JDAC Capital SHU Allocation Adjustment Proposal

Shutter DAO DAO Proposals
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|Proposal Title|Author(s)|Phase|Type|Date Created|

| — | — | — | — | — |

|JDAC Capital SHU Allocation Adjustment Proposal|Frank Li|I|On-chain |24.03.2024|

JDAC Capital SHU Allocation Adjustment Proposal

We, JDAC Capital, seek the community’s support to rectify an error concerning our SHU allocation in Shutter Protocol. JDAC participated in the private token sale for SPT (14.2M SPT where acquired, which can now be converted into a locked SHU allocation with Shutter DAO 0x36). Due to an oversight, an exchange address was mistakenly provided as the recipient for the genesis token allocation. This misstep has restricted our ability to utilize voting rights and claim future tokens. This proposal outlines a solution to address this issue effectively.

Proposal

Objective: To adjust JDAC Capital’s token allocation within the Shutter Protocol to a correct and operable address, ensuring JDAC’s active participation and claimability of tokens.

Action Steps:

Reassignment of Token Allocation: Establish a new allocation for JDAC with identical parameters but linked to a new, correct address. This change will enable JDAC to claim its allocated tokens and actively participate in governance.

Rationale:

  • The original SHU token allocation for JDAC is currently unclaimable due to the genesis allocation address being held by a centralized exchange (CEX), making operational access impossible.

  • JDAC possesses the corresponding SPT (Shutter Protocol Token) in a separate address, ensuring that the CEX cannot claim the SHU tokens on behalf of JDAC.

  • This adjustment prevents any potential double claiming of SHU tokens, as JDAC’s rightful claim is based on a specific, limited quantity of SPT.

Considerations:

  • Security: This proposal minimizes risks, notably the concern of JDAC colluding with the CEX, by ensuring JDAC cannot claim more SHU tokens than entitled. A very small risk remains that JDAC colludes with CEX and thus locks up some SHU tokens forever.

  • Implications for the DAO: A temporary lock on some SHU tokens owned by the DAO until the reallocation in July.

Motivation

As an early supporter and participant in Shutter Protocol’s development, JDAC Capital commits to maintaining transparency and integrity. This adjustment allows us to correct our mistake without compromising the community’s trust or the protocol’s security. We request the community’s assistance in rectifying this issue to continue our supportive and active participation in Shutter Protocol.

Platform

Fractal

Transactions

Transaction 1

|Target Address|To be specified based on DAO’s technical requirements|

| — | — |

| Function Name | To be specified based on DAO’s technical requirements |

| Function Signature | To be specified based on DAO’s technical requirements |

| Parameters|To be specified based on DAO’s technical requirements |

| ETH Value | To be specified based on DAO’s technical requirements |

Voting Options

“YES”

Vote “Yes” to approve this proposal

“NO”

Vote “No” to reject this proposal

“ABSTAIN”

Abstain for voting for or against this proposal

License

CC0: This work is marked with CC0 1.0 as dedicated to the public domain.

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Firstly, can someone from bb who was part of this deal confirm that above is indeed correct?

It is indeed a shame to make such a mistake and it makes sense to help out. I am a bit confused by the explanation of what went wrong though. Did JDAC get the SPT tokens in a CEX account and only noticed now? Or did JDAC mistakenly convert their SPT tokens to a CEX address? Have you tried contacting the CEX to ask if there’s anything they can do?

edit: meant CEX not DEX

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Just to clarify on the details:

  • The SPT tokens are in a different address
  • The genesis allocation was included with an exchange address, separate from the SPT
  • The proposal asks for a new genesis allocation because the SPT is safe, but the eligible address to claim the genesis allocation is an exchange address which cannot be used to claim the tokens using SPT.
  • Their view is that there would not be a change to double-spend the two allocations, minimizing the risk of this happening. And in theory if the new allocation would also require burning of SPT, there would not be enough SPT in their holdings to claim both allocations.

This is how I understood the proposal, please do clarify if I missed or misunderstood something @franklivid.

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Yes @tatu is correct on the current situation. More detail provide here, my partner who are doing asset managment give the CEX eth address as recieve address to the team by mistake. We noticed that around SPT distribution and we already contract the cex to take out the SPT. While it is already wrote into the smart contract which meas that we have to have SPT inside of provided address to claim the SHU(But clearly we are not own the cex address and can not claim). So I propose this solution here to be transparent and ask the community to help us solve the problem.

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Thanks for the detailed explanation @franklivid. At Kleros Labs we have voted for this proposal. We understand such mistakes can happen and it’s good that such a proposal can solve the issue.

On our end we also have an issue with a part of our token allocation. Kleros got an allocation for its role as a Gnosis Validator. The address is a Safe on Gnosis Chain. However we cannot control this address on Ethereum due an infamous issue with legacy Gnosis Safe deployments.

We have tried different methodologies (cloning the safe with the same parameters, Smol’s multi safe, comparing bytecode etc.). Weare still investigating but for now it seems like there isn’t any way to get access to those tokens.

If anybody has any other ideas feel free to share, if still not possible we will do a similar proposal to get our allocation at some point and I think @luis mentionned that some other projects might be in a similar situation.

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