Proposal Summary
This proposal suggests that the [DIP-26] ssv.network DAO Four-Year Budget (2024-2028) (hereinafter: “DIP-26”) be revised, by adding one tier to the bottom of the Reserve Track, so that the ssv.network DAO (hereinafter: “DAO”), can sell between 11-20 USD for a total Reserve Track Maximum of 5.000.000 million USDC, opposed to the previously lowest tier of 20-30 USD for a total Reserve Track Maximum of 15.000.000 million USDC, while the new tier is limited to 500.000 USD and the prior tier stays at 1.000.000 USD as the Monthly Maximum.
Motivation
The DAO has successfully implemented a four-year budget (2024-2028) and began diversifying its treasury through [DIP-26].
Given a reassessment of the current market conditions and the DAO’s strategic imperative to build a robust funding reserve before the next market cycle, this proposal seeks to revise DIP-26, specifically focusing on the reserve-building mechanism. The primary motivation for this revision is to establish a more resilient reserve accumulation strategy that accounts for market volatility and ensures the DAO’s long-term financial stability. This revision aims to lower the trigger price for the Reserve Track, enabling the DAO to initiate reserve building even in less favorable market conditions, thereby maximizing its ability to secure a critical funding buffer while taking token inflation in balance with the protocol’s growth. The proposal also suggests continuing to burn the network fee as introduced by DIP-26.
Proposal Particulars
- Proposal Summary
- Motivation
- Reserve Track Revisions
- Burning Network Fees
Reserve Track Revisions
The following table replaces the reserve track table as introduced in DIP-26 and will have two new tiers added (*):
| SSV Price | Reserve Track Maximum | Monthly Maximum |
|---|---|---|
| <$11* | $0 | - |
| $11-20* | USDC 5 million | $0.5 million |
| $20-30 | USDC 15 million | $1.0 million |
| $30-40 | USDC 15 million | $1.5 million |
| $40-50 | USDC 20 million | $5.0 million |
| $50-60 | USDC 25 million | $25 million |
| $60-70 | USDC 30 million | $30 million |
| $70-80 | USDC 35 million | $35 million |
| $80-90 | USDC 40 million | $40 million |
| $90-100 | USDC 45 million | $45 million |
| $100-110 | USDC 50 million | $50 million |
| $110-120 | USDC 55 million | $55 million |
| $120-130 | USDC 60 million | $60 million |
| $130-140 | USDC 65 million | $65 million |
| $140-150 | USDC 70 million | $70 million |
| $150-160 | USDC 75 million | $75 million |
| $160-170 | USDC 80 million | $80 million |
| $170-180 | USDC 85 million | $85 million |
| $180-190 | USDC 90 million | $90 million |
| $190-200+ | USDC 95 million | $95 million |
All other provisions related to DIP-26 will remain unchanged.
Burning Network Fees
Given the DAO’s strategic emphasis on long-term financial stability and the successful establishment of the reserve building mechanism, the DAO has reassessed the utilization of network fees. If this proposal were to pass, the ssv.network DAO Multi-Sig Committee’s (“MC”) First Scheduled Batch will claim and burn 50% of all unclaimed network fees. This will continue in each subsequent First Scheduled batch, until December 31st 2026, unless decided otherwise by another DAO proposal.
This ongoing burning mechanism will serve as a continuous counterbalance to any token inflation from minting and contribute to the deflationary pressure on the SSV token supply. The DAO believes that this continued commitment to burning network fees further strengthens the tokenomics of the ssv.network, providing a clear signal of the DAO’s dedication to sustainable growth and value accrual for its stakeholders.
Mechanics and Effectiveness
- The mechanics of the burn have been introduced and executed by the DAO with DIP-26. Future network fee burns will follow the exact same mechanics, with the following modifications:
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50% of the accrued network fee will be claimed and burned continuously until the defined end date.
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The other 50% shall not be used for ongoing operational expenses. It will be used for projects and initiatives driving new growth of the ssv.network, approved by the DAO. During this time, funds shall be sent to and stay at the following address: 0xcAb5A17783708759B1D4fb819666337E1490a4ad.
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