PIP-5

BACKGROUND

The $PROS token contract upgrade process went live on 20 January 2025. Since then, as of 17 February 2025, ~42.8m tokens have been successfully upgraded (over 80% of the circulating supply).

A big thank you once again to the key CEX partners that supported the token upgrade swap process, as well as to self-custodial $PROS holders that have already completed the upgrade via our dApp.

The purpose of this PIP is to propose an approach for handling tokens that are not upgraded, after a reasonable time period has passed.

PROPOSAL

As one of the key objectives of the token contract upgrade is to clean up and unify the token supply, it follows that having the token upgrade process open indefinitely would not allow us to achieve that goal, as well as create operational burden.

Therefore, in order to try to tie up loose ends as soon as possible (as well as fair and reasonable) and to allow the protocol to focus on future growth and development, the following approach for handling non-upgraded, old tokens is presented for the community's evaluation and voting.

Examples of Non-Upgraded, Old Tokens

Old tokens in smart contracts:

• Description: old / legacy / forgotten / abandoned smart contracts that have old $PROS balance; in some cases, there are $PROS stuck in contracts as a result of an accidental transfer
• Examples:
  • ETH: 0xcd0a0d136726473cea82505f5a6d5fae64c3615d
  • ETH: 0x1b4ead1f89eebef694efa6f9b95d61a429c05bdb
• Estimated quantity: ~1.5m to 2m tokens across Ethereum and BNB Smart Chain (BSC)—to verify and finalize exact quantity

Old tokens in Externally Owned Accounts (EOAs):

• Description: EOAs are wallets controlled by a private key, which include wallets created via wallet interfaces like MetaMask, and are controlled by anyone who knows the private key (vs. smart contracts, which are controlled by the contract code)
• Examples: any self-custodial wallet created via MetaMask or similar wallet interfaces

Proposed Handling Approach

• At the end of February, for the non-upgraded tokens, new upgraded tokens out of the 100m supply will be minted to a designated DAO treasury wallet (e.g., if 75m units migrated into new tokens, 25m units of new tokens will be minted to the DAO treasury wallet)
• After a community-agreed grace period, these $PROS tokens are considered to be “forfeited" by the users who have failed to perform the token upgrade process
• Before the deadline is reached, tokens in this holding wallet may not be used for any purpose, other than if any old $PROS holders request a manual token upgrade swap (for which they will surrender old $PROS tokens 1:1 to avoid any potential double counting, all verifiable with on-chain records)
• We will provide a periodic update on the number of manual swaps that we have assisted with
• After this grace period is over, the remaining tokens in the DAO treasury wallet will be handled in accordance with community voting results

Expected Result

• Finalization of the token contract upgrade process, with all 100m current total supply successfully upgraded by early March
• A cleaned-up, unified token supply for community clarity

Decisions Required from the Community

1. General support of the high-level proposed handling approach
2. Length of grace period, starting once the unswapped new tokens have been minted to the designated DAO treasury wallet
   • Proposed options: 3, 6, 9, or 12 months
3. Approach for handling unswapped new tokens after grace period
   • To be further discussed with the community and formalized as part of a subsequent PIP vote, closer to the end of the grace period
   • For discussion—options could include: burning, distribution as staking rewards, usage in airdrop / marketing campaigns, holding in DAO reserve
   • Community members are encouraged to suggest and discuss potential options in the holders-only TG group

Call to Action

All community members are strongly encouraged to discuss and eventually participate in a vote regarding this important development for Prosper. Your input and vote is greatly appreciated and requested for determining how we handle non-upgraded, old $PROS tokens that have been left behind.

As always, we encourage all community members to discuss with each other and 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_BTC. Community members are also encouraged to join the conversation on Telegram at https://t.me/prosperfi or in the holders-only TG group here.

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