Signaling Proposal for Minting PHOTON from 50% of ATONE in Community Pool and 90% of ATONE in Treasury DAO

This proposal recommends including new logic in a future v3 code upgrade. The proposed logic would mint PHOTON using 50 percent of the ATONE held in the Community Pool and 90 percent of the ATONE held in the designated Treasury DAO address.

The goal is to support the token separation defined in the AtomOne Constitution by converting underutilized ATONE into PHOTON using the existing minting mechanism. This would position the Treasury and Community Pool to support future initiatives such as grants, bounties, and operational funding, while mitigating inflationary dilution of their holdings, as unstaked ATONE is otherwise exposed to such risk.

Motivation

One of AtomOne's founding principles is a clear separation of roles between its tokens.

• ATONE is used for securing and governing the network

• PHOTON is used for transaction fees and spending

To make this model effective, the community pool and Treasury DAO need to align with the ethos. Right now, large amounts of ATONE are sitting unused in the Community Pool and the Treasury DAO address. Converting respectively 50 and 90 percent of those holdings into PHOTON would:

• Increase the supply of PHOTON in a controlled and transparent way

• Set up the Treasury and Community Pool to operate in PHOTON

• Mitigate inflationary dilution of the Treasury and Community Pool holdings

This proposal does not enact any changes immediately. It signals community intent and requests that the logic be added to the next major software upgrade, v3.

Implementation

If approved, the following logic would be included in the v3 code upgrade:

• Calculate 50 percent of the ATONE held the Community Pool and 90 percent of the ATONE held in the Treasury DAO address

• Burn the identified ATONE amounts

• Mint the corresponding amount of PHOTON using the existing protocol-defined conversion

• Return the newly minted PHOTON to the original source accounts in proportion to the burned ATONE

• Leave respectively 50 and 10 percent of ATONE in the two accounts as a reserve for future possibilities.

The proposal relies entirely on existing minting and burning capabilities and introduces no new mechanisms.

Also important to note is the fact that for the Community Pool the operation will target the amount of ATONE held at the time of conversion. The Community Pool will keep accruing ATONE as part of the Community Pool tax applied at each block (currently 5%).

Testing

The logic will be tested with integration tests as part of the v3 upgrade cycle. A testnet will be used to verify that the code performs as expected before deployment to mainnet.

Potential Risks

Monetary Expansion

This proposal increases PHOTON supply, which could affect short-term dynamics. However, PHOTON is intentionally meant to serve as a functional medium for transactions.

Upgrade Process

This affects shared assets held by the protocol. Minting PHOTON from the ATONE in the AtomOne Community Pool and Treasury DAO is contingent upon thorough validation of its functionality. Once these conditions are met, we anticipate releasing this feature as part of a future AtomOne upgrade. Because this proposal is to be included in v3, there is time for review, discussion, and refinement before any changes take effect.

Codebase

https://github.com/atomone-hub/atomone/pull/157

https://github.com/atomone-hub/atomone/pull/189

Voting options

• Yes: You are in favor of minting PHOTON from the 90% of the ATONE in the AtomOne Community Pool and Treasury DAO.

• No: You are against minting PHOTON from the ATONE in the AtomOne Community Pool and Treasury DAO.

• ABSTAIN - You wish to contribute to the quorum but you formally decline to vote either for or against the proposal.