PIP-65: Paloma Bridge Tax for GRAINs

Governance
1

PIP-65: Paloma Bridge Tax for GRAINs

Status: Proposed

Author(s): LARRY

Type: EVM Proposal

Discussions-to: PIP-65: Paloma Bridge Tax for GRAINs

Created: 07/02/2023

Simple Summary

The bridge tax implementation for the Gravity Bridge was launched in the Paloma tumbler mainnest with Paloma v1.15.1. The bridge tax rate is set now via governance. This PIP aims to vote on the initial tax rate via governance to prepare GRAINS to cross the bridge to target EVMs. We propose an initial governance tax-and-burn rate of 20% in the on-chain proposal.

Abstract

The bridge tax implementation for the Gravity Bridge was launched on the Paloma tumbler mainnest with Paloma v1.15.1, and the tax rate is set via governance. This PIP aims to vote on the initial tax rate via governance.

Motivation

With Paloma v1.15.1, the Gravity Bridge tax was implemented. All outbound GRAIN transactions from the bridge to the target EVMs and other chains will pay a tax on the gravity bridge. The bridge tax is added to the transfer cost and will stay locked until the transfer is finished. If the transfer is successful, the taxed amount is burned on the Paloma side. If a transfer is canceled before execution, the entire initial amount, plus tax, is refunded. This PIP is aimed at setting the tax rate through governance.

Specification Overview

  • Add new governance vote to gravity module

  • The bridge tax information is added to Genesis

  • Before adding transfers to the batched pool in gravity, we set the tax
    amount, if applicable. This amount is removed from the total amount to
    transfer. Compass only sees the decreased amount.

  • On receiving the transfer complete event, we burn the total amount of
    tokens (transferred + taxed).

  • We return the total amount, including the tax, on canceling a transfer.

  • Bridge-Tax Excluded Addresses: We specify a list of addresses to exclude form the Bridge tax

    Address Owner Address Role Address
    Paloma Foundation PalomaFoundation1 paloma1va7n2gxufc45p5sqktvyx5lcp77fd3892la2hy
    Paloma Foundation PalomaFoundation2 paloma1tgccuzzsz39q86gr3zq4mcelye0t4hqgtfn9lu
    Paloma Foundation PalomaFoundation3 paloma13z3cve7tfcsjmncrvw3ascs8pap07nkp6ykx8s
    Paloma Foundation PalomaFoundation4 paloma12l2u68cqfr29kf3r4c6dqctpsl6ev62hvpraen
    VolumeFi1 Volume Team & Advisors paloma18xrvj2ffxygkmtqwf3tr6fjqk3w0dgg7m6ucwx
    VolumeFi2 Volume Team & Advisors paloma1kmgn5smatn70xskrh7p83ja3em79nfty4ajuug
    Paloma Foundation EcosystemFund1 paloma17t5pd5l0d8a3p54r0p92src8tx2tvs7l2afmd9
    Paloma Foundation EcosystemFund2 paloma1vlrsw0hf6ddkje99jtnzh4raaa4dqpwqapeaz6
    Paloma Foundation EcosystemFund3 paloma155sma9auqx37fydzf38puhag2zfe0e3wecsf88
    Paloma Foundation EcosystemFund4 paloma1ntgj0mfs0ukflk07sd3h8g3txhged0htvuzy23
    Dancing Banana Ventures_Fund1 Purchaser paloma1qek2sp2srne2zav3694h9l7s2wuwcn5psv48pg
    Figment Capital Purchaser paloma1a6x6ta4gna8wut9xmyg5xf4e7rv35ch849k0yr

Technical Specification

  1. Run the governance command to set the bridge tax for all tokens that are sent over the Gravity Bridge
palomad tx gov submit-legacy-proposal gravity set-bridge-tax 20 \
--title "Vote on setting the initial tax rate for the Gravity Bridge on Paloma Messenger Mainnet" \
--summary "PIP-65: Paloma Bridge Tax for GRAINs" \
--exempt-addresses <ADDRESSES> \
--exempt-addresses <ADDRESSES> \
--deposit 10000000ugrain \
--fees 6000ugrain \
--gas auto \
--from <From Paloma Address> \
--chain-id tumbler \
--yes

If the proposal passes, the bridge tax will be set as the proposed tax rate.