Sushi DAO Votes to Cut xSUSHI Buybacks to 1 Percent

The Sushi DAO is voting on a proposal that will cap xSUSHI buybacks at 1 percent of protocol fees plus 1 percent of perpetuals revenue. This means that any revenue above these levels will go into a newly created protocol reserve and to the operations team.

The vote is open until September 3, 2026, at 01:00 UTC, and holders have until then to act on it. The proposal is part of a larger effort to restructure Sushi's tokenomics and has drawn little attention so far.

xSUSHI is the token received when depositing SUSHI in the Sushi Bar, representing a share of the pot from which protocol funds buybacks. Currently, revenue flows primarily towards xSUSHI buybacks, benefiting stakers predominantly. However, under the new proposal, stakers will be the smallest item in the split.

The new split allocates 1 percent of protocol fees plus 1 percent of perpetuals revenue to monthly xSUSHI buybacks, 4 percent of protocol fees to weekly SUSHI purchases for a newly created SUSHI Reserve, and all remaining fees to Sushi Ops. The reserve is described as a treasury function, not meant to support the SUSHI price.