Eco Community:
We believe it’s time to finish sunsetting the legacy token system, and set the stage for the new network.
Following the community’s approval of sunsetting legacy ECO as the initial stage of Eco’s token migration, as outlined in The Next Eco Era: Token Migration (Part 1), this proposal seeks to fully retire ECOx from circulation, and replace it with a placeholder token which will later upgrade to the new protocol token. The motivation here is to remove all legacy tokens from the market, to avoid confusion as more information about the new token and network become available.
As always, we want to ensure that every step of this transition is transparent, deliberate, and open to the community’s input. Below you’ll find an overview of the sequencing we’re proposing — as well as a heads-up on what to expect over the coming weeks if this action is approved.
TL;DR — if this proposal is enacted:
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ECOx holders will be automatically airdropped a pre-launch, non-transferrable version of the new token on Ethereum Mainnet (having the placeholder name “$NEW”, for now), and all existing ECOx will be burned. The new token will remain non-transferrable until its official launch in H2 2025. You should think of $NEW as a placeholder for ECOx to bridge the gap between old system and new. It will not be marketable or have market value until it is upgraded to full functionality (and its final name and ticker) at new network launch. For present purposes it is an accounting construct to accelerate the sunset of ECOx.
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ECO holders, as previewed in Token Migration: Part 1, will not receive $NEW at this stage but will receive the new network token via airdrop when it is officially launched.
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$NEW will become the sole governance token for the project until network launch.
Proposal Overview
With the new Eco protocol approaching launch, we’re proposing to fully retire ECOx in order to eliminate any confusion in the market as information about the new token becomes public.
Leaving ECOx outstanding alongside information about the new token would create ambiguity around which asset represents Eco’s future. This proposal resolves that by cleanly removing ECOx from circulation.
The process will be as follows:
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ECOx will be fully burned by setting its total supply and balances to return zero (as was the process for the ECO burn in Token Migration (Part 1)
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In its place, a new token will be deployed (name TBD, referred to for now as $NEW). $NEW will serve as ECOx’s successor until the new protocol goes live.
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Initial $NEW supply will be 1 Billion, mirroring the current ECOx supply 1:1. ECOx holders will automatically receive the exact same amount of $NEW as they currently hold in ECOx.
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$NEW will remain non-transferrable until the protocol launch, at which point full transferability and functionality will be enabled along with protocol activation. $NEW will in effect be upgraded and “activated” (as well as renamed to the actual new token ticker) at that time to support the new network.
There are four special circumstances that Community Members should take note of:
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If you have ECOx on a centralized exchange (Gate.io, KuCoin, or ByBit), please transfer it to an Externally Owned Account (EOA) by Thursday, June 26th to ensure it is included in the upgrade.
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If you have ECOx on Optimism, note that the 0x address that holds your Optimism ECOx will receive its allocation of $NEW on Ethereum Mainnet, not on Optimism. $NEW will live on Mainnet only.
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If you were part of the original Community Claim from the 2022 ECO/ECOx launch, and you made your first claim but haven’t yet made your second claim, a new interface will be made available — with your remaining allocation denominated in the new token, rather than in ECO & ECOx — to make your second claim. You can check your claim eligibility and history for any address here.
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We encourage any remaining liquidity providers in the ECOx:USDC Uniswap pool pull their liquidity prior to this proposal being executed. There is only $18.37 USDC in the pool at the time of this writing.
The above covers all the details for ECOx holders. If you were an ECO holder, you will be airdropped your allocation of the new token when it is officially launched, as outlined in the previous proposal. The new token supply dynamics have not yet been proposed, nor has a conversion rate from ECO been finalized; those details will come as we approach its official launch.
Enactment Details
If the proposal passes, we will move forward with a three-step enactment process:
Step 1: Security Council enacts proposal onchain (as usual)
If the proposal is approved, the Security Council will enact the proposal contract onchain, as per the Eco Governance Process.
Step 2: $NEW token minting
Once Step 1 is complete, $NEW will be minted to a newly-defined “Migration Contract”
Step 3: ECOx → $NEW migration
After the Migration Contract has been funded with $NEW, the Security Council will call a function that executes the ECOx → $NEW migration:
The Migration Contract will run through each address holding ECOx & sECOx onchain, and will:
- Burn all ECOx & sECOx tokens
- Mint the equivalent amount of $NEW
- Restrict transferability of $NEW
As a final step, the Vending Machine contract will be swept, sending its contents to the Protocol Treasury. This is a clean-up step that was already approved by community vote in a prior proposal but had not yet been executed.
What Comes Next
Once ECOx has been fully sunset, and the protocol is nearing launch, additional token-related updates will follow:
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Finalize new token supply/dynamics (subject to governance)
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Formal update of new token metadata (ticker, name, etc)
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New token airdrop to ECO holders
We’re hosting a Community Call on Discord on Thursday, June 19th at 04:00am UTC to review this proposal and answer any questions. We’ll keep the community updated as the next steps towards the official $NEW launch solidify.
