xSUSHI is a specialised token associated with the SushiSwap decentralised exchange platform. It is earned by staking SUSHI tokens in the Sushibar, and represents a share of the fees and revenue generated by the platform. xSUSHI appreciates in value over time as fees are collected and distributed to the Sushibar, always maintaining a worth greater than regular SUSHI tokens.
xSUSHI operates as an upgradeable token tied to the SushiSwap platform. When users stake their SUSHI tokens in the Sushibar, they receive xSUSHI tokens in return. These tokens represent ownership of the fees accumulated by the platform. A trading fee is applied to each transaction on SushiSwap, a portion of which is allocated to the Sushibar and distributed amongst xSUSHI holders, ensuring that the value of xSUSHI rises over time. Holders of xSUSHI also gain voting rights, enabling participation in the governance of the SushiSwap protocol.
xSUSHI was introduced alongside the SushiSwap platform to enhance participation and governance within its ecosystem. SushiSwap was launched in 2020, founded by a developer known as Chef Nomi, among others. As part of its evolution, xSUSHI became central to the platform's governance and fee distribution model, significantly contributing to SushiSwap's growth and integration with various DeFi protocols and platforms. Over time, the platform transitioned to a community-driven governance model, involving xSUSHI holders in its decision-making processes.