GIP: GIP-15 Title: Activate New GoodDollar Bridges from ETH Mainnet to Celo & Fuse

Governance Proposals
#1

GIP: GIP-15

Title: Activate New GoodDollar Bridges from ETH Mainnet to Celo & Fuse

Author: Hadar Rottenberg

Status: Stage III

Track: Protocol

Created: 24-07-2023

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.

This vote is to approve the deployment of the new Axelar and LayerZero bridge technology that has been developed by Good Labs Foundation, and audited by Sayfer.

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.
    1. Upgrade Good FundManager to allow minting of G$ UBI, even without the need to collect interest
    2. Upgrade GoodReserve distribution to function with the new bridge technologies
    3. Upgrade Distribution contract to distribute funds using the new bridges and remove Multichain bridge
    4. 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.

24 Likes
#2

Yes layerzero is the future.

3 Likes
#3

Layer zero is good for the future of UBI GS as continue coexist with other token

6 Likes
#4
  1. What was the specific nature of the security breach in the Multichain technology that led to the deactivation of the previous bridges?
  2. What is the governance process that will be followed to make decisions about the bridge limits and other aspects related to GoodDollar once the on-chain governance of GoodDAO is activated?

Of course! Thank you for your work and your response, I appreciate it.

7 Likes
#5

I wish we could avoid eth and its gas fees altogether.

6 Likes
#6

hmmm Eth gas is fucking annoying and cant be avoided so long as you have projects build on it. it can only be reasonably reduced :grinning: :grinning: :grinning: .

2 Likes
#7

Good work . Kudos!! :heart_eyes: :heartpulse: :heartbeat:

1 Like
#8

Hi Oliver -

The Multichain team has not provided GoodLabs any detailed info or comms regarding their situation. All that we know is what was announced on Twitter and in the news.

Multichain Thread:

Cointelegraph article:

3 Likes
#10

The lesson seems to be, don’t use servers/services/governance that’s in reach of the Chinese authorities, neither the corrupt or uncorrupt versions of that authority, because they can do what they like, change their minds/laws at a moments notice, and never tell you what they’ve done, why they’ve done it, or how you can reclaim your assets.

1 Like
#11

Do we need a public bridge considering the price of G$ and the gas price in Ethereum mainnet? Whoever wants to do a meaningful economical trasaction will not be able to do so with so much gas price. If they do, the fee paid will be compensated by the free G$ they are going to claim for years to come :smile:

3 Likes
#12

Aku ikut aja deh maunya gimana

#13

Ok layerzero Is the future. Go

#14

The primary reason why the bridge is necessary is that the GoodDOllar protocol currently generates G$ UBI on Ethereum, and it is then needed to bridge to Fuse and Celo in order to distribute it to the community.

2 Likes
#15

Good to know more is possible

#16

Understood, but I believe that function is handled by the GoodDollar core team and they can use the bridge internally. Do they have to made the bridge public too for this work?

#17

Good project, I will love hear more about the progress of this project, thanks for the update,

1 Like
#18

The appearance of G$ on different chains is very important. This will lead G$ become one of common money on all chains. The purpose of distribution G$ for everyone can be accomplished.
Another important thing is fee. Let make it cheapest on all chains, then everyone will use G$ as a medium transfer money between chains.

#19

  1. The Multichain incident was a protocol-wider event that affected the entire industry and all users of multichain tech. Not specific at all to GoodDollar, the protocol was just affected as this was the primary bridge per GIP 13.

  2. That will be up to members of the GoodDAO to decide once on-chain voting is enabled. Part of what the DAO will need to decide is what bridging tech, and what minting limits make sense.

1 Like
#20

We do need a public multichain bridge that accepts G$ and manages the minting. This is what enables 1) the GoodDollar reserve and 2) individual wallets to mint G$ from the reserve and hten move them to the sidechains.

3 Likes
#21

Great project GoodDollar core team