ABSTRACT - This SLURP seeks to lock 1,000,000 SDL from the DAO treasury for 4 years. The generated staking rewards will be sent to the DAO treasury wallet. All funds acquired would henceforth require a DAO vote to be spent, as per usual. The reSDL NFT representing this locked position will be held by the DAO treasury in the form of 20, 50k SDL locked positions.
RATIONALE -
Consistent, long-term revenue generation for the DAO treasury in the form of stLINK.
Maintaining a significant portion of the SDL supply under DAO control.
Demonstrating long-term commitment to the SDL ecosystem as a DAO.
Mitigation of sell pressure on the SDL token by acquiring stLINK rewards for budget expenses.
SPECIFICATION -
The following is the math on how staking 1m SDL will impact the rate.
We found that the reward rate decreases by approximately 5.1%.
Therefore, we multiply the original percentage by this percentage change.
6.23% * 0.051 = ~0.31773% and get a NEW reSDL 4 year lock rate of ~5.91227%
Multiply the new reward rate by the DAO’s reSDL holdings:
9,000,000 reSDL * 0.00020394 stLINK/reSDL = ~1,835.46 stLINK per year.
TLDR:
The DAO proposes to stake 1 million SDL max locked for 4 years perpetually and to be held by the treasury multisig. The impact on reSDL 4 year lock rate would be -0.31773% for a new 4 year lock rate of ~5.91227%. The stLINK earned from locking (~1,835.46 stLINK per year at current rates) would in hopes one day be used to cover the budget and make the DAO self sustaining without having to sell SDL in the future to cover expenses. The stLINK rewards earned would be placed in the treasury multisig and require a future SLURP / Vote to spend any.
Any and all thoughts and comments are appreciated.
Completely agree with this initiative, it’s something I’ve been advocating for and truly believe should have been in place since day one. Staking treasury-held SDL to generate sustainable yield is a straightforward, value-aligned move that reinforces long-term resilience while putting idle assets to productive use.
What’s especially great about this step is that it sets the tone for the rest of the ecosystem: the DAO is leading by example, showing its commitment to SDL’s long-term value rather than taking the short-term path of selling. It sends a strong signal about confidence in the protocol’s future and the role SDL plays in it.
Really happy to see this being prioritized and looking forward to it being implemented ASAP. A smart and timely move that strengthens the DAO’s financial position and reinforces the value of holding and building with SDL.
Thanks @Michael and thanks @Ari for the thoughtful SLURP and comments. I agree with everything that has been said. This will foster the longterm health of the treasury.
Strongly support this SLURP. A great way to diversify the DAO’s Treasury through stLINK and other assets that the protocol may expand to. While there is a dilutive effect on the reSDL reward rate through this SLURP, this approach will likely reduce reward rate dilution in the longer term due to a slower release of SDL into public circulation.
The only point I would add is that the DAO would be eligible for BUILD rewards through this SLURP and there would need to be a decision on a strategy regarding this in the future.
GM @EqS, the comment re/ BUILD rewards is a good one. Ultimately, it will be for the next budget to include all the tokens in the treasury. Imo we should use the DAO treasury to be able to cover the budget which probably stay mostly Cash / Stables.
To comment, I’ve previously had discussions with people about this idea before it was raised and was against it as it would dilute the reSDL rewards for current stakers. Alternatively, I thought setting an explicit treasury fee would be better as that would lower the stLINK reward rate slightly but keep the SDL reward rate the same.
Although based on community sentiment so far and the execution simplicity of this, I’m now in favour and agree with the initiative of building sustainable cashflows to the DAO by staking SDL through this method.
I thought the LinkPool team was quite concerned about maintaining the stLINK reward rate. With the continued staking into the Community Pool placing downward pressure on the rate it may also be best to not add more fees. Particularly given the addition of the PoL fee which will take more than 8500 stLINK in rewards per annum.
Snapshot said "“They need to update their metamask version into the latest 12.15.2” So if you qualify for this statement start there. If you use another wallet let me know and i can pass the info to snapshot team
