[GP] Monthly SEAM Staking Program

General
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Category: Treasury, Tokenomics

Author: Guzman_MassAdoption

Date: July 17th, 2025

Summary

To capture bullish market momentum, reinvigorate community engagement, and support healthy protocol dynamics, this proposal introduces a 3-month SEAM Tresury staking program targeting the DAO’s treasury-held SEAM. Beginning September 1st, 2025, the Seamless DAO will stake 1,000,000 SEAM (1% of total supply) each month for three consecutive months.

These staking events will be executed directly from the DAO’s treasury, reducing the liquid circulating supply of SEAM while reinforcing the protocol’s fixed-supply tokenomics. At the same time, the program enables the DAO to generate Protocol-Owned Liquidity (POL) by accumulating yield-bearing vault tokens (smUSDC, smcbBTC, smWETH) through Seamless’s existing staking infrastructure.

By tightening SEAM’s available supply - especially during a period of increasing onchain staking participation - this initiative aims to strengthen market confidence, reward long-term holders, and galvanize governance participation across the community.

A follow-up proposal will be shared in November 2025 to evaluate outcomes and determine whether the program should be extended into Q4/Q1

Background

SEAM has a fixed max supply of 100,000,000 tokens with the Seamless DAO Treasury currently holding 39,864,134.66 SEAM (values at ~$15.63M at time of writing). Despite product innovation and steady protocol growth, SEAM’s market performance has lagged - down approximately 86% over the past year and ~58% year-to-date, consolidating around the $0.35 - $0.40 range.

As of the most recent Epoch update, over 3%+ of SEAM’s total supply is actively staked (~$1.17M), reflecting strong long-term alignment among tokenholders. However, broader governance participation and toke velocity remain subdued.

A DAO-led, targeted treasury staking program offers a strategic way to both reduce effective circulating supply and reignite participation across governance and staking ecosystem

Objectives

  • Reduce SEAM’s effective supply via treasury staking
  • Encourage more competitive price action and accumulation
  • Re-engage community participation in DAO governance
  • Reinforce Seamless’s vision for lean, value-aligned tokenomics
  • Generate sustainable POL yield to reinvest or burn

Program Details

Monthly SEAM Treasury Staking:

  • Amount: 1,000,000 SEAM per month (1% of total supply)
  • Duration: 3 months (September, October, November 2025)
  • Total Staked: 3,000,000 SEAM ($1,177,920 if price remains at ~$0.39)

At the conclusion of the 3-month staking period, a follow-up proposal will be submitted to determine two things

  1. What to do wit the accumulated vault reward tokens:

  2. Buyback & Compound

1. Unwrap smUSDC, smcbBTC, smWETH into their underlying assets
2. Market-buy SEAM and compound back into staking (if the program is extended)
  1. Buyback & Burn:
1. Unwrap smUSDC, smcbBTC, smWETH into their underlying assets and market-buy SEAM to burn it; reducing total supply
  1. Do Nothing:
1. Allow v ault rewards to continue compounding as-is
  1. What to do with the staking program:

Maintain

  • Continue staking the current 3% of supply - no further SEAM added

Unstake to Treasury

  • Exit the staked position and return SEAM to idle treasury

Compound (Next Quarter)

  • Stake an additional 1$ of supply per month (for a total of 6%)
  • Note: To avoid staking yield dilution, this program should maintain a soft cap of 6% of supply staked via treasury

Duration

  • September 1st - November 1st, 2025
  • Three monthly staking events
  • On November 30th, a program proposal will be shared to review outcomes and deliberate next steps (extension, modification, or sunset)

Timeline

  • September 1st, 2025 - First Supply Stake (1,000,000 SEAM)
  • October 1st, 2025 - Second supply Stake
  • November 1st, 2025 - Third supply stake
  • November 30th - evaluation of program + next step discussion (follow-up proposal)
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Thanks for this @Guz_MassAdopt! I think this is a strong proposal – esp utilizing idle SEAM in the DAO treasury to put this to work, generating DAO yield effectively.

As you’ve stated there are multiple avenues to pursue with these staking rewards i.e. compound and buy more SEAM, burn etc.

We’ve seen similar narratives with partner protocols who are buying back the token supply to reduce overall circulating and that meta has had welcomed reception from the community – curious to hear thoughts here from the Seamless community to put into place.

2 Likes
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Very interesting proposal @Guz_MassAdopt! I think it’s a great idea. I think having a mechanism to compound SEAM staking rewards back into stkSEAM could be very useful. Not just for the Seamless DAO but for any SEAM holder to use if they wish.

My only concern with Seamless DAO staking its treasury, as you noted, is the dilution of staking rewards for users that are staking their SEAM (and clearly long term aligned to Seamless). But maybe this could be started with a smaller amount first and re-evaluated regularly

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Thanks for the proposal @Guz_MassAdopt !

  • As I understood correctly, there are 3 options on what to do with staking rewards: 1. Buyback & Compound; 2. Buyback & Burn; 3. Do Nothing. I would advocate for the option 2, ie to burn rewards.
  • Given @wes_fred maybe we could cut the budget in half, i.e. to stake 500 000 SEAM each month. At any moment the budget could be increased by a separate DAO vote.
  • I also believe that we need to keep momentum of the market and start the programme sooner. So I suggest that we start it immediately after/if this proposal is passed.
  • One more thing that we need to clarify, if we decide to burn, how often should we do that? My suggestion we be to collect rewards, swap into SEAM and burn at the end of each epoch, i.e. on a weekly basis
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thank you and @wes_fred for your feedback and suggestions!

in response to @Ras first bullet - I was leaving these options up to the community to decide after the reward tokens were redeemed. If i’m understanding your suggestion, you’d like to see the buyback & burn option immediately implemented if this proposal is approved. In doing so, the DAO is to buyback & burn SEAM at the conclusion of each EPOCH (~7 days). This is fair. I would expand by saying we use the minimized budget of 500,000 SEAM (~$217,179.50 at the time of writing) and maintain the pilot duration to 1 quarter - this should offer sufficient time to let the program “bake in” and see if the burn stimulates community engagement. Given the immediate commencement of the program (~Aug. 1st) we’re looking at October 31st as being the last day of the program where a follow-up proposal should be submitted on Nov. 1st to review the overall performance along with proposing the extension or termination of the program.

6

I think the 500k SEAM suggestion is a good one suggestion/adjustment to the original proposal, to minimize dilution to other SEAM holders.

Generally seem supportive of this experiment, my question or concern would be around the operations to handle this. In order to minimize smart contract/technical buildout and blowing out the timelines, it may be best for something like the rewards council multisig or aera council to handle some of the manual transactions.

Pending experimental outcomes, it could garner more data/evidence to create a proposal to invest eng resources down the road?

7

Ideally I believe there should be an auto-compounder feature built that any wallet can use to compound their staking rewards back into stkSEAM. I suggest we create a bounty or grant to incentivize someone to create this, a yield vault protocol would be a good partner for this. I personally would use such a feature.

But given building a generalized feature improvement like the auto-compounder may take longer to be live and the urgency expressed in this thread. I would support the manual operation of this program (at a small scale as a trial) on behalf of the Seamless treasury. In my opinion the impact to current stkSEAM holders should be carefully monitored and absolutely minimized as these are long term aligned SEAM holders.

1 Like
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If the manual operation is a way then I would suggest that rewards are claimed/convert/burnt on a monthly basis (vs weekly)

9

i realize im a tad late to the party here. being a staker but bad at staying update with the community. if my opinion has any weight what id suggest to dispel any concerns about dilution (since it will effectively cut rewards in half) perhaps active stakers could receive more stkSEAM during this experiment. Ive been slowly working up a position, I wanted to see if the payout was worthwhile an i had just decided that i think it is, especially with token bottomed out, but i think most would agree with me that being rewarded with a larger stake so when treasury moves out itll pay us back in due time would be a worthy deal.

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