Motivation

This proposal suggests for the protocol to conduct and enact a full migration from Fantom Opera to Sonic Chain, and proposes the enactment of various protocol-related initiatives. The proposal strives to ensure the long-term scalability, security, and efficiency of the protocol's operations. Sonic offers lower transaction fees, improved network performance, and a more robust infrastructure, making it the optimal blockchain for Samurai’s ecosystem.

By conducting the protocol migration to Sonic, the protocol shall: • Enhance Performance: Sonic Chain’s architecture ensures faster transaction speeds, lower latency, and higher reliability than Fantom • Reduce Costs: Users shall benefit from lower gas fees, optimizing interactions with Samurai products and services • Improve Security & Sustainability: Sonic’s modern consensus model and network design shall provide a more resilient and future-proof environment • Streamline Ecosystem Support: After the migration, the Samurai protocol and ecosystem shall exclusively operate on Sonic, discontinuing all protocol functionalities on Fantom

This migration shall involve transferring all Samurai assets, products, and smart contracts from Fantom to Sonic, ensuring the seamless continuation of the ecosystem on the new chain.

The migration shall be executed via a snapshot and airdrop-based mechanism, ensuring that all holders are seamlessly transitioned without requiring extensive manual action. This approach is grounded in the lessons learned from other protocols and the issues they encountered with migration windows and manual transfers, leading to fragmented liquidity and low participation rates. By automating the transition, the Samurai protocol shall ensure a considerably greater migration efficiency, minimizing the risk of users missing the migration window, while maintaining ecosystem integrity.

Specification

The migration shall be conducted in structured phases to ensure a smooth and orderly transition for the Samurai protocol, its ecosystem and its users.

1. Removal of Liquidity & Snapshot of Holdings

Prior to the migration snapshot, all existing liquidity and protocol support on Fantom shall be discontinued, including: • Removing all xHNR liquidity (and prior token iterations) from Fantom DEXs by any and all means available • Withdrawing all protocol-earned revenue from Samurai products and associated smart contracts • Disabling protocol-related activities, provisions and liquidity to ensure an orderly transition • Encouraging users to withdraw their assets from LPs before the snapshot is taken • Users shall withdraw and claim any Samurai-related assets from the protocol mechanisms, products and protocol-related LPs before the snapshot to receive their full airdrop allocation • Assets should be situated in self-custodial wallets to ensure airdrop eligibility • Failure to have assets in a qualifying state at the time of the snapshot shall result in loss of migration eligibility

Once liquidity is removed, a final snapshot of xHNR token balances, Samurai Node NFTs, and other protocol-related assets on Fantom shall be taken in accordance with data provided by FTMScan

Snapshot details: • Snapshots for xHNR tokens, vexHNR tokens, Samurai Node NFTs and other protocol-related assets and holdings shall be taken on the same day and at the same time (from FTMScan) • The exact snapshot date shall be determined if this proposal passes and after its conclusion

2. Airdrop of Holdings on Sonic

After the snapshot is finalized, an equivalent amount of xHNR tokens, vexHNR, Samurai Node NFTs and other Samurai-related assets shall be airdropped to all eligible wallets on Sonic. • The airdrop shall include all token balances, Samurai Node NFTs and other protocol-related assets and holdings • Users shall automatically receive their assets— requiring minimal or no need for manual bridging or deposit actions • All Samurai products, services, features and components (such as governance) shall be migrated to Sonic as part of this process • Only assets on the Sonic chain shall continue to be supported and accrue rewards • Only Sonic-based assets shall be eligible for governance participation post-migration • Assets remaining on Fantom shall not receive further support and shall be deprecated • Users who fail to be included in the snapshot shall not receive any migration allocation • Samurai Node NFT IDs and metadata are not guaranteed to be the same, but the respective tiers shall remain the same

3. Smart Contract Deployment on Sonic

Following the migration, all Samurai smart contracts shall be re-deployed on Sonic to ensure full ecosystem continuity.

All Samurai ecosystem products and services shall be re-deployed on Sonic, including but not limited to: • Samurai Chat • ZenEstate • Sambot • Samurai Levels (Levels streaks and earned level scores shall reset on Sonic) • Subscription-based services shall transfer over, with renewal extensions granted if necessary

Protocol-owned NFTs situated in the Samurai Trade Contract, Release contract (from Settle & Release initiative), and treasury shall be burned.

New NFTs can be accumulated on Sonic via potential SELL events and then resold in the following BUY events.

4. Liquidity & Multi-Chain Considerations

•	Liquidity removed from Fantom shall be repurposed to seed Sonic-based pools
•	wxHNR in single-sided staking for ZenGarden shall remain unchanged and shall not undergo migration
•	Contracts on AVAX, ETH, BSC, and MATIC may or may not remain unchanged
•	Support for Fantom RPC URLs shall end for Samurai Node NFTs

•	The migration (including airdrop) is estimated to take 2-3 weeks but may take longer if unforeseen issues arise
•	During this period, the protocol may not be fully operational —users shall not deposit to ZenGarden-related smart contracts on opposing chains until migration is complete

5. Enact a Samurai Governance Vault Conversion

To ensure ecosystem alignment and a stable transition, in the next 180 days, the protocol shall enact a conversion of USDT funds situated in the Samurai Governance Vault to acquire Sonic (S) tokens. • Up to the full amount of USDT in the Governance Vault may or may not be used for this purpose • The conversion shall be carried out by the core team, at any available price, in the next 180 days and post-conversion the funds shall be situated in the Samurai Governance Vault • These tokens, their overall quantity and the timing of their acquisition shall be at the discretion of the core team and may unfold on either centralized exchanges (CEXs), decentralized exchanges (DEXs) or any avenues available • The execution of the conversion can fully unfold prior to the 180-day limit. Besides the 180-day time limit, the execution of the conversion is at the discretion of the core team.

6. Conclusion of the “Settle & Release” Initiative

The Settle & Release initiative, which has been in place since August 29, 2023 (approximately 559 days / 1 year and 194 days), shall officially conclude upon the enactment of this migration • All pending Release & Settlement requests shall be processed and finalized on the day the snapshot is taken • No further actions, claims, or disbursements shall take place under this initiative

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This proposal and its detailed actions shall ensure that the Samurai protocol is fully integrated into the Sonic ecosystem, supporting the protocol's and the ecosystem's long-term sustainability, viability and functionality.

The proposed snapshot-based airdrop migration procedures, as well as other outlined operational initiatives strive for a structured, secure, and efficient approach that eliminates manual migration issues, prevents fragmented liquidity, and ensures a seamless transition for all users.