Summary

Proposal to launch a DAO-branded LST ("islSOL") using the Bliq platform by SolBlaze.

The DAO will stake 50 SOL to generate ongoing rewards and create brand awareness, which will be directed to the ISLAND<>SOL liquidity pool to grow TVL and support long-term treasury sustainability.

Validator will be chosen via the Realms multi-choice poll DAO vote (between SolBlaze, SagaDAO and others).

Creation will be executed by the DAO treasurer using Bliq This proposal includes examples comparing 50 SOL and 500 SOL in scenarios where the DAO has the ability to stake larger amounts of SOL.

Island DAO Treasurer:

• Twitter: @1xraccoon
• Discord: legendraccoon
• Wallet (For this task): 3YW5dxM6u8TG8bZR6ShSiDS8aTfZPG72vUFuGuBVQA2z

Rationale

Current Scenario:

The DAO currently lacks a branded staking derivative, which limits its ability to:

• Capture staking yield from treasury assets.
• Expand LP utility and depth.
• Generate self-sustaining income.

Proposed Scenario:

By launching islSOL:

• Treasury grows through validator yield redirected to LP.
• Community receives a branded, DAO-aligned staking product.
• LP becomes deeper, benefiting traders and liquidity providers.
• Validator delegation is controlled by DAO vote.

Implementation Details

Technical Specifications:

• Stake Amount: 50 SOL
• Platform: Bliq.so
• Base Infra Fee: 0.25 SOL one-time
• SolBlaze Ops Fee: 1% (standard)
• Validator options:
  • Helius: 8.55% APY (Last 14 days) | 0% validator fee | 0% MEV
  • SolBlaze: 8.65% APY (Last 14 days) | 2% validator fee | 0% MEV
  • SagaDAO: 8.28% APY (Last 14 days) | 5% validator fee | 10% MEV

(Data taken from https://www.jito.network/pt/stakenet/history/ & https://app.marinade.finance/network/)

• Unstaking: Via stake pool
• Commission to DAO: Initially 0% (adjustable)

Risk: Stake pool de-pegging and smart contract vulnerabilities.

Benefits

Implementation Benefits:

• Sustainable staking-based revenue
• DAO governance over validator delegation
• Reinforcement of ISLAND<>SOL(islSOL) LP depth
• Community utility to ISLAND for islSOL validator delegation