SushiSwap is entering the market with a new multi-token model and a revamped governance structure called Sushi Labs. This new setup will operate alongside SushiSwap’s decentralized autonomous organization (DAO). Sushi Labs, as an autonomous entity, will oversee the management and supervision of the entire Sushi ecosystem, aiming to streamline governance which has historically been complex and contentious.

The recent proposal, approved on June 11, 2024, marks a significant shift aimed at revitalizing the protocol. SushiSwap's Total Value Locked (TVL) has recently shown a decline, contrasting with Uniswap's leading position with $6 billion in TVL. Sushi Labs aims to accelerate the development of decentralized finance (DeFi) applications.

This strategic move positions Sushi Labs to lead in the rapidly evolving DeFi sector. It will introduce new tokenomics to the Sushi DAO and plans to mint 25 million tokens to support grant requests within the DAO. The organization will focus on enhancing liquidity and fortifying its Treasury, becoming the primary recipient of future Sushi airdrops. The market has responded positively to these developments.

SUSHI, the native token of Sushi Labs, has seen recent price declines. Sushi Labs plans to establish a council-like structure with four main bodies and implement a multi-signature wallet setup similar to Synthetix's derivative protocol. This direction contrasts with SushiSwap's decentralized origins, with its leadership advocating centralization to drive growth.

Sushi Labs, as an autonomous entity, will manage SushiSwap, following months of vigorous debate. This new business model aims to meet market demands and user needs while establishing itself as a leading decentralized exchange. The organizational structure and budget allocation reinforce Sushi Labs' role in the ecosystem.

Products like Route Processor underscore the professionalism of Sushi Labs. The organization will oversee a multimillion-dollar budget from the DAO, with token holders influencing Treasury allocations but not operational details.

The adoption of a multi-token ecosystem aims to mitigate risks associated with Sushi token inflation and improve funding for profitable DAO initiatives. However, the new centralized aspects of the model have sparked criticism and concerns about its impact on the decentralized ethos of SushiSwap.