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SIP-0056: Sunsetting the MYNT Token

Abstract

This MIP proposes the deprecation of the MYNT token and the integration of the Mynt protocol directly into the Sovryn protocol, under governance of Sovryn Bitocracy. The Mynt protocol is expected to become a core component of the Sovryn ecosystem, issuing the Sovryn Dollar (DLLR) - which will become the standard currency of Sovryn. Due to the inability of the original developers of the Mynt protocol to continue to implement an independent roadmap it is proposed that the Sovryn community absorb it into the core Sovryn protocol. With passage of this MIP, the MYNT token will be deprecated. This MIP outlines the steps that will be taken to ensure a smooth and orderly wind-down of the MYNT token.

Background

Mynt was launched as a Sovryn subprotocol with the MYNT token as a SOV-bonded token. At the time this was viewed as an experiment in creating a more fractal Bitocracy as a path to future scaling of the Sovryn protocol. Mynt itself is poised to play an important role in the Sovryn ecosystem. However, for various reasons, many consider that the SOV-bonded token subprotocol experiment, at least in this case, was unsuccessful. These reasons include:

  • The increased complexity of SOV-bonded tokens
  • The inability of the original Mynt developers to continue to develop their anticipated roadmap
  • The MYNT token was launched at a particularly poor time, as the market was turning unfavourable and has suffered poor performance
  • The net result has been that Mynt development has slowed, and no independent Mynt Bitocracy was developed. Continued development and maintenance has fallen upon the Sovryn core developers, which the sub-protocol structure was meant to avoid. As a result, Mynt has failed to mature into an independent protocol with independent Bitocracy.

With the launch of the Sovryn Dollar, time has come to resolve the structural questions surrounding Mynt.

Procedural Context

  1. Pausing of the MYNT Bonding Curve: Prior to the introduction of the Snapshot votes, the MYNT bonding curve has been paused.
  2. Snapshot Votes: Two snapshot votes to be conducted to gauge the support of MYNT token holders for the deprecation proposal:
  • The first vote to be for MYNT token holders
  • The second vote to be conducted for MYNT/BTC AMM pool LP token holders, to provide these MYNT owners to participate.
  1. The snapshot votes will be conducted to gauge the support of MYNT token holders for the deprecation proposal. The vote will be conducted over a period of 48 hours. The proposal will be considered to have passed if a majority of votes (>50%) cast across both votes are in favour of the proposal.

Resolved

  1. MYNT token bonding curve and the ability to mint/burn MYNT token will be replaced with a flat, pro-rata burn mechanism. Mynt token holders will be able to burn MYNT tokens to receive SOV but not mint new MYNT tokens.
  2. The procedure for executing this proposal shall be as described below in the Specification section.

MYNT Token Subordinate to SOV-Bitocracy

The Mynt protocol was launched as a “Sovryn subprotocol, governed by the MYNT token and subordinate to the SOV Bitocracy.” SIP-0037 considered a situation where “it might be best to return the Mynt-bonded SOV to MYNT holders without having to adhere to the bonding curve formula. This orderly wind-down should be available as an option to be voted on by MYNT holders”. It further suggests that in “the event that MYNT governance has not been deployed before the 6 month cliff for Founders and Sovryn Core contributors ends - this vote should be held by the SOV Bitocracy. Under such a circumstance, MYNT token holders should hold a snapshot vote - of which the SOV Bitocracy should vote to uphold the majority view. It must be stressed that this cannot be guaranteed.”

Specification

  1. SIP Ratification: After the MYNT snapshot vote, per SIP-0037, an OwnerGovernor SIP will be proposed giving SOV Bitocracy the final say on the outcome of the proposal to sunset the MYNT token and bonding curve.
  2. Orderly Wind-Down: Orderly wind-down of the MYNT token: deprecation of the MYNT token. The Mynt protocol is already governed by Bitocracy, and this state of affairs will be maintained. The wind-down mechanism specified in SIP-0037, stipulates that "to return the Mynt-bonded SOV to MYNT holders without having to adhere to the bonding curve formula". This procedure will be followed during the deprecation process - allowing MYNT tokens to be burned for SOV tokens on a fixed rate, pro rata basis.

Communication Plan: A clear and concise communication plan will be put in place to ensure that all MYNT token holders and other stakeholders are kept informed of the progress of the deprecation process.

Copyright

Copyright and related rights waived via CC0.