---
# System prepended metadata

title: Bancor Whitelist Proposal
tags: [bancor]

---

---
title: Bancor Whitelist Proposal
tags: bancor
authors: banan, byrley, justin, rake
---
Bancor v3 Whitelist Proposal: Phonon DAO
===

[TOC]

TL;DR
---
- Proposal to whitelist $PHONON
- There is no reason to doubt the legitimacy of the Phonon project.
- There are no security concerns that could prohibit whitelist status.
- Benefits to Bancor : Providing $PHONON liquidity will attract token LPs from the Phonon DAO community to swap on Bancor, and increase protocol trade volume.

Token Address: 0x758B4684BE769E92eeFeA93f60DDA0181eA303Ec
Project Website: https://phonon.network/

Token Security
---
$PHONON is not an elastic nor rebasing token; the supply is locked by contract. All $PHONON contracts were authored by Mariano Conti and reviewd by Tim Coulter.  The Phonon DAO contracts are based heavily on existing community-reviewed works that have received intense attention and scrutiny. The changes made to support the Phonon DAO are small, and in many cases remove logic instead of add it, thus reducing complexity and attack surface area.

1. PhononToken.sol: (main governance token) is based on the ENS governance token with very few, insiginificant modications: 
  * Name/aesthetic changes, renaming the contract, token identity, and specific warnings to report "PHONON" instead of "ENS" 
  * Removal of functions and libraries necessary to claim airdrop tokens, since Phonon does not contain an airdrop (instead, it contains a redeem system)
2. The Tokenvesting.sol: contract is based on the TracerDAO vesting contract and remains mostly unchanged except for one alteration: 
  * Alteration of TracerDAO's specific solidity compiler version `pragma solidity 0.8.4` to `pragma solidity ^0.8.0`
3. Redeemer.sol: Very simple contract that manages token redeeming of $PHONON tokens in exchange for $GRID tokens, based on Maker's redeemer contract. 
  * Redeemer.sol uses OpenZeppelin contracts as a base, whereas the Maker redeemer contract uses DappTools contracts
  * The Maker redeemer contract appears to have other methods unneeded by PhononDAO, like undo() and reclaim()
  * The Maker redeemer contract includes code necessary to deploy a new Redeemer contract, where that is unnecessary in our context.


The token has a current total supply of 10,000,000,000 $PHONON. Contracts are standard ERC-20 OpenZeppelin contracts. The contracts don’t have admin privileges that grant unrestricted burning of tokens. The token contracts and addresses with the highest concentration of $PHONON tokens are predominantly the redeemer contract, token vesting contract, GridPlus treasury account, two uniswap pools, a ConsenSys(Strategic GridPlus & Phonon Partner) owned address, and two EOA that belong to the team's core developers and GridPlus. 

* The primary Phonon DAO blog post which discusses the **Token Supply** can be found [here](https://blog.phonon.network/phonon-dao-launch-overview-resources-and-phonon-token-details-f8369e89f1ea) 
* **Tim Coulter**'s Audit Regarding the Contracts authored by Mariano Conti can be found [here](https://hackmd.io/@phonon/contract-audit)


Project
---
The Phonon protocol uses secure hardware to enable private, off-chain, free transactions for nearly all blockchains. Phonon lets you securely use any digital asset with all the privacy and security properties of physical cash.

The Phonon protocol is an open-source, peer-to-peer (p2p) system which prevents double spends through the use of unique hardware-derived cryptographic properties. Secure hardware isn’t just limited to hardware devices focused solely on wallet functionality; compatible device categories also include SIM cards and smartcards which use the same kind of chip found in today’s credit cards. Utilizing the cutting edge security that ensures safety in the current global payments system endows Phonon with robust security. Phonon will work with any blockchain wherein the curves that underlie a given blockchain are supported by the system on a chip (SoC) used in Phonon cards. As of now, this will cover 99% of all public blockchains. The Phonon DAO token ($PHONON) and protocol governance framework are built on Ethereum.

A phonon -- as a concept -- is a non-fungible “packet” of tokens (e.g. ether, bitcoin, ERC20 tokens) from a supported blockchain (e.g. Ethereum, Bitcoin, Solana). Each phonon contains information about the network, asset, amount (in atomic units), and other metadata related to the deposit transaction (e.g. tx hash). Blockchains that use the secp256k1, secp256r1 and ed1559 will all be supported in the Phonon beta. As more cryptographic curves are added to the SoCs, additional blockchains will become compatible with the Phonon protocol.

Phonons are deposited on-chain according to the rules and constraints of the given network. Each phonon is associated to a given deposit address, which is derived from a keypair generated by the depositor’s card using its PUF (Physical Unclonable Function) For Bitcoin, phonons may be deposited with a standard transaction. For Ethereum, a deposit can be made with a standard transaction, or settlement smart contract could be used to hold balances and map them to phonons/deposit addresses. In all cases, each phonon maps 1:1 to a deposit address, which is itself derived from the PUF on the depositing card.

The Phonon DAO is estimating July 2022 for the public launch of its incentivized test-net. The DAO spun out of GridPlus - the manufacturers of the popular Lattice1 hardware wallet. GridPlus has also allocated a portion of their core developers as full-time Phonon employees. The Core Developer Team's expenses is being fufilled by GridPlus.   

Token Distribution
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Contracts and addresses with the highest concentration of $PHONON are of the following: 
- Redeemer contract 
- DAO's Treasury (Gnosis Multisig Safe)
- Vesting contract
- Core Developers
- Core Members
- Consensys (Strategic Partner)
- GridPlus Employees
- Uniswap Pools


Community and Communication :
---
[Phonon Discord](https://discord.gg/phonon)
[Phonon Twitter](https://twitter.com/PhononDAO)
[Phonon Medium Blog](https://blog.phonon.network/)
[GitHub](https://github.com/GridPlus/phonon-network)
[Governance Discourse Forum](https://gov.phonon.network)
[Substack Newsletter](https://phonon.substack.com)
[Reddit](https://www.reddit.com/r/PhononDAO/)

Market and Trading Data
---
* $PHONON’s price at the time of writing is $0.0021
* Initial Price: $0.01
* All-time high: $0.0139 (Jan 12th 2022)
* All-time low: $0.0019 (Jun 15th 2022)
* Price 90 days ago: $0.011.
* 3,620,000,000 PHONON in circulation
* Max and total supply of 10,000,000,000 PHONON.
* The current market capitalization is $7,721,337.
* The $PHONON token is available on Uniswap, Sushi and BKEX


---
__**$PHONON Liquidity Pools on Ethereum**__
* **Uniswap**
1. Phonon/ETH : 
	- FDV: $20,635,945
	- Total Liquidity: $668,959
	- 24hr Trading Volume: $11,103.35
2. Grid/Phonon (Redeemer Contract: swaps the deprecated $GRID token for $Phonon Tokens):
	- FDV: $91,210,990
	- Total Liquidity: $31,515.82
	- 24hr Trading Volujme $1,251


* Treasury: [Funded via GridPlus and conversion from GRID](https://blog.phonon.network/phonon-dao-launch-overview-resources-and-phonon-token-details-f8369e89f1ea)

Vesting Periods
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Phonon DAO’s treasury has been directly allocated 14.64% of the total supply. 50% of this amount is locked in a vesting contract and will be released over four years via a linear vesting schedule. The contract has a balance of : 789,057,218.94161 PHONON

Benefits To Bancor
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The global blockchain ecosystem is debatably comprised of many valueless projects -- projects with tokens that have no actual function and exist solely as speculative vehicles and memes. Phonon sits amongst the few (by percentage) that strive to show the world that blockchain does have practical value and therefore should be explored and developed further. Were Bancor to whitelist Phonon it would add to this show of support for projects that are trying to build systems that have real world use.


---
[World's First Phonon Transaction Video](https://youtu.be/TInbfyFrllg)