TEMP-Check SLURP-45 | Adopting Seasonal Approach for future BUILD Reward Distribution for stake.link

SLURPs
1

The launch of Chainlink Rewards Season Genesis is incredibly exciting news! It marks a new era for ecosystem participation and rewards, starting with the Space and Time (SxT) distribution kicking off May 8th. This and all future BUILD Reward Distributions present a fantastic opportunity for stake.link to foster the narrative of a multi-yield protocol and token.

While thinking about how we best structure our own SLURP-40 and the respective Addendum in light of this going forward, I wanted to propose an approach that leverages the strengths of stake.link as a LIQUID staking protocol while embracing the spirit of following and upcoming Chainlink Seasons:

Pending TEMP-Check / Governance Decision

  1. For the Initial BUILD Distribution (Aligning with Season Genesis):

Core content of this SLURP-45

  1. For Future BUILD Distributions (Aligning with Subsequent Seasons): Switch to Time-Weighted Averages (TWA)

    • Proposal: Starting with the next BUILD distribution cycle following this initial one, let’s transition to using a Time-Weighted Average (TWA) calculation for stake.
    • Why? As we move into recurring reward seasons, TWA better reflects sustained participation and commitment over time, aligning perfectly with the “seasonal” concept Chainlink is introducing. It rewards consistent supporters fairly.
    • Flexible TWA Period: Crucially, the averaging period for TWA should reset for each new BUILD distribution cycle and match its frequency.
      • If BUILD rewards align with a monthly Chainlink season cadence, we use a TWA calculated over that month.
      • If it’s quarterly or every 6 months, the TWA period adjusts accordingly.
      • This ensures fairness and accurately captures participation within each distinct reward season.

Looking Ahead:

This two-pronged approach allows us to kick things off by celebrating the liquidity and accessibility of stLINK, while setting a clear path for rewarding ongoing commitment in future seasons using TWA, mirroring the evolution of the broader Chainlink Rewards program.

SLD is set to embrace Chainlink Rewards Seasons! By adopting the proposed model, we can ensure our BUILD distributions are timely, fair, and strategically aligned with both stake.link’s unique value proposition and the rhythm of the Chainlink ecosystem.

1 Like
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Am I correct in understanding that for the next season, assuming it runs from 06 May - 31 July for example, then the total build drop will be apportioned over those 3 months, as opposed to the existing 2.5 yrs history of SDL?

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Under the assumptions mentioned yes the timeframe for the specified season would be those 3 months.

4

sounds like it

I agree with a weighted average approach here in general though. There have been, and I suspect may still be in the future, pretty heavy incentives for the original SDL members. Of course I would like there to be another allocation or weighting bonus for long term members but at some point we have to be realistic with expectations. The original SDL crew can’t have such a heavy monopoly on rewards and incentives that it disincentivizes new participation.

My suggestion to balance this would be a protocol wide TWA + seasonal TWA. What those factors are is up for debate. For example, a 10% weight on protocol wide participation and then 90% for the rewards season gives you your total allocation. Just show up for the season? You’re capped at 90%.