates and Blade POL\nSushi Labs generated over $10M in revenue in 2024, and our near-term goal is to scale Sushi to $20M in ARR. The most direct way to achieve this is to grow deep, sticky liquidity in core pools and scale protocol-owned liquidity (POL), particularly for Blade.\n\nBlade has already been seeded with roughly $1M of initial POL and is averaging ~$2–5K per day in fee revenue. If we scale this model with targeted emissions and private-capital partnerships across more pools and networks, Sushi has a clear path to the $20M ARR target.\n\nIf Sushi reaches and sustains this ~$20M ARR level, we believe the protocol will be in a position to support substantially increased SUSHI token buybacks, funded from a growing treasury reserve of revenue and non-SUSHI assets. A key objective of this program is to build that reserve in a disciplined way, subject to governance, execution, legal approval and market conditions.\n\nWhy Now\nMarket structure is rotating back to simple LM. Major DEXs are moving back toward straightforward, emissions-managed liquidity mining and away from overly complex bribe systems.\n\nSushi is under-incentivized vs peers Running lean preserved the runway but left Sushi’s liquidity on core networks (Ethereum, Base, BSC, Polygon, Arbitrum) behind competitors that used more aggressive emissions strategies.\n\nWe have product and order flow; we lack capital and incentives Sushi Labs already operates a top-tier aggregator across 40+ networks and SushiXSwap across 25+ networks. What’s missing is sufficient capital and incentives to densify liquidity in key pools and convert this surface area into higher revenue. Sushi has phenomenal PMF and substantial revenue; pulling these strategic levers will be key to spurring growth.\n\nProposal\n\nRaise SUSHI AER from 1.5% to up to 5%\nObjectives\n\nWork toward $20M ARR by increasing fees from AMM pools, Blade, and the aggregator\nRebuild and retain liquidity on Ethereum, Base, BSC, Polygon, and Arbitrum\nSupport new listings and ensure sustained liquidity beyond initial campaigns\nFund targeted growth experiments (aggregator incentives, cross-chain routing, etc.)\nBuild the recurring revenue and treasury base needed for future SUSHI buybacks\nMechanics\n\nAER ceiling: up to 5% annualized on total SUSHI supply\nAt ~285M supply:\n\n5% AER ≈ 14.25M SUSHI/year\nCurrent 1.5% AER ≈ 4.28M SUSHI/year\nIncremental headroom: ≈ 10M SUSHI/year\nDynamic emissions: Emissions and allocations are adjusted dynamically by Core team, with the ability to increase or decrease allocations based on simple KPIs like volume, fees, TVL, and retention. Poorly performing programs can be scaled back and capital re-directed.\n\nIllustrative allocation (non-binding):\n\n25–35% – AMM Liquidity on core pools\n15–20% – New listings (time-boxed LM with tapering)\n25–35% – Private capital liquidity deals & Blade POL\n15–20% – Aggregator incentives & strategic growth initiatives\n\nPrivate Capital Liquidity & POL Program\nThe main goal of increasing AER is not to spray emissions, but to use SUSHI as a tool to structure long-term, aligned liquidity deals. Allocating SUSHI needs to be accretive to the long-term revenue model of the Sushi protocol.\n\nKey elements\n\nUse emissions to support deals with funds, market makers, OTC desks, and large LPs that:\n\nCommit capital to specific core pools (e.g., ETH/USDC, BTC/USDC, blue-chip L1/L2 pairs)\nProvide longer-term depth vs. short-lived “LM mercenary” liquidity\nAlign with Sushi’s roadmap (Blade, Ekubo-based AMM adoption, cross-chain routing)\nScale Blade POL from ~$1M and ~$2–5K/day in fees into a more meaningful revenue engine that contributes materially to the path toward $20M ARR.\n\nExample structures (illustrative only):\n\nLiquidity loans with emissions top-ups and optional SUSHI call/fee share\nCo-incentivized POL pools with partners\nPerformance-gated incentives based on TVL, fees, and retention\n\nRevenue, Treasury Growth & POL Flywheel\nAs emissions under this proposal drive more volume and fees, the goal is to convert that growth into sustainable ARR and a stronger treasury that can be compounded back into the protocol.\n\nRevenue & ARR focus The primary objective is to grow Sushi’s fee-based revenue and work toward a sustainable ~$20M ARR profile by:\n\nIncreasing AMM and Blade fees from deeper, more efficient liquidity\nCapturing more aggregator flow across supported networks\nSupporting products (e.g., Ekubobased AMM) that expand Sushi’s addressable volume\nCompounding into POL & the flywheel As revenue and non-SUSHI treasury assets grow, a portion can be allocated toward:\n\nExpanding protocol-owned liquidity (POL) in high-impact pairs\nSupporting deeper routing and better pricing for traders\nReinforcing the revenue flywheel: more POL → more volume and fees → more revenue → more capacity to reinvest\nThe intent is that, over time, a larger POL base and stronger recurring revenue make Sushi less dependent on emissions and more driven by real, compounding cash flows.\n\nFuture capital management options If Sushi reaches and sustains a stronger ARR and treasury position, Sushi may choose to evaluate additional capital management options including further reinvestment or a SUSHI buyback program. This proposal does not implement any such program; it focuses on creating the revenue and POL foundation that could make those options viable in the future subject to legal approval.\n\nEkubo AMM Integration & Adoption\nInstead of a generic “V4 analogue,” Sushi is aligning around Ekubo’s AMM framework as the core engine for its next-generation liquidity.\n\nIncreased AER is intended to ensure:\n\nDedicated LM for Ekubobased pools on Ethereum, Base, BSC, Polygon, Arbitrum and other priority networks\nIncentives that can be targeted at specific pools and even specific ranges within those pools to maximize capital efficiency\nIntegration with Blade and the aggregator to route order flow into the deepest, most efficiently incentivized liquidity\nGrants and targeted incentives for builders leveraging Ekubo (custom curves, hookslike behaviours, routing integrations, solver infra)\nPartner coincentives for protocols that choose Sushi’s Ekubo-based pools as a primary liquidity venue\nAs Blade leverages deeper, more efficiently incentivized liquidity, its increased trading throughput feeds back into protocol fee generation, reinforcing the broader strategy: use targeted emissions today to bootstrap durable liquidity and POL, thereby reducing and ultimately reversing net token issuance over time.\n\nOverall, this proposal aligns Sushi’s tokenomics, AMM infrastructure (via Ekubo), and execution venues (including Blade) around a single objective: building a sustainable, capital-efficient liquidity base that can support a future where protocol fees exceed token rewards.\n\nKPIs\nEmissions and programs under this proposal should be evaluated based on simple, transparent metrics, including:\n\nRevenue growth and progress toward $20M ARR\nTVL, volume, and fees on core pools and Blade\nRevenue Growth per SUSHI emitted (overall and by major program)\nGrowth of nonSUSHI treasury assets and POL\nAdoption and usage of the Ekubo AMM stack\nIf programs are not generating sufficient ROI, emissions can be scaled back and reallocated.\n\nRequested Vote\nFor — Approve this proposal to:\n\nIncrease SUSHI AER up to 5% of total annualized supply and Implement any actions incidentally required to execute the substance of this proposal\nAgainst — Reject this proposal and maintain SUSHI AER at 1.5%\n\nThis communication is directed only at, and made available only to, persons outside the United Kingdom, the United States of America, other restricted territories, and those territories that are subject to sanctions. Persons in such jurisdictions should not rely on or act on this communication. Please note that when dealing in cryptoassets, capital is at risk.\n\nThis proposal contains forward-looking statements that reflect our intentions, expectations, and projections regarding the future. These statements are based on current information and assumptions available as of the date of this proposal and are subject to risks, uncertainties, and changes in circumstances that may cause actual outcomes to differ from those anticipated. While we are committed to pursuing these outcomes, they cannot be guaranteed.","from":"0x19B3Eb3Af5D93b77a5619b047De0EED7115A19e7","type":"basic","space":"sushigov.eth","start":1765735200,"title":"Increase SUSHI Annual Emissions Rate (AER) for AMM Liquidity, Listings & Private Capital Deals [Implementation]","labels":[],"choices":["For","Against","Abstain"],"plugins":"{}","privacy":"","snapshot":24009779,"timestamp":1765702557,"discussion":"https://forum.sushi.com/discussion/1312021-increase-sushi-annual-emissions-rate-aer-for-amm-liquidity-listings-private-capital-deals-implementation"}}}