LIP31: Deploy LXDAO Treasury on Optimism (Consensus Proposal)

Title: LIP31: Deploy LXDAO Treasury on Optimism (Consensus Proposal) Authors: Marcus Date Created: 2023.09.20

TL;DR

The high gas fees on the mainnet have led to unnecessary costs in distributing rewards from the LXDAO Mainnet Treasury. To address this, I propose creating an LXDAO Treasury on Optimism to facilitate reward distribution.

Why Optimism?

While there are several options available, such as Arbitrum and Polygon, we have chosen Optimism for the following reasons:

Public Goods Support: Optimism supports public goods and has a mechanism for distributing sequencer fees to public goods through Retroactive Public Goods Funding. Strategic Alignment: As a DAO dedicated to supporting public goods, aligning with Optimism will help us build stronger connections and a more robust network.

Is it important to create optimism treasury?

It's important for the following reasons:

1. a significant reduction in gas fees, as in previous treasury transfers we were losing hundreds or thousands of dollars in gas fees due to transfers being made on the mainnet.
2. Optimism is a layer2 that supports the ecology of public goods, and has introduced the concept of RFG, as well as governance mechanisms, and the creation of the Citizen's Council to support the ecology of public goods, and our creation of the optimism treasury is in line with our public goods strategy.

Relationship between Mainnet Treasury and Optimism Treasury?

The two treasuries will have identical settings, such as Safe Account Owners and Required Confirmations, and will be managed concurrently with the Mainnet Treasury.

While our main funds will remain in the Mainnet Treasury for safety reasons, we will bridge or transfer USDT to Optimism for distribution when needed.

We have already established an Optimism Treasury at 0x2C6360a6a376111fe004F50086b05D0d1596F24F with identical settings.

How to Bridge or Transfer USDT to Optimism?

Bridging USDT to Optimism directly from the Mainnet Treasury may pose challenges. While we will attempt to bridge tokens on-chain, if this proves difficult, we may resort to transferring them to a trusted individual's CEX wallet and then withdrawing from there.

This approach carries some risk and potential for single-point failure but may save time and mitigate risks associated with bridge hacks or attacks, which have been prevalent recently.