### **Problems this product is going to solve**

During the memecoin season back in June, gas fees on Ethereum mainnet skyrocketed to the point where onchain DAO governance became too expensive to partake in. This was felt severely by L1 DAOs on Nouns Builder where gas was so expensive that it was costing users > $10 dollars just to vote or place bids. As a result, activity was very low across all DAOs during the expensive gas season.

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### **Impact**

Allowing L1 DAOs to migrate to L2 will make user gas fees a non-problem where onchain transactions are typically in cents, rather than dollars. The ideal outcome is lowered costs across all major onchain actions on Nouns Builder including:

1. Deploying a DAO
2. Auctions (bidding and settling)
3. Submitting a proposal
4. Vote

With more adoption of L2 networks across Base, OP Mainnet and Zora Network, it is imperative to help successful L1 DAOs on Nouns Builder to migrate to L2.

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### **Functional requirements**

- Describe the JTBD or what the user is trying to achieve with this feature
- Requirement: “The feature MUST do [x]”
- Priority - MUST-HAVE, NICE-TO-HAVE

| User story | Requirement | Priority |
| --- | --- | --- |
| As a DAO, we want to fully migrate all our L1 DAO contracts to L2, so that it becomes much cheaper for members to partake in onchain governance. | The feature must allow a deployer (DAO member) to deploy a 1:1 DAO on L2. | Must-have |
| As a DAO member, I want to claim my L2 DAO token, so that I can partake in L2 onchain governance. | There must be a migration portal for members to claim their L2 DAO. The claimed L2 token must also have the same token ID as on L1. | Must-have |
| | | |
| | | |

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### Proposed user flows

Checkpoint #1 - Pause L1 auctions
Checkpoint #2 - L1 DAO submits L2 DAO deployment proposal
Checkpoint #3 - Send L1 treasury to L2

**DAO deployment**

Proposal submission flow → Select “Deploy DAO on L2” → Create proposal → Proposal is executed after passing → L2 DAO is created

**DAO member L2 token claiming**

Go to L2 DAO page → Check claim eligibility → Claim L2 DAO token

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### **Feasibility and estimates**

- Design
- Does the L2 DAO deployment step have to be a micro-app? Or can it live as a proposal template?
- How does the L2 DAO token claiming UI look like?
- Engineering
- Develop a claim page or tab for users to claim tokens from a minter if their address is included in the claim.
- Change token artwork display to show a placeholder for claimed tokens that have not been minted yet (these will have no artwork).

See Bali tech spec:

[Bali Upgrade Specification · ourzora/nouns-protocol · Discussion #111](https://github.com/ourzora/nouns-protocol/discussions/111)

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### **Risks and dependencies**

Governance-only L2 migration

- Some DAOs like Purple are concerned about L2 liquidity and would prefer to keep auctions on L1 but governance on L2
- If this is the case, do we have to cater for two different approaches? i.e. full migration vs governance-only migration?

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### Metrics

**Migration rate**

- Increase the adoption of L2
- Achieve a specific number of L1 DAOs that successfully migrate to L2 platforms within 3 months - 20%

**Cost savings (in gas fees)**

- Help DAO members reduce gas costs significantly by migrating DAO to L2
- Calculate and demonstrate average % reduction in gas costs for Bidding, Settling, Voting and Proposing