“Dust” Addendum for SLURP-45 | Adopting Seasonal Approach for future BUILD Reward Distribution

Summary This proposal addendum seeks to establish a minimum allocation threshold of 5% of the total DAO-allocated Cubes for any single BUILD project. Any project receiving less than this threshold will not be allocated Cubes by the stake.link DAO; instead, their Cubes will be proportionally redistributed to the other projects that meet or exceed the threshold.

Abstract In the current BUILD Cubes distribution model, it is possible for the stake.link DAO’s collective Cubes to be allocated across numerous projects, including those receiving very minor percentages of the total vote. Such fragmented allocations often result in “dust” rewards for individual users (i.e., economically insignificant amounts of tokens), leading to poor capital efficiency and administrative overhead. This proposal introduces a 5% minimum allocation threshold to ensure that the DAO’s Cubes are strategically concentrated in projects where they can have a meaningful impact and generate substantive rewards for eligible participants.

Motivation The primary motivations for implementing a minimum allocation threshold are:

Maximize Reward Impact: By consolidating allocations, we ensure that eligible $SDL stakers and $stLINK holders receive more substantial, economically meaningful reward distributions rather than trivial “dust” amounts that may not even cover gas fees.

Improve Operational Efficiency: Reducing the number of unique projects requiring tracking, calculation, and distribution for minimal allocations streamlines the claiming process for the protocol and its users.

Reflect Strong Conviction: A threshold signals the DAO’s conviction, ensuring resources are not spread too thinly across projects that garner minimal support.

Expected Outcome This mechanism will result in a more impactful and economically efficient distribution of the stake.link DAO’s BUILD Cubes. Participants will receive more substantial rewards from fewer, higher-conviction projects, reducing the likelihood of “dust” allocations and streamlining the claiming process.