From 5c6965800f34407aaf490480f78cd5c38bf07286 Mon Sep 17 00:00:00 2001
From: scalahub <23208922+scalahub@users.noreply.github.com>
Date: Sat, 4 Jun 2022 00:30:04 +0530
Subject: [PATCH] Add EIP-33 for token burning in rent collection

---
 eip-0033.md | 39 +++++++++++++++++++++++++++++++++++++++
 1 file changed, 39 insertions(+)
 create mode 100644 eip-0033.md

diff --git a/eip-0033.md b/eip-0033.md
new file mode 100644
index 00000000..4e924860
--- /dev/null
+++ b/eip-0033.md
@@ -0,0 +1,39 @@
+EIP-0033: Burn tokens in rent collection
+========================================
+
+* Author: scalahub
+* Created: 03-Jun-2022
+* License: CC0
+* Forking: Softfork needed
+
+Motivation
+----------
+
+Ergo's storage rent is a novel approach for reducing UTXO bloat and creating long-lasting incentives for miners.
+
+The idea of storage rent is to make sure no boxes remain unspent for more than 4 years. If a box is unspent for this long, a miner can 
+"spend" the box by collecting some predefined amount as "storage rent", while keeping the rest in a newly created box that 
+preserves everything else. 
+
+The issue arises when there is not enough Ergs in the box to continue its existence. In this case the miner is free to take 
+the entire content of the box, **including any tokens** without having to create a copy of the box. 
+
+While the ability to take all the ergs as a penalty for keeping low balance seems logical, 
+allowing miners to take tokens has opened up a Pandora's Box of security problems.
+
+Details
+-------
+
+Many existing dApps (such as Ergo mixer, Oracle pools, [Timestamping service](https://www.ergoforum.org/t/a-trustless-timestamping-service-for-boxes/432), etc)
+rely on the fact that tokens when locked in a box with a proper contract remain locked till eternity, which is a false assumption. 
+We can safely assume that many upcoming dApps in the future will also wrongly rely on this assumption. 
+Security of such dApps will break once such tokens are released, and the future damage due to such events cannot be fully comprehended now. 
+
+Hence, this EIP proposes to make a soft-fork that requires miners to burn any tokens when a box does not have sufficient Ergs for continued existence.
+
+Many tokens are quite valuable and miners would not mind collecting them. However, it should be noted that the very reason such tokens are valuable is because
+they are not "stealable". The ability of miners to extract tokens in future will directly have negative impact on their current value, and on the overall Ergo 
+ecosystem, when such "loopholes" are suddenly discovered in the future. Hence, it is better to avoid such complications and require all tokens to be burned when
+destroying a box due to insufficient storage rent.
+
+