BALANCER FORUM RFC: [RFC] Preventing $6M+ Treasury Dilution: Implementing a Merkle-Guard for BIP-928
**To the Balancer Treasury Council & Stakeholders:**
I am submitting a formal Technical Audit and Proposal to address a critical structural vulnerability in the current BIP-928 wind-down logic.
1. THE LEAKAGE QUANTIFIED
Using a custom on-chain analysis engine, we have identified a significant **‘Ghost-Liquidity’** vector. High-velocity whales (Sample: `0x4E9A9483BDfC66b83FF248754EF2f7035c78aeF7` and `0xfF052381092420B7F24cc97FDEd9C0c17b2cbbB9`) currently hold **2.43 Million BAL**, valued at **$6.09M USD**, while showing active on-chain history consistent with early migration patterns.
2. THE RISK
Without a cryptographic ‘Legacy Lock,’ these entities are economically incentivized to claim both the MAXYZ fork value AND the BIP-928 treasury stables. This creates a **Migration Subsidy** paid for by loyal, non-migrating LPs, diluting the treasury NAV by an estimated 10-15%.
3. THE SOLUTION: REDEMPTION INTEGRITY GUARD (RIG)
We propose the implementation of a Merkle-based validation layer for the redemption contract.
* **Merkle-Lock:** Eligibility is strictly tied to a pre-BIP-929 snapshot block.
* **Blacklist Capability:** Governance retains the ability to exclude addresses that have accepted airdrops from the fork.
4. REQUEST
We are requesting a **$25,000 Technical Integrity Grant** (payable in stables or BAL) to finalize the snapshot state, manage the RIG contract deployment, and ensure 100% distribution integrity.
**Technical Artifacts:**
* **Proposed Contract Logic:** [INSERT_YOUR_GIST_LINK_HERE]