SUDU Token Pumps 216% Following DAO ‘Rage Quit’ Proposal

SUDU, the native token of Sudoswap, has seen a sharp surge of 216% in the last 24 hours following a new proposal introducing a ‘rage quit’ mechanism for holders. According to the update, the proposal offers a clear and structured exit option for investors while also addressing governance risks within the protocol.

As part of the proposal, the protocol plans to use around 400 ETH in fees generated by sudoAMM. Furthermore, these funds are currently locked in the protocol’s pair factory smart contracts.

SUDU Token Holders to Exchange at Fixed Rate

Notably, the proposal suggests moving this ETH into a dedicated range of smart contracts. Interestingly, this contract will allow SUDU holders to exchange their tokens for ETH at a fixed rate.  

The fixed rate has been set at 0.00001563744154 ETH per SUDU token. This value was calculated by dividing the total ETH fees collected by the protocol by the circulating supply of SUDU.

To get an accurate circulating supply, the team excluded tokens held in the governance treasury and those stored in SudoRandom’s multisig wallet. This ensures that only actively circulating tokens are considered in the payout.

No Deadline For Participation

One important feature of the rage quit contract is its flexibility. There is no deadline for participation, so holders can exchange their tokens at any time. However, the process depends on the availability of ETH in the contract. Once the ETH pool runs out, no further exchanges can take place.

Another key detail is that participation is completely optional. Token holders are not forced to exit but are given a fair opportunity to do so if they wish. Once a holder exchanges their SUDU for ETH, the tokens are locked permanently in the rage quit contract. They cannot be withdrawn or traded again, effectively reducing the circulating supply over time.

In addition to the exit mechanism, the proposal also tackles a major governance concern. It removes the protocol’s ability to mint new SUDU tokens by transferring control of the minting function to a burn address. This step eliminates the risk of future governance attacks that could inflate the token supply.

Overall, the proposal combines investor protection with stronger protocol security. The market surge shows that traders see value in both the exit option and the reduced governance risk.

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