TIP-34: gMAGIC Expansion and Governance Staking Lockup Reduction

Summary

  • Expand gMAGIC to account for additional sources of locked MAGIC, including: (i) Magicswap through all pools with game partner ERC-20s; and (ii) decentralized finance and other exchanges such as Beefy’s mooSushiMAGIC-ETH vault and Balancer’s 50% MAGIC / 50% USDC weighted pool.
  • Reduce the governance staking contract’s staking lockup period from 14-days to 7-days.

Rationale

Accounting for Magicswap

With Magicswap serving as the native automated market maker (“AMM”) governed by the TreasureDAO community built specifically for its ecosystem of game tokens, all MAGIC added by the community to MAGIC denominated liquidity pools with listed ERC-20s should count towards governance power within TreasureDAO. Currently, the listed game tokens include $ANIMA (Realm), $ELM (Tales of Elleria), $GFLY (BattleFly), and $VEE (Zeeverse).

Accounting for decentralized finance and other exchanges

Over time, MAGIC has seen increased adoption across the decentralized finance and exchange landscape with alternative liquidity sources being formed organically through the adoption and usage of new protocols by the Treasure and MAGIC community. Today, these protocols include Beefy’s mooSushiMAGIC-ETH vault and Balancer’s 50% MAGIC / 50% USDC weighted pool which was initially seeded by the frank125 of the Life DAO team (see original proposal).

Increasing potential governance participation while minimizing risk

Following the sunset of the Atlas Mine in Bridgeworld, the MAGIC governance staking contract was implemented to enable alternative channels to obtain gMAGIC outside of the Harvesters and MAGIC-ETH Sushi LP. To this day, any MAGIC that is staked in the governance contract is subject to a 14-day withdrawal lockup period to mitigate governance risks. Reducing the lockup period to 7-days is likely to encourage greater participation in MAGIC governance while continuing to maintain the necessary protection against governance attacks.

Proposal

**(1) Add gMAGIC support for all Magicswap LP tokens at 0.5 ratio to MAGIC for all current and future supported ERC-20 pairs: **

  • ANIMA-MAGIC LP
  • ELM-MAGIC LP
  • GFLY-MAGIC LP
  • VEE-MAGIC LP

**(2) Add gMAGIC support for Beefy’s mooSushiMAGIC-ETH vault at a 0.5 ratio to MAGIC. **

**(3) Add gMAGIC support for Balancer’s 50% MAGIC / 50% USDC weighted pool at a 0.5 ratio to MAGIC. **

  • Calculated based on a user’s share of the pool
  • (A) User’s holdings of BPT
  • (B) Total supply of BPT
  • (C) User’s % share of BPT = (A) / (B)
  • (D) Total MAGIC of pool in the Balancer Vault: getPoolTokenInfo
  • poolId: 0xb3028ca124b80cfe6e9ca57b70ef2f0ccc41ebd40002000000000000000000ba
  • token: 0x539bde0d7dbd336b79148aa742883198bbf60342
  • (E) User’s MAGIC contribution = (C) * (D)

(4) Decrease lock period from 14 days to 7 in the MAGIC governance staking contract (link)

Polling Period

The polling process begins now and will end on Sunday, December 10, 2023 at 10:06pm EST (timestamp: 1702263600 - see local time). If quorum is reached, a Snapshot vote will be put up shortly thereafter.