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Standard Proposal by 0xeb...26ed

Adjust CYBER Staking Incentives for Q1 2026

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1. Summary

This proposal recommends setting the CYBER staking incentive for Q1 2026 at 100,000 CYBER, compared to 200,000 CYBER in Q4 2025, in order to maintain a balanced and sustainable staking yield.

Objectives:

  • Maintain a competitive staking APY
  • Improve treasury sustainability
  • Reflect the decline in total staked CYBER
  • Support continued growth of Surf and the broader ecosystem

2. Background

In Q4 2025, Cyber DAO allocated 200,000 CYBER toward staking incentives, at a time when approximately 4.4 million CYBER were staked.

As of now, total staked CYBER has decreased to approximately 2.5 million CYBER, directly affecting APY and incentive efficiency.

At the same time, Cyber’s product ecosystem continues to expand, particularly Surf. Treasury strategy should balance staking incentives with ecosystem growth priorities.


3. Rationale

Reduced Staked Supply

With fewer tokens staked, the same reward level would produce an outsized APY relative to intended emissions policy. Reducing incentives helps normalize returns while preserving competitiveness.

Treasury Sustainability

Lower emissions:

  • Reduce dilution pressure
  • Extend treasury runway
  • Increase flexibility for product-driven incentive programs

Strategic Alignment

Cyber is prioritizing network usage and liquidity expansion via Surf. Aligning treasury expenditure with ecosystem growth creates more durable value for CYBER holders.

APY Calibration

Even at 100,000 CYBER for Q1 2026, the resulting APY is expected to remain competitive relative to prior quarters, given the smaller staking base.


4. Specification

Proposed Incentive Levels

QuarterIncentive BudgetProjected APY
Q4 2025200,000 CYBER18%
Q1 2026 (proposed)100,000 CYBER16%

APY numbers are estimates based on current/at time staking levels and may vary with changes in total staked CYBER.

Distribution:

  • Rewards remain proportional to staked balance
  • Period: January 1, 2026 – March 31, 2026

5. Impact Assessment

Expected benefits:

  • Sustains competitive APY levels
  • Improves capital efficiency
  • Reduces token emissions
  • Reinforces long-term treasury health
  • Maintains security and governance alignment through staking participation

6. Conclusion

Given the decline in total staked CYBER from approximately 4.4 million to 2.5 million and the DAO’s intention to balance APY competitiveness with treasury sustainability, allocating 100,000 CYBER to staking incentives for Q1 2026 represents a prudent and strategically aligned adjustment.

Voting activity
FOR - 64,278
AGAINST -
Quorum 137,335

Threshold 51%

DEFEATED

Ended 4:01 pm Jan 06, 2026
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