Summary:
We aim to pause minting of the SPA token to permanently fix the circulation supply and renounce ownership of the SPA token to strengthen the security and enhance decentralization
Motivation:
The current architecture of the SPA token includes an active minting mechanism and centralized contract ownership. While these features may have served specific purposes in the initial phases of the project, they now present potential concerns regarding the long-term sustainability, security, and perception of the SPA token.
- Token Rating Improvement: Centralized control and the possibility of further token issuance negatively impact token ratings provided by various analytical platforms and rating agencies. Pausing minting and renouncing ownership demonstrates a commitment to a fixed supply and increased decentralization, which are often viewed favorably and can lead to improved ratings. Higher ratings can increase visibility, credibility, and potentially attract a broader range of users and investors.
- Increased Security and Trust: Removing the ability to mint new tokens eliminates a potential attack vector and reduces concerns about inflationary pressures or unforeseen token supply changes. Similarly, renouncing ownership makes the contract immutable and removes the risk of unilateral administrative actions, enhancing the security and trustworthiness of the SPA token for all stakeholders.
- Enhanced Decentralization: Retaining contract ownership grants significant administrative privileges, which, even with benevolent intentions, can be perceived as a point of centralization. Renouncing ownership eliminates this central point of control, distributing trust across the immutable smart contract and the community.
By implementing these changes, Sperax can strengthen the fundamental properties of the SPA token, fostering a more secure, decentralized, and highly-rated asset within the broader cryptocurrency market.
Overview
This proposal outlines a significant step towards the SPA token’s further decentralization and long-term stability. It recommends two key actions:
- Pause SPA Minting: This action will involve permanently disabling the functionality within the SPA smart contract that allows for the creation of new SPA tokens. This will establish a fixed maximum supply, providing greater clarity and predictability regarding the token’s scarcity.
- Renounce Ownership of the SPA Contract: This irreversible action will transfer administrative control of the SPA smart contract away from the current owner (which is a multi-sig wallet controlled by the Sperax team) to no one, effectively making the contract autonomous and governed by its inherent logic.
The successful implementation of this proposal will result in an SPA token with a fixed supply and no central administrative control. This transition aims to improve the token’s rating by demonstrating a commitment to scarcity and decentralization.
We have already revoked all mintable rights for the SPA contract here.
We aim to call the mintPause() function on the contract to pause all mint functionalities permanently. This will only allow the arbitrum bridge to mint and burn SPA tokens, which is essential for bridging SPA tokens from Ethereum to Arbitrum.
Once we renounce the ownership of the contract, the Sperax team will not be able to update the arbitrum bridge contract addresses.
Technical Specifications
- Call the mintPause() function on the SPA contract
- Renounce ownership: renounce ownership of the SPA contract
Voting
For: Pause minting and renounce ownership of SPA token
Against: Do not pause minting and renounce ownership of the SPA contract
- For
- Against