TIP-42(b): Confirming Bridgeworld Emissions Reallocation and Snapshot Date

Proposals Implementing TIPs
1

Summary

Amend TIP-42 to confirm the Bridgeworld (BW) emission reallocation and snapshot date by either:

  1. Halting MAGIC emissions through Harvesters and taking the BW snapshot on Monday August 26; or;
  2. Reallocating 200,000 MAGIC per month back to BW Harvesters and maintain MAGIC emissions as a stop gap measure with a flexible end and snapshot date coinciding with the launch of EigenDA chain staking on Treasure mainnet.

In either case, all other parameters of the original TIP-42 will not be impacted and will continue to take place on Monday, August 26. For the avoidance of doubt:

  • Reallocate Bridgeworld emissions towards Treasure Chain DA emissions totalling 1.55mil MAGIC per year, with 3 mil MAGIC (less any MAGIC reallocated if (2) is selected) retained for Bridgeworld v2 (out of approximately 10 mil remaining emissions) and the excess going to the DAO treasury for future infrastructure emissions.
  • Close BW v1 gameplay loops (Questing, Crafting, Corruption, Corruption Crypts)
  • Scrap the yearly halving schedule and institute terminal inflation beginning in Y8 (in four years).
  • Sunset TIP-08.
  • Maintain the transition plan to BW v2 (Conversion Points and Seekers).
  • Update gMAGIC calculation for governance voting power.

Rationale

Aligning Many Moving Parts: EigenLayer, EigenDA, and Treasure Mainnet

Treasure Chain DA staking is contingent on the launch of EigenLayer’s EigenDA. We have been in ongoing discussions with their team and, at this stage, there are possible delays in EigenDA readiness across the following components (all required for Treasure mainnet): EigenDA being mainnet ready as they are continuing to develop and audit their fraud proofs solution, custom quorum support (in order to enable $MAGIC staking), and exploration between teams to ensure a seamless UX to stake, withdraw, and claim from L2 versus needing to go through L1 (given the majority of our users are L2 native).

The Treasure core contributors remain optimistic on our ability to launch Treasure’s mainnet in Q3. Depending on the EigenLayer and EigenDA’s readiness, there is the potential that Treasure mainnet will launch in Anytrust/Validium mode prior to seamlessly transitioning the data availability layer to EigenDA in real-time without impact to liveness and uptime.

Managing MAGIC’s Float

With approximately 22M MAGIC (6% of total supply) currently locked in Bridgeworld, sunsetting Harvesters may lead to an influx of MAGIC on the market. There is the potential that users may grow impatient and opt to sell as they await the forthcoming Treasure Chain DA staking solution in a post-Harvesters world. While this is a sizeable amount of MAGIC to begin circulating, it is also very far from the magnitude of other “bullish” unlocks Treasure has had in the past - eg. the Genesis and Atlas Mine unlocks of 2022 and 2023 respectively. At the same time, given the current price of MAGIC as a reflection of the market and the nature of the holders as long-term, active participants within Harvesters and the broader Treasure ecosystem, we do not anticipate significant sell pressure from this cohort of users.

The Tradeoffs Between Options

To outline pros and cons between the two proposed options to the DAO:

  • (1) Halt MAGIC emissions and take the BW snapshot on Monday, August 26, 2024.
    • Pros:
      • Remain on course with the original path, thereby decreasing uncertainty as a result of flip flopping between plans. As the markets have priced in the impending BW sunset, users who sold may think they were misled to sell at lower prices. This affects users who infrequently engage in community discussions in Discord or governance the most.
      • Preserve MAGIC emissions for future growth and DA use cases as outlined in TIP-42.
      • Transition away from BW v1 towards v2 faster, in line with sentiment raised by the community.
    • Cons:
      • Approximately 22mil MAGIC will no longer receive yield. Some holders may grow impatient and sell before EigenDA with MAGIC staking launches.
  • (2) Reallocate 200,000 MAGIC per month to maintain MAGIC emissions through BW Harvesters until EigenDA launch. Snapshot and the end of emissions set to take place on a flexible date to be determined in the future.
    • Pros:
      • Harvesters stakers representing 22mil MAGIC will continue to be able to earn MAGIC yield. Important to note that, post-Halvening, BW Year 4 emissions were originally set to 407,477 per month.
      • With an option to stake available, there will be less MAGIC on the market with the potential to sell
    • Cons:
      • Greater uncertainty arising from material changes from the original TIP-42 plan which may lead to user complaints from those who have sold assets in anticipation.

Proposal

One of two options to be chosen by the DAO:

  • (1) Halt MAGIC emissions and take the BW snapshot on Monday, August 26, 2024.
  • (2) Reallocate 200,000 MAGIC per month to maintain Harvesters emissions until EigenDA launch. Snapshot and the end of emissions set to take place on a flexible date to be determined in the future.
    • MAGIC will be reallocated from the BW allocation of 3M MAGIC as ratified in TIP-42. Once this date has been determined and EigenDA is ready to launch, emissions through Harvesters will be turned off and any remaining, un-emitted MAGIC will be clawed back for future use in BW v2.

In either of these options chosen above, the same parameters will apply and come into effect on Monday, August 26, 2024. For the avoidance of doubt, this entails:

  • Reallocate Bridgeworld emissions towards Treasure Chain DA emissions totalling 1.55mil MAGIC per year, with 3 mil MAGIC (less any MAGIC reallocated if (2) is selected) retained for Bridgeworld v2 (out of approximately 10 mil remaining emissions) and the excess going to the DAO treasury for future infrastructure emissions.
  • Scrap the yearly halving schedule and institute terminal inflation beginning in Y8 (in four years).
  • Sunset TIP-08 emissions.
  • Cease Bridgeworld v1 operations on Monday, August 26, 2024, specifically:
    • Specifications regarding the wind down of gameplay loops (Questing, Crafting, Corruption, Corruption Crypts), contracts, front-end, and net effects to external game integrations will continue as originally described in TIP-42. In (1), Harvesters will also be shut down. In (2), Harvesters will be maintained for a short period of time.
    • Boosters and Corruption will no longer be able to be produced, meaning Harvesters will gradually revert back to staking mines (akin to the Atlas Mine), leading to all being roughly equal in Mining Power.
  • Any continued MAGIC emissions to Harvesters (or lack thereof) as well as the snapshot date to transition existing NFTs into Conversion Points and Genesis and Auxiliary Legions into new characters called Seekers, will be aligned with either of the two options selected above.
  • Update gMAGIC calculation for governance voting power.

Next Steps

As TIP-42 was ratified by the DAO with a notice highlighting the potential for this amendment, we have moved to Snapshot for parallel voting and discussions with the community. Voting ends Sunday, August 25 at 13:00 GMT (Unix timestamp: 1724590800).