Technical Roadmap & Budget
For the scope of this grant, our goal is to drive the adoption of the Teleporter by leveraging it to introduce dynamic and oracle-signaled token issuance for subnets.

Phase 1: Dynamic Issuance
We aim to introduce dynamic issuance to subnets by allowing users to send their AVAX from the C-Chain directly to a bonding curve on the subnet via Teleporter, natively issuing the subnet tokens.

User Journey Example

Gainz Gaming sets up its own subnet, powered by its native token, $GAIN. Despite having AVAX on the C-Chain, users lack the gas tokens of this new subnet.

To participate, a user sends their AVAX from the C-Chain directly to the bonding curve on the Gainz subnet via the Teleporter, bypassing the need for a swap on the C-Chain.

The user receives the $GAIN tokens natively on the subnet, and the AVAX is stored as collateral in the bonding curve, contributing to the subnet’s liquidity. This process simplifies user participation in new subnets with low initial liquidity, allowing subnets to leverage AVAX liquidity on the C-Chain.

Milestone 1 - Define the Architecture for Dynamic Issuance via Teleporter
Define the specifications of the bonding curve mechanism and how it integrates with the Teleporter.

Define the requirements for storing and minting native tokens using the Teleporter and PIM stack on both the C-Chain and Subnets.

Time Estimation: 2 Weeks

Budget: $50,000 (Direct)

Milestone 2 - Development and Integration
Implement native token minting to the PIM stack and the bonding curve to enable dynamic issuance in the subnet.

Enable the Teleporter to bridge AVAX from the C-Chain to the subnet and vice versa.

AVAX will be bridged as Wrapped AVAX (WAVAX) and used as the reserve token for the bonding curve.
Implementing a correct interface between the Teleporter and Bonding Curve, enabling efficient token management and issuance.

Conduct unit tests for individual smart contracts to ensure they function correctly.

Write comprehensive unit tests and integration tests.

Perform end-to-end testing to verify the process of token issuance.

Simulate real-world scenarios to confirm the end-to-end process.

Time Estimation: 4 Weeks

Budget: -

Milestone 3 - Audit the Dynamic Issuance
Engage a reputable third-party auditor to review the smart contracts.

Ensure the contracts are secure, efficient, and free from vulnerabilities.

Review the audit report and address any identified issues or vulnerabilities.

Make necessary improvements and optimizations based on the audit feedback.

Deliver completed security audit report.

Time Estimation: 2 Weeks

Budget: Audit Costs (Retro)

We will cover the audit costs and send the invoice.
Milestone 4 - Deployment
Deploy the smart contracts on a private network for initial testing and validation.

Prepare and finalize deployment scripts and get the contracts ready for deployment on the testnet and mainnet once ACP-77 goes live.
Conduct thorough testing to validate the deployment and ensure proper functionality.

Time Estimation: 2 Weeks

Budget: $55,000 (Retro)

Phase 2: Oracle-signaled Issuance
Our goal is to integrate oracle-signaled issuance logic for subnet tokens, linking token issuance logic to on-chain and off-chain data. This ensures that issuance is based on publicly verifiable performance metrics, determined by the utilizing protocol, thus reflecting the protocol's success.

User Journey example

For example, a messaging protocol could issue additional rewards to its stakers if the average monthly message count surpasses a certain threshold. Similarly, a gaming application could distribute tokens to players based on the experience points they accumulated in the game.

This approach aligns the incentives of ecosystem participants with the protocol’s objective.

Milestone 1 - Define the Architecture and Requirements
Identify the specific performance metrics that will adjust token issuance parameters in the PIM stack.

Determine the source of on-chain and off-chain data needed for the oracle implementation.

Design the overall architecture for oracle-signaled issuance, detailing how oracles interact with the PIM stack and issuance logic.

Specify the data flow from the oracles to the smart contracts responsible for token issuance.

Time Estimation: 2 Weeks

Budget: $25,000 (Retro)

Milestone 2 - Development and Integration
Integrate with leading oracle providers (Chainlink or any other solution) to fetch on-chain and off-chain data.

Develop smart contracts to handle data input from oracles and trigger adjusting token issuance based on predefined metrics.

Implement smart contracts to process oracle data and adjust token issuance.

Conduct unit tests for individual smart contracts to ensure correct functionality.

Test various scenarios to validate the accuracy and reliability of data handling and token issuance.

Perform integration testing to check the interaction between oracles and the token issuance logic.

Simulate real-world scenarios to confirm the end-to-end process.

Time Estimation: 4 Weeks

Budget: -

Milestone 3 - Audit the Oracle-Signaled Issuance
Engage a reputable third-party auditor to review the smart contracts.

Ensure the contracts are secure, efficient, and free from vulnerabilities.

Review the audit report and address any identified issues or vulnerabilities.

Make necessary improvements and optimizations based on the audit feedback.

Deliver completed security audit report.

Time Estimation: 2 Weeks

Budget: Audit Costs (Retro)

We will cover the audit costs and send the invoice.
Milestone 4 - Deployment
Deploy the audited smart contracts to a testnet environment.

Conduct thorough testing to validate the deployment and ensure proper functionality.

Time Estimation: 2 Weeks

Budget: $85,000 (Retro)

