Staking Rewards Extension & Transition Toward Programmatic Protocol Revenue Sharing

Token House
1

Summary

This proposal seeks community approval to launch a new staking rewards phase, following the conclusion of the first one (OIP-1).

The updated schedule introduces two months of streamed rewards (until mid-January 2026) at a rate of 137,500 OBOL per month.

The purpose of this second phase is to ensure continuity while preparing to transition from pre-allocated rewards to a programmatic revenue-sharing model for the OBOL token.

As Obol’s network and Total Value Staked (TVS) continue to grow rapidly, this next phase will align stOBOL yield with real network activity and value creation. Stakers will get direct exposure to the fees generated by the protocol.

Context

Since Q2, total value secured by Distributed Validators using Obol has grown from ~1.2 B USD to more than 3.2 B USD, marking a major step forward for the protocol. More info on the state of our Ecosystem in our recent Ecosystem Report.

As this growth compounds, we believe it’s time to begin reinjecting a portion of this economic activity back into the OBOL token economy.

The current staking rewards bucket, approved under OIP-1, will end on November 16, 2025. Without renewal, staking rewards would stop streaming, interrupting stOBOL yield and breaking the continuity of the staking program just as the network enters its next stage of adoption. We believe the continuity is important to keep the amount of OBOL staked increasing and allowing programmatic revenue sharing with the maximum number of ecosystem members.

Proposal

We are proposing to:

  • Introduce a new phase of staking rewards for two months (Nov 16 → Jan 17 approx.)

  • Stream rewards at a rate of 137,500 OBOL per month (half the OIP#1 rate)

  • Use this period as a bridge toward the introduction of programmatic revenue-sharing mechanisms for stOBOL holders

This second phase ensures staking remains active and uninterrupted while Obol finalize the design of sustainable, yield-backed accrual systems.

Transition to Programmatic Revenue Accrual

Obol is preparing to evolve from pre-allocated reward distributions to revenue-driven token economics, where staking yield reflects protocol usage and validator activity rather than scheduled reward streams.

This transition begins now. The staking program acts as a bridge toward future revenue-sharing mechanisms that will align stOBOL returns with real network performance.

We plan to present detailed revenue-sharing models for feedback in the next few months, ensuring technical soundness, and alignment with the upcoming regulation changes in the US.

In this model, staking OBOL represents securing yield from real Ethereum validation revenue.

Why Now

  • Network maturity: Obol’s validator ecosystem is scaling fast; maintaining staking continuity sustains confidence in the token’s role and amount of staked OBOL.

  • Pendle integration: The recent launch of the stOBOL market on Pendle has introduced on-chain yield composability. Maintaining staking rewards during this early phase supports market stability and liquidity.

  • Narrative alignment: The broader market is rewarding protocols that connect token yield to real network activity; this proposal positions OBOL on that trajectory responsibly.

This proposal is also an opportunity to signal Obol’s intent to move toward sustainable, value-accruing token mechanics. As we finalize the technical and legal parameters for programmatic revenue sharing, this next phase keeps incentives aligned with network growth and the collective’s long-term vision.

Implementation & Authority

If approved:

  • Rewards continue automatically at the new rate from November 16.

  • The Obol Association may, if necessary, extend the same stream for up to six months total if revenue-sharing mechanisms are not yet live.

  • Any such extension will be transparently communicated to the Collective in advance.

Next Steps & Timeline

  • Discussion: Oct 23 → Oct 30

  • Adjustments based on feedback: Nov 1 → Nov 5

  • Target vote date: Nov 6 (on-chain via Tally)

  • New reward stream start: Nov 16

We invite all delegates and community members to provide feedback, discuss the proposed transition, and help shape the next chapter of OBOL’s token utility.

5 Likes
2

As an Obol delegate I support the proposal!

3

The bridge period and the transition to the rev-share mechanism make sense. This is a clear signal that the Obol Ecosystem is maturing!

4

I support this proposal.

1 Like
5

I support this proposal.

1 Like
6

We support this proposal. We view this as a thoughtful step toward a more mature, value-accruing token model.

Maintaining staking continuity during Obol’s transition to a revenue-sharing model is the right step to preserve network momentum and staker confidence. The proposed reduction in the reward rate demonstrates a responsible approach to emissions. At the same time, the two-month bridge period provides the time needed to design and implement sustainable, yield-backed mechanisms.

Obol’s rapid growth and the emergence of stOBOL integrations (e.g., Pendle) highlight the importance of aligning incentives with validator activity and real network revenue. This proposal ensures alignment without disrupting ongoing participation.

1 Like
7

I support this proposal. It’s a thoughtful and necessary bridge toward sustainable, revenue-based staking. The reduced reward rate reflects a responsible approach to emissions, while maintaining continuity reinforces confidence in Obol’s long-term vision. As integrations like stOBOL on Pendle emerge, aligning yield with real validator activity is exactly the right direction for the ecosystem.

1 Like
8

I personally support this, sounds like a sensible step towards mature and sustainable tokenomics.

What I would like a little bit more context on would be data points from other protocols regarding reward rates. While “half” sounds directionally right, I am sure there has been some research done that would be informative to share and eliminate the risk of dropping rewards too sharply while the protocol is still growing.

That being said and believing this info will become available in next few days, and seeing big support so far, I’d be willing to then move forward as well:
I am an Obol Delegate Tally profile with sufficient voting power, and I believe this proposal is ready to move to a vote.

1 Like
9

I support this proposal as a delegate but also question the reasoning as to why reducing to half now is beneficial? Also what is proposed for revenue sharing and when this is planned? Understanding this may interest potential investors.

10

What percentage of tokens in the treasury is 137,500 OBOL?

11

As far as I remember, the interest rate was supposed to be adjusted depending on the number of delegations.

Okay. What do we have in the end? The development of the ecosystem is in full swing. This is amazing. The number of new delegations is very small. In this regard, a decision is made to reduce it by 50% for a second period lasting 6 months or less. Let’s hope that the transition period will lead us to the light.

12

Thanks for working on this proposal to address the transition period between the issuance-based and revenue-based staking phases. I am supportive of this proposal for 3 reasons:

  1. Keeps staking participation high going into the activation of the revenue sharing mechanisms so that (i) the max number of holders can realise the full potential of this new phase of the Collective and (ii) the volatility of $OBOL is contained during the transition period
  2. Creates a buffer for the Obol Association to test and tune the new revenue-based staking mechanisms
  3. Halving the issuance rate mentally prepares stakers for the weaning off of issuance-based rewards

I am an Obol Delegate Tally profile with sufficient voting power, and I believe this proposal is ready to move to a vote.

1 Like
13

I support this proposal, and see it as a critical and well-reasoned bridge to Obol’s next phase of token utility. The two-month rewards extension provides essential continuity, which is vital for maintaining staker confidence and supporting ecosystem stability, especially following the recent Pendle integration.

More importantly, this proposal formalizes the necessary transition from pre-allocated emissions to a sustainable, revenue-driven “real yield” model. This shift is perfectly timed. As the team has noted, network TVS is not just growing, it’s “snowballing”, moving from $1.2B to $3.2B in just a few months. This impressive growth is already generating tangible protocol revenue (with current TVS, estimated at ~$1M/year from the 1% fee on validator rewards). This proposal provides the necessary runway to finalize the revenue-sharing mechanisms that will allow OBOL stakers to directly benefit from this real, compounding network success.

I am an Obol Delegate Tally profile with sufficient voting power, and I believe this proposal is ready to move to a vote.

1 Like
14

Thanks everyone for the feedback and the strong support. It’s encouraging to see that people understand how this phase benefits Obol as a whole as we move into a more mature stage, where both TVS and protocol revenue are starting to compound. This growth will open the door to many exciting things we can do next.

As per OIP-1, the original design already aimed for a dynamic model where staking yield naturally decreases as more OBOL gets staked. Today, with the current amount of staked OBOL and an effective APY still around 35%, the yield is significantly higher than what makes economic sense given the scale of staking activity. By reducing the rate, we believe we can still see growth in stOBOL while keeping yields meaningful.

For context, 137,500 OBOL represents only 0.0275% of total supply per month. Even if the total stOBOL were to quadruple, the resulting yield would remain attractive (around 4–5%).

On timing two months might not be enough to complete the full design and review of the new accrual mechanisms, which is why the proposal allows the Association to extend this same reward stream for up to six months only if needed. The goal is to bridge the gap while we finalize models that are both technically feasible and legally sound, and that can evolve in phases rather than all at once.

Finally, as mentioned in our broader governance update, we’re committed to communicating more frequently and transparently, but also with the flexibility needed in a fast-changing regulatory environment. The intention is to keep everyone informed, work together as we go, and progress together toward a sustainable, long-term token model.

Really glad to see the alignment here. As we meet the required number of approvals from top delegates, I’m happy to announce that this proposal will be moving on to a vote by the end of next week, as required per the three week cycle.

3 Likes
15

I’m very much in support

16

Could you please explain why you say that TVS is growing rapidly? On June 30, the TVS was 700,462 ETH, and now it’s 723,330. That’s only about a 3% increase over several months.

17

I echo with other delegates and will vote in favor!

The proposal ensures continuity for stakers while the DAO transitions toward a sustainable, revenue based model.

Maintaining staking rewards during this short bridge phase is important for market stability and community confidence, especially after the recent Pendle integration.

Also keeping yield active in this early stage helps the Pendle market maintain liquidity and stable pricing, reinforcing Obol’s position as a real infrastructure protocol with an actively used DeFi product.

I am an Obol Delegate Tally profile with sufficient voting power, and I believe this proposal is ready to move to a vote.

18

Could you share your source please?

19

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They added it to DefiLlama yesterday, so now the TVL looks even smaller:

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1 Like
20

Thanks, with this information I’d be curious how Obol justifies this framing: