SDGP-65: Allow the refund of affected users from the March 12, 2026 incident from the treasury

Author: Stake DAO Association

Summary A security incident occurred on Votemarket on March 12, 2026, and led to the loss of approximately $176,000 of user rewards.

As with all DeFi protocols, interactions with smart contracts involve inherent technical risks, including vulnerabilities or exploits.

The reimbursement is proposed as an ex gratia community support measure and does not constitute an admission of liability, fault, or legal responsibility by Stake DAO, its contributors, or affiliated entities.

This proposal is to give authorization to the DAO to use treasury funds to refund users.

It is following an emergency ad hoc protocol: the proposal will be executable as soon as >50% of veSDT supply (17,075,675.5 veSDT) have voted in favor of the proposal.

Context A security incident occurred on Votemarket on March 12, 2026. A full report of the situation is available here: https://www.stakedao.org/blog/incident-disclosure-12-03-2026

Some of the lost funds corresponded to refunds or liquidity mining rewards that should have been deposited as direct rewards with the start of the new period, and are currently not streaming, creating a drop of rewards for the corresponding pools, and a difficult situation for Votemarket depositors.

An emergency proposal can help them use refund rewards to continue their liquidity mining program.

Proposal Give permission to the treasury committee to use DAO funds to proceed with the reimbursement of lost user rewards (approximately $176k).

The reimbursement will apply only to users and campaigns directly affected by the March 12, 2026 incident as identified in the incident report.

Proposal Specifications Admins: veSDT holders Community Feedback: Simultaneous with the voting period

Voting Duration: 7 days, executable as soon as the proposal reaches 17,075,675.5 favourable votes.

Voting Options YAE — Authorise the treasury committee to proceed with the reimbursement of lost rewards

NAE — Rework the proposal with another solution.

ABSTAIN: No preference.

** Disclaimers**

This proposal does not constitute a financial product or investment solicitation.

All SDT transfers are executed on-chain through transparent and auditable smart contracts.

No third-party funds are managed or held by the DAO beyond the governance-approved emission schedule.

Stake DAO acts solely as a decentralised coordination framework, not as a financial intermediary. Stake DAO does not provide financial services, fiduciary services, or custodial services.