SushiSwap CEO Reveals DEX Lost $30M on LP Incentives This Year

Jared Grey, SushiSwap's new CEO, tweeted that SushiSwap has experienced a $30 million loss over the past 12 months in its emissions-based rewards strategy to bootstrap liquidity and incentivize LPs, and is currently pursuing multiple programs aimed at improving Sushi tokenomics and business model in the first quarter of 2023. 

Jared Grey says that Sushi's upcoming tokenomics focuses on realigning its most actionable asset, TVL, with LPs. The mechanism redesigns how SushiSwap bootstrap liquidity on the exchange, no longer entirely subsidize liquidity with emissions but via a more equitable mechanism.

Previously, Jared Grey announced that he and EONS developer David Wilson have completed the first draft of SushiSwap's new tokenomics and will present it internally next week. A public draft is expected to be released in 2-3 weeks.