Launch of islSOL — IslandDAO Liquid Staking Token

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

Assumptions

Based on the current numbers:

Initial stake amount: 50 SOL

Current ISLAND<>SOL(islSOL) DLMM TVL: ~$21,219.60 (10/05/2025)

No emissions/incentives at launch planned (Optional)

Epoch based rewards directed to LP

Volume and demand for islSOL will grow over time

Valuation Growth Impact

Projected Annual Rewards for 50 vs 500 SOL Stake:

Liquidity Pool Impact

All staking rewards go to ISLAND<>SOL LP monthly.

Impact of islSOL Rewards on LP TVL (ISLAND<>SOL):

Projected Treasury Growth

Initial staking yield (SolBlaze scenario w/ 50 SOL): ~4.24 SOL/year = ~$636/year (1SOL ~150 USDC)

Injected into LP without external emissions

Long-term compounding effect expected as TVL deepens

Projected Valuation Impact

Treasury: ~$147 003,25 (10/05/2025)

MCAP: ~$205.42K (10/05/2025)

Annual staking revenue: ~$636 (baseline, more if scaled)

Value accrual via increased liquidity and staking utility