Governance Proposal for the Renewal of Orbit Chain (ORC) Tokens
Hello, Orbit Chain Community.
∷The Need for Orbit Ecosystem Renewal
Orbit Chain was launched in 2019 as a cross-chain project to overcome the inability of blockchains to communicate with one another. The Orbit Chain network has primarily played a critical role in transmitting data and delivering trustless signatures when various assets move across heterogeneous chains via the Orbit Bridge.
The Orbit Chain (ORC) token, an Ethereum-based token adhering to the ERC-20 standard, has operated its staking service and governance system on the Orbit Chain network. The layer fees from Orbit Bridge have been used for ORC token buyback funds, and ORC tokens have also been distributed as rewards to participants in the Orbit Bridge validators.
This synergy between the Orbit Chain network, Orbit Bridge, and the ORC token has driven the expansion of the Orbit ecosystem. However, we regret to inform you that on January 1st, an exploit was carried out by an unknown attacker on the Ethereum Vault of Orbit Bridge.
Ozys has been working to restore the Orbit Bridge service quickly and securely. In this process, we have also deeply considered the necessity for a renewal of the Orbit ecosystem.
Details of the Orbit Bridge update plan have been shared in previous announcements. Additionally, necessary features have been upgraded during the preparation for the service resumption to ensure that Orbit Bridge operates with the decentralization and security level expected of the Ethereum ecosystem.
∷Governance Proposal
Today, we would like to share and propose a governance proposal for the upcoming renewal of the Orbit Chain (ORC) tokens.
1) Renewal of ORC Token Staking/DAO: Unstaking
The most crucial aspect of any decentralized project is its economy, and decentralization remains a key value for the ORC token, now in its sixth year. We would like to express our deepest gratitude to all governance validators and the holders who have staked over 160 million ORC tokens and have long been participating in the ORC token DAO.
In order to address the inconvenience caused by the prolonged suspension of Orbit Chain governance functions following the Orbit Bridge exploit, we intend to halt the staking and governance systems of the ORC token on the Orbit Chain network and prepare for a comprehensive renewal by the fourth quarter of 2024.
We plan to open the new ORC token staking and governance system in January 2025, and until then, we will continue to prepare for sustainable value growth.
Through this governance vote, we propose to unstake the ORC tokens currently staked on the Orbit Chain network and to make all ORC tokens on the Orbit Chain network accessible in user wallets within the Ethereum ecosystem (linked with Silicon).
Once the governance proposal is passed and staking is terminated, you will be able to check the total ORC token amount, including accumulated rewards, in your wallet. The distributed ORC tokens can be freely withdrawn to the Ethereum network or moved to other blockchains for use in various DeFi protocols until the new staking and governance system is established in January 2025.
2) Temporary ORC Token Inflation Distribution Plan
The inflation of ORC tokens until the unstaking of ORC tokens and the return of on-chain ORC tokens will proceed as per existing governance vote agreements. However, a temporary suspension of the ORC token economy is necessary until the new governance system is designed and implemented in Q1 2025.
Upon unstaking, the distribution target for the Orbit Chain block producer rewards (BP Reward, 5%) will disappear. Similarly, there will be no distribution target for ORC Voting Rewards (30%) until the new staking and governance system is established.
The rewards for validators contributing to the actual operation of Orbit Bridge (Orbit Bridge IBC Validator Reward, 15%) will continue to be distributed as usual, and there will be no changes to the use of ORC token buyback funds from Orbit Bridge layer fees.
Additionally, the inflation of ORC tokens allocated to ecosystem initialization (20%), DeFi liquidity (20%), R&D (5%), and marketing (5%) will be accumulated until the renewal of ORC DAO and the token economy in January 2025.
The policy for the accumulated ORC token inflation (85%) during this period will be determined by the revamped governance system’s DAO. Discussions on a new inflation distribution plan to support ORC token value will also take place within the revamped DAO.
Meanwhile, as the functionality required for the operation of the Orbit Bridge dApp protocol will be transferred to the Ethereum ecosystem as part of the renewal, the Orbit Chain network, having fulfilled its role, will be discontinued.
We will thoroughly consider how the ecosystem can continue to grow and propose an agenda based on the new governance system in January 2025, so we would greatly appreciate your feedback.
The governance proposal presented today may seem sudden, but please understand it as a temporary policy change aimed at a new leap forward for the Orbit ecosystem.
Once again, we deeply appreciate all members of the ecosystem for staying with us despite the many challenges, and we look forward to your active participation in the governance vote, which will begin at 11:00 AM on September 6th and last for seven days.
Thank you.
