Summary

This proposal seeks approval for the CCMOON DAO to allocate 200,000 MOONs from the DAO treasury to fund permanent bridge liquidity on Arbitrum One for the MOON token.

This liquidity will support the already-approved, tested, and deployed MOON bridge between Arbitrum Nova and Arbitrum One, with the long-term objective of consolidating MOON liquidity on Arbitrum One while maintaining a strong user experience during the transition.

Background & Context

The DAO has previously approved the development of a MOON bridge between Arbitrum Nova and Arbitrum One. That bridge has now been:

• Implemented
• Tested
• Deployed on https://moonbridge.cc/
• Audited via automated security analysis

The remaining requirement to make the bridge usable at scale is sufficient liquidity on the Arbitrum One side. This proposal addresses that requirement.

The broader strategic goal is to eventually migrate MOON liquidity to Arbitrum One, while avoiding poor UX, excessive delays, or fragmented liquidity during the process.

Proposal

Approve the allocation of 200,000 MOONs from the DAO treasury to be used as permanent bridge liquidity on Arbitrum One.

Liquidity Mechanics

• The 200,000 MOON allocation will be deployed as permanent liquidity
• Liquidity will exist across Arbitrum One and Arbitrum Nova
• Balance will shift organically as users bridge MOONs
• Rebalancing trigger:
  • When Arbitrum Nova liquidity reaches approximately 75% of the total pool
• Rebalancing action:
  • The DAO will use the 6+ day canonical Arbitrum bridge
  • MOONs will be transferred to Arbitrum One
• Post-rebalance target:
  • 75% on Arbitrum One
  • 25% on Arbitrum Nova

This process supports gradual consolidation of liquidity on Arbitrum One while maintaining predictable bridge availability.

Treasury Impact

• The DAO treasury currently holds approximately 845,000 MOONs
• Allocating 200,000 MOONs:
  • Initiates the Arbitrum One migration process
  • Leaves approximately 645,000 MOONs remaining in the treasury
• The allocated MOONs:
  • Remain DAO-owned assets
  • Are classified as infrastructure / operational liquidity
  • Are not discretionary spend

Custody & Control

• Bridge liquidity is secured by a hardware wallet
• The wallet is controlled by u/002_timmy, Executive Director of the DAO
• Rationale:
  • Arbitrum Nova does not currently support DAO-friendly multisig solutions (e.g., Safe)
  • Hardware wallet custody is the most secure available option under current constraints
• This custody model reflects infrastructure limitations, not a governance precedent
• Funds are recallable via governance proposal

Security

Smart contracts associated with the bridge underwent security analysis using Slither (Trail of Bits).

• Slither security analysis found no exploitable vulnerabilities in BridgeV2.
• The codebase follows Checks-Effects-Interactions
• Uses OpenZeppelin’s audited libraries
• If bugs are discovered as usage increases, the bridge will be temporarily paused

Documentation

All smart contracts and user guides are publicly available at:
https://github.com/r-cryptocurrency/moonbridge

Governance Controls

• Bridge liquidity may be:
  • Increased
  • Reduced
  • Recalled
• Any change requires a governance proposal

Execution

• Deployment and coordination will be handled by the Executive Director
• Treasury transfers will be approved and executed by the Guardians/Multisig signers
• Execution will occur following proposal passage