[BIP-903] Transition Core Pool Incentive Program to Stake DAO’s Votemarket v2

TL;DR:

• Hidden Hand is winding down operations on December 31, 2025
• Propose transitioning the Core Pool Incentive Program to Stake DAO's Votemarket v2
• Votemarket v2 launched in November 2024 and now supports both Balancer and Aura incentives
• Consolidating both Balancer and Aura incentives on a single platform simplifies operations
• Votemarket v2 has a proven track record with recent usage by Monerium and Smardex teams

Motivation

The Core Pool Incentive Program, established through BIP-19 and automated via BIP-457, has been fundamental to aligning voter incentives with protocol revenue generation. This program has relied on Hidden Hand as the primary voting incentive marketplace since its inception.

Hidden Hand will be winding down operations as of December 31, 2025, creating an immediate need to identify and transition to a new primary voting incentive marketplace. This transition is critical to ensure uninterrupted operation of the Core Pool Incentive Program and maintain the alignment between voter incentives and protocol sustainability.

Both BIP-19 and BIP-457 explicitly welcomed competitive proposals from alternative voting incentive marketplaces. As stated in BIP-457:

"Voting incentives will be placed on one or more voting incentive markets such that the allocated fees flow to the proper set of holders, and are all paid out for votes that generate emissions over the following 2 weeks. Currently Hiddenhand is integrated, but we are happy to explore additional integrations such as Paladin, Votemarket or other emerging voting markets."

With Hidden Hand's sunset quickly approaching, now is the appropriate time to transition to an alternative marketplace that can serve the protocol's needs effectively.

Background

About Stake DAO Votemarket v2

Stake DAO's Votemarket has been an established player in the voting incentive space, having supported Balancer gauge voting for several years. In November 2024, Stake DAO launched Votemarket v2, representing a significant evolution of the platform with enhanced features including:

• Permissionless campaign creation and management
• Multi-chain and Layer 2 support
• Historical rewards with flexible claiming schedules

The Stake DAO team has also recently developed support for Aura in addition to their existing Balancer integration.

Recent Adoption

Votemarket v2 has already demonstrated product-market fit with recent adoption by protocol teams including Monerium and Smardex, who have successfully utilized the platform for their incentive programs.

Specification

If approved, the following changes will be implemented:

Primary Changes

1. Votemarket as Primary Marketplace: Stake DAO's Votemarket v2 will replace Hidden Hand as the primary voting incentive marketplace for the Core Pool Incentive Program

2. Unified Infrastructure: Both Balancer and Aura voting incentives will be placed on Votemarket v2, consolidating operations onto a single platform rather than managing multiple marketplace integrations

3. Integration Timeline: The transition will be completed by Early January 2026 to ensure no interruption in the Core Pool Incentive Program

Operational Continuity

All other aspects of the Core Pool Incentive Program will remain unchanged:

• The automated fee collection, distribution, and incentive allocation process established in BIP-457 will continue
• The Core Pools List and protocol fee parameters remain as configured
• The biweekly fee epoch process continues unchanged
• Allocation between veBAL and vlAURA markets continues based on auraBAL's veBAL capture

Implementation

The MAXYZ will:

1. Update the fee allocation automation to integrate with Votemarket's smart contracts
2. Test the integration thoroughly before pushing core pool incentives to Votemarket
3. Document any operational changes in the protocol_fee_allocator repository

Advantages

Future-Proof Platform

Votemarket v2's permissionless, multi-chain architecture positions it well to support Balancer's growth across multiple networks. The platform's recent launch and modern technical architecture suggest long-term viability and continued development.

Proven Reliability

While Votemarket v2 is a recent upgrade, the Stake DAO team has extensive experience operating Votemarket v1 for years, demonstrating operational reliability and deep understanding of the voting incentive marketplace mechanics.

Maintained Competition

This proposal does not preclude future integrations with other voting incentive marketplaces. As the DeFi ecosystem evolves, governance retains the flexibility to add additional platforms through future proposals, maintaining the competitive marketplace envisioned in the original BIP-19.

Risks

• Platform Risk: As with any infrastructure dependency, there is inherent risk in relying on a third-party platform. However, this risk is unavoidable for voting incentive marketplaces and is mitigated by Votemarket's established track record with v1 and Stake DAO's reputation in the ecosystem.

• Transition Risk: Any migration carries execution risk. This will be mitigated through thorough testing and coordination by the MAXYZ to ensure a smooth transition as Hidden Hand sunsets.