Home News Joseph Delong resigns amid chaos inside SushiSwap

Joseph Delong resigns amid chaos inside SushiSwap

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Joseph Delong, chief technology officer of the SushiSwap decentralized exchange, resigned from office, without achieving the support of the current project team by the community.

Delong had previously expressed disappointment about SushiSwap’s failure to run on Optimism, an Ethereum (ETH) Layer 2 (L2) scaling solution. He also stated that after the SushiSwap token launchpad was hacked for $3 million, he doesn’t receive help from centralized exchanges about the perpetrators’ identity, calling it the “hardest day of my life so far.”

User 0xMaki managed the project until September. He received control from FTX CEO Sam Bankman-Fried after the scandalous story of the disappearance of the anonymous founder under the nickname Chef Nomi. The latter took $14 million from the developer fund, and then returned it with an apology.

The conflict arose after unexpected departure of 0xMaki

Thus, the conflict arose after the unexpected departure of 0xMaki, which could have been initiated by Delong. Some other developers left with him, which brought the disagreements to the public.

SushiSwap CTO called the accusations “absurd defamation” and threatened to leave the project if it refused to give key developers more “autonomy.”

He submitted to the community a proposal to allocate 200,000 SUSHI (~$1.2 million at the time of writing); at a time to each of the 19 developers of the project. But it did not receive support. Of the 97 who voted, more than two-thirds were against.

Decentralization of DeFi protocols is an illusion

“The chaos that is occurring now is unlikely to result in a resolution,” Delong stated. He recommended moving key positions beyond the decentralized autonomous organization (DAO) with the provision of effective mechanisms for team management.

“Be wary of any self-proclaimed leaders arising from the current core team,” he warned. Delong recalled his promise to transfer all accounts to the next head of SushiSwap.

Recall that the Bank for International Settlements (BIS) called the decentralization of DeFi protocols an illusion. Experts expressed confidence that there will be cases when projects will require reorganization or evaluation. “The point raised in the special feature is that there’s a limit to how far you can run a whole financial system purely based on those automated transactions”. Said Hyun-Song Shin, economic adviser and head of BIS research.

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