[SIP3.8] Governance Staking Rewards extension

Governance Summer Improvement Proposals [SIPs]
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From @DAOplomats

Overview:

Update: –The ‘Rewards contract’ only supports distribution in 90-day tranches; thus, the 40-day reward period will be extended to the contract requirements

This proposal outlines a short-term, 40-day extension of the previously approved governance staking rewards. This extension is proposed to align with ongoing discussions regarding token transferability.

Motivation

The previously approved governance staking rewards expired in late July. This proposal aims to align the rewards period with the DAO’s discussions on token transferability.

With SUMR token claims exceeding 15%, a short-term token inflation is justified to prepare for transferability. The proposal originally intended to distribute SUMR tokens for 40 days, but the rewards contract only supports 90-day reward distribution. Deploying a new contract with updated parameters or using a different reward distribution mechanism, such as Merkle, cannot be justified for this initiative. Extending governance staking is expected to boost token claims and promote a more decentralised distribution.

Specification:

This proposal will distribute 7991 SUMR per day, adding a total of 319,640 SUMR to the token’s circulating supply.

Reward Amount: 319,640 SUMR

Reward Duration: 40 days ≈ 3456000 sec

Rewards manager contract: 0xDe61A0a49f48e108079bdE73caeA56E87FfeEF92

Reward Token: SUMR

0x194f360D130F2393a5E9F3117A6a1B78aBEa1624

Previously approved parameters

Considerations

Why not to Vote Yes

  • The proposal introduces a significant token inflation over a very short period.

  • The proposed emission rate is not sustainable in the long term.

Why vote Yes

  • SUMR token claims are still low and require a boost to increase token distribution among the community before major milestones are activated.

  • The proposed token emissions are a 50% reduction from the previously approved rate and are carefully crafted to balance user appetite with inflation risk.

Voting:

Yes

No

Abstain

Onchain payload

Will be added soon

1 Like
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Really appreciate @DAOplomats and @Baer_DAOplomats for putting together this proposal.

Extending the governance staking rewards has been inquired by the community (since the previously agreed upon rewards has met their deadline ~6 days ago). I understand though that due to the rewards contract being set to 90 days distribution, your initial plan to deploy rewards for 40 days cannot be met. Therefore, it makes me think about the reward amount.

Proposal updated → Comment updated

I prefer the more conservative approach to setting up new rewards, mainly in the light of upcoming governance and staking updates, but am curious about the opinion on amount from other @Recognized_Delegates!

Compared to previously posted:

Other than that, am in full support and happy to bring this to an onchain vote in the upcoming gov. cycle (Wednesday 20th of August, 2025) → as per request from @Baer_DAOplomats due to <10k SUMR delegation.

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What’s the rationale behind the 40 days?

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VOTE:

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Gm @Javier, 40 days are strategically selected to bridge the time till new governance rewards and staking mechanisms are going live

1 Like
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The 50% reduction in emission rate is a thoughtful adjustment. Good to see the focus on sustainable incentives.

1 Like