Hello everyone!
It’s been a while. We wanted to take our time and do this right and we’re now ready to finalise the Mento Governance transition. It was ratified in CGP#180 “Mento Spin-off and Launch of the MENTO token”, when the Celo Community approved the transfer of governance over the Mento Protocol (smart contract, reserve, etc.) from CELO to MENTO token holders, and through the on-chain proposal gave birth to the MENTO Token and the Mento Governance infrastructure.
Since then we’ve been running tests to ensure that everything works as expected, and recently passed our first Mento Governance Proposal!
This CGP finalizes the ownership transition of all Mento Protocol contracts to Mento Governance and the return of 85.9M CELO to the community fund, as previously agreed in CGP#79.
Completing this handover will initiate the next phase of the Mento protocol. It will enable Mento Governance to operate independently, reducing the governance burden on Celo Governance while simultaneously enabling Mento to accelerate its growth. The increased pace of launching new Mento stablecoins and rising adoption of Mento will see many opportunities for existing and new Celo stakeholders to benefit from and participate in the Mento protocol.
As with previous proposals, the Celo community will have the opportunity to verify these transactions. In preparation for the upcoming CGP, we have done the following:
The transactions that will be in the upcoming CGP will be broken down into the following sections, noted here with transaction indices in brackets:
Before we dive deep into each section and transaction, we recommend you have celocli set up to follow along. For the tech savvy, you can find everything we are describing here in our deployment tooling repository as code. For verifying that addresses included in the proposal are correct, please refer to the Appendix at the bottom for some handy tips.
This includes all the transactions related to returning the 85.9M CELO to the Celo community. In order to achieve this, the CELO will be transferred to a new Custody Reserve contract, which will enable the community to control the timing of future CELO withdrawals. In addition, 20M CELO will be withdrawn from the contract in this CGP and sent to Celo Governance, according to the 20/65.9 split suggested by the CeloPG Stewards based on anticipated ecosystem spending.
TX#0 - initialize the Custody Reserve Proxy. This proxy contract was deployed and verified ahead of this proposal. Immediately after, ownership of the proxy contract was transferred to governance.