This SIP proposes lifting the current transfer restrictions on the SUP token, enabling holders to freely send, receive, and trade SUP in accordance with ERC-20 standards. The goal is to align SUP with common DAO token practices, unlock ecosystem utility, and promote broader participation.
2. Type
Constitutional
3. Motivation
Currently, SUP token transferability is restricted, limiting utility, exchange access, and broader adoption. As the Superfluid ecosystem matures beyond Season 1, it is essential to unlock SUP transfers to support governance legitimacy, increase visibility, and empower the community to use SUP more freely across DeFi protocols and platforms.
4. Rationale
This SIP supports the Superfluid community’s mission of progressive decentralization, user empowerment, and protocol sustainability. Token transferability is a fundamental step in DAO maturity and is necessary to:
Enable token mobility for users and developers
Allow participation in secondary markets
Expand integrations across Web3 tools, wallets, and exchanges
Attract deeper liquidity and institutional interest
By making SUP transferable, we further align the protocol’s structure with successful decentralized models while retaining compliance and control safeguards.
5. Key Terms (optional)
Transferability: The ability for a token to be freely transferred between wallet addresses without permission or restriction
Votable Tokens: SUP tokens eligible for DAO voting, excluding foundation-held, treasury-locked, and custodial holdings without delegation
6. Specifications
Remove or disable smart contract-level transfer restrictions on SUP
Ensure compatibility with governance systems such as Snapshot
All changes must maintain SUP’s ERC-20 standard
Optional: Phase rollout via allowlist or progressive unlock if needed for risk management
Coordinate with The Superfluid Foundation for compliance verification
7. Steps to Implement
DAO approves this SIP via Snapshot with sufficient quorum
The Superfluid Foundation conducts final legal and compliance review
Smart contract upgrade or configuration change to enable transfer functionality
Update documentation across GitHub, Superfluid Docs, and governance portal
Inform centralized exchanges (if applicable) and token trackers (e.g., Etherscan)
Community comms campaign to announce transferability and next steps
8. Timeline
Step
Timing (Relative)
Notes
SIP Published
T0
Forum post and Snapshot link live
Voting Window (Snapshot)
T0–T+14 days
Per Constitutional SIP rules
Mandatory Wait Period
T+14–T+21 days
Constitutional SIP delay
Token Transferability Enabled
~T+21 days
After legal/tech implementation
9. Overall Cost
No direct token expenditure is expected. If legal or technical costs arise (e.g., audits, engineering), they will be proposed separately under a Non-Constitutional SIP.
Usually this movement (enable transferability) is made in tandem with liquidity provision and more clarity around token utility. I don’t see any mention of this in the current proposal. Do you have more information about those other inititiaves or are you focusing solely on unlocking transferability?
If the latter is the case, I would like to suggest the DAO to start discussing the other topics while considering the current proposal.
I invite community members, delegates, and representatives of the Foundation to engage in the discussion so we may vet and plan a comprehensive transferability rollout.
Agree with the rationale of this proposal but timing and details seem to be putting the cart before the horse.
Considering importance of transferability, prefer the approach to “prepare visibly first, then authorize with confidence” - quoting @Kaf_StableLabhere.
SUP Transferability: Planning Discussion thread already started positive contributions on transferability preparation. Look forward to seeing that discussion progress.
@dopamino, I fully agree with the idea of “preparing visibly first, then authorizing with confidence.”
That said, it’s difficult not to notice that while contributors are actively participating, there’s limited visible progress from the core team and moderators toward making transferability a reality. Instead, the focus appears more on accumulating SUP than enabling its utility.
SIP-5 is not about rushing, it’s about giving the DAO a clear mandate to move forward when readiness aligns. I look forward to working together on a well-coordinated and transparent rollout.
Enabling transferability, without having needed topics discussed and steps cleared out, seems like a rushed approach that probably hurts the project more than it benefits. First the discussion openend by @graven should take place imho
While I support the motive of this movement, the current proposal lacks several details. Specifically, it needs a more thorough plan for liquidity management, a clearer outline of the technical steps involved in the token upgrade, and a deeper analysis of potential price fluctuations and market-making requirements.
These gaps could lead to governance capture over time, as there’s little clarity on how these aspects will be handled. This also introduces risks related to sudden market movements and wallet concentration.
Another point to consider is that we’re currently in the middle of the SUP distribution season. With engagement on the rise, a change like this could significantly alter the dynamics of SUP incentive rewards.
This proposal needs a more in-depth analysis, with a clear outline of how, the pros and cons. If needed, I know some folks at Karpatkey who could contribute valuable insights to help us better understand the implications, if needed.
