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Fraction TokenFraction Tokenby0x388E96Dfe68b30892af93f30F5035602D8d51487fractiontoken.eth

xERC20 Upgrade - burn FRACTION Connext V1-Router Liquidity

Voting ended over 2 years agoSucceeded

FRACTION is now officially the first native SuperToken that is also a native xERC20 Token, a standard for cross chain compatibility developed by Connext. So basically the first Super-xToken.

Proposal TL,DR: Burn all the FRACTION on new chains (Polygon, Optimism, Arbitrum, BNBChain, Avalanche) previously locked in Connext V1 Routers.

xERC20-Burn-Router-Liquidity.jpg


Explanation and Backstory:

When FRACTION (and MIVA) started to expand to new chains, the biggest challenge was to keep the one central feature: Streaming via Superfluid. If the token would've been bridged by a mint:burn mechanism, the new token wouldn't be a native SuperToken anymore.

The solution was to mint the token on all chains (total supply 1, each chain) and lock the full amount in the Connext Router. That enabled a lock:release mechanism, which kept the streaming feature. (Disclaimer: Technically this way, only the "total circulating supply across all chains" would be 1, but each chain would have their separate total supply of 1.)

Connext shut down the V1 Router Network in Q2/2023 and the new generation of Amarok Routers appeard. Since then cross chain movement of FRACTION was only possible via aggregators like LI.FI where the bridging itself took place via another token and FRACTION would just be swapped on each chain along the way.

Now, with new Connext Routers in Place and the FRACTION Token upgraded to an xERC20 Token, it's finally possible to mint:burn the Token on the new chains.

That means, all the remaining FRACTION on the new chains isn't really necessary. Tho they could be used as Router liquidity again for "fast tracks", their existence poses a potential threat - since the Router Operators COULD TECHNICALLY retract the preminted liquidity and bridge it back to GnosisChain, forcing the mint:burn mechanism.


The V1 Router Liquidity has been retracted and parked on an EOA Account controlled by the project itself: 0x365a55995BA89ecdb1B22E702175c98669329930 GnosisChain Polygon Optimism Arbitrum BNB Chain Avalanche


This proposal should serve as a tool of transparency - that FRACTION controlled by the project itself will not use/sell/burn/mint without notification and giving everyone who holds FRACTION the option to use their Token for voting.


NOTE:

  • Burning FRACTION will only take place on Polygon, Optimism, Arbitrum, BNBChain.
  • On GnosisChain, a lockbox is in place, meaning the intermediate xxFRACTION will be burned
  • Avalanche is currently not supported yet by the new routers, the FRACTION will stay parked and burned once Connext support is available and enabled for FRACTION.

Also: Big shout out to the Devs at Superfluid for updating/adjusting their Protocol&Proxy to make this possible.

Off-Chain Vote

For
0.14 FRACTION100%
Against
0 FRACTION0%
Abstain
0 FRACTION0%
Quorum:1352%
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Discussion

Fraction TokenxERC20 Upgrade - burn FRACTION Connext V1-Router Liquidity

Timeline

Nov 15, 2023Proposal created
Nov 15, 2023Proposal vote started
Nov 22, 2023Proposal vote ended
Feb 15, 2024Proposal updated