Spark Protocol has completely overhauled its management mechanisms and announced a major reform plan for the SubDAO proxy system.

The new mechanism announced by the Spark Community represents a significant reform to the existing SubDAO proxy management system. This proposal aims to improve governance and risk management efficiency by gradually adjusting several key parameters.

Review of Key Parameters for Operational Efficiency

At the core of the proposal is the shortening of the operational cycle. The traditional 24-month target operation cycle will be reduced to 12 months, enabling faster decision-making and improvements. At the same time, the review period for the Risk Capital Requirement (RRC) will be significantly shortened from 12 months to 3 months. This change is expected to allow for risk assessments that better reflect the latest market conditions.

Adjustment of Collateral Requirements and Buyback Rate

The Spark product guarantee will be reduced from 5 million USDS to 1 million USDS. This will create an environment where more participants can easily enter proxy management. Meanwhile, the standard buyback rate will be increased from 10% to 25%, strengthening the return mechanism for token holders.

Introduction of the New “Buyback Recipient” Mechanism

The newly introduced “Buyback Recipient” parameter in this reform is a crucial feature that specifies the direction and liquidity of SPK tokens purchased by the buyback executor. This mechanism is expected to make token flows more transparent and efficiently managed.

What the Reform Means

With multiple mechanisms being adjusted simultaneously, the SubDAO proxy system is evolving into a more adaptable management structure. This proposal will be an important step toward the sustainable growth of the Spark ecosystem and the development of a healthier governance environment.