Proposal Name: Tokenomics - Moving to L2 Consensus Proposal
Program Champion(s): Kouros, TommyOlofsson, Grendel, Icedcool
OP Date: February 1, 2022
The purpose of this proposal is that the Treasury Tokenomics department would like to open the discussions around the FIRST L2 or Sidechain to migrate to and vote to gain consensus.
Important acknowledgement to is that the long term plan for BANK is to be multichain, although we are dependent on infrastructure development for that. (Bridges, platforms, etc)
Due to the Ethereum L1 gas costs, continuing on at L1 is increasingly becoming unsustainable. During season 1-3 the DAO has paid thousands of dollars in gas fees. As a result, there have been various conversations about moving the DAO to a L2 and several multi-sigs have bridged to Polygon to support and maintain their operations. (IMN, Bankless Consulting, BanklessBrazil, etc)
So far the BANK-token has been bridged to Polygon which is the main solution being discussed. We also suggest Polygon due to its low gas fees, focus on Ethereum scaling, high degree of platform implementation and long term mission toward decentralisation. We also have an on and off ramp for Polygon with crypto.com. Additionally the purchase of Mir protocol(a zksync), is a signal towards Polygon’s long term technical viability. Lastly, we have liquidity incentivization from Balancer for the Balancer BANK/ETH pool and we have a lot of support from Polygon.
There are certainly considerations to Polygon, namely that it is a Sidechain vs an L2. Additionally, they currently have centralization challenges, although their roadmap is aiming toward greater and greater degrees of decentralisation.
Reasons we haven’t suggested Optimism and Abritrum, is as yet their gas fees do still add up, and platform implementation hasn’t taken off. Lastly, Zksync and starknet are still in beta.
While the ‘Great Migration’ will require coordination and steps taken as a whole DAO, we wanted to kick off this post to generate discussion and move towards consensus on finding operational solutions to the L1 usage challenge and move towards a Sidechain or L2.
This vote is to gain consensus around migrating operations to Polygon, which will lead to a tokenomics committee creating a plan to propose to the DAO for approval, then action.
- Dispute (with details below)
We have a number of considerations outlined in the L2 Migration plan, namely Multisig Migration, Snapshot Voting(supported and implemented), Membership validation(supported), Tipping (being implemented), and if possible supporting individuals migrating.
Parcel.Money has offered support in transitioning to Polygon (if this is our choice) and moving the whole DAO with all the different Guilds to Polygon with one click.
Upon approval actions:
- Form a committee to plan migration
- Create a list with all multisig to be moved.
- Create a list with the assets to be moved.
- Create Snapshot for approval.
- If approved work with Parcel Money on transition solution