SLURP-44 | Auto-Staking of NOP SDL allocation (vesting)

SLURPs
1

Abstract:

This proposal introduces an auto-staking mechanism for vested SDL allocated to Node Operators (NOPs) and Core Contributors (staff incentives) after feedback received from the NOPs to increase the rewards they receive from the protocol. The auto-staking mechanism is building on the vesting schedule from SLURP-8 Tokenomics 2.0 and allows for locking of vested SDL for 0 to 4 years (opt-out for NOPs, opt-in for Core Contributors), fostering long-term alignment with the protocol of NOPs running Chainlink Nodes and validators for subsequent LSTs as well as Core Contributors driving the lion share of development of the protocol (technical and non-technical). This alignment strategy aims to ensure the long-term health and success of the protocol.

Rationale:

This SLURP-44 was created based on NOP feedback regarding their vesting allocation of SDL. The stake.link ecosystem thrives on the active participation of various stakeholders, including stLINK stakers, reSDL holders, NOPs, and Core Contributors. This proposal aims to strengthen the long-term health and success of the protocol by fostering deeper alignment among these key participants. While raised in the immediate context of SLURP-40 Establishing BUILD Reward Distribution for stake.link , the principles outlined here extend to the overall incentivization and governance of the protocol as it evolves from stake.link into SDL (Secure, Decentralized, Liquid) with more LSTs and diversified rewards.

Crucially, the proposed auto-staking mechanism for vested SDL allocated to Node Operators (NOPs) and Core Contributors (staff incentives) is designed as a fundamental strategy for long-term alignment between this group and current reSDL holders (mostly community). This mechanism encourages these key stakeholders to have a vested interest in the protocol’s sustained success by incentivizing the locking of their SDL.

It’s important to note that Node Operators already play a vital role in the protocol and receive rewards due to the 5% fee on the Node Operator Pool for stLINK. Additionally, their staked reSDL provides them with access to a larger portion of the upcoming BUILD rewards. The proposed auto-staking mechanism for their SDL allocation further reinforces their commitment and aligns their incentives with the long-term growth of the SDL ecosystem. Similarly, for Core Contributors, this mechanism ensures that staff incentives are directly tied to the long-term value and performance of the protocol.

By implementing this comprehensive approach to reward distribution and long-term alignment through auto-staking, the protocol aims to create a resilient and thriving ecosystem for all participants unifying all stakeholders into reSDL holders.

Specification:

Auto-Staking Mechanism:

In alignment with SLURP-8 and to further incentivize long-term commitment, the following auto-staking mechanism will be implemented for specific SDL allocations:

  • Node Operator (NOP) SDL Allocation: Upon vesting, auto-staking will be enabled by default with the option to opt-out. Participants can select an SDL Lock Duration of 0 to 4 years with the corresponding multiplicator.
  • Core Contributor SDL Allocation (Staff Incentives): Upon vesting specification, auto-staking will be available as an opt-in feature. Participants can select an SDL Lock Duration of 0 to 4 years with the corresponding multiplicator.

Conclusion:

This proposal ensures the incorporation of an auto-staking mechanism for vested SDL allocated to NOPs (opt-out) and Core Contributors (opt-in) strengthens long-term alignment and underscores the collective belief in the future of SDL. Based on NOP feedback and the request for a mechanism like auto-staking, the ratification of this SLURP is a strong signal from the NOPs that are part of SDL. This marks a new era for the protocol as it transitions to SDL (Secure, Decentralized, Liquid). This strategy is designed to foster the long-term health and success of the protocol, extending beyond the immediate benefits of stLINK and BUILD reward distribution to all future LSTs.

4 Likes
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Absolutely in favor of this. Automating the staking of vested tokens removes a major friction point we currently face—manually interacting with tokens every time something vests. This change not only simplifies the process, but also allows us to maintain a long-term alignment with stake.link in a more seamless and consistent way, without triggering any unintended consequences that might arise from needing to actively handle the tokens ourselves.

6 Likes
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amazing and i 100% approve this. Been waiting for a way to mitigate the pressure and bring nops closer aligned, this does both

2 Likes
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Great proposal! All in favor of it.

2 Likes
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Reading this proposal truly warmed my heart.

It reflects an idea that many of us in the community have believed in from the very beginning: that vested allocations for node operators would be progressively staked, allowing them to directly benefit from the protocol’s growth while better aligning long-term incentives. I’ve always seen this as a natural evolution, something that perhaps could have been part of the original vision behind SLURP-8, which was already an incredibly thoughtful and technically impressive proposal.

That it’s happening now is not a sign of delay, but rather a testament to how much has been accomplished since then. It shows how far stake.link has come, and how much brighter the future of SDL continues to look.

At its core, SLURP-44 helps reinforce the alignment between node operators and the protocol itself. Right now, many operators have relatively little SDL staked, meaning they’ve earned fixed return regardless of platform growth since its incepeption. This proposal addresses that mismatch in a way that benefits everyone and deepens the shared incentives at the heart of the ecosystem.

I’m fully in favor. I have no doubt this will strengthen the cohesion of all protocol participants and help unlock a positive-sum dynamic. I’m also very eager to hear feedback from the node operators themselves, those who have played such a fundamental role in powering stake.link forward, and to whom the protocol owes a great deal. Thank you.

2 Likes
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I’m in favor of this proposal and appreciate the continued focus on long-term alignment between Node Operators, Core Contributors, and the broader stake.link community.

Auto-staking vested SDL is a smart move that not only reinforces commitment but also deepens integration between stakeholders and the protocol’s growth trajectory. These are the kinds of mechanisms that help secure the future of SDL as a resilient and sustainable ecosystem.

And hey, you know what they say… happy wife, happy life — or in our case:
“If the NOPs are locked, the network’s rocked.” :grinning_face_with_smiling_eyes:
Let’s keep building.

1 Like