Scheduled LRC Token Contract Upgrade on May 8th, 2019

TL;DR

We have scheduled an upgrade for the LRC token smart contract on May 8th, 2019 [00:00 to 24:00 Beijing time]. This will allow it to reflect the reduced LRC total supply in real-time as LRC tokens are burned by our new fee model introduced in Loopring Protocol 2.0.

All LRC tokens held in account addresses will be programmatically mapped out; LRC held in contract addresses, including multisig addresses, will be taken care of case-by-case, but in the worst case scenario, will NOT be mapped out at all. See further below for more details.

[Note: “Account addresses” are regular, non-contract addresses, sometimes referred to as ‘externally owned addresses’. “Contract addresses” are smart contracts.]

We have notified as many exchanges and wallets as we can over the past two weeks. The following companies/products have confirmed support for our upgrade:

If you (as a user) hold LRC on an exchange that’s not on the list, please reach out to them to learn if they will support the upgrade or refer them to this post. If they won’t, you need to withdraw LRC to your own wallet.

The current (old) LRC token’s smart contract address is 0xef68e7c694f40c8202821edf525de3782458639f(ENS:lrctoken.eth). The new LRC token will remain a verified ERC20-compliant token and its address will be announced before the upgrade in a separate post. After the upgrade, we will alter lrctoken.eth to point to the new address.

Why we’re doing this (A quick recap of Loopring 2.0 fee model)

At the end of 2018, we deployed Loopring Protocol 2.0 on Ethereum main net. Among the new features — such as greater settlement efficiency, more order types, more signature types, etc., — is the new fee model.

The new fee model allows traders to pay fees in any ERC20 token: the token they’re buying, the token they’re selling, or some third token not involved in the trade at all.

For example: I place an order to sell 1 WETH for 150 DAI. I can pay my trading fees to the DEX I’m trading on (e.g. Dolomite) from the sell token (WETH), from the buy token (DAI), or from my ‘bag’ of ZRX sitting on the sidelines.

Importantly, though, it is also up to the DEX operator(s) to choose which tokens they would accept as fees, and thus allow their users to choose from. So, if a DEX doesn’t feel comfortable accepting fees in RandomCoinX (because they’ve never heard of it and it has no liquidity), then that is off limits.

Loopring’s fee model is about flexibility for all parties involved.

LRC, Loopring’s protocol token, fits into the equation without causing any friction, but while still offering benefits to traders and DEX operators, and while still coordinating the network and allowing for future growth and development.

• On each fee payment, there is a small piece of the fee that gets “taxed” and goes into a holding smart contract called Fee Holder.
• This smart contract will end up holding an assortment of different ERC20 tokens.
• These assorted ERC20 tokens will be auctioned off (sold) for LRC.
• The LRC that is purchased in these auctions will be burnt.
• To enable this new fee element, Burn Manager, the LRC token contract needs a new function: Burn.

Logistical details about the LRC token contract upgrade

So, all of this means exciting things for Loopring — and a deflationary LRC — but it also means we must upgrade the LRC Token Contract.

We have already communicated with many partners and supporting infrastructure such as exchanges, wallets, and dApps, about the upgrade. During the upgrade period, it is necessary for many of them to suspend the deposit and withdrawal of LRC and release relevant announcements. Your favorite exchanges and apps will do what’s necessary. More than likely, it means you can just sit back, but please stay tuned for their announcements like you usually would.

For normal users, we ask you to please remove any LRC you may be holding in smart contracts, and hold the LRC in your non-multisig wallet of choice. This means it is best for you to hold LRC on a normal Ethereum address, the likes of which can be accessed by Metamask, MEW, MyCrypto, Ledger, Trezor, etc. Basically, during the upgrade, it’s best to keep your LRC on an Ethereum address that you yourself hold the private keys to — no matter how you hold those keys. Your existing LRC tokens will automatically transfer over to the new LRC.

The Loopring Long Term Incentive Program (LTIP) is an exception to the above — given this is something we deployed, we will do the work to map out the balances and awards in a new smart contract (LTIP2) for each user. We guarantee if you withdraw LRC before the upgrade, you will receive the same amount of new LRC; otherwise, you will be able to withdraw the same amount of new LRC from LTIP2. So it is effectively a non-factor.

Reach out if any questions

If you’re an exchange, wallet, Ethereum block explorer, or any other (d)application that supports LRC, first of all, thank you :); second of all, if you haven’t received communication from us, please reach out at foundation@loopring.org.

For users, please feel free to contact us if you have any questions or concerns at all. The upgrade is two months away, and we will remind the Loopring community as the date approaches.

We eagerly look forward to this small step on Loopring’s path to underpin the trustless token trading systems of the future!

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