Stake DAO

Objective

This proposal aims to create a Rewards allocation pool to replace the current SDT inflation in strategies (currently 0.3 SDT per block, 788,400 SDT/year). By empowering the DAO community through a transparent and decentralized voting process, stakeholders will democratically determine the allocation of the entire SDT distribution to specific pools for designated periods. This approach not only aligns with our commitment to decentralization but also ensures a compliant and transparent mechanism for managing SDT resources in the best interest of the community.

Context

Currently, OnlyBoost offers some of the best APRs on Curve, with an average improvement of 10%. However, an increase from 20% to 22%, for instance, is not always sufficient to justify its use. This initiative aims to bridge that gap and encourage the adoption of OnlyBoost.

Proposal Details

Creation of the Rewards allocation pool: Allocate the 788,400 SDT per year (or approximately 65,700 SDT per month) that were previously distributed as strategy inflation to the Rewards allocation pool.

Period Allocation: Monthly, the DAO will vote to determine which pool will receive the entire SDT allocation from the SDT Strategic Fund.

Strategic Resource Allocation and OnlyBoost Adoption: The Rewards allocation pool ensures that SDT inflation is utilized strategically, providing targeted incentives where most needed. It boosts OnlyBoost adoption by enhancing APRs through additional SDT allocations, attracting users, and aligning the DAO and user interests. This approach fuels the DAO’s revenue growth through increased platform usage.

Optimized Gas Costs: The new system will help optimize the gas costs associated with current harvests, of which SDT represents the most significant part. Concentrating SDT allocations to specific pools will reduce the frequency and complexity of transactions, thereby lowering users’ overall gas expenses.

Implementation

Minimal developer time is required to redirect the SDT inflation to the Rewards allocation pool and set up the reward mechanism.

Voting Options:

YAE NAE

Proposal Specifications:

Admins: veSDT holders Community Feedback: Minimum 3 days Voting Duration: 7 days