Governance Proposals SIP-42
Active Voting

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.

Proposed by Startale Core Team Submitted Mar 20, 2026 Closes Mar 31, 2026 4,821 voters

Current Results

Active
For 68.0%
1,632,000 STAR • 3,278 voters
Against 24.0%
576,000 STAR • 1,156 voters
Abstain 8.0%
192,000 STAR • 387 voters
Total Votes 2,400,000 STAR 4,821 voters
Quorum 48.0% / 51% Need +3% more
Threshold 51% For Currently 68% ✓
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Proposed Rewards Allocation

Q2 2026 • Total emissions: 5,000,000 STAR

Recipient Allocation STAR / Quarter Distribution
Liquidity Providers
AMM pools on Soneium
40% 2,000,000 STAR
Stakers
STAR governance stakers
35% 1,750,000 STAR
Developer Grants
Ecosystem builders & tooling
15% 750,000 STAR
Strategic Reserve
Contingency & future growth
10% 500,000 STAR

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.

Key change from Q1 2026: Developer Grants increase from 10% → 15%, funded by a 5% reduction in the Strategic Reserve allocation. Liquidity Provider and Staker shares remain unchanged.

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

Other Proposals

All Proposals
SIP-41 Passed

Q1 2026 Liquidity Mining Parameter Update

73% For Executed Mar 5, 2026
SIP-40 Passed

Grants Committee Seat Elections 2026

89% For Executed Feb 22, 2026
SIP-39 Rejected

Increase Staking Bonus Multiplier to 1.5×

38% For Closed Feb 10, 2026