Following the decision to utilize Aerodrome Ignition as the framework for the upcoming token transferability event, this RFC proposes a shared funding model to cover the required voting incentives.
Specifically, it proposes that the total incentive requirement of 3.3% of Total Supply (allocated across Week 0 and Week 1) be funded 50/50 between the Lazy Summer DAO Treasury and the Lazy Summer Foundation Treasury. This ensures that the cost of establishing deep, sustainable liquidity is shared equally between the community treasury and the specific allocation set aside at TGE for launch support.
2. Context & Motivation:
The Aerodrome Ignition Requirement: To ensure a successful launch on Base, the DAO has aligned on utilizing the Aerodrome Ignition. This requires a significant upfront deposit of voting incentives to attract veAERO voters, who in turn direct AERO emissions to SUMR liquidity pools. The required commitment is 3% of supply prior to trading (Week 0) and 0.3% of supply during the first week of trading (Week 1).
Shared Responsibility: The successful initialization of the SUMR token market is a critical objective for both the DAO and the Foundation.
Foundation Role: A specific portion of supply was allocated to the Foundation at TGE to support the token launch and initial ecosystem capability. Ignition is the primary execution phase of this mandate.
DAO Role: The DAO directly benefits from the “flywheel” effect of deep liquidity, which enables easier entry/exit for users and establishes the token as a productive asset within the ecosystem.
Rationale for 50/50 Split: Rather than depleting a single treasury source, sharing the burden preserves the runway of both entities. It acknowledges that while the Foundation holds the mandate for “launch,” the sustained liquidity benefits the DAO in perpetuity. A 50/50 split (1.65% contribution from each) is viewed as the most equitable distribution of this one-time capital cost.
3. Proposal:
3.1 Funding Parameters
Total Incentive Requirement: 3.3% of Total SUMR Supply (33M SUMR)
Contribution Split:
DAO Treasury: 1.65% of Total Supply (16.5M SUMR)
Foundation Treasury: 1.65% of Total Supply (16.5M SUMR)
Destination: Incentives to be deposited into the Aerodrome Voting Incentive contract (or operational multisig managing the deposit).
3.2 Deployment Schedule
Tranche 1 (Week 0 - Pre-Launch): 3.00% Total (1.5% from DAO / 1.5% from Foundation)
Purpose: To secure maximum vote share and emissions for the launch epoch.
Tranche 2 (Week 1 - Maintenance): 0.30% Total (0.15% from DAO / 0.15% from Foundation)
Purpose: To sustain voting support while organic trading fees begin to ramp up.
3.3 Mechanics
It is proposed that SIP be formally submitted to governance on the 14th January for the 1st tranche of tokens. This should then be available for execution on Monday 19th January, satisfying Aerodromes need to have the SUMR funds in it’s contracts up to several days prior to the transferability date, and start of the next epoch (00:00 UTC 22nd January 2026).
A sub-SIP proposal will be proposed the following Wednesday (21st January) to transfer the 2nd tranche of SUMR tokens.
Separate SIPs will also be proposed on the 14th January to enable transferability of the SUMR token on the hub (Base) chain, and another on the spoke (Arb, Ethereum and Sonic) chains, which will have a special function to ensure they cannot be executed on their respective chains prior to 23:59 UTC 21st January 2026.
4. Open Questions:
Does the community agree that a 50/50 split appropriately reflects the alignment between the Foundation’s launch mandate and the DAO’s long-term liquidity goals?
5. Next Steps:
Community discussion and feedback on this RFC.
Align on the final split percentage and execution mechanics.
Promote to SIP stage and vote for execution.
6. Informal Support Indicator:
To gauge initial sentiment, @Recognized_Delegates and community members are encouraged to signal on the following.
6.1 How does the community feel about the proposed 50/50 DAO–Foundation split for Aerodrome Ignition incentives?
Id like to add that we can add oSUMR tokens for this purpose
simple option tokens that requires bribe recipients to lock their SUMR for a short period of 90 days, or they burn half the underlying SUMR to get instant liquid tokens for selling.
I also want to add that Summer should explore a veAERO NFT, by locking some $aero (price is very attractive atm). This has many benefits to Summer in the long run, and includes POL.
Key Benefits
Direct Control Over AERO Emissions Allocation:
Self-voting guarantees a portion of weekly AERO emissions goes to the SUMR pool, proportional to Summers veAERO voting power. This creates consistently high rewards for LPs, potentially yielding APYs far above baseline (e.g., 20-50%+ in competitive pools, based on historical Aerodrome data).
Benefit: Attracts more LPs and TVL, bootstrapping and sustaining liquidity beyond the Ignition launch’s initial boost. For SUMR, this could accelerate integration into Summers ecosystem, like enabling better borrow/lend rates or farming opportunities
Capture of Trading Fees and Incentives:
veAERO voters receive 100% of the trading fees generated by the pools they vote for, distributed proportionally to their votes on those pools. If Summer votes on their own SUMR pool, they effectively recycle fees back to themselves.
Benefit: Generates passive revenue for the project treasury, which could fund further development, marketing, or SUMR buybacks/burns. This is more efficient than external voters claiming those fees, turning the pool into a revenue source rather than just a cost center.
Cost Efficiency and Reduced Bribery Dependency:
Projects often pay bribes (in tokens or stablecoins) via platforms like Votium or Hidden Hand to entice external veAERO holders to vote for their pools. Self-voting bypasses this, as Summer could allocate capital to buy and lock AERO instead—potentially at a lower net cost if AERO appreciates.
Benefit: Lowers ongoing expenses (bribes can reach 5-20% effective yield on emissions) and avoids dilution from issuing extra SUMR as incentives. Over time, this preserves token value and aligns incentives with long-term holders.
Enhanced Liquidity and Ecosystem Flywheel:
Higher emissions from self-voting draw in mercenary and sticky capital, increasing trading volume and reducing slippage for SUMR trades. This is crucial for a launch on Base, where Aerodrome dominates DEX volume (often 50-70% market share).
Benefit: Builds a virtuous cycle—deeper liquidity improves user experience on Summer (e.g., for leveraged positions or yield farming), boosts SUMR’s market cap, and attracts partnerships. It also mitigates post-launch dumps by providing organic yield incentives.
Flight School:
Every four weeks, the Aerodrome Flight School program distributes bonus veAERO to qualifying users. Aerodrome Finance Summer could lock enough Aero to where they get flight school bonus every 4 weeks; I think this is around ~200k Aero (dont quote me)
Having a veNFT allows projects to recuperate their bribes. and if they are in the form of oSUMR, the DAO, would have the ability to zap out of oTOKENs, or to simply rebribe them.
I think this will help $SUMR of to a good start and support the initiatives. We have seen how much CRV incentives helped ETH+ at Reserve Protocol. This suggests that DEX incentives can significantly boost token performance.
We supported the 50/50 split between DAO and Foundation tokens.
I am also supportive of the 50/50 split. I am glad to see the Foundation step up to share responsibility with the DAO, to ensure a successful token launch.
Since we have committed to Base and Aerodrome, I am also supportive of locking $aero for voting power to direct incentives to the SUMR pool. Given our current treasury size, what would be a reasonable amount to dedicate to this @MasterMojo?
I really like the sound of this, but I really know very little about it (beyond your very helpful summary here).
What would, in your opinion, be the minimum amount needed to purchases to have any real effect on anything? Would 50k do for example? I see in the Arrakis proposal, we are suggesting around 100k being used.. I think that would likely mean 50k could be used here for this but I’d be keen to know if that amount just isn’t worth it.
Also, would it require the DAO to manage this? Or could someone (or group via a multisig) be put forward in an RFC to manage the voting, just executing votes each time based on the approval from the DAO?
Let me talk to the team, and get back super quick about this!
It doesn’t have to be large, but enough to earn flight school bonus every 4 weeks (might be 175k locked $aero, but I am just shooting from the hip here).
We can choose anyway we want to do this, DAO, create a Treasury Council, someone from the team can run the multisig (I can help anyway you need here as I been elected on a few TCs before)
Sounds good, we should look to create an RFC around this (Aerodrome Metagovernance) with a requested budget to buy and lock $AERO (time period tbd) and put a small team in charge of voting each epoch, with periodic reporting back to the Lazy Summer DAO.
$AERO has also managed to maintain a relatively stable price over the past few years, making it a good addition to the DAO’s treasury.
Feedback on Current Proposals & Alignment with Aerodrome Team Guidance
Hey Lazy Summer DAO community,
Sharing some direct feedback from the Aerodrome team (paraphrased from recent discussions) to help optimize our $SUMR liquidity strategy on Base. Our overall direction—strong ignition incentives + exploring metagovernance—is one of the closer alignments they’ve seen lately. That said, they have a clear playbook they advise everyone to follow for truly sustainable emissions (no endless bribes). Our current setup is strong on the launch burst but could better incorporate their emphasis on “bribing long term” (strategically, during ramp-up) while farming/locking rewards to build self-voting power.
Aerodrome’s Advised Strategy (The Sustainable Flywheel)
Bribe + Farm + Lock
Kick off with meaningful bribes (our ~3% pre-launch/Week 0 + 0.3% Week 1 is excellent rocket fuel).
Farm emissions aggressively in our Slipstream pools.
Lock all earned AERO into veAERO (max duration) to build a DAO-owned position organically.
Incentive Recycling Over Time
Growing veAERO lock self-directs emissions back to $SUMR pools → recycles value from your bribes.
As TVL/volume deepens (more swap fees), slow down or stop additional bribes, relying fully on the lock for long-term emissions.
Key Principles
Avoid fracturing liquidity: Focus on Aerodrome—don’t split to other venues (e.g., Uniswap v4) that dilute depth/emissions.
Initial LP seeding: Modest treasury liquidity upfront (e.g., $100k–$300k equivalent in tight concentrated range) for immediate depth, low slippage, and early POL.
Protocol-owned liquidity via own farms: Use direct Slipstream positions or Base-native tools (e.g., Arcadia Pro is new and offers better FEES compared to Arrakis (they will be commenting on arrakis post soon)) for core POL—keep it in-house where possible.
Build a lock position: Prioritize locking farmed rewards; if treasury funds allow post-seeding/incentives, acquire a starter veAERO position (even modest) to accelerate sustainability.
Where Our Current Proposals Are “Off” & Suggested Tweaks
Ignition Incentives RFC: Great heavy front-load, but “long term” bribing means planning tapered follow-ups beyond Week 1 to bridge the early ramp while the lock builds from zero. Stopping cold risks slower recycling if mercenary capital rotates out.
Arrakis Vault RFC: Solid option, but team prefers in-house/direct management to avoid any fragmentation risk. Consider basic Slipstream for POL core or Arcadia Pro (lower cost, Base/Aerodrome-focused). Arcadia Pro should be releasing a message soon @Thomas
Metagovernance RFC (secure locked veAERO): Strong accelerator—scale to modest if needed, as it shortens the extended bribing phase. Whatever funds we have leftover in the treasury that makes sense. 200k Locked Aero if we want passive flight school rewards. Once we discuss the above and iron out everything I will post the RFC.
To align with their advice without over-diluting, we could reserve ~1–2% extra $SUMR for opportunistic, decreasing follow-ups (total incentives ~4–5%). Example schedule (flexible—monitor gauges/emissions weekly and adjust/skip if momentum holds):
Week 0 (Pre-launch): 3% (main ignition burst)
Week 1: 0.3% (maintenance)
Weeks 2–4: 0.3–0.5% per week (tapered; focus on sustaining top-gauge while farming peaks)
Weeks 5–8: 0.1–0.2% per week (small bridges if needed; lock growth should start recycling here)
Week 9+: 0% (target full taper-off as fees + own lock take over)
This “long term” phase (a few months max) helps farm more AERO early → faster lock build → quicker self-sustainability. Pair with aggressive reward locking from day one.
Overall: Ignition + seeding + farm/lock priority gets us launched strong. Adding tapered bribes (or modest upfront veAERO) nails their full playbook for lasting control/yield.
thank you so much for voicing this out @MasterMojo. I am looking forward to the RFC. It should be of the outmost focus (imho) to setup sustainable emissions post-launch and building a strong POL.