Abstract
The Increment protocol launched on zkSync Era mainnet on March 18, 2024. It has been about a month since then and Increment has been used by over 175 users.
Based on the community’s feedback and general consensus, the optimal course appears to be migrating Increment Governance from Ethereum mainnet to zkSync Era mainnet. Thus, this proposal aims to garner consensus within the community regarding the operational steps for executing this migration process.
Proposal details
To facilitate the migration of Increment Governance from Ethereum mainnet to zkSync Era, several onchain governance proposals will need community approval, as outlined below in sequential order:
Proposal 1: Enable INCR token transferability
To facilitate the bridging of the community treasury from Ethereum mainnet to zkSync Era mainnet, a crucial step is to enable token transferability. This involves initiating an onchain proposal to unpause the INCR token contract, thereby allowing the transfer of tokens.
Proposal 2: Transfer 400,000 INCR to zkSync Era for Genesis Orb holder distribution
Following the unpause of the token contract, the next step is to transfer 400,000 INCR from the community treasury to a token distribution contract on zkSync Era. This transfer is essential for distributing governance tokens to Genesis Orb holders. An onchain proposal will be required to execute this transfer.
Proposal 3: Assign new zkSync Era governor and transfer community treasury assets
The new governor on zkSync Era will be deployed using Aragon. Aragon is a user-friendly DAO creation and management platform. No onchain proposal is needed for this deployment.
Subsequently, a transfer of all community treasury assets from the legacy governor to the new governor contract on zkSync Era will be initiated. Once the assets are transferred, the legacy governor will relinquish its Governance role within the Increment protocol. Simultaneously, the new governor on zkSync Era will assume the Governance role. This sequence of actions requires an onchain proposal for execution.
Proposal 4: Integrate Increment peripheral contracts and enable rewards for Increment LPs and stakers
The Increment peripheral contracts will be deployed on zkSync Era, with the new zkSync Era governor overseeing governance responsibilities over these contracts.
As part of governance actions, the allocated community emissions INCR tokens will be transferred to the ecosystem reserve contract. The transfer of these INCR tokens will require an onchain proposal. If the proposal passes, these tokens will then be distributed to liquidity providers in Increment markets and stakers in the Increment safety module, contributing to the ecosystem’s growth and stability.
In the event of a significant shortfall resulting in bad debt, governance retains the option to activate the auction module, enabling the auctioning of staked tokens in the safety module to mitigate the debt. An INCR-ETH LP token can serve as the safety module’s staked token. While any user can create an INCR-ETH pool on zkSync Era, the most suitable pool, determined by factors like liquidity, volume, and other relevant metrics, will be selected as the staking asset within the Increment safety module. This decision will be formalized through another onchain proposal for execution.
Additional Information
If this proposal is supported by the community, the governance migration to zkSync Era sequence described above will commence right after the Genesis Orb event concludes or the transfer back of unclaimed Community Distribution I tokens to the community treasury is completed, whichever happens first.
