SushiSwap undergoes a transformation, rebranding as Sushi Labs, an autonomous entity that replaces its decentralized autonomous organization (DAO). However, the name SushiSwap will still be used for its decentralized exchange (DEX) operations.

In response to slowing growth and liquidity challenges, SushiSwap introduces a new operational model known as Sushi Labs. This overhaul replaces the DAO with a "council structure" similar to that of Synthetix, a derivatives protocol.

Under Sushi Labs, there will be four councils: the Sushi High Kitchen, the Treasury Council, the Grants Council, and the Ambassador Council. The Sushi High Kitchen, consisting of six to eight members, will act as the central governing body overseeing transactions via a multisig setup.

Jared Grey, now managing director of Sushi Labs, believes that the revamped organizational framework, budget allocation, and utilization of successful products like Route Processor will boost liquidity on the Sushi DEX.

While the transition to a multitoken product suite aims to distribute product costs and offer more reward opportunities for token holders, it has sparked debates and criticism over its centralized nature. Some community members accuse the protocol of a hostile takeover. Nonetheless, Sushi defends these changes as necessary to address financial challenges and enhance liquidity management.

Despite generating $1.62 million in fees in May 2023, SushiSwap experienced a significant decline compared to its performance in the previous bull cycle.