MIP-7: Should Denaria Protocols Migrate DAO Governance from $XMT to a New Token?

🏛 Governance 🟨   MIP: MetalSwap Improvement Proposals
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Summary
This proposal seeks to finalize the transition of DAO governance from $XMT to the new governance token. This change follows the recently approved token swap event and previous key decisions made by the DAO. If approved, $XMT will no longer serve as a governance token, and all voting and decision-making power within Denaria protocols will transfer exclusively to the new token (ticker to be announced).

Background and Context

The DAO has recently reached several critical milestones through community votes, including:

Following the DAO’s approval of the token swap, the $XMT token will be sunsetted, and the new token will take its place as Denaria’s governance token. This proposal ensures the proper migration of governance powers, aligning with the project’s new tokenomics and strategic vision.

Proposal Details
The $XMT token has served as MetalSwap’s governance token, underpinning all previous MIPs and TempCheck votes. However, with the rebranding to Denaria and the introduction of the new governance token, it is essential to complete the governance transition.

Key Points

  1. Governance Migration: The new governance token will be issued according to the recent token swap proposal, but it has not yet been formally designated as such. This proposal seeks DAO approval to officially migrate all governance powers from $XMT to the new token.

  2. Sunsetting $XMT: If approved, this proposal will initiate a process to retire $XMT, removing its governance functionality.

Timeline and Milestones

The following steps outline the proposed migration process:

  • Voting Period: This proposal will be voted on from 24/01/25 to 26/01/25.
  • Implementation Phase: Following the vote, a transition period will be initiated to finalize the migration of governance powers and complete the sunsetting of $XMT.
  • DAO migration Date: governance powers will permanently pass from $XMT to the new token on the day of the token swap (date to be announced). Until the token swap day, XMT will still be the governance token for Denaria.

Conclusion

This is a critical step in Denaria’s evolution. Approving this proposal will complete the migration process, ensuring that the new token assumes its role as the sole governance token for Denaria.

All $XMT holders are encouraged to participate in this vote and share their perspectives on this pivotal decision.

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Clearly, this is the right move at this moment.

I supported the token swap proposal, and transitioning governance power from XMT to the new token is undoubtedly the logical next step. I look forward to the upcoming snapshot and the subsequent TGE.

Now, I have a question for the community: on which chain should we deploy the new token? Should we stick with Ethereum mainnet, or consider an L2 solution? Personally, I would prefer the second option, but we can start a dedicated discussion on this!

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Good points guys,
I completely agree that transitioning governance power from $XMT to the new token is the logical next step in aligning with Denaria’s rebrand and strategic goals.

Regarding the TGE of this new token, I believe an EVM-compatible Layer-2 solution would be the best choice to ensure scalability, speed, and cost-efficiency. Layer-2s like Arbitrum, Base, Optimism, or even newer players like Linea or Sonic may be excellent options. Each offers robust infrastructure, growing ecosystems&users, and reduced transaction costs—qualities that align perfectly with the needs Denaria has.

Also, considering Denaria’s aims on RWA with the Hedging Swaps, taking cues from other platforms like Synthetix could also provide valuable insights. Deploying on an L2 that supports these use cases would enhance the protocol’s appeal and utility.

So, Imho Denaria should aim for a new governance & relative token on a fast, secure, and developer-friendly EVM Layer-2. This would attract newcomers and position the project on the main DeFi stages.

What does everyone else think?Are there other things we should consider, or additional factors we should weigh when making this decision?
I’m mainly considering the technical point of view, and after that, I’d take care about marketing topics, to push together with other active projects on the selected chain through the new-year narrative.