PIP-56: Implementation of Project Miró Roadmap and Migration
Abstract
Following prior discussions of Project Miró, this proposal confirms the new set scope for the DAO from a DEX Aggregator to an Intents-centric decentralized trading platform.
PIP-56 prepares ParaSwap DAO for the new token and migration by enabling the DAO to implement the migration and allow the Foundation to initiate this process, as well as listing and other preparations for the new token. This encompasses the following, all explained with further detail on the Means section:
- Implementation of DAO roadmap and mission.
- DAO-Owned PSP Supply Allocation
- Discontinuation of sePSP1, enabling the token as votable instead
- sePSP1 and sePSP2 contract modification
Once passed, the Foundation will be able to initiate the process for the new token, and everything required for a successful launch.
Goals & review
On November 29th, Laita Labs shared a new vision for the DAO named Project Miró in the research section. In it, a set of upgrades were proposed for the DAO and PSP, including a new token, an incentivised migration system and allocations towards initiatives such as listing, marketing and funding.
The main goal of PIP-56 is to prepare ParaSwap DAO for the upcoming token and allocations, enabling all the preparations needed for migration. Based on community feedback, we propose that the proposed supply allocations formerly discussed for the DAO are simply suggestions as opposed to hard limits. Future discussions on funding mechanisms and grants programs will be scheduled to further specify the best way to mobilise this section of the allocation.
Means
To accomplish the roadmap set out by Project Miró, the actionable changes of PIP-56 are the following:
Implementation of DAO roadmap and mission
PIP-56 serves as a motion of confidence to proceed with the new token migration and new scope as an intents-centric decentralized trading platform. By voting FOR on the proposal, the DAO agrees to implement the new token as its governance token, and commits to migrating from PSP.
The total supply of the new token will be 2 billion tokens on a fixed ratio of 1:1 to PSP. We propose dividing the new token in three categories:
-
PSP Migration Budget: 63% of the supply will be allocated for conversion from PSP to the new token. This is based on the current supply of PSP already distributed. It’s important to clarify that the 63% allocated to migration does not include the DAO currently owned supply, which falls under the DAO and Foundation allocations sections found below.
-
Foundation-Allocated Budget: 20% of the supply will be allocated to the Foundation.
We suggest 50% of this allocation to be spent on Growth, which includes marketing, liquidity, listings and BD. 25% will be used for strategic investments in the ecosystem, allowing sophisticated actors to be onboarded, while the remaining 25% will be dedicated to facilitation operations of the DAO and its service providers.
The aforementioned numbers are simply a recommendation. For full transparency from
the Foundation regarding how the allocation was spent, a bi-annual transparency report will have to be shared with the DAO to report on its initiatives advancing the roadmap since the sharing of the last report.
- DAO allocation: 17% of the supply will be under the DAO’s direct control. Of this allocation, 12% can be spent as the DAO sees fit, but as outlined in the original post, some of the recommended scopes include user incentives and proto and retro-funding proposals. Meanwhile, 5% will be spent on migration incentives from sePSP2 to the new liquidity-centred staking token.
Discontinuation of sePSP1 sePSP1 was initially introduced as a single-sided stake alternative for users to vote on. While the scope of this was to give stakers more choice, it has only caused more confusion regarding the system. Additionally, due to it only being a locked version of the token it does not carry utility to the ecosystem, diluting the incentives for sePSP2 stakers.
We propose that the new token does not have a single-staked version. Instead, we believe that the token itself should hold governance power, as this will make participation without taking part in the staking system possible and simplify the staking experience.
Modification of sePSP1+ sePSP2 contracts for migration:
Similar to how the PSP 2.0 migration was done, at the time of migration the sePSP1 and sePSP2 withdrawal times will have to be changed to allow for a single-block migration. By passing PIP-56, the DAO allows these contracts to be changed when the migration is live.
Implementation Overview
Once implemented, no immediate changes will be implemented to PSP and its DAO until the migration date. Only once the new token releases with the migration module will the staking contracts be altered, and the migration of DAO-owned PSP will be implemented.
For the implementation of the new token and smart contract design, the Foundation will be enabled to decide on the development, naming and research needed for Project Miró. When possible, additional open community consultations will be scheduled to discuss next steps.