SLURP-45 | Adopting Seasonal Approach for future BUILD Reward Distribution for stake.link

The launch of Chainlink Rewards Season Genesis is incredibly exciting news! It marks a new era for ecosystem participation and rewards, starting with the Space and Time (SxT) distribution kicking off May 8th. This and all future BUILD Reward Distributions present a fantastic opportunity for stake.link to foster the narrative of a multi-yield protocol and token.

While thinking about how we best structure our own SLURP-40 and the respective Addendum in light of this going forward, I wanted to propose an approach that leverages the strengths of stake.link as a LIQUID staking protocol while embracing the spirit of following and upcoming Chainlink Seasons:

Pending TEMP-Check / Governance Decision

For the Initial BUILD Distribution (Aligning with Season Genesis):

This SLURP-45 will adhere to the outcome of current TEMP-Check voting here: https://snapshot.box/#/s:community.stakedotlink.eth/proposal/0x27dc500f2fd6f8e0df7cbbe0907198e7c30a9132911653938c9aee5446e7c2e8 Core content of this SLURP-45

For Future BUILD Distributions (Aligning with Subsequent Seasons): Switch to Time-Weighted Averages (TWA)

Proposal: Starting with the next BUILD distribution cycle following this initial one, let’s transition to using a Time-Weighted Average (TWA) calculation for stake. Why? As we move into recurring reward seasons, TWA better reflects sustained participation and commitment over time, aligning perfectly with the “seasonal” concept Chainlink is introducing. It rewards consistent supporters fairly. Flexible TWA Period: Crucially, the averaging period for TWA should reset for each new BUILD distribution cycle and match its frequency. If BUILD rewards align with a monthly Chainlink season cadence, we use a TWA calculated over that month. If it’s quarterly or every 6 months, the TWA period adjusts accordingly. This ensures fairness and accurately captures participation within each distinct reward season. Looking Ahead:

This two-pronged approach allows us to kick things off by celebrating the liquidity and accessibility of stLINK, while setting a clear path for rewarding ongoing commitment in future seasons using TWA, mirroring the evolution of the broader Chainlink Rewards program.

SLD is set to embrace Chainlink Rewards Seasons! By adopting the proposed model, we can ensure our BUILD distributions are timely, fair, and strategically aligned with both stake.link’s unique value proposition and the rhythm of the Chainlink ecosystem.