YIP-7: Launching YUP Token to Base

Author(s)

• nir.eth
• vern

Summary

This proposal seeks community approval for launching the YUP token on Base, an Ethereum Layer 2 (L2) scaling solution. The launch aims to leverage Base’s enhanced scalability and community alignment, improving the overall efficiency and user experience for YUP token holders. As part of this launch, the YUP token contract and its rewards mechanism may be redeployed on Base over time. Users will bridge their YUP tokens, ensuring a seamless transition without the need for token swapping. Furthermore, this proposal may introduce liquidity rewards for the YUP/ETH pair on Uniswap v3, incentivizing liquidity provision on the new platform. Timeline and specifics for actual launch and in what phases it happens is TBD, this is just for consensus on the decision.

Rationale

Migrating to Base offers several benefits:

• Lower Transaction Costs: Base’s L2 solution reduces gas fees, making transactions more affordable for users.
• Enhanced Scalability: By leveraging Base’s scalability, the YUP ecosystem can support a higher volume of transactions, accommodating growth.
• Community Alignment: A large majority of the web3 social community has embraced Base and has liquidity on Base. Migrating there
• Increased Liquidity Incentives: Offering liquidity rewards for the YUP/ETH pair on Uniswap v3 on Base encourages liquidity provision, enhancing market depth and stability.

Effect

• Broadened Accessibility and Participation: Lower costs and enhanced scalability make it easier for new users to join and existing users to engage more actively.
• Strengthened Liquidity: Focusing liquidity provision to Uniswap v3 on Base aims to increase the liquidity pool's size, reducing slippage and improving trade execution for users.

Specifications

• Launch Process: Users will bridge their YUP tokens to Base using a third-party bridge that facilitates easy and secure cross-chain transfers without swapping tokens.
• Token Contract and Rewards Mechanism: Over time, the YUP token contract and its associated rewards mechanism may be deployed on Base, with mechanisms in place to ensure a smooth transition of functionalities.
• Liquidity Rewards: Liquidity providers for the YUP/ETH pair on Uniswap v3 on Base may receive rewards, incentivizing participation and support for the token’s liquidity.

Communication

• Discussion Forum: Users and stakeholders are encouraged to discuss the proposal and its implications on the official YUP discussion forum.
• Community Engagement: Engagement and updates regarding the launch process will be actively managed through YUP’s official Discord channel.

Quorum and Governance Notes

• Minimum Quorum: For the proposal to pass, participation from more than 5% of the circulating, non-treasury YUP tokens is required.
• Voting Mechanism: Yes or No vote

Proposal Question

Do you approve the launch of YUP token from Polygon to Base, including the potential deployment of the YUP token contract and rewards mechanism on Base over time, and the introduction of liquidity rewards for the YUP/ETH pair on Uniswap v3 on Base?