Summary:
This proposal introduces Parallel Tokenomics v2.1, an evolution of Tokenomics v2.0 (PIP-46) that replaces the current sPRL2 contract with a new version depositing directly into Balancer, migrates the staker fee distribution rail from PAR on Polygon to USDp on Base, and reduces the unclaimed-rewards window from 12 to 6 epochs.
Context:
Tokenomics v2.0 has been live for one year and the core design, epochs, sPRL1 / sPRL2 dual staking, ParaBoost, the 1-epoch unstaking cooldown, the linearly-decaying 50% early-unstake penalty, and the 15% staker fee share does not need to change. v2.1 is a focused upgrade that addresses two external constraints and a handful of operational improvements that have surfaced after one operating cycle:
- The first constraint is Aura Finance shutting down. Balancer is winding down veBAL, and Aura, whose entire model is built on top of veBAL, has announced it will follow suit. The current sPRL2 contract deposits the 80PRL/20WETH BPT into Aura under the hood, with BAL and AURA rewards routed to the DAO Treasury. As Aura sunsets, this deposit path can no longer accept new principal and the existing position must be unwound. Without a replacement, sPRL2 stops functioning as designed.
- The second constraint is sPRL1 traction on Polygon PoS and Sonic. The four-chain v2.0 deployment split a small staker base across networks that have not generated enough activity to justify the ongoing maintenance, audit surface, and per-epoch fee-distribution overhead.
Rationale:
This proposal addresses both items in a single coordinated change, alongside operational improvements (fee-distribution rail, claim window) that depend on the same multisig keeper run.
I. sPRL2 v2: Direct Balancer Deposits
A new sPRL2 contract (sPRL2 v2) will be deployed that deposits the 80PRL/20WETH BPT directly into Balancer, eliminating the Aura intermediary. The user-facing mechanics are unchanged: same BPT, same x2.5 voting boost on the equivalent PRL value, same 1-epoch cooldown, same penalty curve, same ParaBoost accumulation rules.
Chain deployments: Ethereum and Base. The Base deployment is new versus v2.0 and reflects the chain’s growing share of PRL liquidity since the V3 launch.
II. sPRL2 v1: Sunset & Migration
The existing sPRL2 v1 contract will be sunset alongside Aura’s wind-down:
- A dedicated migration contract will let sPRL2 v1 holders move their position to sPRL2 v2 in a single transaction, with no penalty and no loss of accumulated ParaBoost.
- The sPRL2 v1 staking interface will be removed from the frontend. The app will only continue to surface sPRL2 v1 to users with an existing balance, and only as a migration entry point to sPRL2 v2 — not as a stake-in path for new principal.
III. sPRL1: Consolidation to Ethereum and Base
sPRL1 will be maintained on Ethereum and Base and sunset on Polygon PoS and Sonic, where staker traction has been insufficient to justify the recurring cost. Holders on the sunset chains will be able to withdraw without cooldown and without penalty. No migration path is offered, users who want to continue staking single-sided PRL can re-stake on Ethereum or Base after bridging via the Bridging Module.
IV. Fee Distribution: From PAR/Polygon to USDp/Base
Tokenomics v2.0 routes the 15% staker share of protocol fees through PAR on Polygon PoS. With Parallel V2 winding down and PAR’s role in the protocol diminishing, this rail no longer makes sense.
Under v2.1:
- PAR distribution on Polygon PoS is shut down. Polygon is removed as the fee distribution chain.
- USDp on Base becomes the new fee distribution rail. The 15% staker share generated from Parallel V2 revenues will be routed to the DAO Keeper Multisig, swapped to USDp, bridged to Base, and forwarded to the mainFeeDistributor on Base.
This change composes cleanly with PGP-42, which redirects the sPRL PAR distribution to a 3-month PRL buyback-and-burn program. PGP-42 commits the redirect to end automatically after 3 months, with outcomes folded into the Phase III review under PGP-40. v2.1 sets the destination for that resumption: when PGP-42’s redirect ends, the staker share resumes, denominated in USDp on Base under the v2.1 rail without requiring a separate vote.
V. Claim Window: 12 → 6 Epochs
The maximum window during which stakers can claim accrued rewards before they are returned to the DAO Treasury is reduced from 12 epochs (≈12 months) to 6 epochs (≈6 months). The original 12-epoch window was set conservatively at v2.0 launch; one cycle of operating data shows that virtually all active stakers claim well within 6 epochs, and the longer window unnecessarily delays treasury reconciliation.
VI. Profit-Sharing Eligibility
Balances held in sunset contracts will be excluded from the monthly USDp profit-sharing distribution:
- sPRL2 v1 on Ethereum
- sPRL1 on Polygon PoS
- sPRL1 on Sonic
This incentivizes holders to migrate (sPRL2 v1) or withdraw (sunset sPRL1 chains) rather than passively continue accruing claims, and prevents the accounting layer from carrying legacy contract state indefinitely.
VII. Audit
The v2.1 contract suite will be audited by Bail Security for a fee of $10,000 USD paid from the DAO Treasury. The audit will start on May 18, 2026. Scope of the v2.1 audit:
- sPRL2 v2 contract (Balancer-direct deposit)
- sPRL2 v1 → v2 migration contract (1-click, ParaBoost-preserving)
Findings will be fixed by Cooper Labs before mainnet deployment, and the final report published in the documentation.
Means:
- Human Resources: Cooper Labs handles contract development, keeper modifications, and frontend changes. Multisigners will need to sign and execute the deployment, parameter, and keeper-update transactions described in Technical Implementation.
- Treasury Resources: $10,000 USD for the Bail Security audit to be paid to Cooper Labs. No other treasury allocations are requested by this proposal.
Technical Implementation:
The DAO Multisig will:
On Ethereum:
- Deploy the sPRL2 v2 contract (Balancer-direct deposit, 80PRL/20WETH BPT)
- Deploy the sPRL2 v1 → v2 migration contract
- Set the unstaking cooldown on the sPRL2 v1 contract to zero and remove the early-unstake penalty
- Update the profit-sharing accounting to exclude sPRL2 v1 from the monthly USDp distribution
- Update the claim window parameter from 12 to 6 epochs
On Base:
- Deploy the sPRL2 v2 contract (Balancer-direct deposit, 80PRL/20WETH BPT)
- Update the profit-sharing accounting to exclude sunset contracts from the monthly USDp distribution
- Update the claim window parameter from 12 to 6 epochs
On Polygon PoS:
- Set the unstaking cooldown on the sPRL1 contract to zero and remove the early-unstake penalty
- Wind down the PAR fee-distribution rail at the end of the deployment epoch
- Update the profit-sharing accounting to exclude sPRL1 (Polygon) from the monthly USDp distribution
On Sonic:
- Set the unstaking cooldown on the sPRL1 contract to zero and remove the early-unstake penalty
- Update the profit-sharing accounting to exclude sPRL1 (Sonic) from the monthly USDp distribution
Voting Options:
- For Tokenomics v2.1
- Against / Rework the Proposal
- Abstain
Author(s): Cooper Labs
Community poll:
- For Tokenomics v2.1
- Against / Rework the Proposal
- Abstain