This proposal is a follow-up proposal to MIP-28, where the required majority of tokenholders voted in favor of migrating the MC token to the BEAM token, including making the BEAM token the native token on the Beam network (see information about the vote here). In this new proposal the authors present a proposal regarding the technical details relating to the execution of the token migration. More specifically, the proposal asks tokenholder approval to:
- Deploy a token migration smart contract on Ethereum that enables the migration of MC to BEAM. The code for the smart contract can be reviewed here.
- Receive USDC 10,000 from MC DAO’s treasury to cover smart contract audit costs.
- Convert the MC token into the BEAM token on a 1:100 basis, meaning that each MC token will make a tokenholder eligible to receive 100 BEAM tokens.
- The token migration contract is proposed to be accessible for migration for a 12-month period from the date of deployment. The date of deployment is still to be determined, but will be pre-announced in all relevant community channels should the proposal pass.
The vote will commence on 14 October 2023 at 14:00 CET. Please click here to proceed to the vote (the voting period lasts for 2 days).
Specification of the proposal
Community members are encouraged to review MIP-28 for an in-depth explanation and discussion about why the MC token was proposed to be migrated into the BEAM token. As MC DAO already through MIP-28 voted in favor of conducting the token migration, this proposal focuses on the following topics.
1. Deployment of token migration contract
We propose to deploy a token migration smart contract on Ethereum that enables the migration of MC to BEAM. The code for the smart contract is available here. The smart contract has been audited by Quantstamp and the report is available here.
Put simply, a MC tokenholder that wishes to migrate MC tokens to BEAM tokens, will have to send the MC tokens to the migration smart contract through a simple Ethereum transaction, upon which the smart contract would autonomously (1) burn the MC tokens, and (2) mint new BEAM tokens that will be sent back to the relevant tokenholder. The previous MC tokenholder would then become a BEAM tokenholder. Note that the migration smart contract acts as a one-way ticket and that there is no way to revert the action once done (i.e. BEAM tokens cannot be converted back into MC tokens by use of the smart contract).
As the source code of the smart contract is open source, anyone will in principle be able to implement a user interface (frontend) to interact with such a smart contract. It will also be possible to interact with the smart contract directly on Ethereum.
The MC held on the Beam network will not require to bridge back to Ethereum to migrate via the migration smart contract, as the native token on Beam may be changed from MC to BEAM and the native minter adjusted accordingly. MC holders on Beam would thus become BEAM holders on Beam, at a 1:100 ratio.
2. Conversion of the MC token to BEAM token on a 1:100 basis
As mentioned in MIP-28, it is proposed that the MC token is converted to the BEAM token on a 1:100 basis. Consequently, 1 MC token sent to the migration contract as described above would entitle the tokenholder to receive 100 BEAM tokens. As the BEAM tokens would only come into circulation as a result of MC tokens being taken out of circulation on a permanent basis, there is no actual increase/dilution in supply on a relative basis.
3. Token migration contract accessible for 12 months after deployment
The token migration contract is proposed to be accessible for migration for a 12-month period from the date of deployment.
The smart contract is intended to be deployed as soon as practicable after the proposal passes (will be duly informed about it beforehand in public channels) and remain accessible for a 12-month period after deployment. After this, conversion won’t be possible anymore. Such a time period will provide every MC and eMC holder today the opportunity to migrate (note that eMC holders would first have to convert their eMC into MC).
On 14 August 2023, the Beam mainnet launched in developer preview mode. The work towards transitioning the network into a permissionless and trustless state (with the transition to PoS) is ongoing. With Beam expected to become available for public access in the near future, we believe it is timely to carry out the proposed token migration, and thereby direct focus towards Beam and the ongoing developments around that network.
Furthermore, we believe that converting to a more Beam-focused ecosystem will improve brand recognition and strength. We believe that Beam is competing with other gaming networks such as Immutable and Ronin. Educating those outside the DAO about this, through means such as written pieces and ongoing reminders about the changes in our ecosystem, will take significant time and effort. Instead, a token conversion allows us to strategically align both those within the DAO and outside the DAO, with our vision in an efficient manner.
The only costs requested to be funded by MC DAO are audit costs to Quantstamp in the amount of USDC 10,000.
MIP-28 includes an extensive “Rationale” section. Please review that as it contains relevant information that is also of interest to this proposal.
This proposal does not include a poll as it is merely a follow-up proposal to MIP-28, which was already voted on.
Copyright and related rights waived via Creative Commons CCO.