**Vote Type** Token holder DAO snapshot with a 7-day vote period **DAO-elected Sponsors** @Eastban , @JohnPackel , @wuji, @EvandroSaturnino # Tldr We need a DAO-empowered body able to make informed decisions over the thUSD protocol, and oversee activities and contractor roles for thUSD. # Background Threshold USD (thUSD) is a stablecoin soft-pegged against USD and backed by ETH and tBTC as collateral, with a minimum collateral ratio of 110%. Threshold USD is a modified fork of Liquity Protocol, built to be self-sustained through a PCV ("Protocol Controlled Value"). There is no equivalent of the LQTY token in Threshold USD. Instead all profits accrue into the PCV. Since there is no token, bootstrapping is achieved through an Initial Protocol Loan. The idea was born with [TIP005](https://forum.threshold.network/t/tip-005-threshold-usd-thusd-interest-free-loans-with-tbtc-as-collateral/107/14) and was launched after two years of brainstorming and development. Since then, there have been many efforts made by the DAO on activities such as expansions, marketing, growth, liquidity and discussions about improvements to the protocol. These activities have been performed by several collaborators from different guilds, but without a specific DAO-empowered entity dedicated to the management of these activities. # Proposal The DAO has invested significant resources, time, and expertise into developing the thUSD protocol. It synergizes well with tBTC and has substantial potential for economic growth (for reference, [Liquity's revenue](https://dune.com/liquity/liquity) to date exceeds $34 million) and significant impact on the DAO. Currently there are too few individuals focused on matters specifically related to thUSD. For example, ongoing internal discussions suggest the need to hire a dedicated individual for product marketing of the thUSD product. Equally important is delving into the details of Liquity version 2, exploring options to enhance the protocol, and considering the addition of an interest rate. It is clear there is a need for a dedicated group that discusses, decides, and oversees the thUSD protocol. This proposal will let the DAO decide on the creation of a DAO-empowered thUSD steering committee. ## Suggested Structure and Responsibilities of the Committee This oversight committee would be a group of five active cross-guild DAO members that would be responsible for: * Steering the protocol * Overseeing Growth & Development roles in their intersection with thUSD * Discussing and deciding on overall protocol strategy, roadmap, focus and resource allocation * Appointing, monitoring and reviewing the activities of a new thUSD Product Marketing role (separate proposal) and/or any other needed role. # Governance Process To ensure the proper formation and operations of the thUSD Steering Committee, we propose the following governance process: ### Proposal Submission and Approval: This proposal seeks to create the thUSD Steering Committee, which will be submitted to the DAO for approval. This new committee will have 5 seats, and will be governed by the DAO Rules for Guild Committee Elections and Management ([TIP-031](https://forum.threshold.network/t/tip-031-rules-for-guild-committee-elections-and-management/378)). The proposal for the creation of this Steering Committee will first be voted on by the DAO to ensure approval. Upon approval, the process for nominations for candidates to fill the seats of the thUSD Steering Committee will open. Following TIP-031, the founding committee will be created in a staggered manner with the objective to align with the DAO Guild and Council elections, although this committee will not be classified as a guild. This proposal to approve the creation of the thUSD Steering Committee will include details on the committee's structure, responsibilities, and compensation. This will leave the elections of the actual members for a second phase. ### Nominations and Elections of Committee Members: Once this proposal is approved by the DAO, the nominations period for the thUSD Steering Committee will start. Nominations for committee members will be open to all active Threshold Network DAO community members. In the process of nominations, all candidates must express their willingness to serve on the committee either via self-nomination or via explicit acceptance of someone’s nomination (see [TIP-031](https://forum.threshold.network/t/tip-031-rules-for-guild-committee-elections-and-management/378)). Since this is a group that will oversee and manage the thUSD product, it is required a sufficiently good knowledge of the protocol to fill a seat within the Committee. The nomination period for this founding thUSD Steering Committee will last for two weeks. This period will start the following day to the approval of this proposal. Following this, elections will be held to determine the committee members. To establish a staggered election cycle, the seats will be divided as follows: * The top half of the elected members (those 3 candidates receiving the most votes) will serve until March 2025. * The remaining members will serve until September 2024, at which point elections will be held again to align with the standard election schedule. Subsequent elections for the thUSD Steering Committee will coincide with the DAO Guilds' elections, ensuring a consistent and organized process. All selected committee members must meet the required commitments described below. ### Committee Operations: * The committee will hold weekly calls for synchronous discussions and decision-making. * Asynchronous discussions and polls will be conducted via Telegram. * Committee members are expected to commit 4 hours per week, compensated at the standard DAO rate of $85 per hour. ### Monitoring and Accountability: This committee will provide regular updates to the DAO on their activities, decisions, and progress. The updates can be of different nature, all of them will help the transparency of this body’s operations: * Contributions to the monthly reporting process implemented by the DAO. * Periodical updates of the official documentation. * Weekly participation in the thUSD catch ups. * Participation in talks, X spaces, podcasts, etc. strongly encouraged. * Frequent collaborations with the DAO Marketing Guild. The performance of the committee and its members will be reviewed bi-annually during the election period. ### Amendments and Adjustments: Based on feedback and operational experience, amendments to the committee's structure and processes can be proposed and voted on by the DAO. The thUSD Steering Committee is not considered a DAO Guild; it does not manage a budget, and the time commitment required is less than that of a Guild. However, the proper operation of this committee is the responsibility of the DAO. If the committee fails to perform its duties effectively, a no-confidence vote can be initiated to dissolve the body. This vote can be triggered by any Guild Committee in full or the Council. Additionally, the committee can self-dissolve or be dissolved by a DAO vote initiated by any Council member or Guild Committee member. This ensures that the committee remains accountable and operates in alignment with the DAO’s standards and expectations.

## Vote Type Token holder DAO snapshot with a 7-day vote period **DAO-elected Sponsors** @Eastban , @JohnPackel , @wuji # Tldr 1. Reimburse the Threshold Treasury Guild for T tokens delegated to Beta Stakers. 2. Mint ~9.58 tBTC from Bridge Redemption Fees and transfer to the Treasury Guild. # Background ## Beta Stakers program tBTC currently relies on a permissioned group of node operators, referred to as “Beta Stakers”, to secure the wallets that contain the BTC that backs tBTC. These nodes are highly reliable, and stake a significant amount of T. As part of *[TIP 67](https://forum.threshold.network/t/tip-067-part-1-add-professional-node-operators-to-beta-staker-program/730)* three professional node operators were vetted, selected and added to the Beta Staker group. The TTG delegated 90m T to these professional stakers, 30m T each, on behalf of the DAO: 1. *[Sub7](https://tbtcscan.com/?operator=0x885fa88126955d5cfe0170a134e0300b8d3eff47)* 2. *[Delight](https://tbtcscan.com/?operator=0x9aa35dce841a43693cde23b86c394e1aefb61c65)* 3. *[Ponkila](https://tbtcscan.com/?operator=0xedd0c77314f07fca414b549156a0d9c915b096e9)* ## Funds TTG had the funds from previous Budget requests and earmarked T for other unused purposes. ## TTG T token balance ### All T transactions on the TTG multisig :  Actual T and other assets balance can be checked online: *[TTG Debank link](https://debank.com/profile/0x71e47a4429d35827e0312aa13162197c23287546)* ## What did the Treasury Guild do with the T? So what did the TTG do with the different T they were allocated with from the DAO? June 2023: * 50m T received for Coverage Pools. 17m T were deployed and then later in May 2024 retrieved again as per TIP. August 2023: * 50m T received to diversify into tBTC via Bonds (TIP47). 48.3m T used to date. September 2023: * 152m T for 2H23 Budget: TTG is using these T to pay for ongoing expenses. * 15m for Aera Vault: deployed in September 2023. * 13m for Minting Refunds (TIP54). These are not used, since TIP was voted to implement an ongoing minting fee holiday. October 2023: * 20m T for Mango options proposal to promote tBTC on Solana chain. Deployed in November 2023. As these options were executed the TTG added 471k USDC to the DAO’s Protocol Owned Liquidity. November 2023: * TTG received 30m T From Council, for the seed of the T/tBTC Balancer pool (with 4.89 tBTC from GB). Effectively used 27.55m T for that purpose. * 75m T from Governor Bravo for the Flowdesk MM deal, which were deployed in December 2023. March 2024: * Retrieved T/DAI Arrakis vault. The DAI was converted to thUSD and added as protocol owned liquidity (POL). May 2024: * 3m T retrieved from Myso Protocol (previously deployed in March 2024). * 17m T from covT - Coverage Pools redrawal 127m T were used to pay for expenses throughout the August 2023 - May 2024 period. 60m T were delegated to Sub7 and Delight professional Betastakers in February 2024. 30m T were delegated to Ponkila professional Betastaker in May 2024. ## tBTC Bridge Redemption Fees Threshold DAO is accruing tBTC redemption fees as a bank balance in favor of its GB address (0x87f005317692d05baa4193ab0c961c69e175f45f) as can be seen on the *[Bank Contract (balanceOf)](https://etherscan.io/address/0x65Fbae61ad2C8836fFbFB502A0dA41b0789D9Fc6#readContract)*. In order to use these assets as POL these fees should get minted as tBTC and transferred to TTG multisig wallet. # Proposal This proposal aims to include the transactions necessary to 1. return to the TTG wallet the tokens used to delegate to the betastakers program and 2. mint the tBTC obtained as redemption fees and transfer them to the TTG to use as POL. Transactions to be included in this Governor Bravo governance process: 1. Transfer to the Treasury Guild 24.55m T from the DAO’s Governor Bravo address, based on the following calculation: >`+` 90m T (delegated to Beta Stakers) >`-` 50m T (unused for Coverage Pools) >`-` 13m T (unused due to Minting Fee Holiday) >`-` 2.45m T (unused for T/tBTC pool seed) >`=` 24.55m T (total for reimbursement) 2. Execute the Mint: TBTCVault.mint from the GB address (this function: https://etherscan.io/address/0x9C070027cdC9dc8F82416B2e5314E11DFb4FE3CD#writeContract#F11). Once done, that will mint TBTC ERC20 to the GB address. 3. Execute the Transfer: TBTC.transfer (this function: https://etherscan.io/address/0x18084fbA666a33d37592fA2633fD49a74DD93a88#writeContract#F10).

## tldr The goal of the proposal is to revoke minting permissions on the first two deprecated thUSD contracts as a security measure. This involves a streamlined process that addresses operational challenges under the current governance mechanism. ## Background Threshold USD has been built as a public good for the Threshold Network. Value is created for the Threshold DAO instead of captured by a protocol token. Deployment Details: First Deployment: *https://etherscan.io/token/0xa10a5e2d813a51374592d6ce440b149f01cf9a7d* was deployed on Oct/5/23 Second Deployment: *https://etherscan.io/token/0xac76FAB49c7b24b15d564f348C248C6791888965* was deployed on Oct/18/23 The thUSD token was designed with governable safeguards due to contracts immutability (Persistent on chain over time). One such parameter allows for control over the token mint list. There is a balance between the certainty of immutability with adapting to new information * The deployed contracts are immutable so users can audit and trust them * Upgradability is preserved through a mintlist on the thUSD token contract * Changes to the mintlist are made through a two step, time gated governance vote on Governor Bravo * Governance votes can be vetoed by the Threshold Council After the first deployment, it quickly became apparent that a new set of thUSD contracts had to be redeployed to correct and improve a performance feature in the stability pool, which is responsible for protecting the system during collateral liquidation processes (for details refer to the discussions in the B-protocol channel on discord). In contrast, the second deployment had to be also deprecated shortly after its launch due to a vulnerability reported by Tellor in their contracts. Since Tellor contracts are also immutable, it was essential to update our contracts to reflect the newly fixed Tellor price feed. Based on these discussions, a fix was implemented with the redeployment. **Therefore the first two sets of contracts were then deprecated.** ## Proposal As an additional security measure, the DAO should revoke Mint authorization for the collaterals on the deprecated first two thUSD token contracts. Authorized contracts to mint thUSD are the old borrowerOperations contracts for both collaterals (tBTC and ETH) of each deployment set. ### Revoke Mint Process The revoking mint capability process involves two steps on the token contract, executable only by the owner, which is Governor Bravo. The steps are startRevokeMintList and finalizeRevokeMintList, with a 90-day governance delay. This needs to be executed for the borrowerOperations contracts of each collateral for both sets of deployments. First Deployment BorrowerOperations for tBTC Collateral: 0xB38EE6134D20344f7Cb0DE58a2E857209F307072 [*(verify here)*](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/tbtc/v1/mainnet.json) BorrowerOperations for ETH Collateral: 0x5E8e6374605C1FA413F50fB2bF9191bE20cc0f7E [*(verify here)*](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/eth/v1/mainnet.json) The current BorrowerOperations contract mint capability of the first thUSD token deployed can be checked in mintList function in ](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/eth/v1/mainnet.json)https://etherscan.io/address/0xa10A5e2d813a51374592D6ce440B149F01CF9A7D#readContract [1. The ](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/eth/v1/mainnet.json)Governor Bravo calls startRevokeMintList for BorrowerOperations for ETH Collateral (0x5E8e6374605C1FA413F50fB2bF9191bE20cc0f7E) on the thUSD token contract [0xa10a5e2d813a51374592d6ce440b149f01cf9a7d](https://etherscan.io/token/0xa10a5e2d813a51374592d6ce440b149f01cf9a7d). 2[. ](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/eth/v1/mainnet.json)After the governance delay of 90 days, Governor Bravo calls finalizeRevokeMintList on the thUSD token contract [0xa10a5e2d813a51374592d6ce440b149f01cf9a7d](https://etherscan.io/token/0xa10a5e2d813a51374592d6ce440b149f01cf9a7d). 3[. ](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/eth/v1/mainnet.json)The Governor Bravo then calls startRevokeMintList for BorrowerOperations for tBTC (0xB38EE6134D20344f7Cb0DE58a2E857209F307072) on the same thUSD token contract [0xa10a5e2d813a51374592d6ce440b149f01cf9a7d](https://etherscan.io/token/0xa10a5e2d813a51374592d6ce440b149f01cf9a7d). 4[. ](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/eth/v1/mainnet.json)After another 90 days, Governor Bravo calls finalizeRevokeMintList on the same thUSD token contract [0xa10a5e2d813a51374592d6ce440b149f01cf9a7d](https://etherscan.io/token/0xa10a5e2d813a51374592d6ce440b149f01cf9a7d). Second Deployment BorrowerOperations for tBTC: 0xf72E47D561D0dD5C685603e91c5FAF1FE92B7A8d BorrowerOperations for ETH Collateral: 0xeed6efEdc8a709b78C9Ce108777f412628e558e7 The current[ BorrowerOperations contract mint capability of the second thUSD token deployed can be checked in mintList function in ](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/eth/v1/mainnet.json)[https://etherscan.io/address/0xac76FAB49c7b24b15d564f348C248C6791888965#readContrac](https://etherscan.io/address/0xa10A5e2d813a51374592D6ce440B149F01CF9A7D#readContract)t [1. The ](https://github.com/Threshold-USD/dev/blob/fb15ebed750fe1e206aa2a1b01fc4ad30c324e1b/packages/lib-ethers/deployments/default/eth/v1/mainnet.json)Governor Bravo calls startRevokeMintList for BorrowerOperations for ETH Collateral (0xeed6efEdc8a709b78C9Ce108777f412628e558e7) on the thUSD token contract [0xac76FAB49c7b24b15d564f348C248C6791888965](https://etherscan.io/token/0xac76FAB49c7b24b15d564f348C248C6791888965). 2. After the governance delay of 90 days, Governor Bravo calls finalizeRevokeMintList on the thUSD token contract [0xac76FAB49c7b24b15d564f348C248C6791888965](https://etherscan.io/token/0xac76FAB49c7b24b15d564f348C248C6791888965). 3. The Governor Bravo then calls startRevokeMintList for BorrowerOperations for tBTC (0xf72E47D561D0dD5C685603e91c5FAF1FE92B7A8d) on the same thUSD token contract [0xac76FAB49c7b24b15d564f348C248C6791888965](https://etherscan.io/token/0xac76FAB49c7b24b15d564f348C248C6791888965). 4. After another 90 days, Governor Bravo calls finalizeRevokeMintList on the same thUSD token contract [0xac76FAB49c7b24b15d564f348C248C6791888965](https://etherscan.io/token/0xac76FAB49c7b24b15d564f348C248C6791888965). * The existing procedures for each thUSD token deployment (first and second deployments) can happen simultaneously. This means that the Governance Bravo can initiate and progress the revoking process for both thUSD tokens at the same time. * Across both deployments, the Governance Bravo will need to execute a total of 8 function calls. This includes 4 calls (2 startRevokeMintList and 2 finalizeRevokeMintList) for each thUSD token deployment. * The entire procedure, spanning both deployments, should take 180 days to complete. This duration accounts for two 90-day governance delay periods, one for each set of borrower operations revoking process (one for ETH collateral and one for tBTC collateral) within each thUSD token deployment. ## Solution: thUSD Owner Contracts Recognizing the operational challenge this revocation process presents, we've developed a tailored solution: the deployment of two THUSD Owner contracts. Each of these contracts corresponds to a deprecated thUSD token that should get its mint capabilities revoked. This approach allows for a more streamlined and efficient revocation process. **Operational Role of the THUSD Owner Contracts** These contracts, managed by the Integrations Guild, will oversee the revocation process. Here's how they will function: * Each THUSD Owner contract will initiate and complete the mint list revocation for its respective thUSD token collateral. * This design significantly reduces the complexity involved in the revocation process, enhancing the operational efficiency of the DAO. * The contracts enable the Integrations Guild to transfer ownership of the thUSD tokens back to Governor Bravo when necessary. Addresses of the THUSD Owner Contracts: thUSD Owner Contract for 1st Deployment: [*0x883fC0B2EF845603a5c9012172e7F8c34c28d63* ](https://etherscan.io/address/0x883fC0B2EF845603a5c9012172e7F8c34c28d632)thUSD Owner Contract for 2nd Deployment: [*0x033951c469e54ef19Be43B19c70a4DD273026468*](https://etherscan.io/address/0x033951c469e54ef19Be43B19c70a4DD273026468) Request for Ownership Transfer The core of this proposal is to request the DAO to approve the transfer of ownership of the deprecated thUSD tokens to the THUSD Owner contracts. This transfer is crucial for implementing the outlined revocation process expeditiously and securely. ## Governance process for ad-hoc security issues This proposal is an ad-hoc action guided by the IG and the thUSD workgroup to enhance security and protect the community by disabling a functionality and avoiding confusion with the new thUSD deployment. This forum post should be active for 7 days to allow adequate time for questions and discussions. If there aren’t major issues or setbacks the voting process with enacting transactions will be triggered directly on GB avoiding the normal temp check process via Snapshot.