Inclusion of SD in the Permissioned Node Operations Set-up

Introduction

With the Tokenomics Reboot, Stader Labs has undertaken a massive realignment exercise to revamp the $SD tokenomics focusing on optimization, enhanced utility, rewards and sustainability targeting the 10x growth.

Recap - $SD Tokenomics Reboot

The $SD Tokenomics Reboot started with a proposal to burn 20% of the total token supply. This was passed with 99%+ quorum with the actual burn successfully concluded on 25th June. 30Mn $SD tokens have now been burnt to reduce the total supply to 120Mn tokens. With the total supply more optimized, StaderDAO has also approved a quarterly $SD Buyback and caps on reward emissions as the next step with an aim to streamline the circulating supply. The two previous proposals can be accessed here:

The next initiative targets one of the most crucial parts of a healthy tokenomics - the token’s utility. With a view to enhance the same, StaderDAO now proposes the third lever to the Tokenomics Reboot— SD Cover for Permissioned ETHx Node Operators.

Utility for $SD

Generating additional utilities of the $SD has always been a priority for Stader.

While SD boasts of dedicated DeFi opportunities, it is also an integral part of the ETHx business-model. Under it, permissionless node operators bond a minimum of 0.4 ETH worth of $SD per validator. Next major lever is the SD Utility Pool which enables SD holders to earn additional rewards on their SD holdings by delegating the same to the node operations. These initiatives have helped lock-up more than 12% of $SD circulating supply.

Inclusion of SD in the Permissioned Node Operations Set-up

ETHx had been designed with a vision to closely integrate SD into Stader’s business model. Permissionless node operators bond a min of 0.4 ETH per validator currently which serves as slashing insurance for the end users.

This utility is now being extended to the permissioned node operators too. Currently there is no such insurance cover available for our permissioned partners, making them liable to cover the complete value in case of a slashing event. Stader DAO proposes leveraging the SD Utility Pool to extend the benefit of an insurance cover to these partners too. We suggest an insurance cover for such a scenario where the node operator shall have to pay only up till 4 ETH as slashing penalty. All amount above the same shall be covered by the Utility Pool.

The premium for the same shall be recovered by delegating 1% out of the 5%, thereby reducing the staking commission to 4% for the permissioned node operators. This 1% shall be deployed for additional rewards to the SD Utility Pool, over and above the utilization fee received by the permissionless node operators.

The two streams shall enable attractive double digits rewards on the Pool, which in turn would incentivise more holders to lock in their SD, further optimizing the circulating supply of the token.

Call for feedback

The proposal helps generate another utility for $SD, moving Stader towards a more utility driven future. Stronger utility for $SD will indeed contribute towards the long-term goals for Stader and making the move for the 10x growth.

We welcome our community’s valuable feedback on the proposal so we can incorporate the same and push it to the voting stage.

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This will equate the requirement for all NOs and will increase the global demand for $SD. It’s obviously a good thing !
Will it be a requirement for all existing nodes or only the new ones ?

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Thanks for the feedback, Geeno!

The new commission shall kick in for all permissioned node operators immediately for all current and prospective validators.

Thanks for the clarification !

Hello,
I was attending ETHcc and couldnt attend the voting on time. Would it be possible to re-submitt the proposal: I know for sure that some other SD holders also missed it due to the ETHcc conference.

I personally think this proposal is paramount for the success of the SD token action so resubmission would be appreciate it.

Thanks
TechFuture

3 Likes

Hi team !

I’m in the same situation as @TechFuture as I was on holidays during the vote window. Is it possible to organize a second vote now that we are all back ?

Many thanks,
Geeno

The $SD Tokenomics Reboot is a commendable initiative demonstrating Stader Labs’ commitment to enhancing the utility and sustainability of the $SD token. The recent burn and the buyback strategy are nice steps towards optimizing the token supply. We believe the proposed insurance cover for permissioned ETHx node operators using the SD Utility Pool is an innovative approach to further solidify the $SD’s role within the ecosystem.

This proposal not only strengthens the token’s utility but also incentivizes long-term holding, aligning perfectly with our growth and sustainability objectives. Franklin DAO supports this initiative.

Hi,

Can we still vote? I was away for ETH CC and the proposal overlapped with the event so could not vote.