Discussing a MIMO Token Upgrade

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1

Summary:

The post aims to discuss a potential migration of the MIMO token to a new token.

Context:

Introduced in 2021 with the launch of the Parallel protocol, the MIMO token is the governance token that controls the protocol in all its aspects.

However, many people confused Mimo Labs, the company that developed the Parallel protocol, with the Parallel protocol; partly due to the ticker of the governance token being MIMO.

With the primary aim of consolidating the Parallel protocol brand, we propose to migrate the MIMO token to a new governance token.

Disclaimer: The proposed token upgrade outlined in this post is subject to change. The current post aims to involve DAO members in the process. The comments in this document are made in relation to the currently proposed token upgrade. Therefore the information provided is only relevant given the current circumstances of the protocol and may become outdated.

Rationale:

Motivations:
The proposal is motivated by several considerations, especially brand harmonization, in line with the upcoming soft visual rebranding; upgrade tokens capabilities, including permit & an unified secure bridging module; as well as increasing token attractivity in order to revitalize the protocol in correlation with upcoming new tokenomics

PRL Token:
We propose to call the new token ‘PRL’. It will be natively deployed on Ethereum (with crosschain features) and will inherit OpenZeppelin’s ERC20 standard and ERC20Permit. It would have a total supply of 100,000,000 tokens, fully mined at token deployment. We have determined the total supply of PRL in an arbitrary way, allowing both a simplified token FDV calculation and a token price that is neither too high nor too low psychologically. Moreover, the token will be entirely immutable, with the impossibility of minting more tokens or pausing transfers.

Token specifications:

  • Name: Parallel Governance Token
  • Symbol: PRL
  • Native blockchain deployed: Ethereum
  • Total Supply: 100,000,000
  • Decimals: 18
  • Permit: Yes
  • Pause function: No
  • Admin function: No
  • Mint function No

PRL Bridging Module:

  • LayerZero Infrastructure:

LayerZero is an immutable, censorship-resistant, and permissionless smart contract protocol that enables anyone to send, verify, and execute arbitrary messages on a supported blockchain. Using smart contracts deployed on each chain, in combination with Decentralized Verifier Networks (DVNs) and Executors, LayerZero enables different blockchains to seamlessly interact with one another. In LayerZero, message verification and execution are separated into two distinct phases, providing developers with more control over their application’s security configuration and independent execution.

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  • Decentralized Verifier Networks (DVNs):

DVNs verify cross-chain messages. This permissionless role empowers any entity capable of verifying cross-chain data packets to join LayerZero as a DVN. Any native bridge, third-party bridge, middle chain, oracle, or other verification method may be used as a DVN, thereby avoiding vendor lock-in at the security level. As LayerZero has a modular design, application owners can combine DVNs to maximize verification for characteristics like security, cost, speed, or any parameter an application might want. In other words, LayerZero allows applications to configure any number and type of decentralized verifier networks (DVNs) to verify their cross-chain messages.

  • Permissionless Execution (executors):

Any entity can run an Executor, as it is an entirely permissionless role. The Executor ensures the smooth execution of a message on the destination chain by offering gas abstraction to the end-user. Executors do this by quoting end-users on the source chain in the source chain gas token while executing the transaction automatically on the destination chain. Much like applications can select a DVN set, they can also configure their application to choose a certain Executor or group of Executors. Applications also have the ability to build and run their own executor (as they can for DVNs) or operate without an Executor and have end-users manually invoke ‘lzReceive’ via LayerZero Scan.

Bridging Module Specifications:

  • OFT Standard:
    • The PRL bridging module is following the Omnichain Fungible Token (OFT) Standard created by LayerZero. You can find more information about it here.
  • Modular Security Stack:
    • Entirely controlled by the DAO: The bridging module is entirely managed by the DAO. Nobody else can change the parameters chosen by the DAO apart from itself.
    • Decentralized Verifier Networks (DVNs): X of Y of N allows the DAO to designate a quorum of DVNs to check the integrity of a cross-chain message before signing off on a message’s validity. X of Y of N allows the DAO to combine DVNs however they like. For instance, a “1 of 3 of 5” combination of DVNs would include one required DVN and two arbitrary DVNs out of a total of five to verify a message before moving on to execution. This means that if two DVNs outside the required DVN were unresponsive out of five, message flow could continue, greatly aiding liveness and reducing reliance on a single bridge to zero. Let’s imagine that one of the required DVNs fails (offline, hacked). In this case, the transactions will be automatically reverted, causing no problems for the protocol. The DAO can then vote to change this DVN for another.
    • Executors: Thanks to the permissionless nature of Executors, even if all automatic executors are down it’s still possible for the user to execute the transaction himself by manually invoke ‘lzReceive’ with transaction data on the destination chain, either using LayerZero Scan or the destination blockchain block explorer.
  • Extensible:
    • Let’s say the PRL bridging module is deployed on 3 blockchains, thanks to the bridging infrastructure users will be able to bridge from chain A to chain C, then to chain C to chain B, without having to bridge back to chain A. In other words, the bridging module acts as a mesh network where each blockchain can interact with each other, rather than as a network centralized around a single chain. This increases simplicity, efficiency and reduces the costs associated with bridging.
  • Pause/Unpause:
    • To make the protocol more secure in case of a problem, we’ve added the possibility to pause the PRL ‘burn’ function. This function can be called by emergency guardians as well as by the DAO via a vote. The ‘burn’ function can be deactivated and reactivated via the ‘pause’ and ‘unpause’ functions.

MIMO → PRL Migration:
The total MIMO token supply is 1,000,000,000 tokens. As the PRL token would have a supply of 100,000,000 tokens, we propose a 10:1 migration (10 MIMO → 1 PRL). This means there will be no new token inflation, and no prejudice to current and future token holders.

We built an omnichain migration system, enabling MIMO tokens to be migrated to PRL tokens from any chain to any chain in a single transaction. This crosschain migration module is based on LayerZero, the same infrastructure as Tunnel, the Parallel Bridging Module.

In order not to penalize any MIMO holders, we built the migration module without the possibility of setting a migration deadline, allowing MIMO token holders to migrate to the PRL token without any deadline. However, the MIMO → PRL migration will be definitive, and it will be impossible to perform the reverse migration once it has been completed. The DAO would also be able to pause/unpause migration contracts on each chain.

MIMO tokens currently locked as vMIMO on Ethereum & Polygon PoS would be unlocked in order to let holders migrate to the PRL token.

Following the multichain[.]org hack in 2023, holders of MIMO tokens on Fantom found themselves unable to bridge their tokens back to Ethereum. Thanks to the crosschain PRL migration architecture, MIMO blocked on Fantom could also be migrated to PRL on any chain, enabling holders to regain full possession of their tokens.

We invite everyone to comment on the proposal and ask any questions they may have.

Note: The development of the PRL token and its migration plan as presented above is currently completed and in the testing phase before audits in the coming weeks if no major changes are made to it following the discussions in this post.

Means:

  • Human Resources: This will be discussed in an upcoming formal proposal.
  • Treasury Resources: This will be discussed in an upcoming formal proposal.

Technical implementation:

The technical implementation will be discussed in an upcoming formal proposal.

Author(s): Cooper Labs

Sentiment poll:

  • For the migration
  • Against/Rework the post
  • Abstain
0 voters
4 Likes
2

For me this is too much a headline and it misses details of the workflow on FTM. “Thanks to the crosschain PRL migration architecture, MIMO blocked on Fantom could also be migrated to PRL on any chain, enabling holders to regain full possession of their tokens.”

3

The omnichain migration architecture is detailed in the proposal:

The technical migration workflow for Fantom → Ethereum has been explained here (“Chain A” is equal to Fantom):

The technical migration workflow for Fantom → Any Chain (Polygon PoS, Fantom) has been explained here (“Chain A” is equal to Fantom):

2 Likes
4

Thank you for the proposal.
Will PRL also remain the governance token for Kuma protocol?

2 Likes
5

Following discussions with Mimo Labs, they should propose to switch tokens that can vote on KUMA Protocol proposals from vMIMO to sPRL (ParaBoost) if the formal proposal is accepted.
However, the medium/long-term objective is to launch a token specific to the KUMA Protocol (nothing has yet been decided from what we know).

1 Like
6

why a total sypply of 100,000,000 PRL?

7

As explained in the proposal, its an arbitrary choice.

8

That’s the way we should go for, except one thing I am critical. The token supply, in my opinion if compared to others token supply of 100,000,000 is to less. I would be for
A exchange 1:1 > token supply of 1 billion. Like MIMO is right now.

A lot of users are really just looking at the absolut price as sad as it is but 90% of the users are not understanding how a tokenprice is calculated .

In my opinion it would be just a negative impact if we decrease to 100,000,000 and there would be no negative impact if we would stay with 1,000,000,000.

What do you think?

2 Likes
9

To date, we have no particular preference for the total supply of the token. A total supply of 1,000,000,000 tokens also seems appropriate.

2 Likes
10

Thank you for the feedback!

If there are no technical limitations and you have no objections, I would kindly request setting the token supply to 1,000,000,000. Other major vMIMO holders are also generally in favor of this adjustment.

In my opinion, reducing it to 100,000,000 would likely have a negative impact, whereas keeping it at 1,000,000,000 would pose no downside and seems appropriate.

Thank you very much!

2 Likes