Governance Beat — SUSHI CEA

By October 23, 2021DeFi
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Usually, we cover a recently closed vote on the Governance Beat, but it’s also important to make the community aware of ongoing votes so they can get involved. That is, after all, the driving force behind these posts — up voter participation. As a result, we’ll be looking into the latest SushiSwap proposal set to be decided upon tomorrow at 3:00 pm EDT.

$SUSHI holders are currently voting on a proposal that would implement a Community-Enabled Analytics (CEA) program, comprising ~500 analysts funded annually to attack real-time analytics problems for the protocol. The proposal details are lengthy, but you can review them in full here.

What is Community-Enabled Analytics?

Community-Enabled Analytics (CEA) is a free analytics solution combined with an extensive bounty program, designed to reward community members for learning about, analyzing, and publishing blockchain data.¹

To be clear, CEA is an analytics platform that is powered by

, a widely respected and utilized blockchain analytics vendor. This is a very serious and impactful vote taking place on a large scale and decentralized level for the protocol. It’s exciting to see how many different shapes governance can take in this industry. In this short piece we will cover the main points and hopefully, if you have voting power, galvanize you to participate in SushiSwap’s governance.

Funding

  • CEA Funding: $1M USD (in $SUSHI), renewed annually
  • 50% to CEA Community in the form of bounties ($41,667/month)
  • 50% to subsidize operational and infrastructure costs ($41,667/month)

Motivation

  • Need/Growth- the need to provide extensive analytic resources to grow SushiSwap Trident
  • Acquisition- educational & bounty programs have seen 69% new protocol user participation on average
  • Retention- bountied tokens have been held by users at a rate of 77% on average in comparable protocol programs (ALCX, COMP, UNI, TERRA). In contrast, liquidity mining programs’ bountied token retention rate rarely exceeds 35% (TVL flight, discussed in previous Governance Beat here).

Oversight

  • A Committee of 5 community chosen members will meet quarterly to ensure the grant is being implemented per the intended purpose and scope
  • Yearly program renewal via vote required

Year 1 Forecast

  • 460 educated analysts to produce on-demand insights for SushiSwap
  • ~ 27,000 $SUSHI retained in the ecosystem
  • 350+ unique dashboards, queries, visualizations, & in-depth analyses, plus premium interactive solutions including a Trident concentrated liquidity calculator

Action

So what do you think?? Sounds exciting if you want to be one of those analysts working towards bounties. But more importantly, getting this data synthesized and presented in a digestible format would be hugely beneficial for the protocol’s growth. This is just one of the stepping stones needed for DeFi to usher us into a new era of global finance.

— Brandon Goss

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