A leap into the future with SD
As Stader continues to push into new frontiers, SD will be there, at the heart of it all — powering growth, securing networks, and creating value for the entire community. This is just the beginning. The future of SD is unfolding now.
Utility, sustainability, supply and security are some of the key factors that amount to a robust tokenomics behind every token. Stader’s governance token SD is at the heart of Stader’s growth to $500Mn+ in TVL and over 100k+ stakers across the top 4 PoS blockchains Ethereum, Polygon, BNB and Hedera
But SD has become much more than just a governance token — it’s evolving for the future.
Stader’s partnerships with industry giants like Ledger, Metamask, Aave, and Balancer, have established a robust ecosystem across Stader’s LSTs. With $3Mn in annualized revenue, StaderDAO recognized the need to integrate this stellar business growth into SD’s tokenomics.
This isn’t just a simple update — it’s a full-scale SD Tokenomics Reboot. Four key levers are going to be pulled to transform SD into a powerful tool for growth and sustainability, setting the stage for the next decade of Stader’s evolution.
The Float Dilemma: Burning to Build
For a while, SD holders faced a common problem — a low float, and a high FDV for SD. To solve this, we introduced the SD Mega Burn.
On June 25, 2024, 30Mn SD tokens were burnt — 20% of the total supply — bringing the supply down from 150Mn to 120Mn tokens. This burn reduces the FDV and creates a leaner, more agile SD token. It’s the first step toward aligning the token’s circulating supply with Stader’s growth.
Buybacks and Balancing the Market
In a move to further strengthen SD, we initiated quarterly buybacks of SD utilizing 20% of its revenue. These buybacks aim to reduce the circulating supply and create a regular sink for SD, taking it out of circulation.
The first SD Buyback worth $150k went live on September 2, 2024. This and the future buybacks are made transparent and accessible for users to track using this wallet address:
0xEfE40Ff167A89cE3bAbdAd161d41D798Ca7116b2
To further make the tokenomics sustainable, StaderDAO proposed capping of rewards emissions. Initial estimates project 5x growth with 50% increase in rewards. Hence making SD even more rewarding going forward.
More Than a Token: New Utilities for SD
The future of SD isn’t just about supply management — it’s about utility. SD will now play a key role in offering insurance for Stader’s permissioned node operators. This insurance, backed by the SD Utility Pool, will cover slashing penalties for the ETHx permissioned node operators.
For SD holders, this means greater rewards for locking up tokens in the utility pool. With this new insurance system, SD evolves from a governance token into a multi-functional asset, helping secure the Ethereum network.
Looking Beyond: Stader’s New Horizons
Stader isn’t stopping at liquid staking!
New opportunities are being explored to see how we can expand our product offerings and create more long-term, sustained value for our community. These expansions will allow Stader to grow beyond its current ecosystem, bringing even more value to SD holders.
As Stader ventures into these new areas, SD will remain at the core — powering these innovations and ensuring that token holders benefit from every new product and partnership.
The Community’s Role in Shaping the Future
The most exciting part of the SD Tokenomics Reboot? It’s shaped by the community. Every step — from the token burn to the buybacks — has been approved through the Stader DAO.
This shared vision ensures that Stader’s growth benefits everyone. The journey to 10x growth is one that Stader will walk together with its community, making sure the tokenomics align with the Stader’s bold future.
The SD Tokenomics Reboot is more than just a tweak — it’s a transformation. With the Mega Burn, quarterly buybacks, and new utilities like insurance for permissioned node operators, SD is evolving to become more powerful, optimized, sustainable and utilitarian.
As Stader continues to push into new frontiers, SD will be there, at the heart of it all — powering growth, securing networks, and creating value for the entire community.
This is just the beginning. The future of SD is unfolding now.