Proposal Summary
This proposal seeks governance approval to:
- Establish the initial token whitelist and define the remaining parameters for the Ethereum V1 deployment.
- Mint and allocate ZKP to support the Ethereum deployment and the ongoing rewards and subsidies of all current deployments.
- Mint ZKP for a council-managed fund covering services that require funding, such as paymaster, bundler, liquidity, compliance and Snapshot voting.
- Begin work on activating internal transfers for the Polygon deployment.
Specifically, this PIP will:
- Approve the initial token whitelist for Panther V1 on Ethereum.
- Configure the approved assets for use within the Ethereum V1 deployment.
- Define limits for deposits, withdrawals and internal transfers.
- Mint and allocate ZKP toward rewards, subsidies and services.
- Set the PRP voucher configuration and rewards rate to match prior deployments.
- Begin adding internal transfer functionality to the Polygon V1 deployment, testing first on the Canary deployment. A future PIP will be required to activate it on the live Polygon V1 deployment once testing is complete.
Motivation
With Panther V1 being prepared for public deployment on Ethereum, the DAO must define the parameters for the Ethereum DAO Zone, approve the permitted assets, and provide the ZKP required to support protocol functions and incentives.
Mint and Allocation
The aim is to mint enough ZKP to fund roughly 500 days of continuous rewards and subsidies for each deployment (Ethereum, Base and Polygon). At the target rate of 16,000 ZKP per day, 500 days equals 8M ZKP of rewards per deployment.
Allocation per deployment
| Purpose | Per deployment (ZKP) | Deployments | Total (ZKP) |
|---|---|---|---|
| Privacy rewards (500 days) | 8,000,000 | 3 | 24,000,000 |
| Subsidy pool | 1,000,000 | 3 | 3,000,000 |
| Council-managed services fund | 2,000,000 | 3 | 6,000,000 |
| Initial AMM liquidity (Ethereum only) | 100,000 | 1 | 100,000 |
| Total mint | 33,100,000 |
All ZKP minted under this proposal will be sourced from the 450M ZKP protocol rewards allocation.
Justification
- Rewards and subsidies: Prior PIPs allocated 4M ZKP for rewards and 1M ZKP for subsidies per deployment. This proposal doubles the rewards figure to cover about 500 days and keeps the subsidy figure the same.
- AMM liquidity: The Ethereum deployment requires 100,000 ZKP of initial AMM liquidity, as with prior deployments.
- Council fund: This fund covers services such as bundlers, liquidity, paymaster, compliance checks and Snapshot votes. We believe 2M ZKP per deployment (6M in total) should allow for sufficient longevity.
- Flexibility: If subsidies run out on one deployment sooner than another, the council-managed tokens may be used to resolve this quickly.
Custody of the council fund
The fund may be held in the council fund wallet, pre-emptively placed in the zone, or held off-chain. This allows safe, private keeping and prevents front-running of any actions.
Why mint this much now?
A larger mint avoids future votes that could become impossible to bootstrap because no funds are available. For example, if the DAO needed to vote again in two years but had no funds to pay for Snapshot, it could not vote to release funds.
Rewards Rate and Voucher Reserves
The rewards rate will match the target used in all previous deployments, 16,000 ZKP per day, to ensure sustainability and flexibility. Voucher reserves are set consistently with this target:
- Recharge voucher reserve: 50,000 PRP
- Account activation voucher reserve: 1,000,000 PRP
Token Limits
Consistent with prior deployments, the following per-user daily limits will apply:
- Deposit limit: $25,000
- Withdrawal limit: $100,000
- Internal transfer limit: $25,000
Proposed Token Whitelist
As with previous deployments, the whitelist is selected from high-volume, popular tokens suited to the target network. This is why the whitelists differ between Polygon and Base, and the same principle applies to Ethereum.
- ZKP
- ETH
- ARB
- BNB
- wKAS
- wBTC
- cbBTC
- USDC
- USDT
- DAI
- USDe
- AAVE
- LINK
- UNI
- ONDO
- SKY
- ENA
The community is encouraged to suggest worthwhile tokens missing from this list, such as additional stablecoins or other popular tokens.
Internal Transfers for Polygon V1
The recent Base DAO deployment launched with working internal transfers. It is now time to bring this functionality to the live Polygon deployment, using the same limits and compliance logic as before.
Work will begin on the Canary version of the Polygon deployment. Once testing is successfully completed, the feature will be brought to the live Polygon deployment via a script proposed in a future PIP.
Conclusion
This PIP defines the fundamental parameters and required minting for the upcoming Ethereum deployment. It also secures long-term funding for the services that keep the protocol running, and it starts parallel work to upgrade the Polygon deployment so the team can progress on both fronts efficiently.
If you believe additional tokens should be included in the whitelist, please share your suggestion along with a justification.
