The token follows the UUPS upgradable pattern to allow changes and improvements in the future. It is worth to say that DIMO token is meant to be managed by a governance system that will have the ability to remove the upgradability from the contract if so decided. For now, the token is managed by the multi-signature wallet Gnosis Safe that belongs to the DIMO Foundation.
The DIMO token was initially created in the Ethereum Mainnet. However, since the DIMO system lives in the Polygon network, we decided to also move the tokens to the same place. That said, a well known and established bridge was chosen: The Polygon Bridge, that employs a combination of smart contracts and a State Sync Mechanism to move tokens from Ethereum to Polygon and vice versa.
The following steps happen when a token holder bridges their tokens from Ethereum to Polygon:
- 2.Token holder executes a transaction to call the function
- 3.The contract ChildChainManager executes a transaction to call the function
depositin the DIMO token in the Polygon side.
- 1.This function mints the same amount of tokens for the same token holder address on the Polygon side.
- 2.The total supply in the Polygon side increases.
Similarly, the following steps happen to bridge the tokens back from Polygon to Ethereum:
- 1.The tokens are burned in the Polygon side, causing the total supply to decrease.