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Governance Proposals OIP-23
Active OIP-23 Ondo Governance

Q2 2026 ONDO Ecosystem Rewards Distribution

Allocate 12,500,000 ONDO tokens from the Ecosystem Growth reserve to incentivize protocol participation during Q2 2026, covering liquidity providers, tokenized RWA holders, and Flux Finance participants.

Submitted Mar 27, 2026 Voting ends June 30, 2026 Snapshot block #21,847,292 Proposed by 0xf4Ab...3E91
Overview
Specification
Voters (1,247)

Abstract

This proposal requests authorization to distribute 12,500,000 ONDO tokens from the Ecosystem Growth reserve to key participants across the Ondo Finance protocol suite during Q2 2026 (April 1 – June 30, 2026).

Distribution covers three core ecosystem segments: liquidity providers maintaining USDY/USDC and OUSG/USDC pairs on approved decentralized exchanges, tokenized RWA holders staking OUSG and USDY positions on-chain, and active participants supplying and borrowing on Flux Finance fToken markets.

Motivation

Ondo Finance has scaled to $1.3B in tokenized assets under management across 40+ chain integrations. Sustained ecosystem incentives are critical to deepening liquidity and onboarding new institutional and retail participants as the tokenized RWA market expands.

The prior OIP-21 (Q4 2025) results validated this approach: a 34% increase in liquidity pool depth for USDY/USDC pairs and a 28% increase in Flux Finance borrowing volume were observed during the distribution window, with no measurable degradation in protocol-level KPIs.

The requested 12.5M ONDO represents 0.24% of the total Ecosystem Growth allocation (5.21B tokens). As of March 2026, 2.34B ONDO have been released, with 1.87B remaining in the Foundation treasury for future programs.

Proposed Allocation

Category Allocation % of Pool Distribution
Liquidity Provision RewardsUSDY/USDC & OUSG/USDC on approved DEXes 5,000,000 ONDO 40% Weekly pro-rata by LP share
OUSG & USDY Holder IncentivesDistributed to tokenized RWA holders on-chain 4,375,000 ONDO 35% Monthly snapshot-based airdrop
Flux Finance ParticipationfToken lenders & borrowers on Flux Finance 3,125,000 ONDO 25% Continuous per-block accrual
Total 12,500,000 ONDO 100% April 1 – June 30, 2026
Eligibility: Only verified, non-custodial wallets holding qualifying positions at each measurement snapshot are eligible to receive ONDO rewards. US persons are subject to applicable eligibility restrictions per Ondo's Terms of Service.

Implementation

1
Transfer 12,500,000 ONDO from Ecosystem Growth multisig (0x98...7f2a) to Rewards Distribution contract (0x4B...c3D1) within 5 business days of timelock expiry.
2
Enable weekly epoch-based reward accrual starting April 1, 2026 at 00:00 UTC across all three reward categories.
3
Publish monthly transparency reports covering per-address distributions, pool utilization, and cumulative program statistics on the Ondo Foundation Forum.
4
Conduct post-distribution analysis at the end of Q2 2026 to measure impact on TVL, liquidity depth, and user retention; results to inform Q3 reward sizing.

Governance Timeline

Forum Discussion
March 20 – 26, 2026
Community feedback period on the Ondo Foundation Forum. 89 replies, broad support recorded across delegates and major holders.
Proposal Submitted
March 27, 2026
OIP-23 formally submitted to Ondo Governance at block #21,847,292.
Voting Period
March 29 – June 5, 2026
7-day on-chain voting window. Quorum: 100,000,000 ONDO. Threshold: simple majority.
Timelock & Execution
June 5 – 7, 2026
48-hour timelock period following vote finalization before execution by the governance multisig.
Rewards Begin
June 1, 2026 (retroactive to Q2 start)
Q2 LP rewards accrue from April 1 regardless of execution date; first distribution includes retroactive accrual.

Previous Proposals

Passed OIP-21
Q4 2025 ONDO Ecosystem Rewards Distribution
Allocated 10,000,000 ONDO to liquidity providers and Flux Finance participants in Q4 2025.
Nov 2025634 voters
Passed OIP-19
Ondo Chain Deployment Authorization & Fee Structure
Approved the technical parameters and fee structure for Ondo Chain mainnet deployment on the Cosmos SDK.
Sep 20251,102 voters
Passed OIP-17
Q2 2025 Liquidity Incentive Program
Allocated 8,000,000 ONDO to bootstrap liquidity on Curve and Aerodrome for USDY trading pairs.
Apr 2025487 voters
Failed OIP-14
Add BUIDL as Collateral Asset on Flux Finance
Proposed to add BlackRock's BUIDL tokenized treasury fund as eligible collateral. Did not reach quorum.
Feb 2025218 voters