SushiSwap has a proposal to update its website. It aims at creating a new DAO structure, Meiji. Sushi governance voting included new changes, such as using non-transferable shares.
A Sushi core contributor proposed Wednesday an update called “Meiji Governance Reform.” This update aims to make a variety of changes to Sushi’s autonomous decentralized organization. It is owned and managed collectively by its members.
SushiSwap’s new head chef Jared Grey stated that the Meiji update could make governance more equitable and decentralized. DeFiLlama says that SushiSwap holds more than $739,000,000 in unlocked deposits.
If the proposal passes, Sushi will now be headed by Meiji DAO — a group that has replaced Sushi DAO as the project’s governance board.
“The Sushiswap Meiji DAO shall take over all current responsibilities of the Sushi DAO. According to the proposal, the Meiji DAO would bring governance to chain and launch the Meiji Restoration Sushi. This will be a new phase in Sushi and a grand vision to implement.”
Most notable is the proposal that the Meiji DAO body will vote with the aid of Sushi “shares”, which are non-transferable governance rights and allow for Sushi governance. You can obtain the shares by locking up native Sushi tokens of the DEX in a smart agreement.
According to the proposal, holders have the option of converting their shares into cash at any moment.
Although still in discussion, the proposal claimed that Sushi shares would be used to prevent Sybil actors, or users who accumulate large amounts of tokens, from influencing DAO voting results. Members will need to wait twice as long for shares before they can vote on other proposals. Shares won’t be available immediately.
According to the proposal, the non-transferable design will allow the team to implement quadratic voting, a governance system that reduces additional votes cast by one voter.
Quadratic voting, while still a new concept in DAOs is meant to make governance more inclusive by increasing the voting power for the average voter.