PIP-4

Voting on PIP-4 will commence at 13:00 UTC on Wednesday, 27 November 2024 on Snapshot.

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BACKGROUND

The execution of Prosper’s new strategic direction to focus on hashrate and Bitcoin treasury operations is well underway, with some recent milestones including:

• Announcement of partnership with BITMAIN as a key service provider
• First batch of hashrate live on 15 November 2024
• Launch of staking campaign for $PROS holders to earn $WBTC
• Launch of the new bridge for $PROS between BNB Smart Chain (BSC) and Ethereum

Meanwhile, as operations of our first batch of hashrate stabilize and we work to bring more hashrate online, we are planning ahead beyond this current phase of hashrate backfilling and starting to make preparations for Phase 2: Protocol Scaling.

The constantly developing and growing Bitcoin and Web3 ecosystem is not focused on a single chain. Instead, the ecosystem is spread across multiple blockchain networks.

Therefore, an important enabler of scaling the protocol in Phase 2 and making sure that the protocol and its holders have as much access and connection to the wider ecosystem as possible is having an omnichain token.

As such, we are excited to present this proposal and seek the endorsement of the community on this important proposal.

PROPOSAL

In order to make preparations for Phase 2: Protocol Scaling, Prosper is planning to upgrade its legacy token contracts to a new omnichain token powered by the robust and proven infrastructure of LayerZero.

Current state:

• Standard: ERC-20 / BEP-20
• Chains:
  • Ethereum: 0x8642a849d0dcb7a15a974794668adcfbe4794b56
  • BNB Smart Chain (BSC): 0xed8c8aa8299c10f067496bb66f8cc7fb338a3405
• Contracts are technically non-upgradeable on-chain and lack the ability to integrate with more recent EVM developments and features

Proposed contract upgrade:

• Standard: LayerZero upgradeable OFT standard, enabling transfers of fungible tokens across multiple blockchains
• Security: Upgraded token contract to be audited by top-tier auditor, e.g., SlowMist
• Chains:
  • Native chain for new contract deployment: BNB Smart Chain (BSC)
  • Immediately supported chain: Ethereum
  • Potential future chains: any chain supported by LayerZero
• Key features added to contract:
  • Unified supply
  • Integration with LayerZero functionality and infrastructure
  • Mint & burn capabilities
• Supply: 100 million total supply post-upgrade (1:1 swap with existing $PROS tokens)

Key advantages:

• Ease of supporting and bringing the upgraded token to new chains and communities, as well as collaboration with new partners to bring new benefits for $PROS holders
• Resolve common confusion on the token supply that comes with the legacy contracts
• Possibility to further scale the growth of the protocol by enabling dynamic supply while maintaining an established minimum hashrate-per-token peg

Planned upgrade process:

As part of the contract upgrade process, a token migration would need to take place given that new smart contracts would be deployed. To make the transition as easy as possible for users:

• Prosper would secure the support of CEX partners to make the migration as seamless and automatic as possible for users using exchange platforms
• An on-chain tool on the Prosper web app would be made available to users with tokens in self-custodial wallets for easy migration to the upgraded token
• Closer to when the token upgrade would actually take place, additional resources / FAQs would be made available to token holders for easy reference

Call to action:

All community members are strongly encouraged to participate in this vote regarding this important next step for Prosper. Your endorsement is crucial for validating this key development and ensuring the future scalability of the protocol.

As always, we encourage all community members to DYOR ahead of casting your vote.

Be sure to follow the latest updates from https://www.prosper-fi.com/ and https://x.com/prosperfi_xyz. Community members are also encouraged to join the conversation on Telegram at https://t.me/prosperfi.