MIP - Transition Plan to sunset BUSD from Meter Ecosystem

Governance
1

Meterians,

We present this Improvement Proposal to implement the planned sunset of BUSD token from the Meter Network and Meter Passport Ecosystem. This proposal comes in response to the forthcoming wind-down of BUSD as announced by Binance and Paxos.

Background

As Paxos has halted the creation of new BUSD tokens post the developments with the SEC, the circulating supply of BUSD will progressively decline to zero. This will be further influenced by an expected wind-down state by February 2024, during which Paxos has confirmed that BUSD redemptions will be honored.

CoinTelegraph – PAXOS to stop minting BUSD stablecoins for Binance

PAXOS – PAXOS will halt minting new BUSD Tokens

Binance encourages users to convert BUSD to other stablecoins prior to February 2024

Recognizing this trajectory and statements from Binance, it is time for the protocols within the Meter Ecosystem to begin gradually sunsetting BUSD, aligning our strategy with the broader industry response.

Proposal Details

The proposal outlines below steps to conduct a phased transition;

Build up Phase (11/17/2023 to 12/1/2023)

  1. Communication and Notifications: Develop and disseminate clear communication to users about the imminent sunset of BUSD through

    1. Forum Discussion

      • 7 days discussion period

    2. Social Communications – Twitter, Telegram, Discord, Medium, Subscriber email

    3. Governance Proposal Ratification

      • 3 days voting duration

Transition Phase 1 (12/1/2023 to 12/22/2023)

  1. Meter Passport will enable support for USDC from BSC for both Meter and Theta

  2. Users encouraged to remove BUSD.bsc liquidity from Voltswap Finance

    1. 3 weeks’ notice (12/1/2023 to 12/22/2023)
    2. Bridge out BUSD.bsc and bridge in USDC from BSC
    3. Major Pairs affected (BUSD.bsc-USDC.eth, BUSD.bsc-USDT.eth, MTRG-BUSD.bsc)

Transition Phase 2 (12/22/2023 to 1/12/2024)

  1. Meter Passport will cease support for BUSD.bsc for both Meter and Theta

  2. Users encouraged to swap remaining BUSD.bsc to USDC.eth on Voltswap Finance

    1. BUSD.bsc - USDC.eth pool support
    2. 3 weeks’ (12/22/2023 to 1/12/2024)

Transition Completion (1/12/2024)

  1. Stop BUSD.bsc - USDC.eth pool support on Voltswap

  2. Convert remaining BUSD.bsc reserves on Bridge to USDC

  3. Users still holding BUSD.bsc on Meter or Theta need to reach out individually to the team

Timeline Review

Phase Action Duration Start Date End Date
Build up Forum Discussion 7 days 11/17/2023 11/24/2023
Governance Proposal Ratification 3 days + communications 11/24/2023 12/1/2023
Transition 1 Meter Passport – Enable USDC support from BSC Immediate 12/1/2023 -
Remove BUSD.bsc Liquidity from Meter and Theta 3 weeks 12/1/2023 12/22/2023
Transition 2 Meter Passport – Cease support for BUSD.bsc Immediate 12/23/2023 -
Provide BUSD.bsc - USDC.eth pool support on Voltswap 3 weeks 12/23/2023 1/12/2024
Completion Stop BUSD.bsc - USDC.eth pool support on Voltswap Immediate 1/12/2024 -
Convert BUSD.bsc reserves on bridge to USDC Immediate 1/12/2024 -
Manual Support for any remaining BUSD.bsc Immediate 1/12/2024 -

Voting Information

Vote timing: The proposal will incorporate any feedback from the community before it is presented to the governance forum. In case there are no updates requested by the community to the proposal, the governance vote will be scheduled on 24 November 2023 (post 7 day community review)

Vote metrics: The vote needs a simple majority of those who vote to pass.