Genesis User Onboarding Proposal

Genesis User Onboarding Proposal

Summary

It is imperative that Blockswap DAO finds self-aligned actors who share in a long-term vision for Blockswap Network. During the initial testnet phase of Stakehouse, a large on-chain community was formed which is now referred to as Communitynet participants or Genesis users. Those who have participated in Communitynet and supported the protocol were vital for the early testing of Blockswap DAO’s first protocol, Stakehouse; It would be ideal to have Communitynet participants be part of the DAO and be positive contributors to the wide adoption of Blockswap and its decentralized governance.

Background

Stakehouse’s Communitynet is the largest on-chain testnet totaling more than 24,000 unique ETH validators. This took place on Ethereum mainnet and Rinkeby blockchains. These participants have an intimate and early knowledge of the Stakehouse protocol and could be considered quality community members for the Blockswap DAO.

User Classification

  1. cBSN Holders - Those who participated in the Communitynet utilized cBSN as the native token for their participation. In one way or another, cBSN holders are early contributors or facilitators for testing the Stakehouse protocol.
    cBSN Token Contract ID: 0x7d4b1d793239707445305d8d2456d2c735f6b25b

  2. SHB Holders - SHB tokens are “Stakehouse Batch” tokens that were used to simulate validator staking for the Stakehouse Communitynet. SHB was attained via an open auction; They represent the collateral for the validators and have earned additional cBSN in the testing process.
    SHB Token Contract ID: 0x7c3E3bdCec89a3f706C9a02797EC427ffa596787

Communitynet Contracts (Rinkeby):

Bank Manager: 0x80F739D1993D34edAaf4CB5CcD697d286408a1E8
Polygon House: 0xD026eE18D97688081706c1F68Fe4285DB3f3a454
Mynt House: 0xd8b3302f665D831e8F0f851d709acE85b99F1795
Impossible House: 0x1C6b16d9a5CB930490E3049b9823e53ef9976743
100X House: 0x92ce5C7f5283632c058EfF592263E06D6434F8C2
Wolf House: 0x5DA4e1B196647AEa612e411640bD0A28AFbb6cc6
Stakehouse Communitynet Statistics: https://stat.joinstakehouse.com/

Motivation and Specification

Security and stability are the focus of community governance. With that in mind, the objective is to increase decentralization and develop a thriving community of users aligned with Blockswap Network’s protocols and mission.

Those holding cBSN and SHB may vote to become eligible to receive BSN tokens. These users have shown early conviction by operating a permissionless tokenized testnet to simulate the protocol’s contract in a sybil-resistant real-world scenario. In Communitynet, participants utilized cBSN and SHB. The most reasonable method to onboard these users is via a voluntary burn/vest/claim mechanism for all cBSN and SHB holders to receive BSN. These tokens will be issued from the BSN DAO treasury.

The decision to permanently burn the cBSN and SHB would be voluntary and at the discretion of the respective token holders; Blockswap DAO is not forcing any party to partake in this process, nor does it offer any merchantability for the tokens dispensed; BSN tokens are being distributed to represent Blockswap DAO governance.

Maximum BSN token allocation for Communitynet participants: 300,000,000 BSN or 6% of the total BSN supply.

cBSN

  1. BSN tokens equal to the cBSN in circulation (a rate of 1:1) will be delivered to a common claim drip faucet on a 90 day linear unlocking.
  2. A wallet’s full cBSN balance will be burned to start the BSN claim process only when enough BSN has been unlocked within the common drip faucet. Partial burning is not possible.
  3. Burning cBSN starts a 90 day linear vesting schedule that is claimable on a block by block basis.

SHB

  1. BSN tokens equal to the SHB:cBSN conversion plus a bonus will be claimable. SHB to BSN will be 1:2100.
  2. A wallet’s full SHB balance will be burned to start the BSN claim process.
  3. BSN tokens will be available with a 30 day lockup and have a 30 day linear vesting.

Unclaimed Merkle Drop cBSN
All unclaimed cBSN in the merkle tree will switch to BSN and become available via the DevNet user onboarding UI.

Time Constraints

Blockswap DAO will limit the window to begin this process to 100 days; cBSN and SHB holders may utilize this window to burn and claim BSN tokens at their convenience. After that, no further claim will be processed, and the remaining BSN tokens will return to the DAO. The exception is unclaimed merkle tree BSN.

Governance Process

Users who hold cBSN and SHB can vote on this proposal using Snapshot. They will have three days to vote after a three day discussion window. A simple majority vote will decide the outcome. Look for a link to Snapshot on Blockswap’s official Discord and Twitter.

1 cBSN = 1 vote
1 SHB = 2100 votes

The proposal passes
The Blockswap Labs team will execute the above and the community drip faucet will begin accruing BSN tokens within 30 days. Any remaining tokens of the 300,000,000 BSN which have not started the claiming process within 100 days will be returned to the DAO.

The proposal fails
The 300,000,000 BSN tokens allotted to Communitynet participants will be returned to the DAO. No retroactive proposal for cBSN or SHB conversion to BSN will be permitted.

Conclusion

This is an exciting proposal in line with building a decentralized community and being inclusive to those who have been early supporters of Blockswap Network. Furthermore, this particular group of users has first-hand experience using the Stakehouse protocol. They have played a pivotal role in testing smart contracts which will help lead the DAO towards further decentralization.

Participants must fully accept the DAO Governance Overview and all policies and terms and conditions to attain BSN tokens.

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