PSYS Governance with the Rollux Release: L1 or L2 voting?


Greetings, everyone! It’s been quite a journey for Pegasys throughout 2023. We’ve achieved incredible milestones and have even more exciting updates on the horizon.

One of our notable accomplishments this year has been the development of a new User Interface (UI). We’ve dedicated significant resources to creating a much more user-friendly experience, presenting information in a clear, concise, and visually engaging manner. We trust this will allow both newcomers and seasoned DeFi enthusiasts to navigate our platform with ease and confidence.

We’ve also been hard at work developing PegasysV3, our latest version of the Automated Market Maker (AMM) that capitalizes on the innovative concept of concentrated liquidity. We’re excited about the upcoming release and look forward to sharing more details soon.

Furthermore, we have forged some strong partnerships that will be announced in the near future. These partnerships align closely with the new vision we are constructing for Pegasys, aiming to enhance our ecosystem and expand the possibilities for our users.

Vision for Scalability: Rollux

As you may know, the Syscoin Foundation, and now Syslabs, have been passionately working on a solution to address the scalability limitation of the NEVM. Their vision is embodied in Rollux, an official optimistic rollup solution. Rollux promises scalability without compromising on decentralization or security, a balance that has been a perennial challenge in blockchain ecosystems.

With Rollux’s imminent launch, an important discussion arises: Which layer should we maintain for on-chain governance?

Governance: Layer 1 or Layer 2?

Rollux, as the official hub for decentralized applications (dApps) within the Syscoin Ecosystem, is where Pegasys will concentrate most protocol efforts. However, it’s worth noting that the PSYS token genesis event occurred on Syscoin Layer 1, and we plan to continue conducting voting on this layer.

Our reasoning is grounded in the Syscoin vision: Layer 2 is intended for product scalability, whereas Layer 1 provides robust security and settlement mechanisms. Keeping governance on Layer 1, albeit less accessible, aligns more closely with the original Pegasys governance guidelines and caters to Syscoin’s modular design.

Prioritizing Layer 1 for governance is a strategic decision. While this may present certain accessibility challenges, it ensures the utmost level of security and settlement standards for the governance process. These are foundational principles for the Syscoin ecosystem, and we believe this approach will serve the best interests of our users and stakeholders in the long run.

Enhancing Accessibility

Although we understand that bridging PSYS tokens back and forth from Layer 2 may not be the most user-friendly experience, we are committed to improving this aspect. Our long-term vision is to make governance as accessible as possible, and we are actively researching and developing mechanisms to make this process smoother and more intuitive.

Exploring Cross-Layer Solutions

One potential solution could be leveraging the cross-layer messaging system that Rollux inherited from Bedrock. This approach could also lay the groundwork for possible Level 3 (L3) governance in the future, further extending the capabilities and reach of our platform.

Synthetic Assets for Governance

Another interesting possibility involves the creation of synthetic assets on Layer 1. These assets could represent governance power originating from Layer 2, providing a viable method for integrating the two layers in a more seamless manner.

Rationale for Layer 1 Governance

As we contemplate these ideas, we continue to believe that maintaining governance on Layer 1 is the right approach. Moving governance to Layer 2 prematurely could lead to unforeseen challenges. Instead, our goal is to gradually bring governance closer to Layer 2 in a measured and calculated manner. We are confident that PegasysV3, with its enhanced incentives on Layer 2, will play a pivotal role in this process.

Seeking Community Input

These thoughts and considerations come from our dedicated Core Maintainers team. However, Pegasys is a community-driven project, and we value your input immensely. We would be delighted to hear your perspectives on these matters and are more than willing to entertain new ideas.

Engaging in meaningful dialogues with our community is at the heart of our project. So please, feel free to share your thoughts, suggestions, and concerns. We’re all ears!

Whether you’re a developer, an end-user, a cryptocurrency enthusiast, or simply someone interested in the decentralized space, your contributions are invaluable. There are numerous ways to participate, each as important as the other.

We also encourage our community members to submit proposals for improvements and new features. Pegasys is a dynamic and ever-evolving platform, and many of our best developments have originated from ideas within our community. If you’ve identified potential areas of improvement or have ideas for new features, we’d love to hear from you.

Remember, everyone has something unique to bring to the table, and no contribution is too small. Let’s continue to shape the future of Pegasys together!

A Bright Future Ahead

As we continue to move forward, we are excited about what the future holds for Pegasys. There will be lots of thrilling news, insightful discussions, and impactful proposals to look forward to here in our Discourse forum. We’re eager to embark on this journey together, shaping the future of decentralized finance in a collective, inclusive, and forward-thinking manner.


Reiterating kek’s point, your suggestions and comments are always welcome! Don’t be afraid to let us know your thoughts :slight_smile:


Maybe DAOSYS or another ecosystem partner could look into building an unified hub/infrastructure for Rollux dapp governance, while still leveraging L1 security :nerd_face:

I don’t know the technicals, but the idea sounds pretty nice :grin:


I like the the idea of keeping governance on L1; however, moving PSYS between levels to vote seems like it would potentially cause some problems. For example, will those providing liquidity also be the ones that are most likely to vote? Would they be required to remove liquidity and switch levels to vote? Would removing liquidity cause market proplems? I’m not sure of the technical details; however, I think it would be better in the long run for coins to stay on their respective levels and maybe print a voting ticket (NFT?) to the other level. When, the voting ticket is utilized to vote, it is burned. Is this the Synthetic Asset idea that was menioned above?


Yeah, something like that, but we had ERC20 tokens in mind.

Thanks for the input @ellipsoid


I think I will go with what @ellipsoid have suggested or in the alternative, an NFT can be minted to represent your LP which can also represent your governance voting power which you can bridge to L1 to vote on any proposal. In another alternative, whatever number of $PSYS tokens you hold in L2 can be view in L1 which can be use for voting only on L1 and can’t be bridge to L2. Just a reminder; whatever idea the team finally adopt, they must be very careful so that it will not be exploited by malicious individual to compromise the protocol.


What if Pegasys did dynamic NFTs that has evolutive metadata as gov power grows :thinking::thinking: