Title: Activate New GoodDollar Bridges from ETH Mainnet to Celo & Fuse
Author: Hadar Rottenberg
Status: Stage III
GoodDollar protocol is a standard for free money as a public good. Its mission is to enable money to flow where it is needed most. It does this through issuing a daily minting and distribution of GoodDollar, a reserve-backed token, as daily universal basic income (UBI) to its members. Today, G$ token functions as a global community currency, that enables its members to transact in G$ peer-to-peer, and provides real digital assets enabling financial and technical access other goods, services and products of the crypto ecosystem.
Since its launch, the G$ token has been designed to function in a multi-chain paradigm. The core smart contracts that govern the monetary policy of the GoodDollar protocol operate on Ethereum mainnet, including the minting of G$ tokens to be distributed as UBI. G$ UBI distribution occurs on L2s and side-chains that are better suited for high volume, low-value transactions. To date, G$ UBI distribution has occurred on Celo and Fuse chians.
This proposal is a vote to re-activate the bridging capabilities and minting permissions of G$ token from Ethereum mainnet to Celo and Fuse. The original bridging solution was based on Multichain technology as approved in GIP-13, but has been disabled since the security breach in July 2023.
This proposal is to activate new bridges from Ethereum to Celo and Fuse, and the minting permissions for the bridges to mint and distribute G$ on side-chains through these bridges. The core model for minting the daily G$ UBI will remain unchanged, with the exception of a calculation correction to more accurately the daily active user count on Celo.
Therefore, this proposal requests to approve the following:
- Voiding of GIP-13, and Multichain bridge technology and all associated permissions
- Prevent locked G$s on the compromised Multichain bridge from being used through implementing on the Multichain address a set 100% fee to disincentivize
- Mint 510,980,797.93 G$s (equivalent amount as locked on Multichain) to the new bridge to provide exit liquidity
- Activation of the LayerZero bridge from Ethereum Mainnet to Celo and Fuse blockchain
- Activation of the Axelar bridge from Ethereum Mainnet to Celo blockchain
- A GoodReserve UBI calculation bug fix
- Core GoodDollar protocol smart contracts of the GoodFundManager, GoodReserve and Distribution contracts will be upgraded.
- Upgrade Good FundManager to allow minting of G$ UBI, even without the need to collect interest
- Upgrade GoodReserve distribution to function with the new bridge technologies
- Upgrade Distribution contract to distribute funds using the new bridges and remove Multichain bridge
- Update community funds from bridge to be sent to the GoodDAO treasury safe on Celo: 0x01c5e6Ac3930A0c7e7922A92e1E3650FD64af387.
- Instructions and documentation will be provided on how to use the new bridges.
All of the above contracts are proposed to be controlled by a Multisig (Safe) the Guardians per GIP 2, until the on-chain governance of the GoodDAO is activated.
Following the approval of this proposal, subsequent proposals will be presented to ratify the UBI distribution of G$ on Celo, which will include determining the proportion of daily G$ issuance to be distributed to the Celo blockchain.
Ethereum <> Fuse <> Celo Bridge Limits
The bridge will be designed to enable members to easily and efficiently move their G$ tokens across Ethereum, Fuse, and Celo.
The bridge will be set according to the following limits:
- The bridge was set with limits (via smart contracts)
- Incoming (ETH → CELO/FUSE) : no global daily limit, 300M tx / account daily limit
- Outgoing (CELO/FUSE → ETH): 300M global daily limit, 300M tx / account daily limit
- The bridge fees consists of:
- A fixed fee <$1 charged by Axelar or Layerzero
- Gas fees required to execute the transfer charged by Axelar or Layerzero
- A fee of 0.1% to go to the GoodDAO treasury on Celo/Fuse/Ethereum
- For security purposes, the best practice is to set limits on the use of the bridge.
- Set the Good Labs Foundation as the Bridge Guardian (can modify bridge limits)
- Those limits can be modified in the future by the GoodDAO or a yet to be created bridge Guardian
- The initial limits chosen will evolve as the GoodDollar sidechain ecosystem develops
The GoodDAO will not be restricted to approving a single bridge but can approve multiple bridging services, as a risk allocation strategy.
## Motivation for asking changes in such Protocol policy
The previous GoodDollar mainnet to sidechain bridges were built on Multichain technology, which suffered a security breach in July 2023. New bridges will enable easy movement of G$ tokens between Ethereum Mainnet and Celo and Fuse side-chains, where G$ is distributed.