nftearthl2.eth

[NIP-016] Immediate Unlock of All Staked NFTE positions on Arbitrum.

Voting ended about 2 years agoSucceeded

Summary:

Arbitrum Chain Outage - Enable Immediate Unlock of Staked Assets on NFTEarth for all xNFTE holders.

Background:

When building an NFT protocol on a Layer2, nothing is of more importance to the team than protecting the assets of holders that have entrusted them to protocol. Arbitrum One experienced a complete outage on Friday, December 15th, 2023.

For more information on the specific incident, please do some research on what occurred on Arbitrum or review this DeCrypt article: Though typically a very reliable chain, and one the team has had an overall great experience with building on, at present moment, even the possibility of the chain failing to produce blocks is not something the team is comfortable with at present.

Rationale:

NFTEarth has avoided any sort of security compromise in its entire existence, something for a small and young project to be proud of. That said, this does not mean the protocol is immune to exploits, and will continue to implement OpSec best practices to the furthest extent possible going forward to aim to continue this solid track record. Something outside of the protocol control are events such as this here: a total chain outage rendered the Multisig entirely useless during the period which blocks were not being validated, made the exchange unusable on Arbitrum, and perhaps most important, brought into question to safety of locked user assets on Arbitrum.

Motivation:

The protocol is currently finalizing architecture to launch a new and improved version of the protocol, bringing innovative features to the non-fungible space including but not limited to: deploying an exclusive Ethereum L2 Rollup Chain dedicated specifically for NFTs. There are multiple options being considered, in addition to pivoting to a more targeted approach on a niche NFT chain as well, and building incrementally towards what the market asks for in regards to NFTs. With the focus shifting away from Arbitrum and towards other scaling solutions, the team is not able to keep up to speed with all the events occurring on Arbitrum, such as this event here, to a satisfactory level.

Implementation

Upon conclusion of this vote, the Multisig on Arbitrum will call unlock on contract 0xE57bd15448C3b2D1dBAD598775DD2F36F93EBf90 - which is the contract address on Arbitrum for xNFTE. The unlock function is protected by the onlyOwner modifier, meaning that only the owner of the contract (typically the deployer or the DAO Multisig) can call this function. This is a safety mechanism that can be used in certain situations, for example, during an emergency or protocol migration to ensure that users can retrieve their tokens. This will allow anyone who has locked their tokens the ability to withdraw them at their choice, with no penalty to them. As of the time of this proposal, per DeBank, there are 40 Unique Addresses that have chosen to become xNFTE holders, and the team would like to express the most sincere appreciation for their support in the long-term growth of the protocol - and hope this effort here to show swift response and decisiveness in regards to this matter helps reinforce the belief in what NFTEarth aims to build over time.

Implications:

There is NO ACTION REQUIRED by any user at this time. Again, this simply allows any xNFTE user to withdraw their locked assets. The team intends to reimplement and deploy a staking/locking mechanism similar to the current one in place, but potentially with some changes, and potentially on a different chain (ie., Ethereum Mainnet). Details will be shared as soon as they become available on the next steps here. Users who hold xNFTE and would like to withdraw from the contract can interact directly with the smart contract or do so on Arbiscan at this contract address on Arbiscan. by clicking write and selecting function 13 which is withdraw.