An on-chain signaling proposal has been submitted, following our announcement of the move to Arbitrum earlier this month.
The proposal asks SCRT stakers to indicate whether Secret Network should migrate the $SCRT token from Cosmos to Arbitrum (an Ethereum Layer-2) via a one-time snapshot that mints a new ERC-20, claimable by current holders through a Redeemer contract.
The migration is proposed for September 1st, 2026.
Regardless of how the vote goes, SCRT Labs will conclude its development and related support of the Cosmos-based Secret L1 on September 1, 2026.
All related source code will be released under a permissive open-source license, so that the community can run and build on it.
A YES result is a mandate to proceed: it does not by itself move any funds, deploy any contract, or change any chain parameter.
Following consultations with the Secret Network Foundation, post-migration monetary policy changes fundamentally from what was originally proposed. Today, Secret Network has built-in protocol inflation that mints new SCRT automatically every block. After the migration, that automatic issuance is removed entirely: new SCRT can only be minted through explicit Governance decisions. There is no algorithmic or built-in emission — every increase in supply is a discrete, community-approved action.
The post-migration design uses two tokens. SCRT is the base ERC-20 token on Arbitrum One, used for transfers and liquidity. stSCRT is a liquid-staking token issued when SCRT is staked, implemented on the xERC-4626 standard (a reward-bearing tokenized-vault standard); it accrues staking rewards automatically while remaining liquid and transferable, so stakers can use it across DeFi without unstaking. stSCRT is also the governance token: voting is conducted on-chain through a standard Governor contract, so governance power comes from staked SCRT.
More communication will be issued prior to the migration explaining the exact process of claiming SCRT on Arbitrum.
After the current proposal, SNF will issue a proposal on behalf of the community defining mint amounts for the following goals:
- A dedicated treasury for SNF, with a vesting period
- Instead of originally proposed 5% inflation, a dedicated treasury for staker rewards for the first year post-migration. Any further staking rewards will require additional governance voting.
- A dedicated treasury for the Axelar bridge incident remediation. The exact mechanism of remediation will be finalized prior to the migration date, contingent on technical feasibility and risk assessment.
Please cast your votes.