Token Rebranding Governance Proposal

Dear community members:

Since ParaState decided to pivot our limited resources to building the SafeStake DVT infrastructure and protocol last year (https://parastate.substack.com/p/annual-review-and-outlook), the project has been through more than fourteen months of development. Most recently, we announced a major upgrade to the Galileo testnet, and the SafeStake mainnet launch is on the horizon.

Before this dawn, the core team would like to execute discretion and raise a proposal to the whole community for a vote. This governance proposal we are raising is to rebrand the STATE token. The primary reasons why the core team feels we need a token rebranding are outlined here:

We need a fresh and clear mindset for the token to attract the new SafeStake infrastructure target audiences. Previously, we defined the token as ‘STATE’ to position our eWASM runtime infra which was to be an implementation that would provide high-performing Ethereum compatibility for all the L1s. Since Ethereum is a worldwide state machine, every single transaction on-chain is a state. Such a token definition is no longer suitable for the SafeStake tech stacks. We need to rebrand the token definition so users who come on board SafeStake will understand the core functions of the infrastructure naturally when holding our token.

Besides the governance function, the major token use case will be the native payment token on SafeStake mainnet. Such a major function will change the supply and demand dramatically after mainnet launch, driving us to tweak the outdated token economy. Why? Let’s assume around 100K validators onboard SafeStake in one to two years, and the subscription fee to the Operator committee is 120 tokens for one validator per month. The balance tokens will be consumed in less than 3.5 years even if we release all eco treasury token portions for the validators since the subscription fee is an ARR fee.

What will be the new name and definition of the token?

KEY, will be the new name of the SafeStake mainnet token. SafeStake is a distributed validator technology implementation in Rust. We implemented DKG (distributed key generation), TSS (threshold signing scheme), and MPC (multi-party computing) schemes to improve the security and robustness of Ethereum staking in a decentralized manner. This new name represents our core technology advantages more precisely. And it will help to refresh the mindset of our token holders: SafeStake is a non-custodial and decentralized infrastructure to help manage the validator private keys more securely, and improve validator performance robustness.

What is the conversion rate between STATE and KEY?

10 STATE convert to 1 KEY

What is the timeline for the governance proposal voting?

The voting will last 7 days from 6th March to 13th March, in order to allow $STATE token holders to vote and receive maximum support from our community. If the proposal is fully supported by the community, we will launch the conversion portal after the governance vote.

We look forward to your continued support!