Stake DAO Token
When you stake SDT, the protocol issues you vlSDT, Stake DAO's non-transferable governance token. While you hold vlSDT, you may:
- participate in Stake DAO's governance, on the matters and subject to the limits set out in the protocol documentation;
- receive a share of any USDC distributions made by the protocol (funded by a portion of fees from certain Stake DAO protocol products and allocated pro-rata to vlSDT holders by the fee distributor smart contract);
- apply a boost to your liquid-locker voting power, or delegate that boost to another address.
SDT
Important considerations
- Staking is a smart-contract interaction; no custody or deposit relationship is created with any Stake DAO entity or affiliate.
- vlSDT distributions are variable, not guaranteed, and depend on protocol activity.
- Staking, unstaking, claiming rewards, and migrating between tokens may each be taxable events in your jurisdiction. Consult your own tax adviser.