Greetings unshETH Community,

We appreciate your unwavering support as we continue to forge the path towards validator decentralization. Today, we would like to provide some updates on our tokenomics as well as our staffing. We’ve heard community feedback around team vesting schedules and requests for greater transparency regarding the same. Today’s announcements are the first step towards our renewed commitment to improved transparency, communication, and incentive alignment with our community. After all – a protocol is only as strong as its community.

Tokenomics Update

To address the theft of tokens by a malicious actor in May, we have taken measures to mitigate the unplanned increase in circulating USH supply. Bearing responsibility for this loss, the core team has voted to burn 2 million USH tokens from the team’s allocation. The transaction hash for the burn is below:

Our core devs will demonstrate their long-term commitment to the protocol by voluntarily lengthening their vesting schedules to a 2-year linear vest for the remaining unvested tokens.

This decision aligns with a protocol-wide reduction in emissions, positioning us optimally for the upcoming Bitcoin halving. We firmly believe this course of action reflects our dedication to sustainable growth and value creation for the broader unshETH ecosystem. These changes, as well as the previous tokenomics update will be reflected in a forthcoming tokenomics section on our documentation page.

Staffing Update

Looking ahead, we are adjusting our strategy to concentrate on the development of Project Sentience. We are hiring more technical team members, allowing us to channel resources into bringing this ambitious vision to fruition.

In keeping with these objectives, we will reduce our marketing expenditure, both in USH and fiat. Instead, we will harness the power of grassroots marketing, empowering our community to be our voice.

Tl;dr

• 2mm USH burned from team allocation in response to vdUSH farm exploit

• Team members extending vesting period to 2 year linear vest for remaining tokens

• Marketing spend in USH and fiat heavily reduced, re-shifting focus to Project Sentience engineering