Extension of the MC to BEAM token migration period
Authors and contributors
This proposal was subject to a minimum 7-day discussion period. Due to an extensive discussion and several ideas, the discussion period will be extended by 7 days.
This proposal seeks an extension to the migration period from MC to BEAM tokens from 12 months to 15 months, acknowledging that some long term community members, including ICO investors, still possess unclaimed V1 rewards. The intent is to provide an opportunity for these outstanding V1 rewards to be converted to MC before the revised deadline, ensuring the inclusion of committed supporters and preventing loss of the rewards for everybody who did actually intend to use the MC=>BEAM migration before the original deadline would pass.
Specification of the proposal
The migration deadline set by MIP-29 aligns with the V1 staking rewards vesting period of 12 months. Recognizing that some community members only realized that due to personal circumstances they had unclaimed V1 rewards when they wanted to do their MC=>BEAM migration in the last few weeks, this proposal seeks a pragmatic solution. To prevent the loss of these rewards, an extension of the migration period by an additional 3 months is proposed. This extension aims to facilitate the conversion of the unclaimed V1 rewards by anybody who intended to do their conversion within 3 months from the start of the bridge. This should include 90%+ of all active community members who weren’t aware of their unclaimed V1 rewards when the bridge started.
The extension is now proposed to be limited to 3 months, to accommodate the concerns of community members regarding risks that the bridge will bring, and that two tokens would have to be managed for a longer time. An extension of the opening of the bridge by 25% (from 12 to 15 months) rather than 100% (from 12 to 24 months) should limit these risks to a manageable degree.
Optionally, a time-lock of the bridge is proposed. That is, that once these 15 months are over, the bridge will close once and for all and won’t be able to be reopened. The time-lock will be implemented, if deemed feasible by our developers. This will still need to be evaluated.
Unfortunately, implementing a 20% tax as intended to be proposed after our discussion below, cannot be implemented according to our developers.
The proposal stems from the recognition that dedicated, long-term supporters of the project may possess sizeable unclaimed V1 staking rewards, representing a substantial commitment to the DAO. Avoiding the forfeiture of these rewards due to the migration deadline is crucial to uphold fairness and inclusivity within the community. This extension aims to safeguard the interests of committed long-term contributors, ensuring their continued participation and support for the DAO’s growth.
These rewards typically belong to longer term supporters of the project - some of them may not have the ability to be as active in the community as checking in every day or every week. Nevertheless, the reason that they bought into MC years ago without selling their MC tokens is evidence of their commitment to the project. Hopefully we can avoid punishing these longer term supporters who hadn’t claimed their rewards on time. By limiting the extension to 3 months, it is ensured that really only those v1-stakers will be able to bridge all their eMC rewards who did realize that they had unclaimed rewards within the first 3 months that the bridge is open. In other words: Community members who are active at least on a quarterly basis. It will exclude those community members, who won’t realize they had unclaimed v1 rewards within the first 3 months of the bridge opening – thus members who are much less active,
No costs in addition to the MIP-29 proposal with a planned 1 year migration period are expected, unless a time-lock may be implemented, which may cause verification costs.
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