Lift the governance cliff
dip: tbd title: Lift Governance Cliff author: CMS Holdings status: Draft type: State Upgrade created: 2020-12-17
This DIP aims to lift the governance cliff. All DDX tokens are currently non-transferable (insurance-mined rewards, investor proceeds, and otherwise). Lifting the cliff will allow users to withdraw (and subsequently transfer) claimed DDX tokens from their Trader wallers, thereby realizing the token’s governance and staking utility in the DerivaDEX ecosystem.
This is a straightforward State Update proposal. If successfully executed, the proposal executes the
setRewardCliff(bool _rewardCliff) function defined in the
Trader facet with the value of
true. This sets the
rewardCliff storage value defined in
LibDiamondStorageTrader.DiamondStorageTrader to be
From this point onwards, the
postRewardCliff modifier on the
withdrawDDXToTrader(uint96 _amount) function will pass, allowing users to withdraw DDX.
Transferability is an intended feature of DDX. We do not see any side effects for implementing transferability. As mentioned earlier, this proposal is a
State Upgrade proposal, which modifies a parameter or storage in the DerivaDEX system and has no corresponding smart contract business logic update.
However, voters should be aware that transferability may impact participation rates in insurance mining. In our opinion, transferability will provide a more accurate participation rate in insurance mining, enabling the DerivaDAO to better plan for insurance fund policy development.
The above mainnet fork test validates failed withdraws prior to lifting the governance cliff and successful withdrawals afterwards.
This proposal is a
State Upgrade, which modifies a parameter or storage in the DerivaDEX system (e.g. adding new collateral types) with no corresponding smart contract business logic update. As such we do not see direct critical security considerations.
One consideration is that when DDX is transferrable, users who withdraw DDX from their Trader wallet will now directly custody their DDX however they choose.
Therefore, users must exercise caution when transferring DDX, approving contracts to spend DDX, or other transactions involving DDX. The DerivaDEX protocol has no ability to provide roll-backs or restitution to users who lose their DDX.
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