Justin Sun to have a formal smart contract to ensure investor protection.

This proposal mandates the creation and deployment of an onchain smart contract to enforce the two-year lockup period for the 500 million XCN granted to Justin Sun and HTX in OIP-52. It also stipulates that these granted tokens will not be eligible for staking APR during the lockup period, as they were acquired via DAO allocation rather than market participation.

Rationale

OIP-52 allocated 500 million XCN to Justin Sun and HTX with the stated condition of a two-year lockup. As of now, no smart contract has been deployed to enforce this lockup, and there is no public guarantee that the tokens are non-transferable or non-stakable during the lockup period.

In the absence of an enforced smart contract, the DAO cannot verify that these tokens are secure, inactive, or excluded from staking rewards — which would create an unfair dynamic compared to users who purchased and locked tokens at market price.

This proposal reinforces the original agreement, preserves tokenomics fairness, and restores community trust by ensuring the lockup is technically enforced and economically neutral during its duration.

Specification

A smart contract will be deployed to hold the 500 million XCN with the following conditions:

Tokens will be non-transferable and non-stakable for a period of 730 days from the date of lockup execution.

Tokens may not accrue staking rewards (APR) during this time.

Contract code will enforce a strict unlock date and publish this date via a public method such as unlockDate().

After the 730-day lockup period, the recipient may withdraw the tokens and stake them if desired. Only then may APR begin accruing.

Implementation

The OnyxDAO core developers or an approved third party will:

Deploy the contract within 14 days of proposal approval.

Transfer the 500M XCN into the lockup contract in a publicly verifiable transaction.

Verify and publish the contract source code and lockup parameters.

Financial Impact

No new tokens are created. This proposal enforces restrictions on an existing allocation and prevents inappropriate APR accrual on non-purchased tokens.

Benefits

Enforces the original lockup commitment made in OIP-52.

Ensures fairness by excluding granted tokens from staking APR during the lockup.

Enhances trust and transparency through onchain enforcement.

Aligns DAO policy with best practices around large-scale token distributions.