MIP 5.1 Moon Token Migration

MIP 5.1: Moon Token Migration

Dear Community,

With the DAO passing a vote to migrate the collateral of MOON token to Bitcoin, the dev team must now prepare for the token migration and upgrades.

This leaves the DAO with another decision to make.

Option 1: Protocol Migration

This option will not require any transactions to be made by each MOON holder. The total collateral will be moved all at once by the dev team with MOON V2 available for claim post migration.

Pros: Simplified migration, less dev work, predictable collateral value backing, continued relationship of trust in the team. This can also speed up the collateral swap to Bitcoin before we push further into the bull market.

Cons: Collateral can be accessed in total by the dev team.

Option 2: User Migration

This option will require each holder to manually migrate their MOON tokens to V2. Total collateral will migrate over an unspecified period of time.

Pros: Trustless option where the migration is executed via smart contract.

Cons: Individual responsibility to migrate, increased dev work, unpredictable collateral value due to volatile price swings during migration period.

Team Note: As the team that has been executing on the DAO's behalf, we would like to suggest option 1. Our reasons for this recommendation are first to execute the migration as smooth as possible, second to cut down on excess dev work, and thirdly to ensure a predictable collateral value.