### Banksy chain features

#### Shared total supply between Banksy and Picasso :
As we want a shared total supply between Banksy and Picasso, token transfers from Picasso to Banksy via IBC will not have the `ibc/` denom prefix. Instead, the native token in Picasso, PICA, should be used.

We have introduced an IBC middleware module to lock `ibc/` tokens and mint native tokens. This module handles middleware processes when executing the ICS26 implementation of IBC transfer, including SendPacket, OnRecvPacket, OnAcknowledgementPacket, and OnTimeoutPacket.

Design documents : https://hackmd.io/XYoVWNP4Sx6_Tt_y8ha6xw
Tracking issue in github: [issue_28](https://github.com/notional-labs/composable-testnet/issues/26)

#### Allience module and migrate the native Token from PICA to LAYR :
When chain launch, there is only native token in Banksy named PICA.
But in the future, when Composable team launch Composable mainnet in Polkadot, we'll switch the native staking token to LAYR.
- We propose a solution for this problem by using Allience module and a special gov that handle migrate the native token. We'll handle this by this following flow:
1. Governance proposal to add alliance module and add alliance asset & details. Alliance asset: LAYR. With Native asset: PICA. Reward weight: LAYR 1. PICA: 1
2. So the staking rewards get distributed evenly. Take rate: 0 . Since the alliance asset we’re adding isn’t a LSD
3. PICA Staking will be supported via Staking module. And LAYR Staking via the Alliance module. And then at periodic intervals, we adjust the reward weights until PICA = 0 . Thus fading out rewards for PICA completely.
4. Upgrade chain though the speacial gov to switch the native staking token to LAYR. We need to ensure all invariants is coverd.

- When we move to LAYR token successful, there will 2 natives denom that shared total supply with dotsama : PICA and LAYR. But users only can stake LAYR.

#### Burn and handle PICA token when launch chain and when IBC connected :
Before the bridge launch, there will be approximately 1 billion PICA tokens on the Banksy chain and 9 billion on the Picasso chain. The supply of PICA is fixed, and the tokens cannot flow between the two chains yet.

After the bridge launch, PICA tokens will be able to flow between the two chains, so the amount on each chain will change, but the total supply will remain the same.

There's a problem with escrow address in IBC module, but we can handle this by a escrowed and IBC transfer process. We need to test this feature in testnet-2 before launch mainnet.

###