SPP2 Stream Reactivation - Backpay Calculations

Executive Summary

This document details the calculation of backpay owed to Service Provider Program Season 2 (SPP2) recipients following the stream interruption caused by the Superfluid AutoWrap system failure in August 2025. The streams were successfully reactivated on September 12, 2025, and all providers are now owed retroactive payments for the interruption period.

Timeline of Events

Critical Dates

  1. SPP2 Program Start: May 26, 2025 at 23:53:00 UTC
  2. Treasury Stream Liquidation: August 8, 2025 at 18:28:00 UTC (20:28 CEST)
    • ENS DAO treasury to Stream Management Pod stream stopped
  3. Provider Streams Liquidation: August 9, 2025 at 21:24:00 UTC (23:24 CEST)
    • All provider streams from Management Pod stopped
  4. Executable Proposal Passed: September 10, 2025 at 17:02:00 UTC (01:02 PM Eastern)
  5. Streams Reactivated: September 12, 2025 at 15:12:35 UTC
  6. Namehash Rate Correction: September 12, 2025 at 22:02:11 UTC

Stream Interruption Period

Total Downtime: August 9, 2025 21:24:00 UTC to September 12, 2025 15:12:35 UTC

  • Duration: 33 days, 17 hours, 48 minutes, 35 seconds
  • Decimal Days: 33.7421 days

Background: Superfluid AutoWrap Failure

As documented in the Superfluid Post Mortem:

On the 8th of August 2025 at 20:28 CEST the funding stream from ENS DAO treasury to the stream.mg.wg.ens.eth wallet was liquidated due to the ENS DAO treasury USDCx balance being fully depleted. Subsequently on the 9th of August 2025 at 23:24 CEST the ongoing streams from stream.mg.wg.ens.eth to service providers were liquidated due to full depletion of the USDCx balance.

The failure occurred due to an internal service migration at Superfluid and the lack of monitoring for the backup automation service. Superfluid has committed to fully refunding all liquidation fees incurred by ENS wallets during this incident.

Reactivation Process

The reactivation was accomplished through the executable proposal which:

  1. Approved 500,000 USDC to the USDCx contract for conversion
  2. Wrapped 500,000 USDC into USDCx to provide liquidity
  3. Transferred 400,000 USDCx to the Stream Management Pod as retroactive payment
  4. Recreated the stream at the approved rate of 0.142599440769357573 USDCx/sec (~$4.5M/year)

Backpay Calculations

Calculation Methodology

Backpay is calculated using the formula:

Backpay = (Annual Rate / 365) × Days of Downtime

Where:

  • Annual Rate = Provider’s SPP2 allocation
  • Days of Downtime = 33.7421 days (standard calculation)

Standard Backpay Amounts

Provider SPP2 Annual Rate Daily Rate Backpay Owed
ETH.LIMO $700,000 $1,917.81 $64,710.94
Namehash Labs $1,100,000 $3,013.70 $101,688.57
Blockful $700,000 $1,917.81 $64,710.94
Unruggable $400,000 $1,095.89 $36,977.63
Ethereum Identity $500,000 $1,369.86 $46,221.95
Namespace $400,000 $1,095.89 $36,977.63
JustaName $300,000 $821.92 $27,733.31
ZK Email $400,000 $1,095.89 $36,977.63
TOTAL $4,500,000 $12,328.77 $415,998.60

Namehash Rate Correction Adjustment

Namehash’s stream was initially reactivated at $1,000,000/year instead of the correct $1,100,000/year. This was corrected on September 12, 2025 at 22:02:11 UTC.

Additional calculation for Namehash:

  • Period at incorrect rate: September 12, 15:12:35 to 22:02:11 UTC
  • Duration: 6 hours, 49 minutes, 36 seconds (0.2844 days)
  • Rate difference: $100,000/year
  • Daily difference: $273.97
  • Additional backpay for Namehash: $77.92 ($273.97 × 0.2844)

Final Backpay Summary

Provider Standard Backpay Adjustment Total Backpay
ETH.LIMO $64,710.94 - $64,710.94
Namehash Labs $101,688.57 $77.92 $101,766.49
Blockful $64,710.94 - $64,710.94
Unruggable $36,977.63 - $36,977.63
Ethereum Identity $46,221.95 - $46,221.95
Namespace $36,977.63 - $36,977.63
JustaName $27,733.31 - $27,733.31
ZK Email $36,977.63 - $36,977.63
TOTAL $415,998.60 $77.92 $416,076.52

** Detailed info and calculations can be found here.

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