Discussing: FIS Inflation to 0%, Migration to Ethereum & StaFi Chain Transition to Foundation Mode

Abstract

In light of recent market conditions, and an evaluation of StaFi Chain’s actual contribution to the ecosystem, we plan to accelerate our previously proposed plan: immediately reduce StaFi Chain inflation rate to 0%, transition its validator model to Foundation Mode, and begin migrating FIS to Ethereum. This adjustment aims to improve overall ecosystem efficiency, enhance security, and fully align StaFi with its long‑term strategy, AI + LSaaS.

Background

StaFi’s earlier roadmap targeted 2027 as the timeline to gradually phase out inflation, shift to Foundation Mode, and eventually migrate FIS from an independent chain to Ethereum. However, with broader market contraction, and the decreasing marginal utility of StaFi Chain, the cost of maintaining an independent chain has become increasingly misaligned with its practical value. Given these realities, we believe it is no longer rational to continue operating an independent chain, and therefore we are bringing forward the full migration and inflation‑removal plan.

Essential Reasons

1. Long‑term decoupling is already a reality
Most rTokens (except rFIS) have already decoupled from StaFi Chain, and their security is now guaranteed by their respective underlying chains. StaFi Chain no longer plays a core security role for the protocol, reducing the necessity of maintaining it as an independent chain.

2. Security cannot be sustained under 0‑inflation conditions
As inflation drops to 0, validator incentives disappear, leading to reduced activity and weakening chain security. For the growing LST ecosystem, Ethereum provides a far stronger and more mature security foundation, making it the more appropriate long‑term hosting environment.

3. Maintenance costs outweigh actual output
Operating an independent chain requires node maintenance, server expenses, technical support, and governance coordination. These investments no longer deliver sufficient ecosystem growth or user value. Redirecting resources from chain maintenance to AI, LSaaS, and protocol‑level development will significantly improve overall efficiency and productivity.

Benefits

1. Improved transaction efficiency and user experience
Migrating to Ethereum will greatly enhance FIS liquidity. As the most widely adopted token standard, ERC20 allows seamless integration with both centralized and decentralized platforms without cross‑chain transfers. This reduces operational friction and increases accessibility, making FIS easier and safer for users to transact.

2. Full alignment with the AI + LSaaS strategic direction
StaFi’s long‑term strategy depends on AI staking agents, LSaaS modules, automated yield strategies, and cross‑chain LST operations, all of which require Ethereum’s robust tooling and composable ecosystem. Building on Ethereum enables faster product iterations and smoother technical execution.

3. Expansion into a broader ecosystem and real application scenarios
Ethereum’s mature DeFi, AgentFi, AI, and RWA ecosystems will allow StaFi to enter practical usage scenarios such as lending, LP market making, collateralization, agent‑driven automation, and more. These integrations are driven by real on‑chain demand rather than speculative value capture, leading to stronger utility and a more sustainable long‑term growth foundation for StaFi.

Conclusion

The transition to zero inflation, the shift to Foundation Mode, and the FIS migration to Ethereum represent a strategic upgrade to StaFi’s infrastructure, aligning the protocol with its long-term vision of AI-driven staking and LSaaS innovation. Maintaining an independent chain no longer provides sufficient security or ecosystem value, while Ethereum offers a more robust environment for product development, user adoption, and long-term growth.

By consolidating resources onto a more scalable and composable foundation, StaFi can accelerate product iteration, improve operational efficiency, and expand its presence within mainstream AI, DeFi, and automation ecosystems. This migration is not a retreat, but a deliberate structural enhancement designed to unlock greater flexibility and resilience for future development.

We sincerely encourage all community members to engage in open discussion and contribute their perspectives. Your participation will help refine the execution plan and ensure that the transition reflects the shared goals and long-term interests of the StaFi ecosystem.

Misconceptions Clarified

Misconception 1: Migrating to Ethereum means StaFi is abandoning its original ecosystem
In reality, this migration is an early execution of the previously planned roadmap, not a shift in direction. StaFi’s core capabilities, AI, LSaaS, and automated strategies—were designed from the beginning to align more naturally with Ethereum’s composability and tooling ecosystem. The move aims to improve product deployment speed and enhance security, not to abandon development.

Misconception 2: Ending inflation on StaFi Chain means the chain will be shut down
StaFi Chain will continue to operate in Foundation Mode as a historical data ledger. It is not being “shut down” or “discarded.” After migration, the chain will still exist but will no longer carry consensus or security responsibilities, reducing unnecessary overhead and risk.

Misconception 3: The migration process is complicated or risky
We will provide a one‑click migration tool and detailed tutorials, so users won’t need to handle complex operations. Multiple rounds of testing will be conducted to ensure the process is safe, stable, and transparent. For users concerned about operational complexity, a snapshot‑based claim mechanism will also be offered.

Misconception 4: This is a passive reaction to external events
This migration is not a reactive move; it is part of StaFi’s long‑term strategic roadmap. The independent chain model has become increasingly misaligned with StaFi’s future direction, while Ethereum offers a far better environment for its core strategy. Executing the migration ahead of schedule is a proactive structural optimization, not a forced response.