Sushi DAO Votes on Proposal to Cap xSUSHI Buybacks at 1 Percent

The Sushi DAO is currently voting on a proposal that would cap xSUSHI buybacks at 1 percent of protocol fees plus 1 percent of perpetuals revenue. The proposal, which closes on September 3, 2026, also creates a newly created protocol reserve and allocates the remaining revenue to the operations team.

The current voting system has been criticized for its concentration of power in the hands of a single address, which holds 26.81 percent of all voting power. This is not unusual in DAOs with low participation, but it highlights the importance of decentralization and fairness in governance decisions.

For holders, this proposal affects their staking yield, as it changes the allocation of protocol fees. The new split would allocate 1 percent to xSUSHI buybacks, 4 percent to a newly created SUSHI Reserve, and the remaining revenue to the operations team.