Summary
This proposal recommends transitioning StaFiHub’s validator set to a permissioned model, with a phased reduction over one year. Additionally, it proposes returning the remaining FIS allocated for validator incentives to the StaFi DAO Treasury.

Abstract
With the launch of LSaaS, rTokens on StaFiHub are being migrated to Neutron and restructured within the LSaaS framework. Migration plans for all rTokens are already in place, and StaFiHub itself has a clear roadmap toward full migration.

To support this transition, we propose moving the StaFiHub validator set to a permissioned model. This approach will ensure a smooth winding down of remaining rTokens and enable a controlled phase-out of validators. Over the next month, the validator will be operated by the StaFi team. After three months, any unstaked assets will be offboarded, alongside the scheduled discontinuation of FIS staking rewards.

Problem
Most rTokens have already migrated from StaFiHub, yet validators continue to operate and receive FIS rewards. This ongoing issuance contributes to unnecessary FIS inflation and sustained sell pressure on the token — despite the network’s diminishing economic activity.

Rationale
To accelerate StaFiHub’s migration and reduce FIS emissions, we propose transitioning to a permissioned validator model, operated by the StaFi core team. The total value of rTokens remaining on StaFiHub is approximately $18,000 — a relatively low amount. However, hundreds of thousands of unclaimed FIS rewards remain pending.

Given the small asset base, shifting to a permissioned setup introduces minimal security risk. The core responsibility will be to process remaining user unstaking requests, not to maintain an active or decentralized network.

By returning the unused validator incentives to the DAO Treasury, we reduce unnecessary FIS emissions, ease sell pressure, and support a healthier token economy.

Conclusion
We invite feedback and questions from the community. By moving to a permissioned validator model and ending FIS rewards on StaFiHub, we can:

• Facilitate a clean and efficient rToken migration
• Minimize inflationary pressures on FIS
• Return unused funds to the DAO Treasury
• Align with long-term sustainability goals

This change represents a proactive step toward preserving value for FIS holders and closing the StaFiHub chapter responsibly.

Vote
For: Support the proposal for transitioning to a permissioned model and discontinuing validator rewards.
Against: Do nothing.

Please read the full proposal here.