Proposal #18 Passed: MAGE Bridge Closed on Avalanche
DAO Proposal #18 — Status: Passed ✔️
MetaBrands DAO Snapshot Proposal #18 (Click link to view)
Proposal Title: MAGE (AVAX) Bridge Closure
Author: Sigurdsen (Archmage)
Overview: “In light of the confirmed closure of the Multichain bridge and ongoing issues with price display on the AVAX chain, this proposal outlines a strategic plan to safeguard the project by pulling MAGE token liquidity from AVAX. The burn will be initiated within precisely defined timeframes — 1 month or 3 months after voting has concluded. This will give the community to decide the right timeframe and also allow for a wider window for people to have enough time to base their decision. The objective is to mitigate risks, protect the project’s foundation, and maintain transparency.”
We wanted to highlight the recent changes here with the latest proposal discussed, submitted, and passed by the DAO. This is quite a big ordeal that has happened with the custodial bridge service that MetaBrands and thousands of others used named Multichain. To read more about the news that happened with Multichain, please reference these articles [1, 2, 3].
Let’s quickly review what the proposal was about and what the passing of this proposal means for all MetaBrands DAO members. Since the custodial bridge service, Multichain (the service that MetaBrands used to issue MAGE tokens on Avalanche (AVAX)), was compromised it was suggested in the proposal to pull liquidity for MAGE/WAVAX within a one month period of time passing. At the time of the proposal passing (10/23/2023) for Option 1 (Pull Liquidity After 1 Month), that means the
Final Deadline to sell your MAGE on Avalanche will be until 11/23/2023. You have the rights to hold, sell, or do whatever you please with your tokens. Please note that MAGE tokens on Avalanche still have utility for the time being and can be used on Snapshot, but after 11/23/2023 they will be removed from the Snapshot strategies to protect the community with an unfair voting advantage due to the accessibility of millions of MAGE tokens at a skewed price point on Avalanche. Afterwards, all MAGE tokens on Avalanched will be burned. The bridge will officially close and the MAGE tokens on Avalanche will cease to exist.
Snapshot Proposal Information
Quorum (minimum votes required): 5.6m/5.5m MAGE Votes
Option 1 (Pull Liquidity After 1 Month): 4.4m MAGE Votes
Option 2 (Pull Liquidity After 3 Months): 1.3m MAGE Votes
Option 3 (Do Nothing - Reject Proposal): 0 MAGE Votes
In conclusion, everyone voted for Options 1 and 2 and 0 community members voted to reject the proposal, leading to Option 1 winning the vote.
Option 1 : Pull Liquidity After 1 Month
Pull MAGE token liquidity for the WAVAX/MAGE pair on Avalanche and initiate the burning of MAGE (AVAX) tokens exactly 1 month after voting has concluded. After the liquidity pair has been pulled, add the remaining WAVAX tokens to the MetaBrands DAO Treasury Multi-sig Wallet.
How will this affect MAGE on Avalanche?
Since the MAGE token on AVAX was deployed by Multichain and not in control of by the DAO, on November 23, 2023, the official MAGE/AVAX pair on Pangolin DEX will have its liquidity removed completely and all trading for this token will stop being supported by MetaBrands. All trading of this token must be done prior to this date. After this date, the liquidity will be removed and all the MAGE tokens retrieved from the liquidity pool will be burned forever. Trading will no longer be possible for this token after this date and we will move forward with updating CoinMarketCap and CoinGecko to officially remove the pair on AVAX, so that it can also correct the price display error caused recently.
MAGE Token Contract on Avalanche (AVAX):
`0x921f99719eb6c01b4b8f0ba7973a7c24891e740a`
Conclusion
MAGE tokens on Avalanche will cease to exist after November 23, 2023 due to the Multichain (custodial bridge service) events and passing of the MetaBrands DAO Proposal #18 on Snapshot. Multichain, as per all projects who use their bridge service, has ownership of the AVAX (ARC-20) token contract for MAGE tokens on Avalanche and is not in control of by the DAO. In short, the DAO cannot do anything to retrieve these tokens and as a community decided to close the bridge and burn the remaining MAGE tokens on Avalanche from the Liquidity Pool on Pangolin DEX on November 23, 2023. Owners of MAGE tokens on Avalanche have 1 month to sell their tokens, if so they wish.
The primary MAGE tokens (ERC-20) that were deployed on ETH, and liquidity added to Uniswap, will remain unaffected and continue to function as intended.✨
MetaBrands will continue moving forward as the DAO was planned from the conception. The actions of Multichain are certainly a negative event for many, but it does not decide the fate of MetaBrands. Thankfully, the core of the project launched on Ethereum (ERC-20 and ERC-721) and was not entirely dependent on a centralized bridge service.
Takeaway: Always be mindful of the risks involved when using centralized and custodial services. Anything can happen, whether intentionally malicious or an unsuspected hack. People often choose convenience over security, but remember the cost of this decision.
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