BIP-81: Sonic Expansion – Protocol Changes on Fantom

Introduction

Multiple BIPs have been put up to discussion and to vote to set the path for Beethoven X on Sonic and the migration there. This proposal aims to confirm the final steps for the Sonic migration by concluding or alternating some of the current processes on Fantom Opera. The proposal is planned to be the last BIP that is voted using maBEETS on Fantom, with upcoming votes taking place using maBEETS on Sonic.

This BIP proposes the following changes:

1. Increase protocol fees for Beethoven X DEX on Fantom to 50%
2. Conclude Gauge votes on Fantom
3. Set final protocol revenue distributions of sFTMx and Fantom Validator

Motivation

The goal of the proposal is to conclude active management of Beethoven X products on Fantom to a minimum and to encourage migration to Sonic mainnet. For this, the following adjustments are proposed:

1. Increase protocol fees for Beethoven X DEX on Fantom to 50% after Sonic network launches

Currently, the protocol fees on Fantom are set to 25%. We believe that it will best serve the DAO to set this to 50% (which is the maximum possible) once Sonic public mainnet launches, to actively encourage migration to Sonic and for the DAO to maximize the revenue stream from the dormant liquidity on Beethoven X DEX on Fantom. It is very likely some of the deposited liquidity on Fantom has since then been lost or discarded, meaning it will never be withdrawn and will continue to earn DAO revenue for the foreseeable future.

2. Conclude Gauge Votes on Fantom

With Sonic public mainnet launch the BEETS emissions on Fantom Opera would be stopped. With no more emissions to be distributed, the gauge vote on Fantom can not function and needs to be shut down as well. We propose the currently active gauge vote Round 77 to be the final one on Fantom. In the case Sonic public mainnet has not launched by the time the distribution of emissions decided by the Round 77 finish on 25th December, the emissions will be set by the Music Directors until Sonic launches. The gauge votes would be resumed on Sonic as soon as it is feasible once all the required systems are in place.

3. Remaining protocol revenue from sFTMx and Fantom Validator

With the changes made to Fantom Opera with the launch of Sonic, the Beethoven X managed sFTMx and Validator will not continue to earn protocol revenue going forward. We propose whatever remaining revenue to be claimed from these processes to be incorporated directly to the treasury to reduce required management to a minimum (with 10% of the final revenue from sFTMx still going to Stader per the agreement). This would also conclude the active processes of sFTMx Coalition on Fantom Opera with the plan to start a similar system on Sonic using the new Beets managed Sonic LST.

## Impacts / Risk Assessment This proposal aims to focus the DAO and contributors efforts towards Sonic mainnet launch by concluding or streamlining the remaining processes on Fantom.

Specification / Execution Plan

Following the adoption of this BIP the Composers and Music Directors will enact the corresponding changes.