Proposal 4: Update MPond-POND Bridge

Currently conversions between MPond and POND are regulated via an onchain bridge. The bridge uses to two parameters d and l to determine the flow of tokens from one kind to another, 1 MPond being convertible to 1m POND and vice-versa.

The bridge is currently parameterized in such a way that while 1m POND can instantly be moved to give 1 MPond, the conversion from MPond to POND is lot more staggered. In short, for simplicity,
a) MPond holders place a conversion request of X MPond on the bridge.
b) After every period d, they are able to withdraw l * X * 1m POND.

At the moment, d = 180 days and l = 10% i.e. every 6 months after someone places a request to convert 1 MPond, they are able to convert 0.1 MPond into 100k POND.

Many private sale purchasers of MPond argue that these bridge parameters are too restrictive. Some would like d be set to 1 day and l to 100%.

Given the clear conflict of interest, the team would like to refrain from sharing its views on the topic right now. As a proposal in Marlin Governance, can be created by anyone with at least 1 MPond, this is discussion as any other we need to proceed with.

For full disclosure (as was also communicated in our intro blog post):
(i) The team tokens are in the form of MPond.
(ii) Around 5.67% of the total supply of POND was left unlocked to be used for ecosystem development efforts of which only a small fraction has been used.
(iii) In the short run, the team won’t stand to gain whichever course this discussion leads to.
(iv) In the long run, more relaxed bridge parameters will provide the team much more maneuverability in giving POND incentives when required.