The purpose of this proposal is, primarily, to disable the ability for anyone to transfer SEANCE.
Limiting transferability enables us to leverage the powers of SEANCE without exposing us to the downsides of having a dual-token ecosystem.
The implementation of SEANCE as a reward token has led to problematic outcomes due to the price-correlation between SEANCE and SOUL and the low levels of liquidity.
Additionally, adding SEANCE into the mix has caused more confusion than benefits, and all potential benefits are still on the table under this new paradigm. How? Because while the community may not be able to transfer Seance, we will be able to whitelist smart contracts that have the ability to do so on behalf of our community. A prime example of this operation is in the case of Avalanche, where the vault holds the SEANCE for you, so you don’t have to account for it yourself, yet still benefit from staking returns.
In order to make this proposal come into effect, this would mean changing the SEANCE contract to a new and improved smart contract. This new version will make the current version obsolete, but won’t remove the liquidity we have for SEANCE and you may still exit from the (V1) farms, as usual.
Additional benefits of the new SEANCE include the following:
• Future-Proofing and Flexible Authorization: the new version enables us to revoke permissions from contracts with the ability to mint SEANCE, which helps in the event of an attack and also works as a safety check for any upgrades we construct in the future.
• Reward Checks: aka protection against potential under-rewards due to a smart contract that calls on the safeSoulTransfer function, as was experienced for the first week of our original Summoner.
If possible could you please answer a couple of questions?
FTM-Seance Bond - What will happen to this?
Those that have sold seance for soul and input into vault/staking. On the premise of earning soul and a price improvement in the future or change in % difference between soul/seance. Will they be locked forever if they cannot purchase seance if this proposal is enacted?
Buying and selling of seance as a trading strategy have been part of the ecosystem since its inception. Simply closing it and locking out users without recompense cannot be correct.
While trading seance is a high risk strategy, not being able to buy it was never one of the risks factored into that particular strategy.
Could you clarify what will happen to the SEANCE / FTM liquidity pools? Will they be closed or continue to function. Currently that pool is valuable to me.
Why have SEANCE at all as a function of the protocol if it’s only use is to swap it back for deposited SOUL? Why not just leave it out altogether and then one can deposit or withdraw their SOUL without need of the SEANCE receipt?
What function does SEANCE serve in this new system. What is its power?
Theoretically, yes, one could be locked in forever, however, since the current version of SEANCE (V1) will forever remain transferrable, there is no way to prevent this pair from existing on the exchange and thus so long as there are sellers, you will be able to scoop up SEANCE to unstake from the Summoner. I envision sellers will exist so long as there is demand for buyers. This will allow for an opportunity to exit from staking for the majority of users.
Also, fwiw, the description of SEANCE includes a clear warning that locking your SOUL forever is a possibility when you decide to leverage SEANCE instead of holding it. This has always been a risk that was stated from the get-go. This will likely not be a problem given how much of SEANCE is held by the DAO, but this may become a problem for someone looking to exist with SEANCE in 6 months or so down the line (assuming the proposal passes).
Also, as is the case with historical proposals, deeming an asset no longer viable for the exchange would preclude the asset from farming yield from our bonds and farms and would also imply SEANCE would no longer be accounted for in AURA.
To be clear, this proposal would remove SEANCE from the ecosystem. This upgrade includes removing SEANCE from operating as an asset one could transfer and would only function for the purposes of internal accounting. It is a mere technicality at that point, not a token that would be present on CoinGecko, etc as it would no longer have a value tied to it.
This would also preclude SEANCE V1 from farms and bonds moving forward as liquidity for this asset would no longer service our ecosystem.