[RFC] Extend and Adjust Vault Reward Emissions

1. Summary:

The current vault rewards are coming to an end of February 9th 2026. And as with previous reward periods, I am putting forward this RFC to renew the Vault Rewards.


2. Context & Motivation:

In order to remain competitive with similar protocols, we need additional rewards to supplement the base APY.


3. Proposal:

The proposal I put forward will maintain the current emissions of around 270,000 SUMR per day, or around 24M in total for the next 90 days. As with previous extension proposals that have been voted for, it is proposed to target a fixed APY for all vaults, based on todays TVL. That value today, at the current price and TVL, is 0.83% APY from the SUMR tokens.

Chain Vault Current Rewards End Current SUMR APY Current SUMR per day Proposed SUMR @ 0.83% APY 90 Days
Base USDC 9-Feb-26 0.44% 9,898 18,671 1,680,381
Base EURC 9-Feb-26 0.56% 3,192 4,732 425,852
Base ETH 9-Feb-26 1.57% 24,284 12,838 1,155,439
Arbitrum USDC 9-Feb-26 3.12% 16,221 4,315 388,359
Arbitrum USD₮0 9-Feb-26 3.14% 2,850 753 67,795
Ethereum ETH 9-Feb-26 1.18% 78,226 55,024 4,952,126
Ethereum ETH (HR) 9-Feb-26 0.62% 47,957 64,200 5,778,012
Ethereum USDC 9-Feb-26 0.49% 42,163 71,419 6,427,674
Ethereum USDC (HR) 9-Feb-26 0.60% 17,054 23,591 2,123,231
Ethereum USDT 9-Feb-26 1.02% 3,717 3,024 272,189
Sonic USDC.e 9-Feb-26 0.80% 4,198 4,355 391,965
HyperEVM USDC 9-Feb-26 1.30% 8,826 5,635 507,156
HyperEVM USDT 9-Feb-26 3.21% 8,826 2,282 205,390
267,411 270,840 24,375,569

I also propose that the DAO Managed Vaults have 5,000 SUMR per day per vault allocated to them, once they go live (separate SIP). If we launch 4 vaults as initially proposed, this will add another ~1.8M SUMR tokens to the emissions.

The end date for this next period would be 10th May 2026.

This proposes to use MERKL again for the distribution.

4. Open Questions:

  • Does the community agree with this amount?
  • Does anyone propose any changes to 90 day period, or the simple allocation of tokens

5. Next Steps:

  • Gather community feedback
  • Promote to SIP with Merkl execution as the action

Tagging @Recognized_Delegates

3 Likes

thank you @chrisb for proposing this, as its quite time sensitive (current rewards expiring 09.02.2026) I propose promoting this RFC onto SIP and putting up to a vote

considering the current price of SUMR the 0.83% APY seems reasonable and hopefully we can see some increased price action as 25M SUMR tokens per 90 days would drain treasury quite quickly (~4x 90 days epochs)

1 Like

I am good with sending this to a SIP

1 Like

0.83% sounds fair and is slightly higher than current token rewards from protocols like Morpho. Good with sending this to SIP.

2 Likes

I support this proposal

3 Likes