Prop 43: Initia Chain Upgrade Proposal #1: Taking Off the Training Wheels

Note: The original forum post for this proposal previously stated version 1.1.0. This has since been changed to 1.1.1 to include additional bug fixes found for the Fungible Assets module after the initial forum submission.

1. Background

This post is an amendment to the original Initia Chain Upgrade Proposal #1 submitted in Proposal #39 as described in the Inflation Correction and Unstaking Subsidy Plan. The contents of this proposal and the upgrade binary itself is identical to the one proposed in #39, but with the inflation parameter adjustment now separated into separate proposal

Initia Chain Upgrade Proposal 1.5 includes adding whitelist functionality to the emergency proposal framework, introducing the ability to change optimistic bridge withdrawal times and finalization periods, adjustments of Enshrined Liquidity parameters to equilibrium rates, and IBC hooks improvements.

2. Release Binary & Upgrade Resources

• Release Name/Version: v1.1.1
• GitHub Release: https://github.com/initia-labs/initia/releases/tag/v1.1.1
• Upgrade Height: Block 3400000
• Estimated Time: 3 June at 12:11 UTC

3. Proposed Changes

Emergency Proposal Submitter Whitelisting

The Initia L1 allows users to submit 3 different types of proposals; normal proposal with 7 days voting period, expedited proposal with 1 day tally time, and emergency proposals.

The emergency proposal type is designed for a rapid response to security patches, chain upgrades, and other time-sensitive changes. The emergency_tally_interval, which determines the minimum period for a submitted emergency proposal to pass, was previously set at 5 minutes. However, this potentially allows malicious actors with sufficient resources to propose harmful changes using an emergency proposal, sway governance votes, and pass the proposal before it can be detected and stopped. To address this, Proposal 24 temporarily increased the tally interval for emergency proposals from 5 minutes to 1 day. While this adjustment reduces the risk, it also means there is currently no functional difference between an emergency proposal and an expedited proposal.

Thus, this upgrade introduces a feature that allows only whitelisted addresses to submit emergency proposals. This list will be modifiable only through governance. An initial list of whitelisted addresses will be proposed, along with a reduction of the proposal tally time back to 5 minutes (or a similarly shorter duration), in a separate proposal if this upgrade passes.

OP Withdrawal Period

This upgrade introduces functionality for the Initia L1 governance to adjust asset withdrawal times and the rollup finalization period for all live Interwoven Rollups. This change will standardize withdrawal times, creating a more consistent user experience across rollups, and it will allow for adjustments to the parameters after the rollup is live. If approved, an initial standard finalization period will be proposed in a subsequent proposal.

Miscellaneous

• Add hashed address check to IBC Hooks receiver validation (PR #399)

Timeline

• Forum Proposal: May 23, 07:50 UTC
• Expected On-Chain Vote Begin: May 26, 07:50 UTC
• Onchain Vote ends and proposal is executed or rejected: June 2nd, 07:50 UTC

Governance Votes

• YES – You support updating Initia L1 with the changes proposed in this release.
• NO – You oppose implementing the proposed update to Initia L1.
• NO WITH VETO – This vote signals strong objection. It is used when the proposal is considered:
  1. Spam or irrelevant to Initia,
  2. Harmful to minority stakeholders, or
  3. In violation of Initia's governance principles or encourages such violations. If more than one-third of total votes are cast as "No with Veto," the proposal will be rejected and any deposits will be forfeited (burned).
• ABSTAIN – You choose not to take a stance on the proposal but want your vote counted toward the quorum.