SIP-3 Proposes Converting UP Rewards to Staked UP
**SIP-3 is now live for voting**, proposing to convert UP Only Rewards to Staked UP (sUP). The change would allow holders to earn rewards, governance rights, and fee flows automatically.
**Key details:**
- Proposal available for review and voting on [Snapshot](https://snapshot.box/#/s:superformfoundation.eth/proposal/0x2c66ff55d79c00d3cd62729696a135d3bf7404bf186db2ead11d3bd777a9223b)
- Follows recent implementation of SIP-1 and SIP-2
- Foundation recently purchased 237,808 UP for $12,362.79 under SIP-1
- 95,123 UP transferred to sUP vault
- Total UP purchased to date: 1,940,572
**Background context:**
SIP-1 and SIP-2 launched last week, establishing the protocol's fee distribution model. Performance fees are split 50/50 between buybacks and Foundation revenue. Of the buyback portion, 20% goes to sUP stakers and 30% to the Foundation. The first harvest generated $21,203.56 in fees across 5 vaults.
SIP-2 extended the unstaking cooldown from 1 hour to 2 weeks and formalized a 500,000 UP/month reward rate, currently yielding over 50% APY.
Community members can review the full proposal and participate in governance discussions through the provided Snapshot link.
