SLURP 40 | Establishing BUILD Reward Distribution for stake.link

Abstract

This proposal solidifies a framework for distributing Chainlink BUILD rewards among stake.link participants. Today, Chainlink Labs confirmed via X that the first phase of the Chainlink Build claims mechanism is code-complete and expected to launch this year. This mechanism will make Build tokens claimable by Chainlink ecosystem participants, including Stakers. Given that full details on BUILD rewards have not yet been made public by Chainlink Labs, this framework mirrors the existing DAO fee structure to ensure a fair and efficient distribution model.

Rationale

The stake.link ecosystem consists of various ecosystem participants, including stLINK stakers, reSDL holders, node operators, and core contributors. With BUILD rewards expected to be allocated across these groups, aligning distribution with the existing staking fee model simplifies implementation, reduces development overhead, and ensures fairness. With this expansion stake.link will also transition to SDL (Secure, Decentralized, Liquid) from a branding perspective solidifying the possibility of BUILD Rewards next to Rewards of other LSTs. SDL, a basket of LST yield bearing tokens, resembles something such as a MSCI World ETF for blockchain. SDL is the native way to capture this yield. As such the Fee on BUILD Rewards offers a unique opportunity to bootstrap this value proposition.

Specification

The following distribution model will apply to all BUILD rewards received:

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This is a modification of the current fee structure that exists in that it increases the delegation fee to SDL stakers from both the Node Operator Pool (currently 15%) and Community Pool (currently 10%) to 20% across the board.

Our rationale is that SDL stakers have shown long-term alignment with the protocol and deserve to be rewarded for that commitment. With the BUILD Program Rewards finally coming to light, SDL stakers are positioned to be rewarded handsomely for that alignment.

Additional Considerations

Claim window: A claim threshold of 180 days will begin on the first day of eligibility for each BUILD airdrop to LINK Stakers. After 180 days, any remaining airdrops will be claimed by the DAO Treasury. Technical Feasibility: If Chainlink’s BUILD reward distribution mechanism requires an alternate structure, this framework may be adjusted accordingly. Conclusion

This proposal ensures stake.link is prepared to distribute BUILD rewards efficiently while rewarding SDL stakers and adding further utility to the SDL token. Once more details about the BUILD reward distribution mechanism are available, the DAO can refine this framework as needed. Most importantly this enshrines a new era of the protocol by moving from just stake.link to SDL (Secure, Decentralized, Liquid).