DP 03: Automatic DAR to D conversion of DAR locked in staking contracts

Summary With the upcoming migration of DAR to D we propose an automatic swap of DAR tokens, locked into staking contracts of the DAR Open Network platform, into D tokens. This swap will happen without requiring the staking user to manually handle the swap after unlocking their DAR token.

This process will include the following staking protocols on www.dalarnia.com:

• Dalarnia Citizenship (bep20)
• DAR staking (bep20)

Motivation Secure Execution: Executing the swap by contract will minimize risks for the users.

Optimal User Experience: This way of handling the conversion will not require any user action. Users will receive their D tokens on conversion day without interrupting their staking.

No staking downtimes: By automatically swapping the token, we can continue the staking process without interruptions. At the moment staking of additional DAR is disabled, due to the maximum DAR lock-up period, to allow for a migration period of 12 months. Upon approval of this proposal we will be able to enable staking of additional DAR as the lock-up period is no longer a limiting factor.

Specification Conversion Rate: The DAR to D conversion rate is 1:1. Stakers will receive 1 D token for every DAR token staked.

Date: The automatic conversion will happen in January 2025 with the specific date being announced at a later stage.

Conversion Process for DAR staking and Dalarnia Citizenship:

• An upgrade to the staking contract adds a guarded function called convertToD and updates all functions to use D tokens instead of DAR tokens.
• The convertToD function can only be called by the Project MultiSig Wallet.
• The convertToD function burns all DAR tokens that the staking contract holds and transfers the same amount of D tokens from the caller to the contract. Thus, DAR tokens are converted into D tokens with a conversion rate of 1:1.

Note This proposal does not affect staking for GUD. Users staking DAR in that staking protocol will be required to withdraw their DAR and handle the conversion manually. Details about the manual process will be published in December 2024.

Budget: N/A#