Token Upgradability and Ownership
The loot and shares tokens are now upgradable erc20s. Through a DAO proposal a token can be upgraded and/or ownership can be renounced or changed This adds flexibility around extending and adding future extendability. Through the upgrade process the tokens will keep their vote power and delegation state but can change the governance/treasury strategies.
This includes the ability to
- Eject tokens from the core governance contract
- Upgrade tokens to a different dao contract platform
- Upgrade version of current governance platform to a newer version
- Extend logic in tokens.
This is a powerful tool and with the extra flexibility there are a few things to note about this functionality. Upgrading the token or changing ownership may disable or cause the governance contract to not work as expected so there should be extra care here, you should really know what you are doing.
Through summoning with the factory the tokens, by default, are owned by the core governance contract (Baal.sol). This allows the the DAO to mint and burn shares as needed (through proposal, manager shaman or ragequit). If a DAO decides to renounce ownership in the tokens this will disable the functions that are permissioned to 'owner only'. That means that minting, burning and upgrades would be disabled. The core governance will not work as expected and may not work at all. (for example, ragequit)
Borking the treasury: One thing to be especially careful of is making the treasury(Safe) not accessible. Before upgrades which eject or disable the governance contract it is important to have new signers/modules on the Safe that can access any funds
Notes on UUPS pattern
The tokens use the UUPS pattern of upgradeability. One of the drawbacks of using such a pattern is that if a future implementation does not implement the function, then upgrades for the tokens have effectively been killed.