[DIP-31] Migrate/Upgrade the DFX token on L2s to Chainlinks CCIP

Overview:

This proposal recommends the upgrade of the DFX token to a version supporting Chainlinks CCIP (Cross-Chain Interoperability Protocol). This will create a seamless experience for the DFX token across any supported L2 and cuts down costs for users that wish to bridge across chains.

Specification & Implementation:

The DFX protocol will provide a burn/mint procedure for the new emission token, clDFX (ChainLink DFX) and will be deprecating the bridged DFX token on Layer2’s (Polygon & Arbitrum). The existing DFX token will remain unchanged on mainnet (Ethereum).

• Ethereum ↔ Layer2 = Lock/unlock DFX and mint/burn clDFX.
• Layer2 ↔ Layer2 = Burn clDFX and mint clDFX on the other chain.
• Existing DFX on Ethereum = No change.
• Existing DFX on Layer2’s = Convert DFX for clDFX 1:1.
• All markets for the DFX token on any Layer2 exchange will be replaced with clDFX.
• All future DFX incentives on L2s will be distributed as clDFX.

Deprecate: https://polygonscan.com/token/0xE7804D91dfCDE7F776c90043E03eAa6Df87E6395

https://arbiscan.io/token/0xa4914b824ef261d4ed0ccecec29500862d57c0a1

• New clDFX token contracts will be TBD

Pros:

• Simplify DFX token transfers across different chains,
• Mitigate DFX liquidity fragmentation
• Enabling gauges to be deployed to L2s

Con:

• Having to migrate currently held DFX on Layer2’s to clDFX.