SIP-42: Q2 2026 Ecosystem Rewards Allocation
This proposal defines the distribution of STAR token emissions for Q2 2026, allocating rewards across liquidity providers, stakers, developer grants and the strategic reserve. A successful vote locks the parameters for the full quarter.
Current Results
ActiveYou need STAR tokens to participate. Votes are weighted by token balance at snapshot block #18,432,100.
Proposed Rewards Allocation
Q2 2026 • Total emissions: 5,000,000 STAR
| Recipient | Allocation |
|---|---|
|
Liquidity Providers
AMM pools on Soneium
|
40% |
|
Stakers
STAR governance stakers
|
35% |
|
Developer Grants
Ecosystem builders & tooling
|
15% |
|
Strategic Reserve
Contingency & future growth
|
10% |
Proposal Summary & Rationale
The Startale ecosystem has experienced significant growth in Q1 2026 following the launch of JPYSC and the expansion of Soneium's DeFi surface. This proposal adjusts the rewards distribution to reflect evolving protocol priorities and community feedback from SIP-38 and SIP-40.
Background
Token emissions are a critical lever for protocol bootstrapping. The Q1 allocation (SIP-38) prioritised liquidity depth and staking participation, achieving a 42% increase in TVL and an 18% increase in staking ratio. Developer activity, however, lagged behind projections, with only 34% of the developer grant budget being claimed in Q1.
The Core Team proposes restructuring grant delivery: 60% of developer rewards will be streamed monthly to active grant recipients, while 40% will be unlocked upon milestone completion. This aligns incentives and improves capital efficiency for the reserve.
Liquidity Providers (40%)
- Continues to be the largest allocation, maintaining ecosystem TVL
- Rewards distributed proportionally to LP share across approved pools on Soneium
- Minimum pool TVL threshold of $500k to qualify for emissions
- Approved pools updated quarterly via SCS-Gov snapshot
Stakers (35%)
- STAR stakers earn pro-rata rewards based on staked balance
- Minimum 30-day lock period required to qualify
- Bonus multiplier (1.25×) for wallets with >90-day continuous stake
- Distribution occurs weekly via on-chain claim
Developer Grants (15% — increased)
- Managed by the Startale Grants Committee (5 elected members)
- Applications open April 1 – May 15, 2026
- Focus areas: DeFi tooling, user-facing dApps, infrastructure on Soneium
- Maximum individual grant: 50,000 STAR per project per quarter
Strategic Reserve (10% — reduced)
- Held by the Startale Foundation multisig (3/5)
- Unlockable only via governance vote with >60% threshold
- Intended for liquidity crises, partnership co-incentives, or unforeseen needs