SushiSwap's head chef, Jared Grey, stated that the ongoing controversy surrounding the protocol's proposed transition to a Labs model is primarily driven by "former contributors who like to propagate endless FUD and misinformation."

The controversial proposal, titled "Evolving Sushi—Burū no Shinka," was submitted on March 26 to allow SushiSwap to adopt a Labs model. This model aims to restructure the current organization, enhance operational efficiency, and accelerate protocol development. The proposal pointed out that SushiSwap's current governance procedures lacked flexibility to increase its development pace. It proposed Sushi Labs as an autonomous company or group of companies tasked with product development and management within the Sushi ecosystem.

However, the proposal has generated heated remarks from some in the community due to proposed changes, including making Sushi Labs more powerful and limiting the DAO's powers to decentralized on-chain governance, such as voting on token allocations. Additionally, the proposal will allocate 25 million Sushi tokens and other funds to the Labs while making it the sole beneficiary of future airdrops.

This move has been heavily scrutinized, mainly because the amount in the treasury differs from what the proposal states. Naïm Boubziz, a former SushiSwap contributor, alleged that the Sushi Labs team might be manipulating the voting by adding and removing liquidity. He labeled the proposal as "THE real hostile take over" and claimed that the team has "sidelining the DAO and seizing the entire treasury without consulting the community."

These dramas have led some community members to label the proposal as the "End of DAO." Grey responded, stating that labeling it as such "seems melodramatic when many view it as a needed upgrade" to reduce friction and inefficiencies plaguing SushiSwap's current DAO model.

Grey said that successfully implementing the Burū No Shinka will lead to a new era of streamlined governance for the Sushi DAO. According to him, the DAO will no longer require a head chef figurehead, and his role will transition to leading Sushi Labs' product development. He added that Sushi Labs' goal is to foster a multi-product-and-token ecosystem, which will remain under the control of the governance council structure, with increased on-chain and decentralized controls.

Grey also debunked claims that the team was manipulating the votes, revealing that a whale purchased a substantial amount of the SUSHI token to disrupt every effort of progress by the Sushi team.