> For the complete documentation index, see [llms.txt](https://docs.summer.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.summer.fi/lazy-summer-protocol/governance/rewards.md).

# Rewards

Under Governance V2 and Staking V2, SUMR rewards are organized around **staking** and **active governance contribution**, not the retired V1 voting-power-decay model.

### 1. Staking rewards (dual-stream)

Staking SUMR in **Staking V2** earns two reward streams:

* **SUMR emissions:** additional SUMR from tokens earmarked for community distribution. Emissions are extended periodically by governance (e.g. [\[SIP3.19\]](https://forum.summer.fi/t/sip3-19-extend-sumr-v2-staking-sumr-rewards-june/846)). Locking your stake applies a multiplier that increases your share.
* **USDC-denominated LV vault tokens:** a share of protocol revenue routed to stakers (currently \~20% of protocol yield). These arrive as yield-bearing LV tokens that auto-compound in the underlying vault (USDC LR on Base) and are typically distributed monthly via Merkl (e.g. the recurring [\[SIP3.13.5\]](https://forum.summer.fi/t/sip3-13-5-sumr-staking-v2-usdc-payout-may-2026/837) payouts).

See the Staking page for lock durations, multipliers, and capacity limits.

### 2. Delegate rewards (treasury-funded)

Active delegates are compensated through the **Delegate Rewards Framework V2** ([\[SIP5.23\]](https://forum.summer.fi/t/sip5-23-delegate-rewards-framework-v2/793)), a treasury-funded program distinct from staking emissions:

* Fixed budget cap: **$4,200 per quarter** ($1,400/month), paid in SUMR, priced via a 20-day VWAP for volatility protection.
* **Dual-pool split:**
  * **Pool A with voting baseline (\~85% / \~$1,200/mo):** rewards delegates who maintain at least **80% on-chain voting participation** in the month.
  * **Pool B for Contributions (\~15% / \~$200/mo):** rewards the top 3 delegates by Peer Recognition Score (PRS) for high-value forum contributions.
* **Eligibility floor:** a minimum of **1M stSUMR** delegated voting power to qualify for Delegate Rewards.
* Funds are held in a dedicated [3-of-5 Safe multisig](https://basescan.org/address/0x9a218f744ee78e7a84e1c28acbcc2ce5cc72bb0e) and distributed after a monthly governance approval vote (tracked under SIP3.11.X).

### 3. Distribution rail

Where rewards are distributed off the staking contract (e.g. delegate payouts, referral campaigns, staking USDC payouts), the DAO uses Merkle-based claims ([Merkl](https://merkl.xyz/)) executed per SIP.

> Note: The former V1 `GovernanceRewardsManager` decay-smoothing mechanics (EMA / decay factor weighting of rewards) have been retired along with voting-power decay under Governance V2.