SushiSwap, the community-owned automated market maker (AMM), now has a new set of leaders. Nine signers of a multisig wallet controlling the project’s funds have been elected to govern SushiSwap through full decentralization.
On Ethereum, a multisig has worked out to be something like a board of directors in the analog world, such that it takes any six of the nine members to approve changes to the SushiSwap code or to spend its development funds.
These new leaders were chosen through a process largely inside the SushiSwap Discord server following the departure of two of the project’s three co-founders. Some stumped for a spot and some sailed through by name recognition within the community, reflecting a campaign-like process we are likely to see more of in the future.
For context, cryptocurrency projects approve actions using signatures by private keys. Properly signed statements authorize the Ethereum blockchain to take the actions it is directed to take. By allowing multiple-signature setups – where actions can be approved by a few of a larger set of authorized signers – smart-contract-based protocols can create a board, but without the face-to-face meetings.
In the SushiSwap election, 2,143 wallets participated, each able to vote for as many candidates as they wanted. Participants could also vote against specific candidates. Voting ended at 14:00 UTC on Sept. 9.
Users had to have liquidity provider (LP) tokens in the SUSHI/ETH pool on SushiSwap to vote, rather than simply holding SUSHI.
Newly elected multisig member Mick Hagen, a founder of crypto startup Genesis Block, explained to CoinDesk, “The people who have the most skin in the game, their SUSHI and ETH actively at stake, should have the loudest voice and most voting power.”
Newly elected multisig member 0xMaki pointed out that this setup protects against people borrowing SUSHI to…