This proposal addresses a pressing concern related to $XTM current multichain token contract. As you are well aware, $XTM was one of the affected assets in the recently compromised Poly Network cross-chain bridging protocol, compelling us to design and implement a more secure and reliable token contract.

After careful consideration, we have identified two potential blockchains to host the new native $XTM contract: Ethereum Mainnet and the Binance Chain (BNB Chain). We wish to consult with our token holders about this crucial decision and would like to present a strong case for selecting the BNB chain.

=========== MOTIVATION

Lower Transaction Costs Binance Chain (BNB Chain) is renowned for its cost-effectiveness and scalability, particularly when it comes to smaller, on-chain transactions. Given the high gas prices currently seen on Ethereum mainnet, a significant segment of our community finds itself disadvantaged, as the high cost of transactions may hinder participation in Torum’s ecosystem. By opting for BNB Chain, we can greatly reduce transaction fees, making it far more accessible and attractive to all members of our community, irrespective of the size of their on-chain holdings.

The default deposit and withdrawal option for Torum social media will also be set to BNB Chain, hence eliminating the high cost of depositing and withdrawing $XTM to and from Torum social media.

Participation in Binance Programs From a marketing standpoint, the decision to move to the BNB chain opens up a wealth of opportunities and potential for Torum. Binance is known to offer an array of official programs and initiatives that foster growth and visibility of the projects native to its chain. By positioning ourselves within the Binance ecosystem, we can benefit from these initiatives and boost our project's exposure, recognition, and appeal. Choosing BNB Chain enhances the distinctiveness of our brand and creates opportunities that will further propel Torum's progression within the dynamic landscape of the blockchain industry.

BNB Chain Deposit & Withdrawal on Torum Social Media Our community has spoken, and we have listened. The demand for BNB Chain deposit and withdrawal on Torum Social Media has been voiced by many members of our community. By migrating to the BNB chain, we will be able to respond positively to this demand. This integration will undoubtedly facilitate and accelerate the adoption and circulation of gifting on Torum, further intensifying the utility and usage of $XTM. This is a clear pathway to increase engagement, strengthen our community, and propel the growth of our ecosystem.

=========== IMPACTS

If BNB Chain is selected, there will be a significant shift for $XTM as it transitions from being Ethereum-native to being BNB Chain native. From henceforth, a new token contract will be deployed on the BNB Chain, replacing the old token contract on Ethereum, BNB Chain, Polygon and HECO Chain. The old $XTM token contract will no longer be supported by Torum and our various partners.

Old token contract on ETH, BNB, and HECO Chain: 0xcd1faff6e578fa5cac469d2418c95671ba1a62fe Old token contract on Polygon Chain: 0xe1c42be9699ff4e11674819c1885d43bd92e9d15

The upcoming $XTM tokens will be airdropped to holders' BEP-20 addresses rather than their ERC-20 addresses.

Furthermore, Torum's protocol-owned liquidity will be deployed on a single chain for the foreseeable future. If BNB Chain is selected, the protocol-owned liquidity will be deployed on PancakeSwap, if Ethereum Mainnet is selected, the protocol-owned liquidity will be deployed on Uniswap V2.

Additionally, Torum will prioritize on-chain functionality for the BNB Chain over the Ethereum Mainnet going forward. This decision reflects Torum's commitment to leverage the advantages and opportunities presented by the BNB Chain ecosystem.

$XTM will also cease to be a multichain token in the near future, until there’s demand for $XTM expanding on other chains and until we are able to find a secured & reputable bridging partner.

=========== RISK ASSESSMENT

Risks of this proposal include:

i) Tying the success of $XTM to the BNB Chain ecosystem: The decision to migrate $XTM to the BNB Chain establishes a correlation between the token's performance and the overall success and stability of the BNB Chain. Any potential challenges or setbacks faced by the BNB Chain ecosystem could impact the value and viability of $XTM.

ii) Concentration of protocol-owned liquidity on one chain: With the protocol-owned liquidity being deployed solely on one chain, namely the BNB Chain, Torum becomes reliant on the performance and infrastructure of that specific chain. This concentration exposes Torum to the risks associated with a single chain, including potential technical issues or vulnerabilities.

iii) Dominance of $BNB in protocol-owned liquidity: The majority of Torum's protocol-owned liquidity will comprise $BNB. This concentration in a specific asset poses risks related to the volatility and market fluctuations of $BNB. Any adverse price movements of $BNB could impact the stability of Torum's liquidity reserves.

iv) Potential delisting of $XTM on competing centralized exchanges: The transition to the BNB Chain may result in some competing centralized exchanges considering the delisting of $XTM due to platform-specific requirements or strategic considerations. This could limit the availability and accessibility of $XTM for trading and liquidity.

=========== SPECIFICATION

This proposal would grant Team Torum the discretion to deploy a $XTM native token contract on the selected chain and move or retain all other Torum-related on-chain functionalities to the selected chain.

=========== EXECUTION PLAN

Upon the successful vote, Team Torum will meticulously finalize the on-chain snapshot for all four existing chains: Ethereum Mainnet, Polygon Mainnet, BNB Chain, and Heco Chain. In the interest of transparency, the internally finalized snapshot data will be promptly disclosed to the community. Landers will also be given a reasonable window of time to review and dispute the snapshot data, ensuring an open and transparent process.

Following the snapshot, the team will prioritize the deployment of the new token contract on the selected chain. To guarantee maximum security, the newly redeployed $XTM token contract will undergo a comprehensive internal and external audit conducted by a reputable third-party firm. This audit ensures that the token contract meets the highest standards of safety and integrity.

Once all necessary security checks have been completed, the team will facilitate the resumption of buying and selling $XTM, both on-chain and off-chain. This process will involve the recreation of a new $XTM liquidity pool on the preferred decentralized exchange of the chosen chain. Concurrently, the team will collaborate with various centralized exchange partners to streamline the process of enabling $XTM deposits and withdrawals, ensuring smooth integration with external platforms.

Furthermore, all other functionalities related to $XTM on-chain contracts will be gradually re-enabled in stages. This includes restoring the deposit and withdrawal options for $XTM on Torum social media, reactivating all on-chain functionalities of the Torum NFT Marketplace, and enabling any remaining on-chain functionalities associated with Torum Finance. This phased approach ensures a systematic and secure reintegration of $XTM's full range of on-chain capabilities, allowing users to benefit from the platform's diverse features.

Through these carefully planned steps, Team Torum aims to provide a seamless transition for $XTM holders, ensuring the security, liquidity, and functionality of the token on the chosen chain while upholding the principles of transparency and community participation.