Multichain’s Bridge Pause - Consequences and the Ways to Move Forward

Recent news of Multichain’s bridge (the project backed by Binance Labs) brings some concerns. https://twitter.com/MultichainOrg/status/1679768407628185600?s=20

If the bridging service is not resumed in the future we might face a couple of choices to make relative to BSC and Avalanche bridged tokens.

In the scenario of the SURE tokens not being able to bridge to Ethereum we might face a couple of scenarios:

1. Multichain’s private key holders could mint SURE on BSC and Avalanche and drain the liquidity from DEXs. This would be a fraudulent event against Multichain creators, I.e. prosecuted by authorities.

2. If the access to the bridge is lost completely on the Multichain side or no other entity has access to it, the supply of the SURE tokens stays the same on Ethereum and Avalanche and locked SURE tokens on Ethereum will stay locked there forever.

3. Multichain cannot mint SURE on Ethereum or Polygon, I.e. inSure DeFi will stay fully operational even if the SURE on Ethereum is unlocked and sold on the Ethereum Network by the Multichain team, but that as well will result in a fraudulent event, and will be investigated and prosecuted by authorities.

Proposing to manage the situations as it progresses.

1. Members are not allowed to bridge SURE tokens from BSC or to Avalanche as suggested by the Multichain team. Active immediately after approval.

2. SURE on BSC and Avalanche will have voting power in inSure DeFi Ecosystem. (Unless scenario 1 unfolds, see above).

3. SURE on BSC and Avalanche will remain as a payment option for the insurance policies (Unless scenario 1 unfolds, see above).

4. SURE on BSC and Avalanche staking rewards staying active. (Unless scenario 1 unfolds, see above)

5. If SURE is unlocked, transacted without bridging to the Ethereum chain, and being sold on DEXs, the LPs must be removed and smart contract redeployed with 1:1 airdrop of new tokens in Polygon, Optimism, Arbitrum, or other layer 2 Networks for all users. (TBD during the deployment.) (I.e. smart contract natively created on Ethereum, bridged to Polygon, and airdropped all the treasury funds will remain on Ethereum).

The good side is Avalanche network has had a very small amount of SURE which can be disregarded and BSC Network has had only 0.158% of the Total supply of SURE. The main supply resides on Ethereum and Polygon Networks which are not affected by the Multichain bridging issue.

If you have additional comments and proposals, please choose “Add Comments” during voting and add information to this proposal.