The deployment of feature-complete Symbiotic core contracts and initial networks on Ethereum mainnet, followed by the launch of Relay as a universal verification layer, marked major milestones in our roadmap. Today, we're excited to announce the next phase: external rewards are now live, directly enabling token-based incentives from networks to stakers and node operators. This represents a significant step towards sustainable shared security for modular blockchain ecosystems. 

Beyond Points

Since June 2024, Symbiotic Points have incentivized participation across our ecosystem, helping bootstrap economic security and participation. While points will continue as a flexible and long-term incentive layer, networks can now enable something more tangible: token rewards distributed directly by networks to stakers and node operators via Symbiotic. This powerful combination amplifies sustainable economic alignment across the ecosystem.

First External Rewards are Live

Several leading protocols are pioneering external rewards on Symbiotic, each demonstrating how our Universal Staking framework extends beyond traditional security to enable entirely new forms of coordination:

• Hyperlane secures its Warp Routes through Symbiotic, rewarding stakers with its native $HYPER token for protecting cross-chain communication.
• Tanssi and Cycle Network both now distribute their native tokens to stakers and contributors, underscoring the tangible value external rewards deliver.
• Spark enables SPK token staking with Spark Points through the Overdrive campaign.
• Ditto Network supports trustless automation by rewarding keepers who secure event-driven workflows.
• Primev (MEV-Commit) rewards validators advancing MEV marketplace activities and novel Ethereum preconfirmation strategies.
• Kalypso by Marlin delivers points to participants in its ZK proof marketplace, especially those securing AI agent verification.
• Omni has launched a $10M points program for deposits into SolverNet, expanding what’s possible for intent-based bridging and usage-based program design.

These integrations demonstrate how Symbiotic's Universal Staking extends beyond restaking to enable new economic coordination primitives. While restaking improved on the limitations of native staking by allowing assets to secure multiple networks, our framework now provides building blocks for coordination that transcends traditional network security. This enables multi-incentive structures that serve growing modular ecosystems. 

Season 2 Points & Economic Coordination

With our January mainnet core contract deployment, we launched Points Season 2, designed to bridge the gap between idle collateral and actively secured networks.

Points distribution runs on a per-network basis, factoring in each network's security requirements and stake distribution. Each network has an upper limit on points, with allocations distributed pro-rata to vaults and depositors. When networks exceed their target stake, points are diluted to prevent farming and ensure fair distribution. 

It's important to note that points only accumulate for actively delegated collateral. This means vault depositors' earnings depend on how much of their vault's assets are allocated to networks, creating a clear path from pre-deposit to active delegation.

Additionally, with the rollout of External Rewards, the points distribution system now takes into account vault diversity and utilization of restaked capital, balancing decentralization, efficiency, and risk.

To learn more about the system and how it seeks to incentivize a healthy marketplace, read more in the official documentation.

What This Means For You

For pre-deposit vault users: Consider migrating to actively delegated vaults to capture both the points multiplier and check the UI for additional network rewards. If you're using an LRT, your provider will likely handle migration automatically. Direct depositors can follow the guided flows on our front-end.

For operators: These changes create a sustainable economic model for infrastructure services, with immediate compensation from both Symbiotic points and network rewards or points. The 5% allocation encourages growing your delegated stake.

For networks: The combination of points allocation and native token incentives creates a powerful mechanism to attract economic security efficiently. Your 5% allocation from the points program can be redistributed to users, technical partners, or held in treasury.

Universal Staking also means adaptability across your network's entire lifecycle. You can seamlessly evolve your security model as you mature, starting with restaking established assets like ETH, then transitioning to hybrid models, and eventually to native token staking, all without rearchitecting your infrastructure.

Looking Forward

External Rewards mark a pivotal evolution for Symbiotic.. By creating a pathway to tangible economic incentives for all participants, we're building a more sustainable shared security marketplace.

These initial integrations are just the beginning. More partners are finalizing their reward structures and preparing to come online in the coming weeks, including more direct token rewards. Our frontend has been updated to show comprehensive information about both points and rewards, helping you evaluate vaults and make informed decisions.

As teams continue building on Symbiotic in novel ways - from insurance protocols using our framework for decentralized coverage to structured risk products creating sophisticated risk/reward profiles - we're seeing Universal Staking unlock entirely new capital-efficient economic primitives across the blockchain ecosystem.

While other frameworks force networks to commit to a fixed security architecture, Symbiotic provides the flexibility to adapt and grow. Projects can bootstrap decentralization quickly with established assets on day one, then evolve their approach as their ecosystem matures, all within the same framework.

For details on points distribution formulas, restaking ratios, or real-time vault metrics, visit our Dune dashboard.