StaderPrice

(SD)

In June 2024, Stader implemented a significant "Mega Burn" of 30 million SD tokens. This action represented 20% of the total supply, reducing it from 150 million to 120 million. The burn was executed to address community concerns regarding the token's initial distribution, specifically aiming to optimize the circulating supply and perceived fully diluted valuation (FDV). This move was a key part of the "Tokenomics Reboot" to enhance the token's scarcity and long-term economic model.

Stader employs a strategic buyback program to enhance the SD token's value proposition. The protocol allocates 20% of its generated revenue to regularly purchase SD tokens directly from the open market. These buybacks are conducted on a quarterly basis. This mechanism directly ties the protocol's success and revenue generation to the demand for and reduction of SD tokens, contributing to a deflationary pressure over time. The first buyback event took place in September 2024.

The SD token serves four core utilities. Firstly, it enables Governance: users stake SD for xSD to gain voting rights on protocol decisions. Secondly, Fee Sharing: xSD holders receive a portion of protocol fees. Thirdly, the SD Utility Pool allows users to delegate SD for slashing insurance for Ethereum node operators, earning rewards. Finally, Validator Bonding: Node operators must bond SD (e.g., 0.4 ETH equivalent for an ETHx node) to run permissionless validators, ensuring their commitment and aligning incentives with the protocol's security.

Stader's liquid staking allows users to stake their assets (such as ETH, BNB, or MATIC) and receive a corresponding liquid staking token (LST) like ETHx, BNBx, or MaticX in return. These LSTs continuously appreciate in value against the native asset as staking rewards accumulate, providing a yield-bearing asset. A key advantage is that users can then utilize these LSTs within various decentralized finance (DeFi) applications, such as lending protocols or decentralized exchanges, without losing their underlying staking rewards. This offers flexibility and capital efficiency.

The "SD Utility Pool" is a distinctive feature, particularly for Ethereum staking. It offers a unique opportunity for retail users who prefer not to operate their own validator nodes. By delegating their SD tokens to this pool, users help Ethereum node operators meet their required bonding minimums. In exchange for providing this crucial slashing insurance support, the delegators earn a share of the node's commission, offering an attractive double-digit reward percentage, approximately 14% APR. This mechanism democratizes access to validator earnings and enhances network security.

Stader prioritizes the security of its protocol and user assets. It has undergone multiple comprehensive smart contract audits by reputable firms, including Halborn, Peckshield, and Sigma Prime, to identify and mitigate vulnerabilities. Furthermore, in late 2025, Stader launched a substantial $1 million bug bounty program on a well-known bug bounty platform, encouraging ethical hackers to report any potential security flaws. For specific risks like validator slashing, Stader implements a multi-layered insurance approach. For ETHx, node operators cover initial losses, with the SD Utility Pool providing coverage for further losses, ensuring robust protection.