In the new tokenomics model, time-lock tiers will be introduced for emission-based rewards, as well as a token burning mechanism and a liquidity lock for price support.
Also, staked SUSHI won't receive any share of the fee revenue, but emissions-based rewards paid in SUSHI tokens. Time-lock tiers will be used to determine emissions-based rewards, with longer time locks resulting in bigger rewards. Withdrawals before the maturity of time locks are permitted, but rewards will be forfeited and burned.
The decentralized exchange will use a variable percentage of the 0.05% swap fee to buy back and burn the SUSHI token. The percentage will change based on the total time-lock tiers selected. The proposal notes that: "Because time locks get paid after maturity, but burns happen in “real-time” when a large amount of collateral gets unstaked before maturity, it has a sizable deflationary effect on supply."