Author: Stake DAO Association Created: 2026-07-10
Summary
Temporarily stop extending the veSPECTRA lock held by the sdSPECTRA Liquid Locker and pause new SPECTRA deposits. The lock will start decaying; if it is ultimately allowed to expire (i.e., relocking is not resumed in the meantime), the underlying SPECTRA is expected to become withdrawable at the smart-contract level and, subject to a further governance vote and technical feasibility, 1:1 sdSPECTRA redemption may then be enabled. Nothing in this proposal guarantees any particular outcome, timing, or redemption value, and no SPECTRA is being offered or sold hereunder.
Context
The sdSPECTRA locker’s value proposition relied on monetizing a max-locked veSPECTRA position: voter share of swap fees, gauge emissions, rebase, and vote incentives. Two recent Spectra governance decisions have removed all of these:
- SGP-19 rerouted the 60% voter share of pool swap fees to the Spectra DAO treasury and moved 50% of gauge emissions to a DAO-controlled Liquidity Wallet.
- SGP-20 reduced all SPECTRA emissions to zero, ended the rebase, and paused gauge voting and the incentives marketplace.
As a result, the veSPECTRA position generates no revenue, and there is no longer any mechanism to monetize its voting power. Continuing to perpetually relock SPECTRA only deepens an unproductive, illiquid position at the expense of sdSPECTRA holders.
Specification
If approved:
- Stop relocking: the locker no longer extends the veSPECTRA lock, which decays until expiry.
- Pause deposits: new SPECTRA deposits into the locker (sdSPECTRA minting) are disabled.
- Potential redemption: if the lock is ultimately allowed to expire, the underlying SPECTRA is expected to become withdrawable and, subject to a further SDGP vote and technical feasibility, sdSPECTRA may be made redeemable on a 1:1 basis for SPECTRA, net of any applicable gas, fees, and protocol constraints. This outcome is not guaranteed.
- Governance continuity: until expiry, the veSPECTRA voting power remains usable for Spectra protocol governance.The Association will exercise this voting power in the interests of sdSPECTRA holders and in accordance with its governance framework.
- Reversibility: if a future SGP restores fee sharing or vote incentives for veSPECTRA, a new SDGP can re-enable relocking and deposits.
Disclaimers, Legal Notices, and Risk Factors
- No offer or solicitation. Nothing in this proposal constitutes an offer, solicitation, or recommendation to buy, sell, or hold SPECTRA, sdSPECTRA, vlSDT, or any other digital asset, or any investment, financial, legal, accounting, or tax advice. sdSPECTRA and SPECTRA are utility and governance tokens and are not offered as securities or collective-investment products in any jurisdiction.
- No guarantee; forward-looking statements. Statements regarding decay, expiry, withdrawal, and 1:1 redemption are forward-looking and depend on future governance decisions, smart-contract behavior, and technical feasibility. No outcome, timing, value, or redemption right is promised or guaranteed.
- Market and liquidity risk. During the decay period, veSPECTRA voting power and any associated value will decline, and sdSPECTRA may trade at, above, or below the value of the underlying SPECTRA. Holders may be unable to exit at a price of their choosing.
- Smart-contract and execution risk. Implementation depends on the locker’s smart contracts and administrative controls performing as intended. Bugs, exploits, key-management failures, or third-party protocol changes (including further Spectra governance actions) may prevent or delay withdrawal or redemption.
- Conflicts of interest. To the extent the Stake DAO treasury or affiliated parties hold sdSPECTRA, SPECTRA, or vlSDT, they may benefit from the outcome of this vote. Voting power retained during the decay period will be exercised in the collective interest of sdSPECTRA holders.
- Eligibility and compliance. Participation is void where prohibited. Persons subject to applicable sanctions or located in restricted jurisdictions may not participate. Each holder is solely responsible for their own regulatory and tax compliance.
- No reliance; limitation of liability. Token holders act at their own risk. To the maximum extent permitted by law, the Stake DAO Association, its contributors, and its service providers accept no liability for losses arising from this proposal or its implementation.
Vote
- For (Yes): Approve temporarily stopping veSPECTRA relocking and pausing SPECTRA deposits.
- Against (No): Reject the proposal.
- Abstain: Take no position.
| Parameter | Value |
|---|---|
| Forum debate period | 3 days minimum |
| Voting period | 7 days |
| Debate and vote | Sequential (debate first, then vote) |
| Quorum | 15% of total vlSDT supply |
| Approval threshold | Simple majority (>50% of votes cast, excl. abstentions) |
| Anticipated execution | If the quorum and approval threshold set out above are met, and subject to any applicable timelock and technical execution steps |