The purpose of this proposal is to explore whether or not the SPS DAO would like to extend the rewards for SPS staking before they run out. This proposal was drafted based on the results of a recent poll that most strongly supported extending staking rewards with tokens from the unused LP incentives and from some additional feedback by SPS stakeholders in the Shard Holders room on Discord.
The chart below is for illustrative purposes to show that the current proposal would extend staking rewards through 2026 as well as what it would take to extend them through 2027 without completely reworking the distribution method.
Feedback overwhelmingly preferred extending rewards until the end of 2026, so that is why this proposal is drafted to do so. Please note that there are currently nearly 13m SPS in unclaimed staking rewards sitting in the staking rewards bucket, which means the bucket is actually smaller than displayed on the block explorer since some of those tokens have already been allocated even though they have not yet been claimed.
If this proposal passes, the SPS DAO will reallocate 25,000,000 SPS from the remaining unused LP incentives to be utilized for extending SPS staking incentives. This will provide enough tokens to ensure that SPS staking incentives continue through the end of 2026.
