Decentralized exchange operating on Polygon, QuickSwap has formally started a voting process relating to QUICK. The platform’s native governance and energy token, QUICK holders will vote on declining or authorizing a process called “redenomination”.
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If authorized, the QUICK token will be “divided” hence increasing its overall supply from the present 1 million to 100 million or 1 billion. The latter will be chosen in posterior voting if the community chooses to authorize the event at all.
Because sense, the present voting process started on March 12, with a snapshot, and will be closed on March 17. Fast holders will just require to address one concern: Should QuickSwap do a token split to make QUICK more enticing?
The group behind the DEX has called this procedure among the most, if not the most, essential governance choices to date. There is apparently a great deal of assistance for the split, however a part of QUICK holders have revealed their issues.
4/ Those who are opposed to the token split have revealed their issues & & resolved them with the team, consisting of co-founder @CryptoRocky who sure understands how to take a punch
— pic.twitter.com/pyHtSBMdj4– QuickSwap (@QuickswapDEX) March 5, 2022
The proponents of this proposal believe QUICK is “undervalued” when compared to other decentralized exchange tokens. As seen listed below, the total market of UNI, 1INCH, CAKE, SUSHI, DYDX, and other similar platforms in some cases stands at billions. A much larger supply than QUICK’s.
Source: QuickSwap through Medium
As the chart also reveals, tokens with greater products than QUICK have actually also seen an essential positive efficiency. DYDX and JOE, the tokens for dYdX and TraderJoe, respectively, recorded a +400% and as much as +1,700% revenues.
It is unclear if QuickSwap’s native token will enjoy similar gains. Nevertheless, the group behind the platform believes it will be advantageous for all token holders in the long run as it could help draw in brand-new users, and increase adoption:
The QuickSwap team busily supports this change because after performing substantial marketing research, our company believe this change will help facilitate even more integrations and attract brand-new purchasers who are currently postponed by QUICK’s high cost per system.
Why QuickSwap Wants To Split Its Token?
The main concern for critics seems to be the possibility of QUICK losing its value as an outcome of a greater supply. It appears like a typical idea in the crypto market that only possessions with repaired supply can delight in price appreciation.
The group behind QuickSwap has actually tried to set these concerns at ease. In a main post, they clarified that QUICK holders’ positions won’t be watered down, nor will they decline:
Each token holder would maintain the value they held at the time of the split and the percent of QUICK’s max supply. All a split would do is increase the overall number of systems, consequently reducing the cost per unit.
Just users holding their QUICK beyond centralized exchange platforms, such as Binance, will be qualified to vote. To take part users require to click on the following link and link their MetaMask wallet or other wallets compatible with the Polygon network.
As NewsBTC reported, the token split might bring more users to the DEX. In the crypto market, there are a couple of cases where this has occurred. Polkadot (DOT), the 10th crypto by market cap, went through a redenomination that some believe allowed it to increase its number of users and increase its value.
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At the time of composing, QUICK trades at $172 with an 8.8% profit in the last week. The price seems to be favorable reacting to the prospective token split.
QUICK trends to the disadvantage on the day-to-day chart. Source: QUICKUSDT Tradingview