Authors
ChopChop
Glossary
DAO
Summary
This proposal is intended to form a process within the DAO to recover (significant) amounts of lost funds sent to DAO-controlled contracts, for anyone to make use of when passing a pre-agreed threshold. As this process will require manually casting votes on Aragon, we’ve imposed a minimum amount of lost funds calculated in dollars ($) to warrant fair use (i.e. gas costs for DAO not exceeding funds rescued).
Rationale
Since the launch of NFTX V2, the core team has added many features on top of the protocol to bring further utility to its user base. To allow for adding additional features to the protocol without having to migrate the entire protocol to a new version, many of the core-deployed protocol contracts are upgradeable contracts - controlled through Aragon governance voting (with $NFTX).
As we have noticed from talking to users daily, there are multiple occasions where user funds are lost due to human mistakes - i.e. wrongly-copied addresses, not checking token tx data, ending up sending NFTX-issued tokens to a smart contract instead of a user-controlled wallet address. This has thus far led to >100,000 USD worth of lost NFT tokens, indirectly locking inventory into the protocol and not allowing these users to earn yield by staking liquidity and/or inventory on the NFTX interface. The largest known user making this error has ironically been the NFTX founder himself, who sent over half a BAYC token and more than 14 Meebits to the Mooncat staking contract when testing V2 Staking in prod.
If this proposal passes, the core team will integrate a recovery process on the NFTX website as specified under specifications, allowing anyone to recover lost funds if it meets the criteria.
Effect
Opportunity
- Clarity on what the recovery process is gives the core team a clear answer on how to respond to mistakes made by users of the protocol.
- Having a process that is based on the worth of assets at the time of request allows people to have mistakes recovered which originally were not worth recovering. I.e. if a user lost 10 BAYC tokens by making a mistake last year (worth ~0.8 ETH), he could recover his lost tokens worth ~990 ETH today.
Risk
- Having a process to recover funds has a chance of introducing slightly more reckless behavior, due to users knowing they can get their funds recovered when sending it (mistakingly) to one of the applicable contracts.
Specifications
If this proposal passes, an application form will be integrated on nftx.io that allows anyone to request funds being recovered from having been sent to NFTX DAO-controlled Smart Contracts. For an application to be valid, it has to:
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Be a NFTX protocol-issued token, i.e. vTokens, xTokens and xSLP tokens ($PUNK, $xPUNK and $xPUNKETH respectively). Recovering tokens that are not part of this requirement will not be applicable.
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Have a (combined) worth of >10000$ USD at the time of recovery.
Next to the two hard requirements proposed above, the user requesting a recovery has to be able to sign a message with the original wallet that has made the error. Losing access over the original wallet that made the mistake will disable you from recovering any funds lost with that specific wallet.
Funding request - No - Implementation Requires No Funding
This request does not require funding.
Communication
- Discord: https://discord.gg/xcJkxMXSR8 2
Proposed points of discussion.
- Should there be a maximum number of users per week/month that can have their funds saved, i.e. in “batches”, to prevent the process from being spammed - taking away resources from Core?
- Is there a way to automate the process, or prevent funds from being sent to certain contracts?
- Is the 10000 USD minimum requirement too high/low?
Quorum (For forum)
- Minimum Quorum: At least 5 votes
- Passing Threshold: More than 50% must vote in agreement for the XIP to Pass. For changes to the NFTX contract, more than 70% must vote in agreement for the XIP to pass.
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Yes, create process
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No, amend
0 voters