SIP-2: Extend sUP Cooldown and Set sUP Reward Rate

Abstract

This proposal makes two changes to the staked UP vault, sUP:

1. Extend the sUP redemption cooldown from 1 hour to 2 weeks (1,209,600 seconds).
2. Set a fixed sUP reward rate of 500,000 $UP/month via governance. At current staking levels, this represents approximately 54.5% APY, higher than previous ~33% target.

Together, these changes align sUP with its intended purpose as a long-term governance commitment mechanism and provide onchain certainty around the reward rate going forward.

Background

The sUP staking vault (deployed on Base at 0x2c71f70e2Ec720AE061Ae7E0316fC9654d94f417) allows $UP holders to stake and receive sUP, which confers governance voting rights and access to protocol fee revenue.

With the passage of SIP-1, 20% of protocol-collected fees (after swap to $UP via SuperBank) now route to the sUP vault. The sUP program separately streams $UP rewards continuously to sUP stakers.

Two changes are warranted:

1. Rewards sniping. The current 1-hour cooldown allows users to stake $UP, receive a pro-rata share of accumulated rewards, and unstake within the same hour. This pattern has prompted the Foundation to randomize emission timing to protect long-term stakers. A 2-week cooldown eliminates this vector by requiring stakers to maintain exposure through at least one full reward cycle and enables a return to a predictable, continuous reward stream.

2. Rate formalization. The sUP reward rate has operated without a governance target. This proposal formalizes 500,000 $UP/month as the canonical rate, providing stakers with a clear commitment. This proposal locks in a rate above historical levels while giving governance control over future adjustments.

Mechanism

Change 1: sUP Cooldown Extension

The sUP vault enforces a cooldown period between when a user initiates a redeem request and when they can withdraw their $UP.

Parameter	Current Value	Proposed Value
Cooldown duration	1 hour (3,600s)	2 weeks (1,209,600s)

After this change, a user who calls requestRedeem() on the sUP vault must wait 14 days before their $UP becomes claimable. During the cooldown period, the user's sUP shares are held in escrow and do not accrue new rewards. Users may cancel a pending redemption request to return their shares to active staking.

This does not affect deposit (staking) behavior. Users can stake $UP and receive sUP immediately.

Change 2: Set sUP Reward Rate

This proposal establishes 500,000 $UP/month as the governance-approved sUP reward rate.

Parameter	Current Value	Proposed Value
Monthly $UP distribution	Unenforced	500,000 $UP (fixed, governance-approved)
APY at current staking levels	~33% (projected)	~54.5% (formalized)
Composition	100% emissions	Split: buybacks + Community & Ecosystem bucket

The 500,000 $UP monthly allocation will be composed of:

• Direct emissions from the Community & Ecosystem allocation.
• Buybacks funded by a portion of protocol fee revenue via SIP-1, acquiring $UP from the open market.

The exact split between buybacks and direct emissions may be adjusted operationally within the 500,000 $UP monthly cap. Rewards will be streamed continuously and automated internally.

This proposal does not modify the fee flow established by SIP-1. SIP-2 only changes: (a) how long stakers must wait to exit, and (b) the formalization of the monthly reward rate.

Foundation Disclosure

The Superform Foundation holds a position in the sUP vault as a result of the $UP airdrop. The Foundation's position is non-voting and 100% of rewards earned will be redistributed to sUP holders.

Governance Considerations

• No smart contract upgrades are required.
• Governance may modify, extend, or revert either parameter in the future via subsequent proposals.
• This proposal does not grant any party additional permissions, modify fee structures, or change token supply mechanics.

Timeline

• Vote passes → sUP cooldown effect takes place 7 days later
• Fixed rate takes effect at the start of the next reward epoch following vote passage

Voting Options

For

• Set sUP unstaking cooldown to 2 weeks (1,209,600 seconds).
• Set sUP monthly reward rate at 500,000 $UP/month.

Against

• Make no changes. Cooldown remains at 1 hour. Reward rate remains unenforced.

Abstain

• Abstain from voting. Quorum counts are unaffected; the vote is recorded as a neutral position.