FIO Token Wrapping Super MVP Concept
Overview
This is a concept for discussion purposes only to determine if the existing FIO Token and Domain NFT wrapping scope can be further stripped down to accommodate faster time-to-market.
Previously it was assumed that the Foundation will not act as the custodian for the wrapped tokens and therefore a decentralized solution was proposed and is being built. If however, that requirement is no longer valid, a simpler solution could be considered.
Super MVP Concept
Focuses on FIO Token wrapping only.
Foundation wraps (moves) some of the tokens it owns to Ethereum and acts as the custodian.
No other party can wrap tokens, unless they choose to become a custodian and mimic what the Foundation is doing.
Redemptions are handled manually.
Only Ethereum Smart contract is built. No FIO smart contract or Oracle functionality is required or is built.
Workflow
Basic and standard ERC-20 Ethereum contract is developed which allows the Foundation to mint WFIO, ideally via msig.
Foundation manually moves 10,000,000 FIO Tokens to a designated FIO account (controlled by Foundation msig). This is done for transparency purposes, so that anyone can see how many tokens are currently wrapped.
Foundation manually mints 10,000,000 WFIO ERC-20s on Ethereum.
Foundation provides initial DEX liquidity, so that FIO is available on major DEXes.
Redemptions:
If a WFIO holder wants to redeem WFIO for FIO, they will submit a Jira ticket to the Foundation providing amount, Sender’s FIO Address and Recipient’s FIO Address.
Foundation may request KYC (optional).
Foundation will send FIO Request for WFIO to Sender’s FIO Address and once WFIO is received, it will send FIO to Recipient’s FIO Address.
Post MVP phases
Add Oracle to automate redemptions.
Add custom FIO contract to allow anyone to wrap.
Build target FIO Token and Domain NFT wrapping decentralized solution.
Very interesting approach to keep things super simple. I like it and I think this gives a good framework to actually discuss the legal implications. Thank you Pawel. I wonder, from a legal coverage perspective, if it would be enough (for now) to have a terms and conditions page (similar to https://fioprotocol.atlassian.net/wiki/spaces/DAO/pages/29589647 ) which they have to agree to which states they are not from any restricted countries or on any blacklists and they will submit to KYC if required by law and that they are the owner of both accounts involved in the transaction (meaning the FIO account and the ETH account) so there is no exchange between individuals or companies actually happening, just a transformation of a token one person owns into a different format on a different chain. I imagine it would be done under the BVI entity, so we might have to dive into the BVI laws to see if any gotchas exist there.