Updating FWB Token Ecosystem

Focus: $FWB L2 Migration and $Benefits Token Launch

Author: Greg Bresnitz & Jose Meija

Objective: This proposal details the strategic migration of the $FWB token from the Ethereum Mainnet to Base Layer 2 and the introduction of a new token, $Benefits, which will serve as a utility-focused arcade coin within the FWB ecosystem.

Rationale: Evolve the FWB ecosystem by migrating to a trusted L2 that offers more affordable transactions, easier onboarding, and strategic alignment with the future of how consumers will interact with blockchains. Introduce a new token into the FWB ecosystem that serves as a medium of exchange between ecosystem participants.

Timeline: The migration process is scheduled to begin at the end of Q2 2024, with preliminary steps to be initiated immediately following approval. Conflicts of Interest: None identified thus far.

Objective This proposal outlines the strategic migration of the $FWB token from Ethereum Mainnet to Base Layer 2, coupled with the introduction of a new token, $Benefits. The focus of this proposal is on enhancing utility, reducing costs, and expanding capabilities within the FWB ecosystem.

Goals

1. $FWB Migration to Base: The migration is designed to future-proof the token within the evolving blockchain landscape, maintaining its role as a governance token. Transitioning $FWB to Base L2 will capitalize on lower transaction fees and improved scalability.
2. New $Benefits Token: Introducing the $Benefits token for use within the FWB ecosystem. As an arcade token (see Appendix A), $Benefits facilitates transactions within the FWB universe, such as exchange of goods, accessing services, and participating in community events, thereby enhancing the vibrancy and engagement of the FWB community.

Technical Approach FWB will work with Squad to build the smart contract for migrating the existing $FWB token from Ethereum Mainnet to Base L2 and launch the new $Benefits token.

See Appendix B for overview.

Smart Contract Migration

1. Develop new smart contracts compatible with the Base environment.
2. Implement comprehensive testing to ensure functionality and security on Base.

Token Swap Mechanism

1. Create a seamless token swap mechanism for holders to convert their Ethereum-based $FWB tokens to Base L2 $FWB tokens.
2. This will involve a one-time swap event where users send their Ethereum L1 $FWB tokens to a designated smart contract that will then issue the equivalent amount of recapped Base L2 $FWB tokens.

Smart Contract for New Token

1. Develop a smart contract that allows for minting of the new $Benefits token, with no cap, on Base.
2. Creation of a multi-sig that will allow tokens to be minted & distributed at regular intervals.

Infrastructure and Security

1. Set up the necessary infrastructure on Base L2 to support the new token’s operations.
2. Conduct a full-scale security audit of new smart contracts to ensure the safety and integrity of the migration process.

Community Engagement and Support

1. Launch an informational campaign to educate the community about the benefits and procedures involved in the migration & new token.
2. Set up a dedicated support channel to assist users during the migration process & launch process.

Post-Migration Monitoring

1. Monitor the migration process closely to handle any issues promptly.
2. Ensure continuous engagement with the community to gather feedback and provide updates on post-migration improvements.

Why Base? Migrating the $FWB token to Base Layer 2 offers significant advantages by addressing critical challenges associated with the Ethereum Mainnet. Primarily, this transition will dramatically reduce transaction fees and enhance processing speeds, making participation in the FWB ecosystem more cost-effective and efficient for all holders.

Our decision to migrate $FWB to Base is not motivated by direct incentives but by a strategic and beneficial partnership. Base has been a steadfast ally to FWB, deeply aligning with our vision and consistently supporting our community engagement efforts. This existing relationship brings a level of ease and familiarity to the transition, making Base a natural choice for our needs. Furthermore, Base not only matches our technical requirements but also resonates with our community's ethos and long-term goals. Their commitment to fostering blockchain adoption and creating an accessible, user-friendly environment aligns with our ambition to see widespread, mainstream use. Partnering with Base offers the potential for retroactive funding through initiatives such as Optimism’s (OP), which could provide significant financial support for further development. This opportunity enhances our capability to innovate and expand within the FWB ecosystem, underscoring the strategic benefits of our collaboration with Base.

Bridging vs Migration The decision against implementing a standard bridging solution for the $FWB token migration stems from our conviction that the future of consumer-facing applications and ecosystems will predominantly reside on L2 solutions. We anticipate that all significant activity and value exchanges will occur on L2s, negating the need to maintain a presence or use case for $FWB on the Ethereum mainnet. This strategic choice ensures that resources and community focus are streamlined and fully transitioned to the more efficient and scalable L2 environment.

$FWB Recapitalization

Supply recapitalization to 10M.

History The original $FWB token was launched as a 10M supply token via smart contracts created by the platform Roll. The Roll contracts were hacked, leading to the creation of a new $FWB token that was issued with a max supply of 1M. The shift from 10M tokens to 1M tokens at that time had interesting implications for FWB DAO – a tighter supply of tokens meant that gaining access to the community was, theoretically, even more scarce than it had been before, so long as the community continued to operate under the meta of seasonal updates to the token gating requirement for the Discord server. The 1M cap also represented a distinction from other common social token projects from the same era that FWB launched within, most of which operated under the assumption that 10M tokens was the prevailing ‘correct’ approach for supply.

Recapping Benefits Returning to the original supply cap of 10 million $FWB tokens is pivotal for fostering inclusivity and engagement within the FWB ecosystem. A controlled supply recap facilitates this by ensuring the tokens are accessible and actively circulated, thereby encouraging new memberships and enhancing participation in the DAO's governance.

Membership Membership will move to 750 L2 $FWB. Q3 will be a major focus for the future of membership and this will be discussed & reviewed along with bigger visions.

Discord Access Starting with migration, both L1 $FWB & L2 $FWB will grant access to discord. On October 15th, 2024 FWB Discord access will only be for L2 $FWB. There will be an extensive marketing campaign around this.

Indefinite Migration The migration will be open indefinitely allowing token holders to swap at any time.

$Benefits Token: Driving Innovation in the FWB Ecosystem The creation of the $Benefits token represents a strategic expansion within the FWB ecosystem, designed to complement the existing $FWB token. As an arcade token (see Appendix A), $Benefits facilitates transactions within the FWB ecosystem, such as exchange of goods, accessing services, and participating in community events, thereby enhancing the vibrancy and engagement of the FWB community.

Distribution of this new token will be governed by $FWB holders, ensuring that its evolution is in line with the community's interests. The introduction of $Benefits serves to diversify the activities within the FWB ecosystem, creating a more interactive environment that encourages both current members and new participants to engage more deeply with community-aligned projects and initiatives.

• Decentralized Governance: Governed by $FWB holders, decisions about the distribution of $Benefits reflect community interests, ensuring alignment with the ecosystem’s values and growth objectives.

• Incentives for Innovation: Developers and users creating dApps for discovering new uses for $Benefits could be eligible to receive retroactive rewards, encouraging significant contributions and ongoing development.

• Ecosystem Use Cases: Applicable across various activities including SIC products, community participation, and event attendance.

$Benefits is explicitly designed for use solely within the FWB ecosystem, with no intended external market. It serves to reward member contributions, facilitating access and participation within the community.

Proposal adapted here due to character limit. Click here for the full proposal.