Author: Stake DAO Association
Preamble
This proposal serves as a formal request for a half-yearly grant (“Grant Proposal”) from Stake DAO for the period of H1-2026 (January 1st to June 30th, 2026) in continuation and recognition of the governance proposal (SDGP#32) and the previous Grant proposals (SDGP#56, SDGP#48 and SDGP#39) previously adopted by Stake DAO.
The StakeDAO Association (“Association”), established as a pivotal entity within the Stake DAO ecosystem and based in Zug, Switzerland, aims to further support the development and growth of Stake DAO through specified services aligned with Stake DAO’s strategic objectives.
Review of the previous grant (H2-2025)
For H2-25, Stake DAO Association was awarded a USDC 840,000 grant for the purpose of achieving certain milestones. Here is a recap of the outcome for those milestones:
| Milestone | Budget ($) | Status |
|---|---|---|
| Staking v2 Rollout (M1) | 110,000 | Successful |
| vePENDLE Votemarket Rollout (M3) | 40,000 | Successful |
| Curator Infrastructure Rollout (M4) | 40,000 | Successful |
| asdPENDLE Pendle Market Rollout (M6) | 15,000 | Successful |
| Additional Lockers and Strategies Rollout (M7) | 30,000 | Successful |
| Stake DAO Lending Markets Rollout (M8) | 50,000 | Successful |
| New Tokenomics Rollout (M5) | 155,000 | Delayed to H1-26 |
| RESOLV Locker Rollout (M2) | 20,000 | Canceled |
| Product Uptime & Maintenance (M9) | 230,000 | Successful |
| Reaching business Development & TVL Growth targets (M10) | 150,000 | Successful |
Overall, H2-2025 saw the accomplishment of nearly one year of work on the new staking infrastructure and the launch of many new products which are critical for the long term strategy of Stake DAO. Nearly all milestones were reached, with the exception of the Resolv locker which was cancelled due to a change of heart from the Resolv team, and the roll out of new SDT tokenomics which will instead be done in H1-2026, subject to approval of this grant request.
Furthermore, in terms of business development, Stake DAO strategies experienced solid traction thanks to several initiatives, with an acceleration following the roll out of Staking v2 which proved to be even more successful than expected. Over the second half of the year, TVL in Stake DAO strategies exceeded $150m in the long term, and Stake DAO reached a total TVL of more than $300m for a significant period. It now sits north of $200m following the decrease in value of the value locked in the CRV locker, but this drop does not reflect outflows from Stake DAO.
The fee and rewards generation for veSDT and for the DAO strongly increased, with $329k distributed to veSDT holders (+38% v/s H1 2025, +102% v/s H2 2024), and a total output for fees and liquidity mining from the DAO treasury exceeding $2.1m (+41% v/s H1 2025, +60% v/s H2 2024). Costs stayed under control reaching $737k despite several audits performed and an increase in headcount compared to 2024 (-27% v/s $999k in H1 2025, in line with H2 2024 costs of $718k).
H1-26 Grant request
For H1-26, the proposed focus will be on deploying the new SDT tokenomics and the lending vertical, as well as exploring other product opportunities, and looking for listing opportunities for SDT.
Amount Granted: The Association hereby requests a grant amount of USDC $962,000 (“Grant Amount”) designated for the execution of the milestones further described below (“Grant Purpose”).
Milestones
The Grant Amount shall be paid to the Association in six (6) instalments to perform the following milestones (“Milestones”):
| Milestone | Budget ($) | Target date |
|---|---|---|
| New tokenomics roll out (M1) with following deliverables: deployment of the smart contracts, governance proposal, UI integration, documentation | 125,000 | June 2026 |
| Deploying a full lending product with its user interface using the already deployed infrastructure based on Morpho (M2), with a lending UI as key deliverable | 100,000 | May 2026 |
| Identifying new growth opportunities to steer the development of Stake DAO’s next products (M3) | 50,000 | April 2026 |
| Organising a 5-year anniversary celebration for Stake DAO (M4) | 45,000 | April 2026 |
| Maintain a high level of uptime of Stake DAO’s product and user interface (>95%), including community management and legal watch (M5) | 250,000 | June 2026 |
| Maintain a steady flow of incentives going to Votemarket, and become the leader of the Balancer vote incentive market (M6) | 65,000 | June 2026 |
| Ensure steady business development efforts with an objective of $200m TVL in Stake DAO strategies (M7) | 150,000 | June 2026 |
Payment schedule
The Grant Amount shall be distributed in six (6) monthly payments to the Association per mutually agreeable arrangements. The payment schedule is shaped to not request unnecessary funds from the DAO. Below the initial version of the payment schedule:
| Date | Payment (USDC) |
|---|---|
| February 1st, 2026 | 206,100 |
| March 1st, 2026 | 188,200 |
| April 1st, 2026 | 211,200 |
| May 1st, 2026 | 155,500 |
| June 1st, 2026 | 110,500 |
| July 1st, 2026 | 90,500 |
Use of funds
This grant is higher than the previously requested ones, as it is actually composed of a recurring amount in line with historical spendings, and a performance bonus higher than last year due to the tripling of net profits for the DAO in 2025. It also includes a higher than usual event budget as the Association suggests organising a 5-year birthday celebration for Stake DAO at ETH CC in Cannes.
Below is a detailed breakdown of the expected use of funds.
| H1 -26 budget | USD |
|---|---|
| R&D | 575,000 |
| Association staff | 28,000 |
| Tooling | 13,000 |
| Legal and accounting | 65,000 |
| Audits | 75,000 |
| Taxes | 30,000 |
| Others (events, etc.) | 39,000 |
| Total | 825,000 |
| Incentive program | 307,000 |
| Current association balance | (170,000) |
| Total requested grant | 962,000 |
Association Autonomy
The Grant Proposal does not create a principal or agent, employer or employee partnership, or joint venture between the Association and the Stake DAO.
The Association is free to decide upon the way to carry out the execution or fulfillment of the Milestones set forth above. The Association retains its independence in achieving these Milestones, leveraging either internal capabilities and resources or engaging suitable third parties as auxiliary persons.
No regulated services; no fiduciary role. Nothing in this Grant Proposal, nor any activity performed by the Association in connection with the Milestones, shall be construed as (i) the provision of regulated financial services, investment services, asset management, portfolio management, custody, brokerage, placement, underwriting, investment advice, or financial intermediation, in Switzerland, the European Union, or any other jurisdiction, or (ii) the creation of any fiduciary, trustee, agency, or similar relationship vis-à-vis any user, token holder, or third party.
The Association acts solely as a service provider supporting the Stake DAO ecosystem and does not take possession of, control, or discretionary authority over users’ assets.
Purpose and Limitation of Use
As described in the Milestones, the Grant Amount shall fund research and development (R&D) initiatives aimed at enhancing Stake DAO’s decentralized finance (DeFi) products and services, encompassing new product development, user experience enhancements, security auditing, and risk management, as well as the operation and maintenance of the existing product when needed.
The Association understands and acknowledges that the Grant Amount shall be exclusively used to execute the Milestones defined within the Grant Proposal.
Internal regulations shall be in place to address any misuse of the funds, ensuring that all activities funded by the Grant Amount shall directly contribute to the specified project and the broader Stake DAO ecosystem.
The Association will use commercially reasonable efforts to achieve the Milestones; however, the Stake DAO ecosystem is subject to technological, market, governance, third-party protocol, and security risks, and the Association does not guarantee any particular financial performance, TVL level, token price outcome, or absence of exploits.
The Association shall not knowingly use the Grant Amount in a manner that would cause a violation of applicable sanctions, anti-money laundering, anti-corruption, or counter-terrorism financing laws, including Swiss sanctions measures and (to the extent applicable) EU/UN measures. The Association shall maintain reasonable internal checks for material counterparties and service providers engaged using the Grant Amount.
IP Ownership and Source Code Publication and Licensing
Subject to any third-party components and dependencies (including open-source libraries and external protocols) which remain subject to their respective licences and terms, the Association shall become the sole owner of any intellectual property rights in and to any kind of work products that have been or will be created in the context of this grant.
The Association acknowledges its role in holding and managing intellectual property rights within the Stake DAO ecosystem.
All backend and frontend code developed as part of this grant, including smart contracts and web interfaces, will be published on a designated public GitHub repository. The software will be licensed under an open-source license (such as the BSD License, the MIT License, the Apache License Version 2.0, or any other license approved by Stake DAO), promoting transparency and accessibility. For avoidance of doubt, such publication is intended to grant the Stake DAO ecosystem and its community a perpetual, worldwide, royalty-free right to use, copy, modify, and distribute the Work Product in accordance with the applicable open-source licence.
Reporting Obligation
In line with the commitment to transparency and accountability, the Association will include details regarding the Grant Amount and its utilization in its monthly activity reports. This report will be prepared in accordance with the governance proposal’s requirements, ensuring the Stake DAO community is fully informed of the progress and outcomes of the funded initiatives.
Conclusion
This proposal, structured in accordance with both the strategic goals of Stake DAO and the legal guidelines provided, represents a comprehensive plan for utilizing the requested grant to achieve significant advancements within the Stake DAO ecosystem. The Association commits to fulfilling the outlined objectives with the highest standards of transparency, efficiency, and accountability.
Proposal Specifications:
- Admin: veSDT holders
- Community feedback: 3 days minimum
- Voting Duration: 7 days