LIP32 : Start small-scale fund transfers to OP for mass distribution testing (Urgent proposals)

Title: Start small-scale fund transfers to OP for mass distribution testing Authors: DrSamo Created: 2023.11.14

TL;DR

Proposal to start small-scale fund transfers to OP for mass distribution testing, aiming to save on treasury execution costs and transfer costs for contributors.

In order to catch up with this payment cycle, this proposal is an Urgent proposal.

Proposal Description

Background

With the rise in Ethereum mainnet Gas, the cost of treasury mass distributions has also rapidly increased. Reviewing the last treasury mass distribution record, when Gas levels were at 10, the distribution cost was around $25. Currently, the market’s regular Gas maintains around 30, meaning the cost of a single USDT transfer could be around $3, and both the treasury and the recipient need to pay this much for each transfer. This situation will worsen during a bull market.

https://etherscan.io/tx/0x5d47faaeb2192c9847a991a30f9677f74c2a426263fd0593dbe07d90bc2448ca

The last attempt to establish an OP treasury was highly approved, reaching about 60% approval with no opposition. However, it unfortunately did not reach the 70% threshold required for consensus-level proposals.

https://snapshot.org/#/lxdao.eth/proposal/0xa069017823aa4aada2ee8ffa3bc9f669ca69587dcba2721ae6c5072ee3ad8d18 1

The issue of important proposals not passing due to inactive governance participants is common in many DAOs. LXDAO’s voting rate is already quite high, and although this attempt did not pass, it reflects the community’s strong desire to establish an OP treasury.

Therefore, I suggest starting with a smaller scale of funds for a small-scale test of the OP treasury, such as transferring one period’s fund expenditure to OP.

Preparations Made

We have prepared an OP Safe multisig wallet as a provisional treasury, with the same multisig guardians as the Ethereum mainnet treasury.

Ethereum mainnet treasury: https://app.safe.global/settings/setup?safe=eth:0xB45e9F74D0a35fE1aa0B78feA03877EF96ae8dd2

OP provisional treasury: https://app.safe.global/settings/setup?safe=oeth:0x2C6360a6a376111fe004F50086b05D0d1596F24F

And the governance team has completed a small-scale fund cross-chain test from the mainnet to OP.

Risks in Execution Process

During the testing process, the following issues were discovered:

Some cross-chain bridges (including the official OP bridge) only allow EOA accounts to interact, while Safe wallets are contract accounts. Cross-chain transactions include a time lock, requiring completion within a short deadline, otherwise, they will fail. However, it’s challenging for multisig guardians to complete signatures from 4 or more people in a short time. Currently, no multisig solution for EOA wallets has been found. If community members have new information, please provide it for discussion. Therefore, we may need a trusted executor with an EOA wallet to receive funds, cross-chain them, and then transfer to the OP provisional treasury (0x2C6360a6a376111fe004F50086b05D0d1596F24F).

It’s suggested to select a member with high LXP to execute, using LXP as a guarantee against misconduct by the executor. If there are better solutions, the community is welcome to discuss them.

Execution Process

1. The mainnet treasury (0xB45e9F74D0a35fE1aa0B78feA03877EF96ae8dd2) will transfer the expenditure for the next period to the trusted executor’s EOA account.
2. The trusted executor will transfer the funds to OP via cross-chain or CEX.
3. The executor will transfer the funds to the OP provisional treasury (0x2C6360a6a376111fe004F50086b05D0d1596F24F).
4. Multisig guardians will officially start distribution in the OP Safe wallet.

Trusted Executor

We now have one applicant to be the executor : Marcus https://lxdao.io/buidlers/0xC841D6DdF66467Af551b35218c0c2e22f9C14b48

Execution wallet will be : EOA : https://etherscan.io/address/0xc841d6ddf66467af551b35218c0c2e22f9c14b48 and CEX : https://etherscan.io/address/0x4a60a43ce6957e80b0faff4936b4898050405970

Follow-up

After this execution, if no problems arise, I will launch another SnapShot proposal , the community should decide whether to make this process a regular process (and discuss whether there is anything worth optimizing in the details)