[SWIP-14] Preferred MEV Distribution Method

In light of the Merge, StakeWise DAO must decide on the distribution method for the rewards earned as priority fees & MEV.

The two competing approaches - distributing ETH rewards via the Merkle Distributor vs staking ETH rewards and distributing them as rETH2 - have different implications for the tokenomics and the user experience in StakeWise.

In this proposal, we put the two methods to a DAO vote, which will solidify StakeWise's decision with regards to the chosen MEV distribution method.

Snapshot Question: Which Method of MEV Distribution Do You Support?

To recap, the choices are:

• Method 1: Simply distribute accumulated ETH to stakers via the Merkle Distributor, proportionally to their sETH2 balances. Whenever stakers want to access the extra rewards, they will claim ETH from the Distributor, performing a manual step and paying gas each time they claim (but claiming all the tokens they have in the Distributor in one go). The staking commission will also be collected in ETH (10% of accumulated rewards as per usual).

• Method 2: Stake the accumulated ETH directly into the Pool contract and mint rETH2 against it; then distribute both the staked ETH and the rewards it generates via the usual rETH2 accrual process to the sETH2 holders. The staking commission will still be collected in rETH2 (10% of accumulated rewards as per usual).

If you haven't previously witnessed the discussion on the merits of each method, you can explore the relevant forum post linked below.