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- SushiSwap long-term liquidity provider to get tradable NFTs.
- SUSHI fails to replicate uptrends as it drops in value.
The head chef at SushiSwap [SUSHI] has cooked up fresh tokenomics that could potentially have an impact on the network and the token.
Sushi to get new tokenomics
Jared Gray, SushiSwap’s head chef, recently shared a new tokenomics proposal for the SUSHI token. This proposal not only introduces fresh utility for the token but also promises various benefits for its holders.
Moreover, it listed a strategy for the network to reward long-term liquidity providers.
According to the proposal, these providers will receive Non-Fungible Tokens (NFTs) in return for providing liquidity. Also, these NFTs will be tradable on secondary markets.
Additionally, the tokenomics plan specifies that rewards will now be according to market conditions. Furthermore, the proposal discusses changes to the voting system for token holders. It proposed transitioning to a quadratic voting mechanism from the current token-based system.
State of key SushiSwap metrics
The new tokenomics proposal for SushiSwap holds the potential to bring more liquidity to the network. The proposal aims to achieve this by introducing different approaches to make liquidity provision more profitable.
If successful, these changes would have a positive impact on key metrics, such as Total Value Locked (TVL).
Presently, an analysis of the network’s TVL revealed that it has not experienced any major trends recently. As of this writing, the TVL was around $376 million, per DefiLlama.
This TVL is made up of all the different versions of SUSHI and its associated offerings.
Furthermore, the fee chart showed that there was no major rise recently. As of this writing, the fee was around $47,000. The extent to which the new tokenomics will add value to these key metrics is not yet known.
However, it will become more obvious once the proposal is approved.
SUSHI cooling down
SushiSwap has struggled to repeat its remarkable 48% price rise, as observed on the daily timeframe chart.
Instead, it has been experiencing a price decline over the past few days. At the time of writing, it continued on its downward trajectory. It was trading at around $1 with a slight price decrease of less than 1%.
Read SushiSwap (SUSHI) Price Prediction 2023-24
Nevertheless, the single substantial 48% increase from a few days ago has managed to keep it within a bullish trend.
As of the current moment, its Relative Strength Index (RSI) remains above 70. This suggests that, despite the less impressive price performance, SushiSwap is still firmly in a strong bullish trend.