The following reflects the views of L2BEAT’s governance team, composed of @kaereste, @Sinkas, and @Manugotsuka, and it’s based on their combined research, fact-checking, and ideation.
We are voting FOR.
Generally, we would like the Security Council not to convert the ETH back into ZK and for the Token Assembly to keep the ETH in the timelock so it could be used in the future without having to sell ZK again. From our perspective, converting ETH to ZK won’t have a significant impact on ZK price anyway, so it’s better to keep our assets diversified, especially since we’ll most likely need that ETH in the future. It would make more sense to instead allocate the ETH in a productive manner (for example, in staking).
However, we understand that there might be legal issues that are making that hard. Given that, we’re voting to authorize the Security Council to proceed with the second-best alternative: converting the ETH back into ZK and moving it to the timelock.
Ideally, if the Security Council finds a way for the Token Assembly to keep the ETH, we would prefer this solution.