Kanpai Part 1: SushiMaker Treasury Payout Ratio [Implementation]

This proposal’s expectation is to produce an implementation. Full details and discussions thus far can be found at:

https://forum.sushi.com/t/kanpai-bear-market-protection-with-treasury-revenue/4310

Synopsis: Introduce a governance-controlled ‘payout ratio’ parameter (initially set to 95% or 90%). This will divert a portion of trading fees (100% - payout ratio) from xSUSHI stakers to the Treasury as revenue denominated in ETH. For example at a payout ratio of 95%, xSUSHI holders are paid out 95% of the 5bps. Introducing retained earnings will offer valuable bear market protection as well as allow SUSHI holders to govern a new cash flow, which could be used to reinvest in growth or generate non-operating income.

Implementation is short and sweet with just a couple of lines of code added to SushiMakerV2 so that a ‘payout ratio’ can be set and diverted to the treasury. Payout ratio will be adjustable, and can go under further governance votes to increase or decrease the percentage taken for the treasury.

This is a 2 part proposal, with 1st part being the vote on executing the Implementation and 2nd part being the vote on the initial ‘payout ratio’ set.

TL;DR The Treasury’s current near 100% SUSHI allocation could prove to be risky in the event a prolonged bear market occurs, so the Treasury is in need of expanding its ongoing diversification efforts. By diverting a portion of the fees to the Treasury, this would give Sushi enough revenue every year to cover operational expenses and also an ample surplus to invest in low-risk assets to further diversify the Treasury and bring in non-operating income (e.g. by yield farming, providing liquidity on SushiSwap, staking ETH).

Impact will be minimal to xSushi holders and will not bring more Sushi into circulation.