# SDGP-65: Allow the refund of affected users from the March 12, 2026 incident from the treasury

**URL:** <https://gov.stakedao.org/t/sdgp-65-allow-the-refund-of-affected-users-from-the-march-12-2026-incident-from-the-treasury/1117>\
**Category:** Governance Proposals (SDGP)\
**Created:** [13 March 2026 16:10 UTC](https://gov.stakedao.org/t/sdgp-65-allow-the-refund-of-affected-users-from-the-march-12-2026-incident-from-the-treasury/1117 "2026-03-13T16:10:31Z")\
**Posts on this page:** 1\
**Showing post:** 1

<div class="post-metadata">

**Author:** ![chago0x](https://gov.stakedao.org/letter_avatar_proxy/v4/letter/c/e9c0ed/32.png) [@chago0x](https://gov.stakedao.org/u/chago0x)\
**Post date:** [13 March 2026 16:10 UTC](https://gov.stakedao.org/t/sdgp-65-allow-the-refund-of-affected-users-from-the-march-12-2026-incident-from-the-treasury/1117/1 "2026-03-13T16:10:31Z")

</div>

**Author:** Stake DAO Association

# Summary

A security incident occurred on Votemarket on March 12, 2026, and led to the loss of approximately $176,000 of user rewards.

As with all DeFi protocols, interactions with smart contracts involve inherent technical risks, including vulnerabilities or exploits.

The reimbursement is proposed as an ex gratia community support measure and does not constitute an admission of liability, fault, or legal responsibility by Stake DAO, its contributors, or affiliated entities.

This proposal is to give authorization to the DAO to use treasury funds to refund users.

**It is following an emergency ad hoc protocol: the proposal will be executable as soon as \>50% of veSDT supply (17,075,675.5 veSDT) have voted in favor of the proposal.**

# Context

A security incident occurred on Votemarket on March 12, 2026. A full report of the situation is available [here.](https://www.stakedao.org/blog/incident-disclosure-12-03-2026)

Some of the lost funds corresponded to refunds or liquidity mining rewards that should have been deposited as direct rewards with the start of the new period, and are currently not streaming, creating a drop of rewards for the corresponding pools, and a difficult situation for Votemarket depositors.

An emergency proposal can help them use refund rewards to continue their liquidity mining program.

# Proposal

Give permission to the treasury committee to use DAO funds to proceed with the reimbursement of lost user rewards (approximately $176k).

The reimbursement will apply only to users and campaigns directly affected by the March 12, 2026 incident as identified in the incident report.

# Proposal Specifications

Admins: veSDT holders  
Community Feedback: Simultaneous with the voting period

Voting Duration: 7 days, executable as soon as the proposal reaches **17,075,675.5 favourable votes**.

### **Voting Options**

- YAE — Authorise the treasury committee to proceed with the reimbursement of lost rewards

- NAE — Rework the proposal with another solution.

- ABSTAIN: No preference.

_Poll ([view on site](https://gov.stakedao.org/t/sdgp-65-allow-the-refund-of-affected-users-from-the-march-12-2026-incident-from-the-treasury/1117/1))_

### \*\*

Disclaimers\*\*

_This proposal does not constitute a financial product or investment solicitation._

_All SDT transfers are executed on-chain through transparent and auditable smart contracts._

_No third-party funds are managed or held by the DAO beyond the governance-approved emission schedule._

_Stake DAO acts solely as a decentralised coordination framework, not as a financial intermediary. Stake DAO does not provide financial services, fiduciary services, or custodial services._

---

_[View the full topic](https://gov.stakedao.org/t/sdgp-65-allow-the-refund-of-affected-users-from-the-march-12-2026-incident-from-the-treasury/1117)._
