Summary
Back in April of 2025, the DAO discussed [DIP-31] Development Roadmap for 2025-mid-2026 by SSV Labs (hereinafter “DIP-31”). The roadmap discussed was well underway prior to April 2025, in terms of research and preliminary testing. This proposal was followed by [DIP-46] Amendment to [DIP-31] (Development Roadmap for 2025-mid-2026 by SSV Labs) (hereinafter “DIP-46”). Since the passing of DIP-46, the development effort at SSVlabs was almost entirely consumed by DIP-31, due to the addition of SSV staking, fee abstraction, and the IMP overhaul. Consequently, very little work could be dedicated to DIP-46.
Therefore, to reflect the actual costs and focus of the ssv.network, this proposal suggests canceling DIP-46 and splitting the initially approved budget. The initially approved budget is proposed to be changed to be split as follows:(i) 14,900,000 USD payment to DVT - encompassing the aforementioned features and services; and (ii) 100,000 USD in the form of a research grant into protocol interoperability, transaction composability, and based-validators economics. This research, entirely independent of DVT, could potentially open the door to an interoperability layer based on ETH validators (“Compose”).
Motivation
For nearly five years, SSVlabs has been an important contributor to the ssv.network. Our commitment to transparency led to the comprehensive detailing of components in DIP-31, which outlined the continued services regarding DVT and the initial “bApps” vision for the ssv.network protocol (the “Protocol”).
Additionally, SSVlabs committed significant capital and resources to researching and developing the best and brightest ideas for the DAO’s consideration, following substantial post-research work. This is not to detract from DAO’s willingness to work with SSVlabs on potential roadmaps and their subsequent changes. However, the financial risk of being funded ultimately lies with SSVlabs, as the DAO retains full discretion to decline funding the suggested ideas, leaving SSVlabs with funding spent and time wasted.
At the beginning of 2025, prior to the passing of DIP-31, the development of bApps as a concept had already begun. During this period, and in the first 6-7 months after passing of the proposal, most development effort was dedicated to bApps for its testnet and audits, and some effort was dedicated to DVT.
However, during this time, the concept of bApps was constantly evaluated for its business case in light of the staking landscape it was supposed to fit in, which increasingly saw less and less space for such a concept. Towards the testnet readiness of bApps, it was clear that bApps didn’t have a product market fit or enough interest with industry partners. It is a given that delivering it would have wasted the DAO’s funds on something that would not be worthwhile.
DIP-46 was then proposed to and approved by the DAO. After initial research was done, it quickly proved that DIP-46 required a substantially different market outlook than what the industry was facing at that point in time. SSVlabs believed this required a quick reaction from SSVlabs to deliver to the DAO something that would be a compelling and sustainable narrative until the market outlook improves. It forced SSVlabs to shift all development resources into SSV staking, fee abstraction, and the IMP overhaul. Therefore, in the interest of serving the DAO with the most relevant industry products or research, the DAO was advised to change direction in a detailed, elaborative document titled Technical analysis of Oracle Effective balance updates, Fee Abstraction and SSV Staking. Consequently, SSVlabs focused its full energy on the primary DVT roadmap, addressing critical Protocol pain points.
Considering that DIP-31 did not include SSV staking, fee abstraction, and the IMP overhaul, the proposed funding alteration is necessary to make these components a reality. If the DAO’s roadmap were to include these components, this would require a complete shift of SSVlabs’s development capacity to these components. While DIP-31 provided the framework, the actual engineering required building the most fundamental changes to the Protocol and DAO to date includes:
- SSV Token Staking: Implementing native staking mechanisms to add even more utility to the SSV token.
- A Complete Tokenomics Shift: Researching and presenting redesigned economic incentives of the network.
- Network Fee Abstraction: Streamlining user experience regarding protocol costs.
- IMP Overhaul: A total revision of the Incentivized Mainnet Program.
To maintain transparency and accuracy, we are proposing to forgo the initial 50/50 effort estimation provided in DIP-31 and instead reflect the actual effort allocation that took place. We propose the following budget breakdown of the initially approved $15,000,000 USD:
| Component | Description | Amount (USD) |
|---|---|---|
| DVT & Protocol Core | Services and development described in DIP-31 and SSV staking, fee abstraction, and the IMP overhaul. | $14,900,000 |
| Compose (SSV 2.0) | Retroactive grant for initial early-stage research and marketing-related expenses. | $100,000 |
| Total | $15,000,000 |
The $100,000 related to Compose will be disbursed from the SSV Foundation to SSVlabs as a retroactive grant for research already performed and related marketing expenses, including any expenses already incurred by the Foundation. This follows the precedent of previous DAO-funded grants bringing in TVL, staking pools, and research grants, potentially benefiting SSV Network in the form of network functionality and use.
With such a grant, two things can be achieved:
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Alignment with Decentralization Ethos and Public Good Mandates - The allocation of this grant directly supports the DAO’s core mission to bolster Ethereum’s decentralization through the advancement of Distributed Validator Technology (DVT). By funding early-stage research into foundational technologies identified as critical by the broader Ethereum ecosystem, the DAO fulfills its mandate to support open-source, public-good infrastructure.
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Potential inflow of TVL and, consequently, more in-network fees - The research conducted serves as a technical exploration into architectures that may facilitate long-term protocol scalability, security, and profitability by opening the door to an interoperability layer based on ETH validators. Therefore, much more potential TVL could flow into the ssv.network, which will lead to extra fees paid.
Operational Provisions
If this proposal were to pass, DIP-46 would be considered to be canceled.
The payment structure originally established in DIP-31, which allocated the $15,000,000 total into three equal installments of $5,000,000, will be updated. The original payment terms and milestone dates remain the same. If this proposal is approved, the first two installments will serve as compensation for DVT. The third and final payment, scheduled for July 2026, will be allocated primarily to DVT, with a minor portion designated for the separate Compose grant.
This final $5,000,000 disbursement will be split into a payment of $4,900,000 for the remaining DVT features and services and $100,000 for the Compose early retroactive research grant. This ensures the total budget remains consistent with the original approval while accurately reflecting the scope of work performed.
The DAO hereby fully and irrevocably empowers, directs, and authorizes the SSV Foundation, on behalf of the DAO, to draft, execute, sign, and deliver a binding agreement, and any other required documents, it may deem necessary and appropriate to facilitate the execution of the services and research detailed in this proposal, and their respective payment and grant.
