A binding proposal seeking DAO approval for the Core team’s detailed plan to migrate our $BIFI token away from Multichain, and general discretion for Core to carry out its plan. Core plans to redeploy $BIFI on Ethereum, with a single universal governance pool, and the capability to bridge $mooBIFI tokens via a new bridging solution managed by the DAO.

We urge all users to immediately break any existing liquidity pool positions involving our $BIFI token.

Background

Over the last 2 months, Beefy’s bridging provider Multichain has suffered a series of critical failures affecting all assets issued and supported by their protocol. In the latest incident, c. 18,690 $BIFI tokens were moved from a Multichain router to another wallet controlled by Multichain, without Beefy’s prior knowledge or consent. This leaves a shortfall of backing for bridged $BIFI tokens (i.e. tokens not on BNB Chain).

Having become aware immediately of this movement, Beefy’s Core team sought details from Multichain. Though Multichain have confirmed that the recipient wallet is a Multichain wallet, but have not confirmed if it is currently controlled by their team, it has not provided any further context or reassurance as to the nature of this action. As such, Core now supports a complete and immediate migration away from Multichain.

The Core team’s plans and motivations for the proposed migration were detailed and voted on in signalling proposal [BSP:03]. Having received over 99.5% of votes in favor, from over 200 token holders and over 17.5% of $BIFI total supply, this proposal now seeks final approval on Core’s detailed migration plan.

Migration Plan

The migration plan is composed of many distinct steps, many of which should be worked on simultaneously. This list aims to structure the actions in a rough chronological order:

1- Arrange and complete a snapshot of current holders of the existing $BIFI token (“old $BIFI”) to create the distribution list for the new deployment. The approximate date and time of the snapshot will be made publicly available in advance to allow users to plan for it.

2- Develop, test and deploy a new $BIFI ERC-20 smart contract and token on Ethereum (“new $BIFI”) (e.g. by multisig wallet with appropriate timelocks). The contract will not include any privileged functions, such as minting or burning, and so will require no owner.

3- Develop, test and deploy a new universal governance pool smart contract system (“UGP”), to be owned and controlled by Beefy DAO. This will include:

3.1 - an ERC-20 vault contract and token (“$mooBIFI”) on Ethereum, which user can use to stake new $BIFI tokens to earn governance incentives;

3.2 - smart contract mechanisms on Ethereum, to manage the delivery of governance incentives to the UGP vault contract;

3.3 - new fee batching contracts on all other chains to aggregate fees for governance incentives on other chains, ready for bridging; and

3.4 - a bridging solution between Ethereum and all other deployed chains, to allow the fee batching contracts to automatically bridge governance incentives into the delivery mechanism and on to the pool. This may include indirect transfer routes where savings on fees or gas can be made.

4- Develop, test and deploy a new bridging solution for the new $BIFI token to allow bridged copies to be available on chains other than Ethereum. This will encompass smart contracts to handle the on-chain activity, one or several bridge or messaging providers to handle the communication between chains, and rework of the Beefy web application to support the new bridges. At present, Core proposes to bridge only $mooBIFI, meaning all bridged copies will reflect $BIFI which has already been staked in the governance pool on Ethereum, and is therefore benefitting from governance incentives being paid in the vault on Ethereum.

5- Following deployment, mint and distribute 80,000 new $BIFI tokens to holders of old $BIFI captured in the snapshot. At present, Core proposes a staged distribution where large holders will receive their allocation on Ethereum, and smaller holders will receive their allocation as $mooBIFI tokens which have been bridged onto another lower-cost chain (e.g. Arbitrum or Optimism). Core proposes a threshold of 80 $BIFI and above to receive on Ethereum, with all others on lower-cost chains.

6- Following distribution, rebuild protocol-owned liquidity for the new $BIFI token on Ethereum and any chains included in the distribution as a minimum. Further liquidity will be added in due course to appropriate chains, though the migration will only focus on Ethereum and any other airdrop chains.

7- Following liquidity, activate the new UGP system and switch the existing governance incentive mechanism over to the new pool. The Core team is proposing that the claimed reward of the UGP will be $ETH tokens.

8- Following all other steps, end support for the old $BIFI token and migrate all core functions to the new $BIFI token, including:

8.1 - retire any outstanding old $BIFI governance pools;

8.2 - replace the voting token for Beefy DAO’s governance; and

8.3 - replace the token used in third party information services (e.g. Coingecko).

At various stages, the plan will involve working with partners at different levels of Beefy’s technology stack. The selection of partners will depend upon their willingness and ability to assist with our plans, as well as strategic decisions as to which partners offer the best solutions or opportunities to implement our plans. As these factors will only become apparent as implementation progresses, it is proposed that the selection of appropriate partners is left within the Core team’s general discretion.

Exclusions

To ensure the distribution of the new $BIFI token is proportionate and not wasteful of treasury resources, the Core team proposes to exclude holdings which constitute only “dust” – i.e. amounts of a very low value which are left as residue after contract interactions or after larger holdings have been moved. Where the value of the holding is less than the cost of gas to send it, it will be uneconomical to distribute to these tokens.

Core proposes a threshold of 0.003 $BIFI (roughly $1 at the time of writing) for this limit. Any residual new $BIFI tokens below this limit will be retained in treasury and used to cover the costs of migration.

All contracts and EOA wallets owned by the Multichain team will also be excluded. This allows for the accurate counting of only those wallets with stuck bridge transactions.

Change Control

Given the timescales and pace of our migration planning, it is reasonable to expect that changes may be required as the technical and operational details of our arrangements gradually come into focus. As the migration efforts are critical, we expect it will be disproportionate to seek formal approval through governance for each individual change.

Instead, this proposal suggests that a space be allocated for updates for the migration process on Beefy’s Discord server, and that any material changes to the details of the plan be posted there. Where there are significant concerns or disagreements about the proposed changes, governance will remain open for a further proposal to be advanced for the relevant areas. Where an issue is due to be raised in governance, the Core team should not progress that issue until resolved by governance. Otherwise, if no concerns are raised within a reasonable notice period, the Core team would be free to implement the change under their general discretion.

Proposal

Beefy’s Core team should be given full discretion to immediately and completely migrate our $BIFI token away from Multichain, in accordance with the migration plan outlined above.

Choice 1: For Choice 2: Against Choice 3: Abstain