[RFC] Determining the Future Direction of Lazy Summer DAO

General Discussion Request for Comment [RFCs]
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1. Summary:

Following the recent protocol exploit, the announcement of the Labs Co winding down; as well as the discussions/proposals that have taken place across the forum over the past week → this RFC seeks to gauge community and @Recognized_Delegates sentiment on the long-term direction of the Lazy Summer Protocol / the DAO.

The central question is straightforward:

Should the Lazy Summer DAO continue investing resources into rebuilding and evolving the protocol, or should it begin an orderly wind-down of governance operations and treasury assets?

This RFC is intended as a strategic discussion rather than an executable proposal. Depending on community feedback, one or more SIPs will follow to implement the chosen direction.

2. Context & Motivation

Over the past year, Lazy Summer DAO has matured into a fully onchain governance system with delegated voting, transparent operations, active risk management, and a growing ecosystem of contributors.

The recent exploit, however, represents a significant inflection point.

Alongside the immediate response to affected users, the DAO should also decide what the long-term future of the protocol should be.

Rather than making incremental governance decisions without a shared strategic objective, it is important that delegates first determine whether there remains sufficient conviction to continue building, or whether the DAO’s resources would be better managed through an orderly conclusion of protocol operations.

This RFC is intended to establish that direction before any further strategic proposals are drafted.

3. Discussion

Option A: Continue Building

If the DAO believes the protocol should continue operating, discussion should focus on questions such as:

  • What should the future product strategy look like?
  • Which products or vaults should remain?
  • How should governance evolve?
  • What resources are required to continue development?
  • How should treasury assets be allocated to maximize long-term sustainability?
  • How should Guardians protect the protocol going forward?

Should this direction receive broad support, subsequent forum topics/proposals shall explore and define a roadmap and the governance actions required to execute it.

Option B: Orderly Wind-Down

If the DAO concludes that rebuilding is no longer the preferred path, governance could instead focus on an orderly wind-down.

This could include, over multiple governance proposals:

  • Recovering all stranded assets from legacy contracts into the DAO Timelock.
  • Consolidating assets currently held across operational multisigs into governance-controlled custody.
  • Completing any remaining protocol obligations.
  • Minimizing ongoing operational costs.
  • Disable SUMR staking (withdraw-only mode).
  • Maintaining governance security while treasury decisions are finalized.

Once treasury consolidation is complete, the DAO could determine how those assets should ultimately be deployed or distributed through separate governance proposals. No decisions regarding treasury deployment are being proposed in this RFC.

4. Open Questions

Feedback from @Recognized_Delegates and community members is encouraged, particularly on the following questions:

  • Should the DAO continue investing in the protocol following recent events?
  • If continuing, what should be the highest priorities?
  • If winding down, what principles should guide treasury management?
  • What governance process should be followed regardless of the chosen direction?

5. Next Steps

After sufficient discussion, I propose the following process:

  1. Gather community feedback through this RFC.
  2. Determine whether broad consensus exists around continuing development or pursuing an orderly wind-down.
  3. Draft one or more SIPs implementing the chosen direction.

Regardless of the outcome, I believe the next steps should reflect the will of delegates and the wider community rather than assumptions from any individual contributor.

I encourage all @Recognized_Delegates, contributors, and community members to share their views.

6. Informal Support Indicator:

  • The DAO should continue operating the protocol.
  • The DAO should focus on an orderly wind-down.
0 voters

–jensei

2 Likes
[RFC] Operational Realignment for the Transition Period
[SIP0.3] Renew Guardian Module Mandate & Re-confirm Guardian Set
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I’m really sad this comes to an end like this. Goated team, great product, but got caught on the off foot twice. First 10/10 now this.

I think the right thing to do is to see what kind of assets the protocol can gather. Make a list of victims of the two events and try to make them as whole as possible.

This also gives the core team the highest chance of success on their next venture.

Thanks all for the ride, it was a great time!

2 Likes
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if the dao / community has the resources and the motivation to continue to operate in some capacity, i do not see why they should not.

ie - if someone from the lazy summer community or user base has the vision and resources, there is certainly some brand equity and existing community love

if there is not, than i say wind down.

2 Likes
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I’m supporting a wind-down of the DAO. Based on the token price action, it will be extremely challenging to continue the DAO. A single entity has already accumulated 40 million tokens and needs to acquire just 30M more (approximately $15,000) to gain complete control of the protocol. I’m not sure if that’s even possible to solve.

1 Like
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hey @Raphael_Anode thank you for your words! I did a quick napkin math and in case all of the treasury (besides SUMR Token) would get liquidated right now with the purpose of making victims of the two events as whole as possible it would cover for about 1.83% of the funds.

of course, if that seems like the most reasonable use of treasury funds - in case of Protocol + DAO wind-down - I am down to contribute with efforts towards getting there.

We are still missing some @Recognized_Delegates votes on the informal poll above, so it would be nice if we can get as many voters here as possible to better understand and determine the future direction of Lazy Summer DAO.

hey @Piter, you are right to highlight the danger of the token price, at the same time - guardians are still in place, and even with the quorum reachable by 1 proposer / voter - it would become ~46M SUMR (quorum) vs ~74M SUMR (TOP 7 active delegates: @FBrinkkemper + @halaprix + @jensei + @Piter + @andrei + @MasterMojo + @Raphael_Anode) - so there is still enough voting power & guardrails to prevent such attack - considering the above mentioned delegates being active.

I also wonder if there was any apettite within the group of @Recognized_Delegates + wider community - after making sure there is an orderly wind-down and security/safety blockers in place - to explore a possible “new” product development with the use of treasury funds.

In my understanding, this would require a coordination of a group of interested peers to put heads together, come up with a strategy, product, business model, development, design and delivery (all within the constraints of the existing treasury). This would then lead to a potential launch of a new {simple} product - to give it our best shot and see whats possible before fully dissolving, or (if success) - relaunch.

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After taking some time to think over the situation, I would like to add my 2 cents here.

Given the current size of the treasury, I believe the DAO’s resources would be better managed through an orderly conclusion. While I would like for the DAO to continue building out the product suite, it will be an uphill battle without dedicated engineering talent. So I would prefer that we can ensure a proper wind-down of operations and user support over the next few months.

I am supportive, however, of having formal discussions around this in the future. After the conclusion of protocol operations and consolidation of the treasury, I would be glad to contribute to a brainstorming session on exploring the creation of a new strategy, product, business model, development, design, and delivery, within the constraints of the consolidated treasury.

1 Like