Migration from wBBK v1 to wBBK v2 with supply reduction (100:1 swap)

The current wBBK (Wrapped BitBlocks) was created as a representation of BBK on the BNB Smart Chain (BSC) and other EVM networks. However, the current design of wBBK v1 has become unsustainable:

• The wBBK v1 contract allows a supply of up to 1,000,000,000 wBBK (1 billion).
• On the BitBlocks mainnet, the BBK supply limit is 500,000,000 BBK (500 million).
• This means that, in practice, wBBK v1 is insolvent: there is the potential for more wBBK to exist than the BBK available to back these tokens.

To correct this structural issue and prepare the asset for the long term, we propose the creation of wBBK v2 with more secure parameters and a controlled migration mechanism.

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What this proposal decides

1. Whether or not the community approves the creation of wBBK v2, featuring:

   • Supply reduction via 100:1 swap, in the following direction:
     • 100 wBBK v1 → 1 wBBK v2
     • That is, for every 100 wBBK v1 tokens, the user will receive 1 wBBK v2 token.
   • New wBBK v2 contract, with parameters aligned with the BBK supply limit on the mainnet.
   • Official migration mechanism, operated by the BitBlocks team.

2. Whether, once wBBK v2 is approved, wBBK v1 will be discontinued, allowing for:

   • Burning of wBBK v1 to perform the swap to wBBK v2.
   • No new minting or expansion of wBBK v1 use.
   • A transition phase, in which users can exchange wBBK v1 for wBBK v2 in an orderly manner.

The choice of the initial network for wBBK v2 (e.g., Arbitrum, BSC, Base, etc.) will be made in a separate proposal, should this one be approved.

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Details of the proposed migration (if approved)

If this proposal is approved (YES):

• The BitBlocks team will be responsible for:
  • Developing and publishing the wBBK v2 contract.
  • Implementing the 100:1 swap mechanism (100 wBBK v1 → 1 wBBK v2).
  • Clearly defining and communicating:
    • How users can perform the migration (interface, bridge, steps).
    • The minimum migration period (the window during which it will be possible to exchange v1 for v2).
• wBBK v1 will be marked as obsolete/discontinued, serving only as a token to be burned to receive wBBK v2.

After the approval of this proposal and the technical definition of the wBBK v2 model, a new specific proposal will be created to decide:

• On which network wBBK v2 will initially be launched (e.g., Arbitrum, BSC, Base, etc.).
• Possible expansion priorities for other networks in the future.

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What happens if the proposal is rejected

If this proposal is rejected (NO):

• wBBK v2 will not be created at this time.
• wBBK v1 continues to exist as it is today, even with the insolvency issue (1 billion wBBK vs. 500 million BBK on the mainnet).
• Any future changes (new wrapped model, supply reduction, network choice, etc.) will depend on new proposals.