Reduce ABC Step 2 to 25%, increase Staking emissions 50%
A forum post proposes cutting the share of Step 2 capital retained for the Aggregate Backstop Capital from 50% to 25%, which would raise Step 3 staking rewards and buybacks by 50%.
The post describes the current monthly allocation of roughly 14.6M USDS of profit. Step 1 (14,635,947 USDS) sends 10% each to the Core Council and the Fortification Conserver. Step 2 capital of 11,708,757.60 USDS currently retains 50% (5,854,378.80 USDS) for the Aggregate Backstop Capital (ABC). The remaining Step 3 capital of 5,854,378.80 USDS is split 45% to USDS staking rewards, 45% to buyback distributed to SKY stakers and 10% to buyback and burn; the two buyback parts together total 55% of Step 3. The author says this fills the ABC in about a year and proposes extending that to two years by retaining 25% of Step 2 (2,927,189.40 USDS). Step 3 would then be 8,781,568.20 USDS: 3,951,705.69 USDS to staking rewards, 3,951,705.69 USDS to buyback distributed to SKY stakers, and 878,156.82 USDS to buyback and burn (4,829,862.51 USDS total buyback). The author states staking would rise from about 5.5% to 7.75% and argues the ABC, which they say holds around $100M, does not need to be filled quickly. The author also says the change would boost Sky Core funding. This is a discussion-stage post; no vote is scheduled in the text. Open questions: how the change interacts with other governance parameters is not addressed.
1. Send 10 USDC on Base to
0xdbe64890cbC58304815A865F63151c205F2C88B22. Email the transaction hash to saleforce@agentmail.to from the address that should get the email.