135-[FLP#0005] - Transition from Fantom to Polygon Network

Dear Lucidao Community,

We at Arcanum Capital have constantly been working alongside experienced founders, developers, incubators, and other investors to ensure that we discover talent at very early stages. We recently welcomed onboard one of the Fund’s strategic partners and investors: Polygon Co-Founder - Sandeep Nailwal.

Our first introduction to the Lucidao team was at the Lugano Plan B launch event. The team demonstrated a clear vision for the DAO and its future dApps in development, including the upcoming Marketplace. With the proper support, we firmly believe that Lucidao can be a game-changer in the path of bringing digital assets to the masses. For this reason, we propose to transfer the protocol from Fantom to the Polygon network completely.

But why do we think that Polygon is the right fit for Lucidao development?

Polygon, formerly known as Matic, is the leading Layer 2 scaling solution for Ethereum and has quickly grown into a multi-billion dollar network that hosts some of the most popular projects.

Polygon adoption has also soared exponentially in 2021, seeing more than double the volume of Ethereum in transactions going into 2022. Average volumes in Q1 2022 are holding steady for Polygon and this is a positive indicator. With the number of world-class brands and projects now onboarding on Polygon, the network looks poised to continue its growth trajectory going forward.

We feel that Polygon and its dApps are moving in the right direction towards the real-world utilisation of blockchain technologies. Polygon is setting the foundation for new and existing businesses to access these blockchain and digital asset opportunities for the masses, along with the vision of Lucidao.

By switching the protocol from Fantom Opera to Polygon network, Lucidao will benefit from extensive technical and strategic support from both Arcanum and Polygon Studios.

After extensive discussions with the Lucidao and Polygon Studios teams, we concluded that the best way to operate the switch should be snapshot-based. Therefore, if the proposal passes, the following steps will be executed:

  • The Governance Reserve will be automatically assigned to a team-owned account;

  • The Governance’s LCD/FTM liquidity on Spookyswap will be removed;

  • A snapshot of all LCD holders will be made;

  • The liquidity removal and the snapshot will be made any time on Tuesday, 10th May 2022. Please note: the snapshot will only take place after liquidity removal;

  • All Lucidao holders must keep or transfer their LCD tokens to an address compatible with both Fantom and Polygon networks. Failure to do this may incur a loss of tokens. If you are unsure about this point, please reach out to the Lucidao support channel on Discord: Lucidao Support;

  • The same set of smart contracts that now form the Lucidao protocol on Fantom will be deployed on the Polygon network;

  • The FTM retrieved from the liquidity removal, the fUSDT in the Governance Reserve, and the USDT collected in the recent investment round will be collected, converted, and bridged into the Polygon network;

  • Liquidity will be created on Polygon through the MATIC/LCD LP;

  • The new LCD token will be airdropped based on the snapshot;

  • All the funds and liquidity previously collected will be sent to the Lucidao Governance Reserve vault;

  • The new LCD and other smart contracts addresses will be published so that trading and governance operations can resume smoothly;

  • Lucidao holders will have to delegate again their LCD tokens to continue to express a valid vote on future DAO proposals.

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