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.

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

• 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 2025, 11:59pm EDT, 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.