Tokenomics - Moving to L2 Consensus Proposal

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.

Poll
  • Approve
  • Dispute (with details below)

0 voters


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:

  1. Form a committee to plan migration
  2. Create a list with all multisig to be moved.
  3. Create a list with the assets to be moved.
  4. Create Snapshot for approval.
    1. If approved work with Parcel Money on transition solution
6 Likes

Great post and an idea I fully support. Polygon seems to be the best alternative to Mainnet at the current time, and with both Gnosis and Parcel Money support is the logical way forward

1 Like

Thanks @Icedcool ! This sounds like a no-branier, so can you add any notes on whatever the strongest arguments against making this move are, if any? Orrr say there are no major arguments again, other than your evaluation of other L2s/sidechains :slight_smile:

1 Like

Sure thing.

Against making the move:

  • L2 and sidechain may have security or operational risk - This is the largest risk.
    • l2 risks and summery here
  • Fiat off ramp challenges (we ONLY have crypto.com with Dharma being acquired by opensea)
  • Some degree of risk in migration(low, but deserves acknowledgement).

If others know more please add.

I picked the dispute vote. Not because I am against this proposal - I am for it. My question/concern revolves around crypto.com. I just went through their registration process for individual and institutional accounts. I was required to enter a country for both individual and business. How is BanklessDAO answering the country question, and what are the tax implications?

Happy to change my vote.

1 Like

So to use crypto.com, you would need to sell to a supported currency then send to crypto.com.

We aren’t involved with crypto.com, and we haven’t listed on any centralized exchanges. Additionally, I personally don’t see a strong need for that because we have decentralized exchange listings covering the need with developing liquidity and fees.

If coinbase listed BANK that would be a strong value add, but would need to examine others.

I’m usually not very vocal but I think it’s important to give my opinion.

I agree that we need to make our token more accessible by addressing the issue of transaction fees.
I find it a shame we choose the easy way by going to Polygon sidechain instead of Artibrum and Optimism. (later zksync)

Reasons we haven’t suggested and Abritrum, is as yet their gas fees do still add up, and platform implementation hasn’t taken off

By using these L2s precisely, we help to solve these two problems: fees and adoption.
We need to lead by example and push ethereum in the direction we want it to go for the best future.

"We choose to go to the L2 not because this is easy, but because it will improve our futur " :smiley:

1 Like

You make some good points, Harchy.

While I’m in support of pushing Polygon as our first step in multi-chain (for the reasons Icedcool listed), perhaps it would be good to include how we aim to support multi-chain long-term - especially when we intend to “migrate” all multisigs.

@Icedcool I’d like to addend some sort of work to research how we ultimately go multichain once we’ve migrated to Polygon and the pitfalls we may encounter.

2 Likes

If it’s presented as the first step towards deploying on as many L2s as possible, I think it’s a good idea.

This will allow us to gain experience on how to do a deployment. It also helps to reduce the charges for using the token.

But we must not forget the long term and we must push ethereum in the direction we want it to go.
We can help l2s gain adoption through the choices we make.

1 Like

Agreed on all counts.

This is the FIRST deployment, NOT the final deployment.

I’m hoping this supports our individual contributors more, and not just people that can afford high gas fees, AND OlympusPRO will have polygon support soon which will allow much smaller hodlers to get involved (among other opportunities).

1 Like

Without a doubt I approve.

1 Like

Can you please add a “No Objection option to the Poll”

thank for the link, it was my experience