Proposal #5 - Bridge some $PRTN to Polygon

Summary: Bridging a 5% of $PRTN and 20% of the Protein Treasury to layer2 for operational costs

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Proposal Key:

Blockchain Bridges - [[Insert def]]

Mainnet - Ethereum Mainnet - [[Insert def]]

Gas Costs - [[Insert def]]

Purpose:

Bridging (Insert Def) main purpose is to reduce the operational costs of distributing $PRTN and other assets (ETH/USDC). As we continue to need to pay core team; potential collaborators and future projects and grants we want to ensure we are maximising the potential of our assets. So we propose to bridge a portion of the treasury over, leaving the majority for security reasons on ETH mainnet.

Specifics:

We will bridge 5,000,000 $PRTN (5% of total supply) and $50,000 USDC (20% of $250,000 current treasury) to a polygon gnosis safe as a child of the Protein safe.

We will use coinvise to import the $PRTN tokens, and then bridge the % across to polygon. You can find out more about the process here.

We then use this, integrated with apps ‘superfluid’ and ‘CSV airdrops’ for our transactions to send PRTN (on polygon), ETH and USD Coin (PoS) to members.

We’ll be able to do this more regularly and aligned with our earn to access models. Receivers get their assets on the MATIC network, which they can bridge back to mainnet if they need to.

We propose that liquidity pools will be set up on eth mainnet, Snapshot and guild can be used with both polygon and mainnet integrations.

Rationale:

  • Primary purpose is to reduce gas transaction costs. Gas is prohibitive for maximising the $PRTN value for the community and contributors.
  • We’re seeing more and more communities create layer2 solutions to their smaller operational transactions, and more products being built with this in mind.
  • Creating liquidity on just mainnet is important to work against price volatility and for security reasons

Benefits:

  • Members can get instantly airdropped their compensation for contributors without incurring gas fees.
  • Core team can use superfluid (operating on polygon to stream assets)
  • Transferring assets is cheaper

Concerns:

  • Splitting the $PRTN token between eth mainnet and polygon could cause confusion as the $PRTN token grows
    • We’ve been advised through other community case studies like grc that this isn’t an issue
  • Members having to ‘bridge’ the $PRTN back could cause confusion
    • We’ll create comprehensive education around this process
  • Creating liquidity on just mainnet means members have to pay gas to bridge back the tokens to mainnet and also pay gas to list them. This could cause a lack of incentive for contributions and frustration.
    • In reality this will encourage members to be more thoughtful about holding their $PRTN/continuing to build the ecosystem

Good Growth:

  • Bridging tokens is key to good growth because it allows the Protein Community to distribute tokens faster and more efficiently, creating a more diverse token economy and base.

Proposal Timeline:

  • Discourse discussion - 19th - 24th
  • Community Snapshot - 25th - 28th
  • Community Snapshot closes - 28th
  • Migration begins 31st
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Adding some definitions I missed

Blockchain Bridges - A blockchain bridge is a connection that allows the transfer of tokens and/or arbitrary data from one chain to another . Both chains can have different protocols, rules and governance models, but the bridge provides a compatible way to interoperate securely on both sides.

Mainnet - Ethereum Mainnet - Mainnet is the term used to describe when a blockchain protocol is fully developed and deployed, meaning that cryptocurrency transactions are being broadcasted, verified, and recorded on a distributed ledger technology (blockchain).

Gas Costs - Gas refers to the fee, or pricing value, required to successfully conduct a transaction** or execute a contract on the Ethereum blockchain platform.

Just changed this to update new dates

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is this also a proposal for liquidity pools on mainchain? or just for bridging a portion of $PRTN and USDC

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it will cover both eventually, but we need to start with a more effective way of distributing PRTN as part of our “earn to access” initiative

Just proposal for bridging to polygon!

Just put forward another proposal on sourcecred vs tipping!

OK and rationale for not moving it all to polygon / or doing snapshot and drop in polygon … ie giving everyone their current tokens on poly and ditching the old
is that the liquidity pools need to be on mainnnet?

Once we migrate some over to Polygon, can we then airdrop everyone instead of having to ask them to spend gas?

correct me if I’m wrong, but as far as I understand Polygon will be used for compensation, and we’ll still have to airdrop $PRTN as utility tokens (for voting, access to Discord, etc)

Just seconding this question. Would love any more info on why not move it all to Polygon (I am a fan of the enviro benefits of L2’s (though Ethereum should be PoS soon)). I’m still fairly new to intricacies of different chains, though, so would love to understand better the benefits of staying on main chain vs. moving it all over to Polygon. Thanks!

Just for bridging a portion of $PRTN and USDC

Hey thanks for this question; in this stage it’s essentially a test to make sure the transition will work for the community before we’d thinking about bridging the full amount. We’ve thought about it for sure, and also reminting an entirely new token on polygon.

For now, it makes the most sense to bridge a smaller amount which we allow us to create even more collaboration and ownership, with a chain which is still compatible with ETH mainnet in the longterm.

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Thank you for the reply. All makes sense to me!

I am concerned that this is taken too lightly.
Polygon is not a layer 2 in the same way arbitrum, optimism or zkSync are. It is usually characterised as a sidechain. I do think L2s (that benefit from mainet safeguards) should have been more seriously considered.
That being said, I support the initiative of moving 5% of token supply to the polygon chain.

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Hey Parseb, first thanks for commenting here. Defo welcome the discussion and wish we’d been able to engage earlier so we could have explored it together. I’d like to set up a call to discuss these true L2’s , and as you said, for now, the initial test of 5% seems like an appropriate test for getting $PRTN into the hands of more people.

As well as there being easy low cost bridges from polygon to say, for example optimism if we decided after more research to go that way.

I’m wondering if you’ve got any thoughts on the withdrawal times of both optimism and arbitrum back to eth mainnet. For example, if we decided we wanted to keep liquidity on mainnet, or revert the decision in the future. From what I can see, it looks like these withdrawls back to mainnet take about 7 days, which would be inconvenient to members. Unlike polygon which is roughly an hour.

Let’s hop on a call and jam on this!

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:white_check_mark: This proposal has been voted and passed. Thank you.