Summary

This proposal upgrades one of the ERC20 bridge contracts to include emergency fund recovery features following the shutdown of the Kroma L2 chain (the other ERC20 bridge upgrade is failing in simulation and will be handled separately).

New Implementation Addresses

(1) https://etherscan.io/address/0x6abf2c41e4606bb2b4237ee5794d272c21593f4a

Key Features Added

1. **Emergency Shutdown Mode**: Allows authorized parties to activate emergency state

2. **Direct Emergency Withdrawal**: Bypasses L2 validation for fund recovery

Authorization and Withdrawal Model

- TallyDAO approves the implementation upgrade

- Emergency Multisig (same wallet that controls ChainAdmin for ZKcandy Mainnet) will handle the steps of activating Emergency Shutdown and then executing the EmergencyWithdrawal function, sending all ETH to the Emergency Multisig

- Funds will be transferred into a Snapshot-based Withdrawal Smart Contract on Ethereum and a UI for that will be available for users to claim from

Execution Plan

1. **Upgrade**: Upgrade proxy implementation via vote

2. **Activation**: Multisig activates emergency shutdown

3. **Recovery**: Execute emergency withdrawal to multisig

4. **Distribution**: Implement snapshot-based withdrawal system on Ethereum