SushiSwap has launched a governance proposal for a "strategic reserve + revised buyback plan," aiming to establish a protocol reserve by purchasing SUSHI weekly and continuing the buyback mechanism for xSUSHI.

The proposal is still in the governance discussion or voting phase, and the official post did not specify whether it has been approved, when it will be executed, the weekly purchase amount, funding sources, buyback frequency, reserve custody address, or asset usage conditions.

According to the proposal summary disclosed by Sushiwork, the core of the strategic reserve is to regularly convert part of the protocol's income or cash flow into SUSHI, rather than just using funds for short-term market buybacks; this means the DAO intends to incorporate the native token into its long-term balance sheet.

The "revised buyback plan" aims to continue serving xSUSHI holders. xSUSHI is a certificate obtained by staking SUSHI in the protocol, theoretically corresponding to governance participation and protocol revenue distribution rights; actual returns, purchase paths, and token circulation impacts still depend on the final proposal parameters.

The strategic reserve and buyback are two different supply mechanisms: reserve purchases transfer tokens into a wallet controlled by the DAO and retain future usage options, while buybacks, if directly allocated to xSUSHI or removed from circulation, may increase staking yields or reduce the tradable supply in the secondary market. Without a formal budget, on-chain execution plan, and sale restrictions, they cannot be equated with a guaranteed continuous buy or token burn.

From a market mechanism perspective, SUSHI holders and xSUSHI stakers are potential beneficiaries, with protocol trading fees and DAO funds being the sources for purchasing SUSHI. If the protocol's income is stable and the DAO continues to buy in the market as planned, the buying pressure could increase token demand and return some fees to long-term holders; however, if the trading fee scale is insufficient, and reserve assets are used for operations or incentives and re-enter the market, the buyback narrative will not automatically translate into cash flow growth for each SUSHI.

Source: Public Information