Stader Labs Reveals ‘SD Tokenomics Reboot Proposal’ To Tackle High FDV, Optimize Circulating Supply, And Enhance SD Utility
In Brief
Stader Labs introduced an “SD Token Economics Restart” proposal to revamp the SD tokenomics and plans to expand its product offerings.
Liquid staking platform, Stader Labs introduced a proposal called “SD Token Economics Restart.” This initiative is intended to revamp the SD tokenomics and will be followed by the expansion of Stader Labs’ product offerings.
The proposal aims to address the issues of low token liquidity and high fully diluted valuation (FDV). To tackle this, Stader Labs plans to burn 20% of its total token supply, which equates to 30 million SD tokens. This action will decrease the total supply from 150 million to 120 million tokens. The DAO has approved this “Mega Burn” with over 99% quorum, and it is scheduled to be carried out on June 25, 2024.
Stader Labs will also enhance the circulating supply by implementing SD token buybacks and reward capping. Specifically, 20% of Stader Labs’s revenue will be allocated for quarterly buybacks. Additionally, Stader Labs intends to adjust its reward emissions to ensure that the growth in Total Value Locked (TVL) outpaces the increase in rewards.
Stader Labs will also enhance the utility of the SD token by utilizing it in a utility pool to offer insurance against the slashing of its licensed node operators. These operators will provide their services for a minimal fee.
The upcoming product expansion will involve Real World Assets (RWA) and Bitcoin staking, which is expected to boost both market presence and business growth.
Stader Labs Registers Over $700M In Total Value Locked And Becomes Largest Liquid Staking Token On Polygon And Hedera
Stader Labs is a non-custodial, smart contract-based staking platform created to enable easy discovery and access to staking solutions. The project develops staking middleware infrastructure for Proof-of-Stake (PoS) networks, serving retail cryptocurrency users, exchanges, and custodians.
Over the past three years, Stader Labs has experienced significant growth, achieving over $700 million in TVL. Originating from a hackathon, it has become the largest Liquid Staking Token (LST) provider on Polygon and Hedera. ETHx, Stader Labs’s LST on Ethereum, saw a growth of over 600% within its first year and now ranks fourth in TVL among ETH LSTs on EigenLayer.
The SD token saw a modest increase earlier today, reaching up to $0.69 before retracing. As of the writing time, it is trading at $0.68, reflecting a decrease of approximately 0.20% over the past 24 hours, according to data from CoinMarketCap.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
