Stake DAO

Summary This proposal aims to remove the SDT inflation allocated to Vote Bounty Managers (VBM) by setting their issuance from 0.2 SDT per block to 0 SDT per block, representing a reduction of approximately ~525,600 SDT per year.

For avoidance of doubt, this change only affects the inflationary component of the VBM reward mechanism and does not alter any pre-existing rewards already distributed or vested.

The existing 10 % liquidity fee applied to Liquid Lockers, as defined inSDGP-38, remains unchanged.

Any SDT previously allocated but not distributed under the former VBM inflation schedule shall be returned to, and re-credited within, the Rewards Allocation Pool SDGP-40) for future community-approved incentive programs.

Context Previous proposals —SDGP-22,SDGP-27,SDGP-31,SDGP-35, andSDGP-41 — progressively refined SDT emissions and VBM incentives.

With Votemarket ecosystem now self-sustainable, direct inflationary rewards to VBMs are no longer necessary.

The SDT campaigns funded through the liquidity-fee mechanism defined in SDGP-38 remain active, providing ongoing and sustainable incentives across all Liquid Lockers, which have now reached maturity with proven mechanisms ensuring deep and stable liquidity.

This adjustment reflects the DAO’s commitment to emission efficiency, long-term sustainability, and value preservation for veSDT holders.

Rationale Continuing VBM inflation increases SDT supply while delivering limited additional benefits. The liquidity-fee mechanism already provides balanced incentives for Liquid Lockers.

Reducing inflation aligns with Stake DAO’s monetary policy principles by curbing unnecessary supply growth while maintaining competitive incentives through revenue-based mechanisms.

Redirecting the unspent allocation to the Rewards Allocation Pool strengthens treasury efficiency and supports future protocol initiatives without expanding total supply.

It also enhances transparency and ensures all undistributed emissions remain under DAO control through an auditable on-chain structure.

Implementation Set the SDT inflation rate for VBMs from 0.2 SDT per block to 0 SDT per block.

Maintain the 10 % liquidity fee on Liquid Lockers as defined in SDGP-38.

Redirect any unspent or undistributed SDT from the previous VBM allocation to the Rewards Allocation Pool (SDGP-40).

Keep all other SDT emission parameters, schedules, and pool distributions remain unchanged unless amended by future DAO vote.

All updates to be carried out via on-chain governance transaction, verified and signed by the authorised veSDT multisig or equivalent execution module.

Vote Options FOR: End SDT inflation for VBMs (set to 0 SDT per block) and redirect unused emissions to the Rewards Allocation Pool.

AGAINST: Maintain the current 0.2 SDT per block inflation allocation for VBM.

ABSTAIN:

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

Disclaimers This proposal does not constitute a financial product or investment solicitation.

All SDT transfers are executed on-chain through transparent and auditable smart contracts.

No third-party funds are managed or held by the DAO beyond the governance-approved emission schedule.