- Author: Brennan Mulligan (General Manager, RareDAO Foundation)
- Status: Voting
- Type: Protocol Development
- Implementer: RareDAO Foundation
- Sponsors: Charles Crain
- Proposal link
- Created Date: September 4, 2025
Background & Motivation
In August 2023, v1 of Rare Staking was deployed following community approval of SIP-16. While the model for automated revenue diversion and peer-to-peer curation was very innovative, it was also very rigid. This made the system difficult to evolve and expensive to adapt as the L2 landscape developed. Recently, through use of the Network Engagement Fund approved in SIP-15, RareDAO Foundation announced Rare Staking v2, with a streamlined onchain structure and reward model.
We propose the marketplace smart contract be upgraded so that it will no longer send 1% of each purchase (33% of the network fee) to the seller’s staking pool, if one exists. This will allow us to focus more resources on the sustainability of Rare Staking v2, which provides a more complete framework for passing on value created by the network to participants. The curation staking smart contracts will remain fully operational, and we are committed to maintaining accessibility via a front end which ensures users may continue to stake, claim, or unstake along with other core protocol functioality.
Specification
Since the passage of SIP-16, 1% of the purchase price is automatically diverted on any transaction where the seller has a v1 staking pool. This amount is set by the stakingFeePercentage parameter. In order to end revenue diversion, the DAO Council will call the setStakingFeePercentage function on the MarketplaceSettingsV3 contract (etherscan) with a value of 0.
This is the only change required for the execution of this SIP. As mentioned above, all other smart contract functionality for the staking system will remain intact, meaning users will be able to continue staking, unstaking, claiming, and conducting reward swaps as normal. A streamlined UI for contract interaction will be maitained by RareDAO Foundation and SuperRare Labs for this and other core protocol contracts allowing continued, and in some cases, even more advanced access to protocol functionality.
Benefits
- Most funds currently being diverted from the marketplace to the curation staking system are going unclaimed, reducing overall economic efficiency of the DAO.
- Ending the flow of rewards to curation staking will allow us to use those funds more efficiently in other areas, increasing sustainability of the DAO as a whole as well as Rare Staking v2 in particular.
Drawbacks
- For any users that do still actively use the staking protocol, this will result in a net loss of rewards. However, given the difference in reward issuance between curation staking and the new system, this loss, proportionally, is very small.
Implementation
Upon approval of this proposal, RareDAO Foundation will assist the DAO Council in executing a transaction to call setStakingFeePercentage with a value of 0 on the marketplaceSettingsV3 contract (etherscan).
