Summary

This proposal seeks to extend platform reward emissions beyond their current end date of March 31, 2025 through Q2 2025 (April 1 - June 30). The proposal maintains our quarterly cadence while preserving monthly flexibility for adjustments. The total budget of 2 million SEAM will be sourced from the short governor timelock and master emissions vesting contracts.

The proposed quarterly reward allocations are:

1. Seamless Vaults & Leverage Tokens (625,000 SEAM)

   • Incentivize growth of Seamless Vaults on Morpho
   • Support upcoming launch of Leverage Tokens

2. Legacy Lending Platform (625,000 SEAM)

   • Primarily distributed as esSEAM to incentivize long-term alignment
   • Maintain competitive yields for lenders and borrowers
   • Pending the result of this Snapshot Labs vote, these rewards may be returned to the DAO in accordance with the sunset plan timeline.

3. Safety Module (375,000 SEAM)

   • Encourage protocol security through staking incentives
   • Strengthen alignment between token holders and protocol safety

4. Strategic Growth Reserve (375,000 SEAM)

   • Flexible budget for emerging opportunities
   • Usage subject to community approval via Snapshot vote

Context and Motivation

This proposal aligns with the broader token emissions strategy outlined here. NOTE: the GP7 proposal was already discussed and approved via governance process, snapshot labs results here. As such, this current proposal will move straight to onchain governance.

The key drivers for continuing emissions are:

1. Market Timing: The current macro environment and crypto market sentiment create an opportune moment to accelerate growth and capture market share through strategic token emissions.

2. Product Evolution: Our expanding product suite - including new markets, ILMs, and innovative offerings - requires competitive incentives to drive initial adoption and sustainable usage.

3. Strategic Token Utilization: With approximately 55% of token supply reserved for rewards, front-loading emissions during this growth phase allows us to:

   • Maximize market presence and TVL capture
   • Establish Seamless as the premier lending platform on Base
   • Build toward sustainable fee generation and token value accrual
   • Create a framework for gradual emissions reduction over time

The reward schedules will be implemented based on recommendations from ecosystem partners and contributors. While this represents a maximum quarterly budget, actual emissions may be lower based on market conditions and performance metrics.

Resources & References

• Governance Discussion
• Proposal Implementation
• Built using Seamless Governance Proposals tools