Summary:
This proposal seeks approval from the StargateDAO to allow employees of Stargate Finance and LayerZero who were previously restricted from staking STG tokens to now participate in staking and governance. Although this proposal requires further consideration by the leadership of Stargate Foundation and LayerZero Labs (“Foundations”) on individual employment contracts and policies and is not a binding resolution, this proposal may be seen as endorsement from the StargateDAO community to remove prohibitive blocks of employee participation in governance and earning yield. This change aims to align their incentives with the broader community, enhance DAO inclusivity, and leverage their expertise for the protocol’s benefit.
Background:
Stargate Finance, launched in March 2022, is governed by STG token holders via a voting escrow system (veSTG), empowering the community to shape the protocol’s future. Historically, certain employees such as core contributors and team members were prohibited from staking STG tokens, due to lockup periods and internal policies to prevent conflicts of interest. As at April 2025, with the protocol maturing and many lockup periods nearing completion, revisiting these restrictions is timely.
Rationale:
Incentive Alignment: Allowing employees to stake STG and earn veSTG aligns their long-term interests with the community’s, fostering commitment to Stargate’s success.
Inclusivity: Expanding participation strengthens the DAO’s ethos of decentralization by including valuable stakeholders previously excluded from governance.
Expertise Utilization: Employees possess deep knowledge of the protocol. Their governance participation could enhance decision-making quality.
Precedent and Fairness: With initial lockup periods expiring, restrictions may no longer serve their original purpose, warranting equal treatment.
Proposal Details:
Eligibility: StargateDAO community may indicate support for employees previously restricted from staking STG (e.g., core contributors, operational staff) will be permitted to stake their tokens and receive veSTG.
Conditions: Participation follows standard staking rules (e.g., lockup durations of 1–36 months for veSTG). No special privileges are granted beyond those available to other STG holders.
Implementation: If approved, the Foundations may choose to update relevant policies to lift restrictions, effective after 1 June 2025.
Signals trust in employees as community members, boosting morale, employee attraction and retention.
Enhances the Stargate DAO’s reputation as an inclusive, community-driven protocol.
Risks and Mitigations:
Risk: Potential conflicts of interest.
Mitigation: Transparency in eligibility criteria and adherence to standard staking rules ensure fairness. Employees will be required to abstain from decisions where there is clear conflicts of interest
Risk: Concentration of veSTG and reduced income shares for existing stakers
Call to Action:
I request that DAO participants signal their support for this proposal by voting “Yes” or “No” on the Discourse thread below. If sufficient support is received, this will proceed to an on-chain vote via the Stargate governance process on Snapshot. Your input is vital to shaping an inclusive and effective DAO.
Poll and Discussion
Please start any comments with your current position to support or reject the proposal, followed by feedback, concerns, or suggestions below to refine this proposal. Let’s build a stronger Stargate together!.
Yes – Support allowing previously restricted employees to stake and participate in governance.
Yes - I wasn’t aware they couldn’t stake to begin with. I thought/assumed that they could do as they please with their own money from a staking pov. I understand how this would be potentially unwise during periods of vesting, but given that is over, I agree with the proposal here, including the parts disallowing voting on decisions where there are conflicts of interest. I don’t think “clear” should be a modifier used, however (“employees will be required to abstain from decisions where there is clear conflicts of interest”)
Do you know offhand how many STG team still owns that could potentially be staked?
Final version to be published on Snapshot after 21 April.
Better Together: Enabling Staking and Governance Participation for Previously Restricted Employees of Stargate Finance and LayerZero
Summary:
This proposal seeks endorsement from the StargateDAO for employees of Stargate Finance and LayerZero, previously barred from staking STG tokens, to now engage in staking and governance. Whilst this proposal requires further review by the leadership of the Stargate Foundation and LayerZero Labs (“Foundations”) regarding individual employment contracts and policies and is not a binding resolution, it may be viewed as an endorsement from the StargateDAO community to lift restrictive barriers to employee participation in governance and earning yield. This change aims to align their incentives with the wider community, enhance DAO inclusivity, and utilise their expertise for the protocol’s benefit.
Background:
Stargate Finance, launched in March 2022, is governed by STG token holders through a voting escrow system (veSTG), empowering the community to shape the protocol’s future. Historically, certain employees, such as core contributors and team members, were prohibited from staking STG tokens due to lock-up periods and internal policies to avoid conflicts of interest. As of April 2025, with the protocol maturing and many lock-up periods nearing completion, revisiting these restrictions is timely.
Rationale:
Incentive Alignment: Permitting employees to stake STG and earn veSTG aligns their long-term interests with the community’s, fostering commitment to Stargate’s success.
Inclusivity: Broadening participation strengthens the DAO’s ethos of decentralisation by including valuable stakeholders previously excluded from governance.
Expertise Utilisation: Employees have in-depth knowledge of the protocol. Their governance participation could improve decision-making quality.
Precedent and Fairness: With initial lock-up periods expiring, restrictions may no longer serve their original purpose, justifying equal treatment.
Proposal Details:
Eligibility: The StargateDAO community may indicate support for employees previously restricted from staking STG (e.g., core contributors, operational staff) to be allowed to stake their tokens and receive veSTG.
Conditions: Participation adheres to standard staking rules (e.g., lock-up durations of 1–36 months for veSTG). No special privileges are granted beyond those available to other STG holders.
Implementation: If approved, the Foundations may opt to update relevant policies to remove restrictions, effective after 1 June 2025.
Signals trust in employees as community members, enhancing morale, employee attraction, and retention.
Strengthens the Stargate DAO’s reputation as an inclusive, community-driven protocol.
Risks and Mitigations:
Risk: Potential conflicts of interest. Mitigation: Transparency in eligibility criteria and adherence to standard staking rules ensure fairness. Employees must abstain from decisions where clear conflicts of interest arise.
Risk: Concentration of veSTG and reduced income shares for existing stakers.
Call to Action:
veSTG stakers are requested to vote “Agree” or “Disagree” on the Snapshot thread below with the understanding that this is indicative only and a non-binding proposal. Your input is crucial to shaping an inclusive and effective DAO.
Agree – Support allowing previously restricted employees to stake and participate in governance.