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- Source: inbox/archive/2025-02-06-futardio-proposal-should-sanctum-implement-cloud-staking-and-active-staking-re.md - Domain: internet-finance - Extracted by: headless extraction cron (worker 5) Pentagon-Agent: Rio <HEADLESS>
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3.6 KiB
Markdown
55 lines
No EOL
3.6 KiB
Markdown
---
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type: entity
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entity_type: decision_market
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name: "Sanctum: Should Sanctum implement CLOUD staking and active staking rewards?"
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domain: internet-finance
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status: passed
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parent_entity: "[[sanctum]]"
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platform: "futardio"
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proposal_number: "CLOUD-1"
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proposal_account: "4BTTxsV98Rhm1qjDe2yPdXtj7j7KBSuGtVQ6rUNWjjXf"
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autocrat_version: "0.3"
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proposer: "proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2"
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proposal_url: "https://www.futard.io/proposal/4BTTxsV98Rhm1qjDe2yPdXtj7j7KBSuGtVQ6rUNWjjXf"
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discussion_url: "https://research.sanctum.so/t/cloud-1-should-sanctum-implement-cloud-staking-and-active-staking-rewards/1228"
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proposal_date: 2025-02-06
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resolution_date: 2025-02-09
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category: "mechanism"
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summary: "Proposal to implement CLOUD staking with 30-day vesting lockup and allocate 30M CLOUD (3% supply) to active staking rewards over six months"
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tracked_by: rio
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created: 2026-03-11
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---
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# Sanctum: Should Sanctum implement CLOUD staking and active staking rewards?
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## Summary
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Sanctum's first governance proposal (CLOUD-1) passed on 2025-02-09, implementing two mechanisms: (1) CLOUD staking with 30-day linearly vesting lockup to mitigate Keynesian beauty contest dynamics in futarchy markets, and (2) active staking rewards (ASR) allocating 30M CLOUD (3% of total supply) over six months to incentivize governance participation. The proposal explicitly frames staking as a solution to futarchy's "primary potential failure mode" and ASR as compensation for the time and effort required to participate in conditional markets.
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## Market Data
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- **Outcome:** Passed
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- **Proposer:** proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2
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- **Proposal Account:** 4BTTxsV98Rhm1qjDe2yPdXtj7j7KBSuGtVQ6rUNWjjXf
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- **Autocrat Version:** 0.3
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- **Completed:** 2025-02-09
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## Mechanism Design
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**Staking lockup:** 30-day linear vesting (~3.3 CLOUD/day per 100 sCLOUD unstaked). Designed to filter for long-term holders and reduce speculative trading in governance markets.
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**Active staking rewards formula:** `(staked CLOUD amount × time) × (number of votes participated in)`
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- Minimum participation: 10 USDC trading volume per proposal
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- Distribution: Two 15M CLOUD tranches, quarterly
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- First distribution: ~3 months after passage
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- Proposal cadence: Every two weeks (1 week deliberation + 3 day voting)
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**Implementation strategy:** Immediate staking tracking, but delayed transition to mandatory sCLOUD/USDC markets. Initially keeps CLOUD/USDC voting while building user familiarity. Plans "temperature check after a couple of votes" before requiring staked-token participation.
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## Significance
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This is the first major Solana protocol (outside MetaDAO ecosystem) to adopt futarchy for operational governance, not just fundraising. The proposal reveals production futarchy friction: complexity requires gradual rollout, liquidity requires subsidies (3% of supply), and the base Autocrat mechanism needs augmentation (staking + rewards) for real-world use.
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The design rationale explicitly addresses futarchy's theoretical vulnerabilities (beauty contest problem) through mechanism layering, suggesting pure conditional markets are insufficient for production governance.
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## Relationship to KB
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- [[sanctum]] - governance decision implementing futarchy
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- [[futardio]] - platform used for proposal
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- [[MetaDAOs Autocrat program implements futarchy through conditional token markets where proposals create parallel pass and fail universes settled by time-weighted average price over a three-day window]] - base mechanism
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- [[futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements]] - confirms friction through implementation strategy |