Summary

This proposal allows SMOL holders to either:

• Change the total supply of SMOL to 1,210,995,204.282397572845138055 (1.2 billion~)
• Maintain the current 1 billion supply for SMOL v2 by preventing migration from v1 to v2 after the total supply has been reached

Background

SMOL v2 was exploited due to an implementation error. Deployment of the v1 to v2 migration contract allowed a user to declare themselves the owner of the contract. The attacker did so and was able to withdraw 351,518,010,334.47435636 SMOL v1 in the contract (equivalent of 210,995,204.282397572845138055 SMOL v2). The v1 token deposited into the contract was functionally “burned” as the correct implementation would have made it impossible for these tokens to be withdrawn. However, the attacker withdrew the tokens and sold them on Camelot DEX, effectively adding more to the v2 supply because these v1 tokens could then be re-migrated for additional v2 tokens. The SMOL team redeployed the migration contract with the correct implementation and had it peer audited. It is now necessary for the community to decide what to tell regarding the total supply of v2.

Options

• No changes – the total supply of SMOL v2 will increase to 1,210,995,204.282397572845138055 as a result.
• Keep the supply cap at 1 billion – the Smol team can update the migration contract to prevent v1 to v2 migration after 1 billion v2 tokens have been minted.

Implementation

For Option 1, the changes will be immediate. We will simply update the API to increase the maximum supply.

For Option 2, the changes to the contract can be written fairly quickly, but they will need to be peer audited. There is no guarantee on how quickly this will occur as the Smol team has been graced with assistance from professional auditors in the community volunteering their time every now and then. However, if more than 1 billion tokens are migrated from v1 to v2 before Option 2 can be implemented, the team will have no choice but implement v1.

Option 3 is to reject the proposal and allow the community to propose an alternative solution.

Voting

SMOL holders can vote for either Option 1 or 2. The Smol contributors will then implement the desired choice.