mars

Prop 197: Mars Token Migration

mrc: 103 title: Mars Token Migration authors: Mars Foundation forum-url: https://forum.marsprotocol.io/t/1316

Summary

The objective of this proposal is to formally signal a vote on the change in protocol governance on 29/07/2024 from Mars Hub app-chain to the Mars Hub instance on the DAODAO protocol on Neutron, alongside a new token native to Neutron.

Additionally this proposal moves to change the revenue distribution model of Mars Protocol from its current buying MARS and distribution to stakers on Mars Hub, to buying MARS and burning those tokens removing them from supply.

Governance Migration

On this specified date of 29/07/2024 any new governance proposals should take place on the Mars Hub DAODAO instance. The Mars Hub app-chain will remain active for 6 months solely to support token holders migrating off the Mars Hub app-chain.

Note: Mars Protocol contracts on Neutron and Osmosis are still controlled by a builders multisig so this proposal does not directly affect them. As part of phase 3 and 4 of the tokenomics rollout the contracts on Neutron and Osmosis will have administration handed over to the Mars Hub DAODAO instance.

Token Migration

The Mars Hub DAODAO instance has a new tokenFactory token native to Neutron. In order to stake MARS on Neutron and participate in governance token holders will need to use the 1:1 0% fee Astroport transmuter pool to convert from old IBC.MARS to new tokenFactory MARS.

After the 6 month anniversary of this proposal successfully passing a signal vote, any remaining liquidity in the Astroport transmuter pool mentioned above will be withdrawn by governance and burnt removing any stale supply of MARS and reducing the total supply.

Buy & Burn

Currently the Neutron and Osmosis outposts use protocol revenue to buy MARS and send it back to Mars Hub app-chain to be distributed to stakers. With this proposal the buy and distribute will be discontinued in favor of a buy and burn model in the immediate future. At a later stage of the tokenomics rollout additional models such as buy & LP will also be implemented and configurable by governance.

Implementation

This is a signaling proposal, not an executable proposal.

The Mars smart contracts on the Neutron and Osmosis chains are currently controlled by the Builder Multisig address. If this proposal passes, the builders will utilize their multisig to make the necessary parameter changes.

Initially the move to buy & burn will be handled by sending MARS tokens brought on Neutron and Osmosis via IBC to a community managed multisig mars1mxumghlfzw57jvk2uc06ersx9ag6m77z6w2wk7 on Mars Hub app-chain. This multisig will take care of migrating these tokens to the new tokenFactory MARS token on Neutron and then burning them.

Eventually the buy & burn solution will be automated:

  • on Neutron during the update to Mars v2 on Neutron
  • on Osmosis when the Mars v2 on Neutron contracts are backported

The liquidity held in the transmuter pool is managed by a Mars Hub SubDAO which will be responsible for withdrawing the remaining MARS liquidity in the transmuter pool after 6 months and burning it.

Copyright

Copyright and related rights waived via CC0.

Disclaimers/Disclosures

This proposal is being made by Mars Protocol Foundation, a Cayman Islands foundation company. Mars Protocol Foundation engages in research and development of the Mars Protocol. Mars Protocol Foundation and certain of its service providers and managers own MARS tokens and have financial interests related to this proposal. The aforementioned persons or their affiliates may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Neutron/NTRN. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.

This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Mars Protocol Foundation may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Mars Protocol Foundation is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Mars Protocol Foundation shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.