$SD: Proposal to Cap Rewards & Deploy 20% Protocol Revenue for Buyback

We are excited to announce the second step in SD tokenomics Reboot - our 4-step token recalibration exercise designed to align the supply, circulation & utility of SD token as it targets a 10x growth trajectory. This would include regular SD buyback & a move to cap rewards being allocated for various products.. The first step was the $SD Mega Burn - a move to optimise supply by burning 30 Mn $SD - which was approved by the DAO with a 99%+ quorum and is scheduled to happen on 25th June. (https://snapshot.org/#/staderdao.eth/proposal/0x51ad5ec982bb0ac1889a64af364a366fec71369dd6ae477a5a3020ef2e1aa69c).

With the Mega Burn focusing on optimization, Stader proposes to streamline the circulating supply by allocating 20% of its quarterly revenue to purchasing $SD tokens from the market. This strategy will consistently reduce the number of $SD tokens in circulation. As our Total Value Locked (TVL) and revenue grow, Stader will be able to further scale up the buyback, thereby optimizing the circulating supply of SD even further.

Additionally, Stader proposes to cap the rewards emissions for $SD across different products. This is aimed at ensuring sustainable growth, with reward emissions increasing at a slower pace as the business matures and TVL scales up.

For more details on the proposal, please refer to the forum on the same: https://forum.staderlabs.com/t/sd-strategic-buyback-and-rewards-capping/1179

Effective tokenomics requires careful management of the circulating supply, and Stader is committed to this through regular buybacks of $SD tokens and implementing a cap on rewards. We invite your vote on the same.