With EP 6.10 now concluded and our eight service providers selected for Season 2, it’s time to prepare the executable proposal that will implement these changes. This post shares our preparation process and invites community review before we finalize the transactions.
Where We Are
The Service Provider Program has been a cornerstone of ENS ecosystem development. As we transition from Season 1 to Season 2, we need to update our streaming infrastructure to accommodate:
- The approved budget increase from $3.6M to $4.5M annually
- Six continuing providers with updated allocations
- Two new providers joining the program
The good news is that our existing Superfluid architecture (ENS Treasury → Stream Management Pod → Service Providers) has proven reliable and will continue to serve us well.
Our Preparation Process
To ensure we get this transition right, we’ve assembled a testing repository at github.com/5ajaki/SPP2-Streams. This is our workspace for verifying all the numbers and testing the proposed changes before submitting them to the DAO.
What the Repository Does
The repository helps us:
- Calculate exact amounts: Making sure we request the right USDC allowances and set correct stream rates
- Test the transactions: Simulating how the changes will work on mainnet before execution
- Compute transition payments: For providers whose rates are increasing, we need to calculate backdated payments to ensure they receive their full allocation from May 26
For example, when a provider’s rate increases from $500k to $700k annually, they’ll need compensation for the days between their old stream ending and their new stream starting. The tools help calculate these amounts precisely.
The Planned Changes
The executable proposal will include four main transactions:
- USDC Allowance - Approving funds for the streaming contracts (exactly one month of the new budget)
- Token Conversion - Converting USDC to the streaming token format Superfluid uses
- Stream Rate Update - Increasing the master flow rate to match the $4.5M annual budget
- Autowrapper Configuration - Adjusting the allowances for the automatic refill system to handle the increased budget
These changes maintain all our existing security measures, including limiting exposure to approximately 50 days of funding if any issues arise.
A Note on Allowances and Runway
[EP 6.3] specified that we should maintain a 3-month runway to ensure program continuity. For this implementation, we’re taking a balanced approach to implementing this:
- We’re requesting sufficient allowance to cover approximately 18 months of operations
- This ensures all one-year streams can complete with adequate buffer
- For the two-year streams (ETH.LIMO and Blockful), we’ll need to renew allowances as part of the SPP3 process
This approach maintains appropriate DAO oversight while ensuring no interruption to service provider funding, which is the intent of the language in 6.3. The two-year stream providers will continue receiving funds throughout their term - the DAO will simply need to approve additional allowances when SPP3 is considered next year.
This point is open to debate and we’d like feedback. The original plan was to request allowance for the sum of all streams (both 1-year and 2-year plus 3 months of each), but that wouldn’t work as intended because any overrun in year 1 will simply eat into the year 2 allowance, negating the exercise.
The text of [EP 6.3] could require us to approve the larger amount however. Please comment your thoughts on this.
Timeline & Next Steps
We’re currently in the testing and review phase. Once we’re confident in the calculations and have incorporated any community feedback, we’ll:
- Finalize the exact transaction amounts
- Submit the executable proposal for DAO vote (expected June 11th)
- Upon passing of the executable, execute the changes and coordinate with providers for stream activation
We Welcome Your Review
The testing repository is public and we encourage anyone interested to take a look. If you’re technically inclined or just want to understand the process better, your feedback and review is valuable. The repository includes:
- Documentation explaining our approach
- Tools to verify calculations
- Test results showing expected outcomes
You can find it at github.com/5ajaki/SPP2-Streams
In Closing
By sharing our preparation process openly, we hope to leverage the strength of the community, and to maintain the trust and transparency that makes ENS governance work.
If you have questions, suggestions, or concerns about any aspect of this implementation, please share them in the comments. We’re here to ensure this transition goes smoothly for everyone involved.
A big thank you to Clowes.eth for the contributions