This RFC proposes a short-term extension of $SUMR governance staking rewards (set to expire Monday, April 28th at 18:20 UTC). The goal is to maintain incentive alignment while we explore sustainable models ahead of SUMR transferability (enabled July 1st the earliest).
Context
Current SUMR staking rewards distribute 15,982 SUMR/day to stakers.
These emissions are set to expire on April 28th (in 9 days) unless extended via governance.
With transferability approaching on July 1st (in 73 days), it’s important to ensure a smooth transition while maintaining alignment and value for participants.
Governance action (SIP) should go up by April 23rd, 18:00 UTC at the latest to avoid reward lapse.
I propose extending SUMR governance staking rewards for one of the following durations, to allow time for deeper discussion and implementation of a longer-term model:
30-day extension — until May 28
60-day extension — until June 28 (just before transferability)
90-day extension — until late July (gives buffer post-transferability)
Emission Rate Options
Community input is also needed on the emission rate:
Maintain current rate: 15,982 SUMR/day
Pros: Consistency, no disruption in yield
Cons: Higher inflation, less sustainable long-term
Taper to: 11,986 SUMR/day (75%) or 7,991 SUMR/day (50%)
Pros: Softens inflation, preserves long-term value
Cons: Slightly lower yields in the short term
This RFC aims to gauge sentiment on both duration and emission rate, with the SIP to follow based on this feedback.
We’ll consolidate feedback into a formal Summer Improvement Proposal (SIP) to post by April 23rd, ensuring no gap in rewards.
We support the 90 day extension with no tapered down emission rate. The current rate would mean ±1.4M SUMR to be distributed over the 90 day period, which represents less than 1% of the initial community allocation.
I’m not quite sure what the current number is of SUMR tokens left within this community allocation, but I’m assuming that that is still significant.
“I’m not quite sure what the current number is of SUMR tokens left within this community allocation, but I’m assuming that that is still significant.”
I’m also a fan of maintaining the current rate for 90 days, and exploring tapering it down and even potentially other ways we could design the staking mechanisms that from the end of July if governance as enabled transferability too - such as lockups etc..
Think we should avoid tapering off for now. We’re still seeking escape velocity IMO so should keep the reward rate as it is for now. As @FBrinkkemper points out there is still quite a lot of dry powder remaining and it doesn’t make sense to me to reduce the flow just yet.
Thank you for presenting these options clearly, @jensei !
Considering the goals of maintaining incentive alignment while allowing sufficient time to develop a sustainable long-term model, especially with transferability (potentially) approaching on July 1st, I believe the following combination makes the most sense:
Duration: 90-day extension (until late July)
Rationale: This provides the most substantial buffer. It allows ample time not only for discussion and implementation of the long-term model but also critically extends past the July 1st transferability date. This will give the governance process valuable time to observe initial market dynamics after transferability before finalizing the permanent staking structure, avoiding the need for another rushed decision.
Emission Rate: Taper to 75% (11,986 SUMR/day)
Rationale: This option strikes a good balance. It immediately reduces the daily emission rate, addressing concerns about inflation and sustainability as we move towards transferability, which aligns with preserving long-term value. However, by choosing 75% instead of 50%, the reduction is less drastic, providing a softer transition for current stakers and maintaining reasonable incentives during this extended interim period.
This combination offers a significant runway for thoughtful planning and adapts to the changing token dynamics post-transferability, while already taking a concrete step towards reduced emissions. Let’s move forward with these parameters for the SIP to ensure rewards continuity.
Hey guys, considering Governance voting times (5 days if I recall from the proposal on Tally and actual execution on hub chain), today is already the 26th, and the proposal is not up for vote.
Is there any way for the Foundation to move on with extending rewards without a gap? In case there is a gap, will stakers be compensated for the rewards lost?
Hey! Appreciate you raising this—it’s an important point.
Just to clarify, the Foundation doesn’t have the authority to unilaterally extend or modify rewards; everything must go through governance.
It’s critical that the SIP goes live in the next couple of days. Hopefully we’ll see it posted shortly to stay on track. Thanks again for flagging this!
