SLURP 43 | Staking Treasury SDL tokens for Sustainable Yield / Growth

ABSTRACT - This SLURP seeks to lock 1,000,000 SDL from the DAO treasury for 4 years. The generated staking rewards will be sent to the DAO treasury wallet. All funds acquired would henceforth require a DAO vote to be spent, as per usual. The reSDL NFT representing this locked position will be held by the DAO treasury in the form of 20, 50k SDL locked positions.

RATIONALE -

Consistent, long-term revenue generation for the DAO treasury in the form of stLINK. Maintaining a significant portion of the SDL supply under DAO control. Demonstrating long-term commitment to the SDL ecosystem as a DAO. Mitigation of sell pressure on the SDL token by acquiring stLINK rewards for budget expenses. SPECIFICATION - The following is the math on how staking 1m SDL will impact the rate.

Current Total reSDL:

167,679,244.48 reSDL ** DAO’s Proposed reSDL:**

9,000,000 reSDL ** New Total reSDL:**

167,679,244.48 reSDL + 9,000,000 reSDL = 176,679,244.48 reSDL ** Current Reward Rate:**

0.00021489 stLINK per reSDL per year 5. Total Current Annual stLINK Rewards:

167,679,244.48 reSDL * 0.00021489 stLINK/reSDL = ~36,032.55 stLINK

The total stLINK rewards distributed by the pool will remain roughly the same, unless the pool itself increases its rewards.

Therefore, we will use the total current annual stLINK rewards, and divide that by the new total reSDL.

36,032.55 stLINK / 176,679,244.48 reSDL = ~0.00020394 stLINK per reSDL per year

(New Reward Rate - Current Reward Rate) / Current Reward Rate * 100%

(0.00020394 - 0.00021489) / 0.00021489 * 100% = ~-5.1%

We found that the reward rate decreases by approximately 5.1%.

Therefore, we multiply the original percentage by this percentage change.

6.23% * 0.051 = ~0.31773% and get a NEW reSDL 4 year lock rate of ~5.91227%

Multiply the new reward rate by the DAO’s reSDL holdings:

9,000,000 reSDL * 0.00020394 stLINK/reSDL = ~1,835.46 stLINK per year.

TLDR: The DAO proposes to stake 1 million SDL max locked for 4 years perpetually and to be held by the treasury multisig. The impact on reSDL 4 year lock rate would be -0.31773% for a new 4 year lock rate of ~5.91227%. The stLINK earned from locking (~1,835.46 stLINK per year at current rates) would in hopes one day be used to cover the budget and make the DAO self sustaining without having to sell SDL in the future to cover expenses. The stLINK rewards earned would be placed in the treasury multisig and require a future SLURP / Vote to spend any.

Any and all thoughts and comments are appreciated.