How to transfer the ownership of a smart contract deployed using a proxy?

Question

I have deployed a smart contract, with a proxy, using a factory.

I want now to transfer the ownership of this smart contract every time an ERC721 gets transferred. For that, I am using _beforeTokenTransfer, like this:

function _beforeTokenTransfer(
    address from,
    address to,
    uint256 tokenId,
    uint256 batchSize
) internal virtual override(ERC721EnumerableUpgradeable) {
    super._beforeTokenTransfer(from, to, tokenId, batchSize = 1);

    // if transfer is restricted on the contract, we still want to allow burning and minting
    if (!hasRole(TRANSFER_ROLE, address(0)) && from != address(0) && to != address(0)) {
        require(hasRole(TRANSFER_ROLE, from) || hasRole(TRANSFER_ROLE, to), "!TRANSFER_ROLE");
    }

    if(!coAllocatedSmartVault) {
        _setupOwner(to);
        _setupRole(DEFAULT_ADMIN_ROLE, to);
        _setupRole(MINTER_ROLE, to);
        _setupRole(TRANSFER_ROLE, to);
    }
}

The problem I am having is that the ownership of the smart contract I care about doesn't seem to be updated, despite all the methods are executing correctly in the blockchain.

This is the output from Remix:

status  true Transaction mined and execution succeed
transaction hash    0x2b6dc0cc9425220cfc6b15553596f9a7a898885e76764209e8be825486784a72
from    0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6
to  SmartVaultProxy.(fallback) 0xA6e869604FF568314debD938e1717a78bC1f658f
gas 315233 gas
transaction cost    305966 gas 
input   0x428...00000
decoded input   -
decoded output   - 
logs    [
    {
        "from": "0xA6e869604FF568314debD938e1717a78bC1f658f",
        "topic": "0x8292fce18fa69edf4db7b94ea2e58241df0ae57f97e0a6c9b29067028bf92d76",
        "event": "OwnerUpdated",
        "args": {
            "0": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6",
            "1": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "prevOwner": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6",
            "newOwner": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4"
        }
    },
    {
        "from": "0xA6e869604FF568314debD938e1717a78bC1f658f",
        "topic": "0x2f8788117e7eff1d82e926ec794901d17c78024a50270940304540a733656f0d",
        "event": "RoleGranted",
        "args": {
            "0": "0x0000000000000000000000000000000000000000000000000000000000000000",
            "1": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "2": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6",
            "role": "0x0000000000000000000000000000000000000000000000000000000000000000",
            "account": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "sender": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6"
        }
    },
    {
        "from": "0xA6e869604FF568314debD938e1717a78bC1f658f",
        "topic": "0x2f8788117e7eff1d82e926ec794901d17c78024a50270940304540a733656f0d",
        "event": "RoleGranted",
        "args": {
            "0": "0x9f2df0fed2c77648de5860a4cc508cd0818c85b8b8a1ab4ceeef8d981c8956a6",
            "1": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "2": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6",
            "role": "0x9f2df0fed2c77648de5860a4cc508cd0818c85b8b8a1ab4ceeef8d981c8956a6",
            "account": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "sender": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6"
        }
    },
    {
        "from": "0xA6e869604FF568314debD938e1717a78bC1f658f",
        "topic": "0x2f8788117e7eff1d82e926ec794901d17c78024a50270940304540a733656f0d",
        "event": "RoleGranted",
        "args": {
            "0": "0x8502233096d909befbda0999bb8ea2f3a6be3c138b9fbf003752a4c8bce86f6c",
            "1": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "2": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6",
            "role": "0x8502233096d909befbda0999bb8ea2f3a6be3c138b9fbf003752a4c8bce86f6c",
            "account": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "sender": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6"
        }
    },
    {
        "from": "0xA6e869604FF568314debD938e1717a78bC1f658f",
        "topic": "0xddf252ad1be2c89b69c2b068fc378daa952ba7f163c4a11628f55a4df523b3ef",
        "event": "Transfer",
        "args": {
            "0": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6",
            "1": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "2": "0",
            "from": "0x525D885Bc1E047c9e8cce006914aCF9BE2fdA9f6",
            "to": "0xF8e6A72C0e72E0Eb510bD20097b0522Eae4B24E4",
            "tokenId": "0"
        }
    }

And this is the transaction in Polygon Mumbai: https://mumbai.polygonscan.com/tx/0x2b6dc0cc9425220cfc6b15553596f9a7a898885e76764209e8be825486784a72

What am I doing wrong? Is it possible that the ownership that is changing is the one from the proxy and not from the contract I care about?

This is the part I am worried about and that I don't understand from the output I just pasted:

SmartVaultProxy.(fallback) 0xA6e869604FF568314debD938e1717a78bC1f658f

How can I transfer the right contract ownership under this scenario?

Answer 1

The right way to do this for upgradeable smart contracts is as follows:

// SPDX-License-Identifier: UNLICENSED

pragma solidity ^0.8.17;

import "@openzeppelin/contracts-upgradeable/proxy/utils/Initializable.sol";
import "@openzeppelin/contracts-upgradeable/access/OwnableUpgradeable.sol";
    
contract UpgradeableSmartContract is Initializable, OwnableUpgradeable {
        
    function initialize() public initializer {
        __Ownable_init();
    }
        
}