[SIP #7] SUP Transferability

Proposals
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Abstract

This proposal enables transferability of the SUP token by end of November 2025, once defined Milestones are met. The proposal was drafted by the Transferability proposal Working Group and is submitted on their behalf.

SIP Type

Constitutional (modifies the SUP token)

Motivation

Progress the protocol’s decentralization through enabling transferability of SUP.

Key Terms

  • SUP - The Superfluid governance token.
  • Security Council - A committee who are signers of a multi-sig wallet, which has powers to perform certain Emergency Actions and Non-Emergency Actions.
  • Transferability - A smart contract function that, once enabled, defines the conditions for SUP tokens to be withdrawn from Reserve contracts.

Rationale

  • Transferability of the SUP token allows new stakeholders to join the DAO and aligns Superfluid with other mature governance systems in the Ethereum ecosystem.
  • It’s in the long term interest of DAO to ensure that Transferability occurs after defined Milestones are met.

Transferability Milestones

This proposal defines 7 Transferability Milestones listed below and requests the Superfluid Foundation to coordinate their completion by end of November 2025.

Milestones marked :white_check_mark: are deemed to have been completed
Milestones marked :stopwatch: are deemed work-in-progress

:white_check_mark: Distribution – SUP distributed via SPR, +8% of supply to +40k DAO members so far
:stopwatch: Utility – Voting is live, Rewards are live, Staking to go live, Feesa not a v1 milestone
:stopwatch: Liquidity – Initial liquidityb for SUP to be bootstrapped
:white_check_mark: Security – SUP Reserve mechanism audit completed
:stopwatch: UX – Comms and UX to be ready for transferability
:white_check_mark: Governance – Forum is active, Voting exceeds 1000 members
:white_check_mark: Macro – Market sentimentc neutral or higher for 2 consecutive weeks

Notes on Milestones:
a. Utility - Protocol v1 has no fees. v2 most likely will have fees which will accrue to the DAO
b. Liquidity - Foundation to ensure adequate funding available for healthy SUP market dynamics through means such as: allocating portion of Foundation’s SUP allocation for liquidity providers, engaging market makers, coordinating liquidity deployment with transferability and initiating SUP emissions to liquidity providers or market makers
c. Macro - Leading indices include EF, CMC, CG

Steps to Implement

1. DAO - This proposal falls under a Constitutional vote, requiring 5% Quorum, to be executed as prescribed by the Constitution.

2. Superfluid Foundation - Upon successful passage, the Superfluid Foundation is requested to coordinate execution of outstanding Milestones and instruct the Security Council to execute SUP Transferability by end of November 2025.

3. Security Council Execution - Execute Transferability

Timeline

  • DAO Vote
    • Day 0: Call for voting lasting 7 days
    • Day 7: DAO votes on Snapshot, lasting 14 days
    • Day 21: Voting ends and if successful a 7 day waiting period follows
  • Milestones completion coordinated by the Foundation
  • Execution by Security Council by end of November 2025.

Overall Cost

Any incremental costs incurred by the Foundation for execution of outstanding Milestones will be duly communicated by the Foundation.

30 Likes
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Very interesting, I think the distribution is consistent

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My position on SIP: Transferability SUP

Pros:
– Transferability of SUP will attract new investors and speculators.
– Liquidity and market interest will increase.
– It sends a clear signal to the community that the project is finally moving forward and the waiting was worth it.

Cons:
– Risk of sell pressure at the start, before SUP has full utility.
– Lack of staking at the time of implementation weakens the token’s value.
– Timing is still somewhat of a gamble, since it depends on overall market conditions.

Conclusion:
I believe it’s still too early to enable transferability. Staking and stronger liquidity should come first — then the effect will be much healthier for the entire ecosystem.

5 Likes
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:mega: Voting for SIP #7: SUP Transferability is now live on Snapshot

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Thanks for putting this up @dopamino and to the other members of the Transferability Proposal Working Group.

Just to highlight here that enabling staking and bootstrapping initial liquidity for the SUP token are part of the key milestones that must be met before transferability is enabled. See below:

Bearing in mind that the proposal post is notably concise, these details may be easily glossed over. Just highlighting here to make sure it’s clear to the entire community that transferability will only be enabled once staking is active, adequate liquidity is provided for the SUP token, and the other milestones outlined in the proposal are met.

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At first I was completely against it but now in accordance with milestone, it seems better to see it. Well I am not in full(100%) favor of it. I think it’s good think as we can’t wait for too long and take actions according to conditions

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I’m in favor of $SUP transferability as the market is looking fairly good for Q4.

My main concern is that there should be more staking / token sink opportunities to prevent sell pressure from the rewards flows.

But would be a great milestone for the protocol! :muscle:

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Hello everyone,

Thanks @corbin for reopening this important topic! I agree that $SUP transferability could be a strong milestone for the ecosystem, especially with Q4 market conditions potentially aligning in a favorable way.

That said, I believe a few key design considerations need to be addressed before full transferability is enabled:

  1. Selling pressure from reward emissions
    Once $SUP becomes transferable, tokens distributed via incentives (staking, farming, liquidity mining, etc.) could flow directly to secondary markets. Without mechanisms to absorb or redirect this liquidity, the token could face downward pressure and speculative volatility.
  2. Retention and utility mechanisms
    To counterbalance this, it’s essential to design token-economic sinks and long-term incentives, such as:
  • Staking with lockups or bonding → longer commitments should be rewarded with boosted yields or governance power, aligning tokenholder incentives with protocol growth.
  • Protocol-owned liquidity (POL) → part of emissions could be directed into building sustainable liquidity pools owned by the protocol, rather than fully depending on mercenary liquidity.
  • Token sinks and utility → examples include partial fee burns, fee redirection in $SUP, or unlocking access to premium features / governance rights within the Superfluid ecosystem.
  • Liquidity incentives with vesting → distributing rewards with linear unlocks to smooth selling pressure.

In short: transferability is a strong step forward, but should go hand-in-hand with tokenomics that preserve long-term value and align incentives. I’d be happy to brainstorm around staking models, token sinks, or POL strategies to make $SUP both transferable and resilient.

Excited to see where this discussion leads — thanks again for initiating it!

5 Likes
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The following reflects the views of the Lampros DAO governance team, based on our combined research, analysis, and ideation.

We’re voting FOR SIP-7.

This fixes the gaps from the earlier attempt. It sets a clear window and makes the unlock conditional on real work being finished first. We support this structure because it moves the DAO forward without rushing execution.

We agree. Making SUP transferable is the right long-term move. It will open the door to broader participation and real market integrations, which is important for Superfluid’s growth.

Ordering the milestones this way is sensible. Staking and initial liquidity before the switch should reduce early sell pressure and help price discovery. We support this. A simple public tracker of milestone status until the unlock would help the community follow progress.

Clear roles and process are important. We are in favor, and we ask for a short readiness note before execution (what’s done, what’s pending, and the go-live plan). That will keep expectations aligned across the DAO.

It is good to watch external signals. We also suggest publishing a few internal indicators before the final switch, such as a basic holder distribution view and recent governance participation. This will help the DAO judge readiness beyond market mood.

We are voting FOR SIP-7. It advances decentralization with guardrails, puts real utility and liquidity in place before the unlock, and gives a firm window for execution. We believe this is in the best interest of Superfluid and its users.

1 Like
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Thanks everyone who participated in the vote for [SIP #7] SUP Transferability.
Voting period has ended.
The proposal passed with 99.85% votes for.
Results available here on Snapshot.

Screenshot 2025-09-03 at 23.48.51
Screenshot 2025-09-03 at 23.48.511872×972 107 KB

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hi @dopamino , Any update’s on transferability and milestone’s ?

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Implementation update:
:stopwatch: Utility - SUP Reserve Staking is live now (see SIP #8 discussion)
:stopwatch: Liquidity - wip
:stopwatch: UX - wip

Will update on these in due course.

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Is it like this dopamino

Utility-:white_check_mark:

Liquidity provision-to go live on transferability (:white_check_mark:)

ux- :stopwatch:

only ux in the milestone in progress ?

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Congrats on SUP Reserve Staking going live. Really smooth UX!

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Am i right @dopamino

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Hi @imran

We are on track for Transferability of the SUP token by end of November 2025, in line with this SIP.
The 7 Transferability Milestones defined above will be live/completed at Transferability. 4 of these are complete. These 3 are work in progress:

:stopwatch: Utility – Voting is live, Rewards are live, Staking is live, Fees not a v1 milestone. Additionally, Reserve LP option, as defined in SIP 8 here, is work in progress and due to go live at Transferability.

:stopwatch: Liquidity – Initial liquidity for SUP to be bootstrapped

:stopwatch: UX – Comms and UX to be ready for transferability

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How are we doing on the timeline? I think stakers who were early should receive some sort of bonus when the soft unlocks comes off in a few weeks here. A addition to be able to transfer stake to a new wallet could be added as well for those of us who are going to hodl SUP token in a cold wallet.

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SUP Transferability was executed in line with this proposal.

Blog post: HERE
Twitter/X announcement: HERE

Thanks again to everyone who contributed to the discussions, working group, proposal and vote, which made it happen!

5 Likes