This proposal aims to systematically reduce the inflation of FIS, gradually transitioning towards a deflationary model. This marks the second phase of deflationary measures following the treasury address burn. The ultimate objective is to enhance the value of FIS and align its tokenomics with StaFi’s new AI-powered LSaaS (Liquid Staking as a Service) narrative.

This proposal recommends allocating 1 million FIS from the DAO treasury to foster growth and adoption of the LSaaS ecosystem. The funds will be distributed in two rounds. If no projects apply or fail to meet the criteria, the allocated FIS will return to the DAO treasury. Eligible projects will undergo a DAO governance process, and if approved by a community vote, they will receive the grant. Otherwise, the funds will be returned to the treasury.

StaFi is building a comprehensive Liquid Staking Modularity Store to better serve the evolving needs of liquid staking developers and protocols. While we’ve already developed a foundation of key modules, including tools like the Validator Selection AI Agent, Solana Blinks, and more (see Appendix for details), the next logical step is to create an open platform that invites developers to contribute and expand this ecosystem.

rLaunchpad program is a community-driven initiative designed to sustainably expand the StaFi ecosystem and introduce new rTokens to the platform. This proposal outlines the program’s structure, lifecycle, core units, participation guidelines, and future plans.

After months of testing, rSEI is ready for mainnet deployment, coinciding with the upcoming SEI EVM mainnet launch. The core team recommends preparing rSEI for release and applying for FIS from the Treasury for incentives. As the winner of rLaunchpad season 1 and developed by LSaaS stack, rSEI’s performance is crucial for LSaaS adoption.

rLaunchpad program is a community-driven initiative designed to sustainably expand the StaFi ecosystem and introduce new rTokens to the platform. This proposal outlines the program’s structure, lifecycle, core units, participation guidelines, and future plans.

DVT (Distributed Validator Technology) enhances the decentralization and security of ETH staking. Currently, SSV DVT integration into StaFi has been deployed on the mainnet, and SSV has launched the Mainnet incentive program. Additionally, the successful completion of SSV Grants Milestone 3 requires the operation of 25 validators on SSV.

As described in StaFi Tokenimic V2 1 , continuously decoupling rTokens from appchain security is essential to scale StaFi LSD solution. rBNB and rMatic have completed the decoupling, gained security from BSC and Polygon directly, and the whole process is going well. Next step is to migrate rDOT, rKSM and rSOL. After deeply reviewing the stat of the contributions at a protocol level, I propose to remove rDOT/rKSM, while migrating rSOL to Solana only.

The FIS token of StaFi is currently fully unlocked and in circulation. However, the details regarding the allocation of tokens for the community and inflation 2 have not been previously explained. This proposal aims to address the treasury situation concerning the community and inflation components. It will provide an overview of the addresses associated with these two parts and propose partial staking of the treasury, as well as introducing burning mechanisms in the future to ensure long-term sustainability.

StaFi is committed to achieving decentralization and becoming a contributor-driven DAO. A crucial step in this process is engaging the community through proposal submission and voting. This inclusive approach empowers FIS and rFIS holders to actively participate in the governance of the StaFi protocol by submitting and voting on proposals.

Cosmos Liquid Staking Module (LSM) is a modular component that enables liquid staking for any chain in the Cosmos ecosystem. LSM allows users to convert their staked assets into liquid assets without unbonding, which will help to improve the liquidity and security of the Cosmos ecosystem and pave the way for new DeFi applications. By integrating with LSM module, it will be easier for staked ATOM users to participate in StaFi staking service and thus help StaFi to attract more users and grow its community.

DVT (Distributed Validator Technology), by allowing validators to run on multiple nodes or machines, has the potential to significantly enhance the decentralization and security of Ethereum. In light of this, StaFi has decided to integrate DVT into its ETH liquid staking service via a new module called StaFi Router, which will enable us to implement this technology and further enhance the security and decentralization of the Ethereum network.

As StaFi transitions to its new charter - which includes a new rToken construction and updated Tokenomics, several infrastructures require modifications to align with these changes. A notable example of these updates is the recent launch of the rToken merged app.

This proposal seeks to merge the rToken applications on the StaFi Chain and the StaFi Hub. This will simplify the user experience and make it easier for StaFi to reach a wider audience.

In SIP-3 1, the StaFi team proposed a new implementation of BNB liquid staking using EVM LST Architecture, which represents a significant improvement in both the usability and security of the staking process. We are dedicated to further promoting the adoption of the EVM LST Architecture, and as part of this effort, we are proposing to migrate rMATIC to this new architecture and decoupling rMATIC from the StaFi Chain. After the migration is completed, both the usability and security of rMATIC will be improved.

rBNB is an important part of the rToken, issued on the StaFi Chain. However, there are some usability issues. Firstly, users need to have two wallets and sign multiple transactions to mint rBNB. Secondly, if users want to participate in DEX trading on Binance Smart Chain (BSC), they need to bridge rBNB from the StaFi Chain to BSC. Finally, burning rBNB requires doing it on the StaFi Chain, which means bridging rBNB from BSC back to the StaFi Chain.

StaFiHub-ICS represents a transformative approach, aiming to redefine the operational framework of StaFi consumer chains. It’s a step towards meeting the ever-evolving needs of our stakeholders and staying ahead in the competitive landscape of liquid staking. This proposal provides the opportunity for our community to engage in a meaningful discussion about our future direction and to shape the growth trajectory of StaFiHub. The time is ripe for us to consider and act upon the potential benefits of ICS adoption, and this proposal serves as the beacon guiding us through that process.

As the rToken solution extends across numerous ecosystems - including Layer1s, sidechains, Cosmos appchains, and beyond - the tokenomics of StaFi are confronted with challenges that need to support this expansion. These challenges consist of balancing the value of rTokens with chain security, incentivizing validators in StaFi appchains, and establishing a robust on-chain voting system for governance. The issues at hand largely center around the complex nature of the intertwined tokenomics, which include FIS tokenomics, rTokenomics, and appchain tokenomics.

The EVM Network has become one of the most popular and influential blockchain networks. However, using the current approach to build LST on these chains would result in high costs and a poor user experience for users, as well as limited scalability for StaFi, requiring significant development effort.

StaFi is committed to continuously improving our products to ensure the best possible user experience. Given the competitive market for Liquid Staking Derivatives (LSD), we have decided to adjust our strategy in order to further expand our reach. After conducting a detailed comparison between StaFi and other LSD protocols, we are proposing to update our commission fee structure for our Staking Derivatives.