> For the complete documentation index, see [llms.txt](https://emptysetsquad.gitbook.io/empty-set-v2/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://emptysetsquad.gitbook.io/empty-set-v2/migration.md).

# Migration

### Pausing v1 Regulation

The first step in the migration process is to *pause* supply regulation in the current DAO, preparing the ESD token to transition to a solely seignorage share.

Along with this, lockups will be returned to the minimum `1` epoch to allow ample time for users to choose whether they would like to migrate to v2 via `ESD` or `ESDS`.

At this time coupon underlying will become immediately redeemable.

### Governance Transition

During preparation for the migration we will leave the governance system in tact as we prepose a series of EIPs. Once the migration is setup and ready to be kicked off will be turned off, making v1 immutable, ensuring a safe transition as voting power moves from v1 to v2.

### Migration Helpers

We will add a new `Migrator` contract that will control conversion from `ESD` and `ESDS` into `ESS`.

This contract will be granted permission to burn `ESDS` on behalf of users via a proposal, in order to facilitate 1:1 `ESDS` to `ESS` migration. Users will need to individually approve the Migrator contract to spend their `ESD` to migrate `1:n` to `ESS` per the finalized exchange rate.

### V1 Proposals

The migration process will be facilitated by a series of proposals to the current ESD DAO. These proposals passing will also de facto approve the Continuous ESD upgrade. Subject to change, our current idea of what these proposals will look like are:

#### EIP-23: Pause Regulation

Remove all supply regulation for the current `ESD` token, and release all unnecessary restrictions so users may prepare their positions for migration.

* Remove stability reward
* Remove supply expansion/contraction
* Set debt to 0
* Set lockups to 1
* Unlock coupons for immediate underlying redemption
* Finalize ESD:ESDS exchange rate

#### EIP-24: Remove Bonding

Remove the ability to bond and unbond ESD in v1 to reduce overall mechanism complexity preparing for the permanent migration state.

* Remove bonding system
* Burn bonded ESD

#### EIP-25: Enable Migration

Add necessary migration hooks, disable v1 governance in favor of v2 governance.

* Add "burn ESDS" migration hook
* Enable Pool withdrawal bypass via `emergencyWithdraw()` hooks
* Disable governance, make ownable by v2 DAO