Sushi Strategic Reserve and Revised Buyback Proposal Passed in Two Voting Rounds
Sushi governance shows that the strategic reserve and revised buyback proposal has passed two rounds of signaling and execution votes, with approximately 5.21 million votes in favor, accounting for 100%. Starting next week, a portion of the protocol fees will be used to buy SUSHI weekly for the reserve, and from October 1, xSUSHI will be repurchased monthly.
The proposal divides the fees into three parts: approximately 4% for weekly SUSHI purchases for the reserve, with a public dashboard; approximately 1% plus about 1% from perpetual contract fees for monthly xSUSHI buybacks; and the remaining fees, migration fees, and other income will go into the operational account for development, incentives, partnerships, and daily expenses. The reserve and buyback will no longer follow the same path: the former accumulates governance tokens, while the latter directly buys for locked token holders.
Parallel terms involve migrating $10 million to $20 million from the current $25 million protocol liquidity deployed on the Ethereum Virtual Machine network to the Robinhood Chain in batches, with the first pool being the third version of ETH–USDG. The proposal states that the current depth on this chain is insufficient, but user demand exists, with trading on the Ethereum mainnet being weaker than on the Ethereum stablecoin pool on this chain. The official website has launched a related startup page.
The two voting windows were approximately from August 18 to 25 and from August 27 to September 3, with a record of zero disputes. Sushi's historical proposals often approach unanimous votes, with voting volumes in recent years typically around 5 million, lower than some earlier treasury proposals in the tens of millions. Passing does not mean that buying tokens has already started on-chain; the execution calendar is set for Monday and October 1.
In terms of market mechanisms, what is bought is the visible weekly reserve increase and monthly locked buyback, while what is sold is the old inventory that has fees tied up in multi-chain market making without generating trades. Funds flow from trader fees into SUSHI spot and xSUSHI, then from old EVM positions into the new chain stablecoin pool. Beneficiaries are the locked token holders and the new chain needing depth; those under pressure are market-making positions relying on the mainnet's inert liquidity and the operational budget after fees are cut. The unanimous vote reduces the governance veto premium, transferring price elasticity to the actual procurement starting on Monday.
Supplement: The dashboard is written as a hard condition for reserve transparency. The perpetual contract fee is separately set at 1%, indicating that derivative income has been included in the buyback numerator.
Source: Public Information
ABAB AI Insight
The established decentralized exchange has separated the buyback into two accounts: "inventory" and "dividends," acknowledging that a single buy order cannot clarify the creditor relationship between token holders and the protocol. Weekly purchases of SUSHI for the reserve resemble a company building treasury stock in the open market; monthly purchases of xSUSHI are closer to providing cash flow to locked token holders. The split of 4% to 1% indicates that the budget for inventory narrative is greater than for immediate dividends. A unanimous vote of 5.21 million is common in Sushi, not representing retail consensus but indicating a high concentration of voting chips.
The capital path is fees—spot SUSHI—reserve address, plus an additional path of fees—xSUSHI. The third path moves idle protocol liquidity of $25 million to the Robinhood Chain, using ETH–USDG to exchange for transaction density. This treats market-making inventory as a migratory factory rather than a monument locked on Ethereum. The operational account retains the remaining fees, meaning that R&D and business still receive funding from traders' pockets.
Comparable examples include Uniswap discussing fee switches separately from on-chain deployment and centralized exchanges using platform tokens for buybacks. The contrast is that the 2023 Sushi tokenomics revision was rejected. The industry phase has shifted from "spreading pools across multiple chains" to "moving inventory to whichever chain has transactions," while governance tokens have changed from unlimited issuance to fee reinvestment. The mention of the Robinhood Chain in the proposal indicates that the retail brokerage chain is seen as a new traffic interface rather than just another unnamed side chain.
The structural change is capital concentration. The mechanism is that the fee numerator is pre-sliced by governance, making the reserve address a major holder of the protocol; liquidity inventory moves with transactions rather than historical brand reputation. The weekly purchases starting on Monday will turn governance results from snapshots into a timetable on the order book.
ABAB News · Cognitive Law
A unanimous vote only indicates chip concentration, not that buying has already started.
The reserve is treasury stock, while locked buybacks provide cash flow to token holders.
Protocol liquidity will migrate; the brand will not guard over sunk pools.