1. Overview:
This sub-SIP details the payouts to be made for the previously approved referral campaign, detailed here: [SIP5.5] Enable onchain referrals and update AdmiralQuarters contracts on all chains to support Referral Codes.
This is the final settlement of the Lazy Beach Club referral program. Per Part A1 of [RFC] Operational Realignment for the Transition Period, referral accrual ceases at the cut-off of 31 July 2026, 23:59 UTC, and the DAO’s standing monthly-payout obligation under SIP5.5 is discharged upon execution of this SIP.
The payouts are made on Base and include;
- 501.430426 $SUMR
- 35.196210 $USDC
- Total recipients: 90
2. Motivation:
The Lazy Summer Protocol’s referral program (as introduced in [SIP5.5]) requires monthly settlement of rewards earned by referrers and referees. The July referral period (the final accrual period) has concluded, and users have accumulated SUMR and USDC allocations based on activity tracked in the Lazy Beach Club Dune Dashboard.
This SIP is necessary to transfer the required tokens to MERKL and enable users to claim their earned rewards transparently and trustlessly, and to close out the program cleanly rather than leaving accrued entitlements unsettled.
2.1 Mandate for the sunset
Part A1 of the Operational Realignment RFC put the sunset to an informal support poll. The result was unambiguous:
A1. Sunset the Lazy Beach Club referral program (SIP5.5)?
100% — YES, stop accrual and settle a final payout (13 voters). No votes for continuation, for abstention, or for sunsetting without a final settlement.
The rationale, in short: the growth thesis behind the program is inoperative. Vaults are paused, so there is no deposit flow to refer; the Labs Co. that ran monthly code issuance, reconciliation and payout preparation is winding down; and no named entity has stepped forward to administer the monthly work. SUMR referral emissions were already cut 80% in February 2026 on sustainability grounds, and the program had already effectively stopped of its own accord, as the figures below show.
2.2 Historical monthly metrics for context
| 2025/26 | July '25 | August | September | October | November | December | January | February | March | - | May | June | July '26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total SUMR | 19,053.7651 SUMR | 22,272.589 SUMR | 40,582.388 SUMR | 53,989.690 SUMR | 52,967.722 SUMR | 55,232.370 SUMR | 58,981.345 SUMR | 53,302.252 SUMR | 59,531.763 SUMR | - SUMR | 33,400.156 SUMR | 541.718 SUMR | 501.430 SUMR |
| Total USDC | 687.48 USDC | 789.35 USDC | 1,337.99 USDC | 1,728.54 USDC | 1,691.77 USDC | 1,747.70 USDC | 1,857.97 USDC | 1,594.91 USDC | 1,785.78 USDC | - USDC | 68.23 USDC | 37.84 USDC | 35.20 USDC |
| Total Recipients | 227 | 334 | 419 | 547 | 569 | 579 | 666 | 679 | 672 | - | 671 | 94 | 90 |
July is broadly flat against June SUMR down ~7.4%, USDC down ~7.0%, recipients down from 94 to 90 against a peak of ~59,500 SUMR across 672 recipients in March. The program is settling a residual cohort, which is precisely the case for closing it.
3. Specification:
This SIP does not modify smart-contract logic. It authorizes:
- Creation of a final MERKL campaign for July referral rewards.
- Transfer of:
- 501.430426 SUMR
- 35.196210 USDC
to the MERKL claims contract on Base.
Token addresses (Base):
- SUMR -
0x194f360d130f2393a5e9f3117a6a1b78abea1624 - USDC -
0x833589fcd6edb6e08f4c7c32d4f71b54bda02913
The payout distribution is predefined in the following .json, for both USDC and SUMR rewards:
Distribution breakdown: 90 addresses receive USDC, of which 34 also receive SUMR. All 34 SUMR recipients are contained within the USDC set, so total unique recipients is 90.
3.1 Sunset terms
- Cut-off. Referral entitlement accrual ends 31 July 2026, 23:59 UTC. This SIP settles all accrual up to that timestamp.
- Rates to zero. All referral rates are set to zero as of the cut-off. No further accrual takes place.
- No onchain execution required for the sunset itself. The AdmiralQuarters contracts continue to accept referral codes on all chains; those codes simply carry no entitlement going forward. No contract changes, redeployments, or upgrades are needed.
- Existing claims remain claimable. All previously distributed MERKL campaigns (SIP5.5.1–SIP5.5.11) and this final campaign remain claimable by recipients. Nothing is clawed back.
- Obligation discharged. Upon execution, the DAO’s standing monthly referral-payout obligation under SIP5.5 is discharged. No further sub-SIPs in the SIP5.5.x series will be brought.
- Reinstatement. Should the DAO wish to restart a referral program in future, it requires a fresh RFC and onchain-approved SIP, with a named operator responsible for monthly reconciliation, MERKL campaign setup and payout preparation.
3.2 Execution plan
- Upon successful governance approval, and execution, the timelock triggers MERKL campaign creation.
- SUMR and USDC amounts are transferred from the DAO treasury to the MERKL claims contract.
- MERKL makes claims available for all eligible July participants.
- Referral rates are confirmed at zero; the SIP5.5.x monthly settlement series is closed.
3.3 Actors responsible
Lazy Summer DAO - executes the MERKL campaign setup and performs token transfers, while MERKL handles distribution and claim logic. No ongoing operator is required after this settlement.
4. Risk Assessment:
Technical Risk:
- Low. MERKL infrastructure has been used for prior referral payouts without issue, and this campaign is identical in structure to the eleven that preceded it.
- Mitigation: Standard verification of token amounts and campaign parameters before vote.
Economic Risk:
- Minimal. Payouts were already committed under [SIP5.5] and reflect earned rewards. Sunsetting removes a recurring discretionary outflow at a time when the DAO is minimizing operational costs.
Governance / Operational Risk:
- Requires accurate execution by the DAO.
- Mitigation: Public spreadsheet, onchain transparency, and reproducible calculations.
- Sunset risk: users may continue to enter referral codes expecting rewards. Mitigation: rates are zero from the cut-off and the sunset should be communicated across official channels ahead of execution.
5. Voting:
If YES - Approve the final SUMR and USDC disbursement to eligible July participants, and confirm the sunset of the Lazy Beach Club referral program as of 31 July 2026, 23:59 UTC.
If NO - Do not disburse for July; continue with further discussion.
Tagging @Recognized_Delegates for a check up as always.
–jensei