Jared Grey, the chief of SushiSwap, addressed the ongoing discussions regarding the protocol's proposed switch to a Labs model, attributing the controversy to "former contributors fueling constant FUD and misinformation."

The contentious proposition titled Evolving Sushi—Burū no Shinka was presented on March 26 to enable Sushi's adoption of a Labs model aimed at restructuring its current framework for better operational efficiency and accelerated protocol advancement.

The proposal highlighted the necessity for increased flexibility in the protocol's governance processes to hasten development and suggested creating Sushi Labs as an independent entity responsible for product development and management within the Sushi ecosystem.

However, the proposal faced criticism from some community members due to various modifications, particularly granting more authority to Sushi Labs and restricting the decentralized on-chain governance powers of the DAO, like voting on token allocations.

Additionally, the plan involves allocating 25 million Sushi tokens and other resources to the Labs, designating it as the primary beneficiary of future airdrops, sparking scrutiny as the treasury's reported contents do not align with what the proposal indicated.

Naïm Boubziz, a former contributor to SushiSwap, raised concerns about potential voting manipulation by the Sushi Labs team. He denounced the latest developments as a hostile takeover, sidelining the DAO community and claiming the control of the entire treasury without community consultation, heightening the community tension.

Responding to the mixed reactions, Grey denied the sentiment that the proposal spells the "End of DAO" and defended it as a necessary upgrade to streamline governance processes, reduce inefficiencies, and introduce a more decentralized structure, inviting diverse opinions and discussions within the community.

Grey assured that implementing Burū No Shinka would usher in a new phase of efficient governance for Sushi DAO, eliminating the need for a single head figure and shifting the role towards leading Sushi Labs' product development, aiming to create a multidimensional cashflow ecosystem under a governance council structure with enhanced on-chain controls. Additionally, he dispelled rumors of vote manipulation and attributed disruptions to progress to a significant SUSHI token purchase by a big investor working against the Sushi team.