Enhancing Multichain Governance: Upgrading RARI Governance Token on Arbitrum

Description

Abstract

The RARI DAO seeks to enhance its governance framework by upgrading the RARI token contract and bringing its governance from Ethereum mainnet to the Arbitrum ecosystem. This proposal requests a custom gateway for a new RARI L2 token contract via Arbitrum native bridge, as only the Arbitrum DAO can implement this change. The custom gateway will enable more efficient governance processes for while reducing user costs and improving overall accessibility for RARI DAO. The proposal asks to register the custom L2 token to a custom gateway on the Arbitrum native bridge.

Motivation

RARI DAO is governed by the $RARI token, which when locked in veRARI grants voting access. The current token contract is on Ethereum mainnet and is not upgradable. The RARI DAO wishes to upgrade its governance, a part of which is a token contract upgrade with snapshots and delegations embedded. Only the Arbitrum DAO can however set up the mapping of L1 -> L2 token addresses in the custom gateway (which is controlled by Arbitrum DAO) on the Arbitrum native bridge. Here is more information about the topic: https://docs.arbitrum.io/build-decentralized-apps/token-bridging/token-bridge-erc20#setting-up-your-token-with-the-generic-custom-gateway

Rationale

The RARI DAO multichain governance upgrade is designed to make governance more accessible by simplifying the UX, reducing gas fees, and enabling new token functions. This aligns with Artbitrum's commitment to user-centricity and technical inclusivity.

With a custom L2 token implementation we will be able to perform the RARI DAO governance upgrade and move our governance fully into the Arbitrum ecosystem.

More on RARI DAO's plan for governance upgrade can be found HERE.

Key Terms

RARI token: RARI DAO governance token (https://etherscan.io/token/0xfca59cd816ab1ead66534d82bc21e7515ce441cf

RARI DAO: body governing the Rarible Protocol and RARI chain

Custom L2 RARI token: upgraded and simplified RARI token to be used in RARI DAO multichain governance moving forward

Specifications

RARI token in question (https://etherscan.io/token/0xfca59cd816ab1ead66534d82bc21e7515ce441cf) does not have upgradability nor allows the owner to register in the Arbitrum token bridge router.

As such, we're requesting a custom L2 token implementation and using the (standard) custom gateway. Lacking the ability to upgrade / owner-register, we are seeking Artbirum DAO's approval to register the upgraded RARI token to the custom gateway so we can proceed with the custom L2 implementation.

The upgraded token contract was fully audited and can be found here: https://github.com/rarible/protocol-contracts/pull/305.

Token contract was deployed to Arbitrum Sepolia, RARI testnet (which is on top of Arbitrum Sepolia) and all contracts were tested manually as well.

RARI DAO voted in favor of the upgraded token: https://www.tally.xyz/gov/rari-foundation/proposal/85102068202527969889208024703113668965813715410446115075088330064807449302588

Steps to Implement

1. Deploy token contracts on Arbitrum and RARI chains (done)
2. Security audit of the proposed code change (in progress by Arbitrum Foundation)
3. Onchain vote to change mapping for L1 → L2 tokens on bridge router and custom gateway (This can be done only by Arbitrum DAO)

Timeline

Implementation upon the proposal's execution (aiming late September).

Overall costs

N/A