Supra Upgrade Proposal (SUP) #1

Governance
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Supra Upgrade Proposal (SUP) #1: Should We Transition From Monthly Vesting Schedules to Quarterly?

Overview

This proposal invites the Supra community to vote on the token vesting schedule to support the network’s long-term, collective goals. The decision will determine whether to modify the frequency of token unlocks to support the network’s long-term health and stability. Under the proposed system, tokens that currently vest at monthly frequency would transition to a quarterly vest schedule. The total number of tokens vested remains unchanged, only the frequency with which they are released changes. This proposal applies only to vesting contracts currently on monthly schedules.

Background

Community and backer’s feedback highlighted challenges with the previous monthly vesting and unlock schedule, including predictable token unlocks contributing to market pressure. A prior trial of real-time vesting (unlocks every 10 minutes) was tested but discontinued, reverting back on July 6th to monthly vesting and unlocks. With upcoming launches like SupraNova (L1-to-L1 cross-chain communication), PoEL (Multi-Asset Liquid Staking), and SupraEVM, this vote provides an opportunity for the Supra community to decide whether transitioning to quarterly vest would better serve the network’s evolving needs for economic security.

Proposal Question

Should we transition monthly vesting schedules to quarterly vesting schedules?

Under the proposed quarterly system:

  • Tokens will transition to a quarterly vesting schedule.
  • Vesting is timed with major protocol milestones.
  • Total token vest amount remains same, differing only in the frequency of vesting.

Please note: This vote is only applicable for the contracts that are currently on monthly vesting schedules. It does not apply for the vesting contracts which are already on quarterly schedules from the start.

Voting Options

The community may select one of three options:

  1. Yes: Transition to quarterly vesting
  2. No: Maintain the current monthly vesting and unlock schedule
  3. Abstain: Acknowledge participation without expressing preference

Voting Framework

  • Eligibility: Node operators and dApps active in the Supra ecosystem for at least three months. Retail token holders may participate through their supported nodes or dApps. With nearly 1 million accounts holding balances on Supra, it is not feasible to include all account holders in direct voting at this stage.
  • Mechanics: Eligible participants choose Yes, No, or Abstain. The voting period lasts until July 24th 11:59pm EST, with all votes recorded transparently onchain.
  • Approval Criteria:
    • Participation Threshold: At least 67% of eligible voters must participate (Yes + No + Abstain).
    • Approval Requirements: For the proposal to succeed, BOTH conditions must be met:
      • “Yes” votes must exceed 40% of total eligible voters.
      • “Yes” votes must exceed “No” votes.
    • Status Quo: In all other cases, the current monthly vesting and unlock schedule will be maintained
  • Implementation Timeline: If approved, changes will take effect around August 21, 2025. Users will receive their pending monthly vesting tokens that are due to vest on July 21 (2 week’s worth) and August 21 (1 month’s worth) respectively, and will then receive the next vest three months later on November 21. This timing is specifically chosen due to its quarterly timeline alignment, to ensure proper transition logistics and to avoid potential complications with token vesting that is currently scheduled in August.

Commitment to the Community

This vote is a key moment for the Supra ecosystem to shape its future. The Foundation is actively innovating in decentralized governance to ensure broad and equitable participation while avoiding governance capture by a few. We encourage all eligible participants to vote based on their vision for the network’s long-term success. The chosen vesting and unlock schedule will be implemented impartially, reflecting the community’s collective decision.

We intend to have quarterly community governance votes moving forward and to continue to decentralize governance progressively over time.

We are also actively working on designing a decentralized governance model that differs from traditional stake-weighted governance models. This includes, but is not limited to, the exploration of ideas around soul-bound NFTs, meritocracy, liquid democracies, etc. Ensuring that the governance model keeps the highest interest of the community and ecosystem at the heart of its decision making process, while providing fairness, is our objective. Frankly, it also requires a lot of deep thinking, iterations, and data points to get decentralized governance resilient. Meanwhile, we will continue to engage with the community via community voting on key decisions that may affect various stakeholders of the ecosystem at large.

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Clarification on Vesting Contract schedule change and subsequent claim experiences
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Embedded below is a recording of our node operator and community governance call that took place on July 7th.

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We are super excited to participate in the vote. Here at Crystara, our founder Yong is also an early backer.

Whether quaterly or monthly, the net token amount vested will remain the same. In the interest of Supra’s network health, a quarterly vesting can reduce active sell pressure and provide more chances for breakouts in the PA, giving us tons more recognition across metrics and stats in the industry.

Once again, we are glad to participate and will continue to do so for future ecosystem governance initiatives.

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Quarterly vesting imo introduces a healthier rhythm to token distribution. It reduces the noise of constant monthly unlocks and fewer, more meaningful release moments can be aligned with real progress. Without changing total emissions, this shift would support a more stable and focused ecosystem. :purple_heart:

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Does this also concern the staking on citadel ?

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Yeas, Quarterly vesting schedule will reduce market selling pressure, thereby strengthening the supra ecosystem which will benefit everyone here.

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Well how can I even run this can I see an example of it please

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I agree with the sentiment already shared here.
Quarterly = more stability
Less sell presure and a chance to build confindence for new and existing holders.
Also a healthy chart attracts more attention :smiling_face_with_sunglasses:
Keep up the great work.

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That’s exactly how I see it too.

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How many drops in total are there to go for VCs?
Happy to vote for quarterly.
Bringing stability and releases aligned with airdrops is a no brainer IMO.

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We at Futura Meridian are proud to continue our engagement and support for the Supra ecosystem. As early supporters, our team remains committed to the long-term success and sustainability of the project.

We view the quarterly vesting approach as a prudent measure that grants Supra additional time to strengthen its foundation and ensure upcoming token unlocks serve to benefit the entire ecosystem. This strategy, we believe, will help preserve on-chain value while fostering a healthy and sustainable environment for growth.

We look forward to actively contributing to the continued success of Supra and its vibrant community.

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I wouldn’t go out of my way to engage passive holders who happen to own coins but otherwise don’t participate in any way.

That’s why I also like the closing paragraph that mentions alternative approaches.

Certain matters should be decided by active, engaged wallets and different approaches may be feasible depending on the subject. Examples:

  • validator wallets should be excluded from niche matters completely unrelated to their unique function, such as StarKey roadmap
  • CEX wallets should be excluded from any participation whatsoever

I’d have no problem if such rules and lists were created as needed, before significant votes. I’d rather have them made by Supra as we go than make it totally prescriptive. The risk of Supra making bad ad-hoc rules that impact voting in worse ways than plain old 1 Supra 1 vote is much lower.

Close attention must be paid to correct scoping of “eligible voters” and at the same time having high participation thresholds where appropriate. For example, in a matter of StarKey roadmap today we may want wallets who made at least 20 transactions and 50% of eligible voters.
Since not many addresses would be eligible maybe only 2 billion Supra would be eligible, and “only” 1 billion + 1 Supra votes would be required for a Yes decision. But that’s much better than allowing anyone to vote and use simple majority of votes cast.

This includes, but is not limited to, the exploration of ideas

Please take a look at Polkadot’s locking mechanism. If you vote with 50% of your balance, 50% your tokens are locked (as if you’re staking Supra validator pools) for a few days and can’t be used to vote again until that period is over. You can also boost your vote (e.g. 2x) so that 100K Supra gives you the power to vote with 200K, but the lock period grows exponentially (e.g. from 0 days to 4 weeks) and that may be well worth to you if the matter you strongly care about is voted on - all of your balance is taken out of action for 4 weeks, but you were able to double the power of your vote.
(That’s about the only good feature from Polkadot governance. The rest is a showcase of how democracy ruins everything.)

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Entropy Foundation, Supra Ecosystem Fund, General Use of Funds, and the Supra Vision
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We agree with most of the statements provided, so we’re advocates for a Yes vote on this one.

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great update Josh. I am happy to here that quarterly vesting is an option in the current vote. As I cannot vote I am happy whatever the outcome . But I believe this would have a positive impact on sell pressure but also give periods where growth can scale without interruptions from unlocks.

Going forward when we guys can also vote I believe a combination of SBT - Holding Amount capped- optional KYC verified user - locked staking - would be the most logical solution IMO. And also making to acquire the SBT would need to hold x amount of supra staked. However this is not full proof the only way would be KYC to avoid manipulation of the vote (splitting wallets etc. some users would not like this but going further you could even measure sentiment of users on X for example but there is not much developed in that right now. Or there is the good old way - issue SBT to users that deserve them. that would work and save hassle building something new - but will be interesting when it rolls out and cant wait to see what you come up with.

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I’m wondering how much of this proposal came about because of the folks unhappy with the bearish price action or if it was more from the expense of running the network (likely a combination of the two in actuality). Whilst acting in reaction to the haters would imo be a mistake - even if it is to protect the backing from highly invested VCs - to be fair listening to the potential positive effects of making this change it does make a lot of sense to go through with it.

Looking forward to how we develop governance going forward. I’d be partial to encourage some kind of system whereby being engaged and active counts toward the weight of your vote over just pure token count… but how? I’m sure its all in the mathematics right :eyes:

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Hey All, just showing my presence here! I’m Happy with what ever the decision may be. Move to quarterly, or Maintain the current monthly vesting. My View is in the best interest for supra.

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You’ll be able to vote here: https://vote.supra.com/ with your public address registered to your node.

I believe the vote will open up on Monday night USA time and run till Thursday midnight.

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Hey @jtobkin Thanks for the update. I support quarterly vesting as discussed with you in our last call. I think this will stabilise the price and hopefully see it appreciate. Green candles on the chart will get new interest. The crypto space is always chasing the next pump and although we are all about the great tech and innovation that SUPRA is creating, the majority of crypto participants is all about “number go up”. I support any proposal that will ensure the longevity of SUPRA and the network.

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Super Excited to participate in the vote. Here is what our founders have to say about this,
“This initiative taken by Supra is going to really beneficial in the long run, and vesting schedule optimization represents a sophisticated approach to token economics that addresses both market microstructure and protocol sustainability. From a financial perspective, the transition to quarterly vesting eliminates the predictable selling pressure that monthly unlocks create, which sophisticated market participants often exploit around vesting dates.”
Glad to participate !

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