[RFC] SUMR Transfer Readiness Working Group

General Discussion Request for Comment [RFCs]
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I wanted to share a progress update on these key components, as they are foundational to enabling transferability and enhancing the overall governance system.

A core principle guiding this development has been simplicity over complexity. Our goal is to build an immutable and straightforward system that minimizes audit effort and is easy for the community to understand and verify. To that end, we are heavily reusing the battle-tested rewards contract model pioneered by Synthetix. This code is well-understood, has been audited countless times, and has secured billions in value, which significantly de-risks our implementation.

This simple foundation also gives us incredible flexibility for the future. By using a minter role on the new staked token, governance can approve additional contracts to mint xSUMR/sUMR down the line. This allows us to expand the ecosystem with new staking or incentive mechanisms without ever needing to alter the core, audited contracts.

Here’s a snapshot of where things stand:

Summer Governance V2

  • Status: 90% Done

  • Key Changes: We’ve completed the majority of the work on Gov V2. The most significant change is the removal of vote decay, simplifying the governance process. Other minor tweaks have been implemented.

Staked Summer Token (xSUMR / sUMR - Ticker TBA)

  • Status: 90% Done

  • Details: This will be the new governance and staking token. We’ve focused on a robust and simple implementation based on the OpenZeppelin standard for a mintable/burnable token with vote-enabling capabilities. Crucially, this version avoids complex on-chain vote accounting, which makes the system more secure, gas-efficient, and easier to audit.

New Staking Contracts

We are developing two primary contracts that will have minter roles for the new staked token.

1. Vesting Wallet Escrow Contract

  • Status: Ready

  • Mechanism: This contract allows users with vesting SUMR to participate in governance. A user transfers ownership of their vesting wallet to this contract and, in return, receives the new staked token (xSUMR) at a 1:1 ratio based on the total tokens in their vesting schedule. This is a much cleaner approach than v1, as it’s a direct minting process without any complex balance manipulation.

2. Lockup Staking Contract

  • Status: 70% Done

  • Mechanism: This is our core staking contract for liquid SUMR and comes with several features:

    • Multiple Stakes: Users can create multiple, separate stakes with different lockup periods. Users can add to the stake or unstake (also partial) with penalty

    • Exponential Rewards Multiplier: Your staking weight (and thus your share of rewards) increases exponentially based on your chosen lockup duration, with a range from 0 to 4 years. Longer locks receive significantly more weight.

    • Withdrawal Penalty: If you need to withdraw before your lockup ends, there is a penalty. A key design choice here is that the penalty percentage is calculated based on the time remaining until your lockup ends, not the initial duration. For example, whether you initially locked for 4 years or 10 days, the penalty is the same if you have 5 days left on your term.

    • Tokenomics: You will receive the new staked token (sUMR) 1:1 for every SUMR you stake.

    • Multiple Reward Tokens: The contract retains the v1 capability to distribute multiple different reward tokens, even though this feature wasn’t previously utilized.

    • Future-Proofing for Revenue Share: We are building this with revenue sharing in mind. A possible implementation could allow protocol revenue from the past week to be distributed to stakers over the following week. This would likely require a keeper-bot to automate the weekly distributions, avoiding the need for constant governance votes and ensuring a smooth process.

This work is intended to directly support the path to transferability by providing a clear, robust, and attractive staking and governance framework.

We welcome any feedback on these designs. Please let us know if anything is unclear or if you have questions about the mechanics, particularly regarding the lockup multiplier or the withdrawal penalty calculation. Your input now is invaluable as we finalize the last pieces.