Mesh account migration to release locked funds
Post Stellar Protocol 15 Adoption
An overview and some background context
Mesh makes use of the Stellar blockchain for facilitating platform asset creation in the form of tokens, trading, transfers and other financial transactions.
When creating an account on Stellar a minimum of 1 XLM has to be funded to make the account active on the network, this contributes to the minimum required balance of an active Stellar account. Any additional account entries, such as Trustlines and Signers, increase the required reserves by 0.5 XLM per entry.
Before the introduction of sponsored reserves in Protocol 15 there was no way to natively sponsor these reserves. In order to provide a seamless experience for interacting with the Stellar Blockchain, Mesh sponsored all account reserve requirements by making a small transfer into your account every time an increase in reserves was required. This balance was then locked by the Stellar network but still contributed to your account balance – more on this later.
Since 01 March 2022, Mesh uses the sponsored reserves mechanism for funding your minimum reserve balance requirements. This eliminated the need for a “transfer and lock” mechanism for all new entries added to your account, but previously locked funds remained inaccessible.
What is the effect of the migration
Mesh will be taking over the sponsorship requirements for all our user accounts with any locked XLM balance on 12 August 2022.
If your account has a balance of XLM that you can’t currently transfer or sell, this balance will become available to you after the migration. Mesh will effectively donate this previously locked value to our users.
No user action is required.
How does the migration work
The implementation is based on the official Stellar documentation for transferring sponsorships. A high level summary of what will happen during your account migration is described below:
The migration has to revoke the “self” sponsorship of the required minimum reserves and transfer the obligation of sponsoring the minimum reserves to the Mesh account.
This is achieved by “sandwiching” a set of Revoke sponsorship operations between a Begin sponsoring future reserves operation and an End sponsoring future reserves operation.
The operations in the transaction will look something like this
// start the sandwich
// transfer account opening reserve requirement
// transfer signatory reserve requirements
// transfer trust line reserve requirements
// end the sandwich
The transaction is then signed, by a Mesh account signatory and the default signatory on your account, and submitted to the Stellar network.
Who is effected
All Mesh users who registered their accounts before 01 March 2022.
All effected users will be notified.