[RFC] SUMR TR-WG Checklist

General Discussion Request for Comment [RFCs]
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Hello Lazy Summer DAO community!

While the Transferability Readiness process has taken a little longer than our original projections, the extra time has allowed the working group to dig deep, align across domains, already ship a few SIP (in preparations), and ensure no key detail is overlooked.

Over the past weeks, contributors from Governance, Tokenomics & Liquidity, Tech & Protocol, and Narrative & Comms have worked asynchronously and in calls to produce a robust, milestone-based readiness framework. This collaboration has surfaced important dependencies, refined the new staking and liquidity models, and strengthened the rollout strategy.

This work should put the Lazy Summer DAO in a stronger position to enable SUMR transferability with confidence and community consensus, in due time.

Readiness > Flipping a switch
Readiness = (Governance Strength x Tokenomics Stability x Technical Security x Clear Communications) + Community Consensus

*This document follows a living document approach, meaning it will be continuously updated and refined as new information, insights, and requirements emerge.

Co-Authors

@jensei, @vumichien, @MasterMojo, @jengajojo_daoplomats, @chrisb, @crunchy_vertex, @BaptistellaLabs, @halaprix, @FBrinkkemper, @Sixty, @samehueasyou, @Eren_DAOplomats, @TokenBrice

Objective

Define the complete set of readiness conditions and gating criteria across governance, tokenomics, technical, and communication domains to safely and credibly enable SUMR token transferability.

This checklist has been created according to [SIP5.8] SUMR TR-WG Charter by the working group initially discussed via [RFC] SUMR Transfer Readiness Working Group.

Governance

# Item Description Rationale Status
1 DAO Criteria Establishment Define and implement necessary DAO governance structures, voting mechanisms, and quorum requirements for transferability decisions Ensures a proper governance foundation is in place before major protocol changes In Progress
2 SIP Sequencing for Ratification Create a formal sequence for Summer Improvement Proposal submission, review, voting, and implementation phases with defined timelines Ensures an orderly governance process and stakeholder preparation time Complete
3 Community Consensus on Transferability Objectives Define clear objectives for enabling SUMR token transfers through community input (liquidity provision, ecosystem growth, user incentives) Aligns community vision and prevents scope creep during implementation In Progress
4 Formal SIP Drafting and Submission Draft a comprehensive SIP outlining transferability goals, timeline (2-4 weeks), resource requirements, and implementation plan Provides formal governance documentation and implementation roadmap Pending
5 Risk Management Governance Framework Establish governance oversight for risk assessment, triggers for emergencies, contingency planning, and emergency response procedures Provides governance accountability for risk mitigation and crisis management Pending
6 Stakeholder Documentation Implement and create user documentation covering transfer processes and governance decisions Ensures transparent governance and smooth user transition Pending

Tokenomics & Liquidity

# Item Description Rationale Status
1 Finalize dual-token model (SUMR + sSUMR/xSUMR) Confirm SUMR remains unchanged as a liquid ERC20, and sSUMR/xSUMR (staked SUMR) is governance-enabled with lockups and delegation. Clear token roles reduce complexity and preserve existing integrations while enabling governance staking incentives. Draft complete
2 Define staking lockup tiers & rewards Establish no-lockup, 6m, 12m, and 36m lockup options, with differentiated SUMR rewards and protocol revenue share multipliers. Lockups incentivize long-term holding, align governance incentives, and control circulating supply. Draft complete
3 Determine early withdrawal penalties Set penalty % by lockup tier (e.g.: 5%,10%, 20%) with forfeit amounts routed to governance (treasury). Discourage short-term speculation and ensure penalties recycle value to the DAO. Draft complete
4 Model protocol revenue share distribution Allocate % of protocol revenue (e.g.: 10%) to stakers, scaled by lockup tier. Adds “real yield” incentive to holding sSUMR/xSUMR, increasing stickiness. Draft complete
5 Set lockup caps & overflow rules Define caps for 6m and 12m lockups, with overflow deposits allowed only when paired with longer-term stakes. Encourages longer commitments and creates scarcity-driven demand. Draft complete
6 Establish liquidity provisioning strategy Design incentive plan using DAO treasury ETH/USDC to seed liquidity (e.g.: via Aerodrome and Merkl campaigns). Boosts market depth and reduces volatility without over-reliance on SUMR incentives. In Progress
7 Define liquidity incentive budget & ROI target For example, allocate $100k treasury over 6m targeting 10% yield to LPs, leveraging up to ~$2M in liquidity. Ensures liquidity incentives are impactful, measurable, and time-bound. In Progress
8 Set minimum TVL/liquidity thresholds Define quantitative targets for protocol TVL, staked SUMR %, and pool liquidity depth before enabling transfers. Ensures market stability, mitigates volatility, and signals ecosystem readiness. In Progress
9 Select liquidity incentive platform(s) Confirm whether to execute via Merkl, Aerodrome, or hybrid approach. Maximize reach, automation, and effectiveness of incentive distribution. Pending
10 Integrate tokenomics into readiness model Ensure staking, caps, and liquidity parameters are reflected in the overall Readiness Checklist and SIPs. Align Tokenomics deliverables with Governance, Tech, and Comms workstreams. Pending
11 Define strategy to engage with exchanges and custodians Ensure relevant stakeholders have all the necessary information about SUMR to facilitate future support Align key information about SUMR to accelerate global support from exchanges and custodians. In Progress

Tech & Protocol

# Item Description Rationale Status
1 Validate current SUMR token feasibility to be used as unstaked token Confirm the existing SUMR token can function as the base liquid token without any upgrades. Investigate how current vesting wallets and cross-chain functionality will be affected, ensuring they align with the new system where sSUMR handles governance. Pending
2 Dev work on xSUMR token Wrapper for SUMR. Minted/burned by staking contract (role based) Pending
3 Dev work on staking contract Build the sSUMR staking contract. This includes: - Four lockup tiers (0, 6, 12, 36 months). - Weighted distribution of SUMR Rewards and Protocol Revenue Share based on specified multipliers (up for clarification, if that should be part of sc work or offchain process). -Early withdrawal penalties (0%, 5%, 10%, 20%) on principal, with forfeited funds sent to Governance. -Caps on 6 and 12-month pools, with the override mechanism for users staking in higher tiers. -Owner of the old vesting wallets - for proper vote accounting Pending
4 Dev work on governance v2 Develop and deploy Governance v2. This includes:-Making sSUMR the sole governance token.-Ensuring the new contract can receive and manage penalty fees from early withdrawals.-Ensure current vesting wallets retain voting rights Pending
5 Audit If we decide to move on with new contracts (ie. Governance and staked SUMR) - that will require an audit. We could find a solution that was already audited, and apply minimal changes to speed up the process. Pending

Narrative & Comms

# Item Description Rationale Status
1 Rollout narrative & framing A timeline of the SUMR token, its importance in SummerFi, and why steps are being taken to enable transferability. The narrative helps us align stakeholders and provide a ‘why’ behind each step being taken. In Progress
2 Key messaging for DAO & users Ensuring the DAO and all relevant stakeholders are aware of every step of the transferability event. Showing governance maturity by building trust and legitimacy through clear and transparent communication In Progress
3 External announcements coordination External announcements coordination ensures that key stakeholders (VCs, DAO partners, integrations, aggregators) are informed and can help amplify the announcement Coordinated announcements allow Summer.fi to lead with the intended narrative and framing In Progress
4 Community Engagement Process Conduct forums, AMAs, and community calls to gather stakeholder input and address concerns before formal voting. This includes: -Discord Call -Twitter Space -Private Google Meet Maximizes community buy-in and identifies potential issues early Pending
5 Outreach Build credibility, Expands reach, Drives Adoption, and Fosters Community. This includes: -Social Media impressions/engagements ($SUMR post on X) -Number of referrals Outreach and partnerships are crucial for the $SUMR token launch because they enhance credibility, expand reach, drive adoption, provide valuable resources, and foster a strong community, all of which are essential for a successful launch and sustained growth. Pending
6 Stakeholder Communication Implement communication strategy covering transfer processes and governance decisions Ensures transparent communication and smooth user transition Pending
7 Partnerships Build credibility, Expands reach, Drives Adoption, and Fosters Community. This includes: -Number of Partnerships/signed collaborations (exchanges, influencers, projects) -DEX liquidity -Borrowing depth Outreach and partnerships are crucial for the $SUMR token launch because they enhance credibility, expand reach, drive adoption, provide valuable resources, and foster a strong community, all of which are essential for a successful launch and sustained growth. Pending

Dependencies

  • Governance to ratify Tokenomics model in SIP(s)

  • Tech to deliver contract upgrades necessary; before launch

  • Tokenomics to finalize liquidity thresholds and strategy

  • Comms to prepare rollout narrative before onchain execution

Estimated Delivery Date: end of September/October

Tentative Timeline

Aug 20 - Sept 7, 2025

  • Publish final checklist on forum for community review
  • Begin contract development and preliminary audit scheduling
  • Narrative & Comms prepare rollout content (internal + external)

Sept 9 - Sept 21, 2025

  • Submit on-chain SIP(s) for staking, liquidity incentives, and activation plan
  • Liquidity seeding begins if SIP approved
  • Audit in parallel with comms rollout

Late Sep - Early Oct, 2025

  • SUMR transferability enabled once readiness conditions met
  • Public announcements, community events, and post-launch monitoring

Notes

  • Minimum TVL/liquidity thresholds require modeling
  • Platform decision (Merkl/Aerodrome) critical for liquidity strategy
  • Governance and Tech timelines must align for on-chain execution readiness
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Thank you @rspa_StableLab and all the @TR-WG contributors! Looking forward to the community and @Recognized_Delegates comments and input.

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Excited to see this posted; looking forward to any comments!

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Items 3 to 7 of Narrative & Comms (external ann coordination, community engagement, outreach, partnerships) can be done after enabling transferability.

Prioritize shipping swiftly.

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I feel like the current lockup + penalty design is defensive. It doesn’t create demand; it just tries to stop people from selling. It feels a lot like 2021, the market and users have matured a lot since then, and no one will lock tokens for 36 months knowing they can be slashed, IMO.

This model will just drive people to sell before they have to lock, instead of encouraging them to stake. And when you look at the projected revenue ($600k for 2025) with only 10% going to stakers, that’s $60k total. Split across everyone. It’s not a meaningful incentive to buy or hold $SUMR.

I believe the focus should be on liquidity, the tech, making sure both tokens can co-exist, etc, and continuing to improve the protocol itself. At the end of the day, the price of $SUMR will be driven by how strong the product is, not by how much we lock people in.

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Aragon approaches ve/gauges with a kind of inverted curve from Curve (pun intended).
You get basic/low VP or yield at first, minimal lockup (two weeks) and the yield or VP grows over until it approaches an upper limit.

Certainly more up-to-date. Agree that three of four year lockups are rare these days.

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Yeah, I agree with this view. Rewarding people for holding makes a lot more sense than punishing them for leaving early. That way, people are encouraged to stay, but they aren’t scared off at the start with multi-year commitments.

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Happy to see this RFC up!
I request the community to please weigh in and give us all the inputs so that we can discuss and incorporate any changes if required.
Looking forward for comments!

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Great work on the TR Checklist! Comprehensive planning across all domains.

+1 on prioritizing comms over speed. Getting narrative right upfront is crucial for adoption.

One area to consider: post-launch accountability. Maybe we can do a 90-day review to track KPIs and address issues that surface after transferability.

Excited to see this progress!

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Thanks all for the comments, will try and address some of them, and some rationale for reasons why, and some changes as put forward by @halaprix while building out the contracts etc too…

I disagree that it’s defensive. I think adding the real yield component in USD is what creates the demand here, it will be one of few tokens that you can actually earn from, that doesn’t just involve the same token that your locking. If it was just additional SUMR rewards, I agree that this would be fairly defensive.

I disagree with this. I think one of the closest examples potentially to this is Aerodrome, which as shown here (https://dune.com/0xkhmer/aerodrome) has an average lock period of 3.77 years. I actually believe that the penalty, although harsh, serves as more of a reason to lock, instead of it being a fixed lock without any option for getting any back.

This is definitely correct at the moment, and we do need the protocol to grow for more revenue to be able to attract a larger amount of Stakers - but I think it’s also important that we need to start somewhere, and there are a number initatives ongoing that will hopefully have a big impact on this in Q4.

100% agree with this - and this is why this is a little late in the development, as the focus has all been on the protocol, finding product market fit, and focusing on what is needed from a feature point of view. The product is getting stronger every week IMO, in particular with the official launch recently of our institutional product (Introducing Summer.fi Institutional: Crypto-native yield, purpose-built for professional allocators and asset managers) that is already starting to show some strong demand.

This is actually exactly how it has initially been implemented by @halaprix so far too (except for change in voting power) - but you start off with very low lockups with very little reward, and then longer you lock on the curve, the more rewards you get (in both SUMR and USD revenue share). Likewise, the penalty decreases the closer to your unlock date too - so if you lock for 3 years, and after 2 decide to withdraw, the penalty is the same as someone just locking for 1 year and deciding to remove straight away.

This is a really good point - and 100% something that we should do.

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Hi all,

Thanks again to the TR-WG for all the work that’s gone into this checklist and the detailed planning so far. It’s been really helpful to see the thinking across governance, tokenomics, tech and comms.

I noticed the tentative timeline in the RFC pointed to on-chain SIP submission and liquidity seeding between 9–21 September, with transferability following in late September / early October. Since we’re now past that window, could the WG share an update on progress and revised expectations?

I know a number of community members are looking for clarity on where things stand and what remains outstanding, so even a short status update would go a long way in keeping everyone aligned.

Appreciate all your efforts here and looking forward to the next steps.

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Any update on this? Im surprised by the silence and lack of public activity on this topic (which is the most important on the SUMR token economy IMO).

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Maybe @jensei and @rspa_StableLab know best.

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Your lack of updates and your lack of clear ETAs is telling.

Competition is mounting (Lagoon finance, Stream Protocol, Upshift, Veda, Makina) and you are sitting in your hands.

Unbelievable.

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Hey Javier! Personally waiting for important product updates to fall into place first.
Unlocking transferability with no clear demand pull for the token would be a total disservice to everyone involved here.

The governance roadmap is pretty clear. Once the technical requirements have been checked, and we have strong use cases for the token (staking e.g.), we should unlock.

Yes, competition is mounting, but tbh, there’s no place with set and forget high yield such as this.

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Hey all,

Apologies for the lack of communication recently - we’ve been heads down focusing on this and a couple of major product features too.

I am pleased to confirm though that we take a big step forward today towards transferability with governance V2, and most crucially, upgraded staking module going to audit contest with Sherlock. You can see that here: Summer.fi - governance v2 Contest - 40,500 USDC

This was outlined as a crucial, and required part prior to being able to recommend transferability, and with this, and a lot of work on simulations completed recently, we feel we should be in a position to recommend a vote to move to the new Governance module, and staking by the end of October, and with it - enable the transfers of the SUMR Token. Based on the simulations and associated modelling, we expect to be recommend 20% of all protocol revenue to be put towards the USD Staking Yield, currently meaning around 200k USD will be paid out to SUMR stakers in the new V2 module.

We also have over $150k in the treasury, with likely around 20-25k additional coming in at the end of the month from protocol revenue, which will recommended to be allocated towards liquidity incentives to create markets for SUMR and ensure liquidity is available from day1.

Again, apologies for the lack of communication - I strongly believe we are getting very close to seeing the SUMR token transferrable. We are seeing some very positive growth from the protocol with some very exciting new features to come soon too.

I will continue to provide more detailed updates weekly from now on, until the recommendation for transferability is made.

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Thank you so much for this update @chrisb I hope that @JC545, @AugustoL, @JavierD and @gonemultichain has received an answer to their questions. Then @rspa_StableLab can keep the track of the checklist items and their status.

I think its a great idea to make sure we keep this topic updated on weekly basis (@TR-WG).

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Appreciate this update Chris!

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Great news. Thanks for the update! It would be nice to have an update once a week, even if there is not much to share, at least to follow up on what’s being done and the progress.

From my part, I’m going to review the contracts and changes proposed on the link you shared: Summer.fi - governance v2 Contest - 40,500 USDC .

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Thank you very much for updating

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