QuickSwap, a decentralized exchange (DEX) on Polygon, announced on Wednesday that its token, QUICK, would undergo a 1:1000 split. The decision was put to a vote earlier this month, with an overwhelming majority of over 93% of participants in favor of a token split to make QUICK, which acts as a governance token for the DEX, more attractive to the general public. .
After a split decision was made, QUICK holders were asked whether they preferred a denomination update based on 1:100 or 1:1000. 84.72% voted for the 1:1000 split. Specifically, 33,000 QUICK from 335 wallets supported the 1:1000 token split from a total of 39,000 QUICK from 435 wallets that participated in the voting process.
The QuickSwap development team has already finalized the converter contract code and submitted it to external audit firms. When the audits are done, the platform will provide more details about converting QUICK (v1) to QUICK (v2) through the conversion contracts to split the tokens.
How will QuickSwap’s Tokenomics be affected after the split?
It is worth noting that the post-split tokens will not add value or utility by themselves. The purpose of this update was to lower the price per token by changing the denomination and thus increasing the token supply.
As of March 24, QUICK will cost $230.93, according to data from Coinmarketcap. While investors can only buy a fraction of a QUICK, human psychology dictates that cheaper assets appear more attractive. For example, QuickSwap said it was confident that renaming its native governance and utility token would positively impact the QUICK community by attracting more users. Today, people tend to compare QUICK to direct competitors such as UNI, SUSHI, and CAKE, which cost $10, $3.60, and $1.16 respectively.
After the 1:1000 split takes effect, QUICK’s price will be reduced 1000 times, which is equivalent to the current price of $0.23. QUICK holders will see their balance increase by 1,000 times after the conversion, but the total value remains the same.
Consequently, the maximum supply of the token will increase from 1 million to 1 billion, which will bring QUICK more in line with other DEX tokens, such as UNI, OSMO, DYDX and 1INCH – all of which have a maximum supply that ranges between 1 and 1. .5 billion tokens.
Other than that, the basics of QuickSwap’s tokenomics won’t be affected much. The token’s utilities will remain the same, meaning holders can participate in the governance process, provide liquidity, participate in proceeds cultivation, wager, and participate in initial DEX offerings (IDOs).
What is QuickSwap?
QuickSwap is an Automated Market Maker (AMM) DEX on Polygon, which means users can exchange tokens without having a centralized order book and holding user funds. DEXs are one of the most popular use cases of decentralized finance (DeFi) – the fastest growing and arguably the most important trend in the blockchain space. Today, DEXs represent a $25 billion market, with QuickSwap being the sixth largest DEX by total value locked (TVL).
Like many new DEXs, QuickSwap is a fork of Uniswap v2 and offers a similar liquidity pool model. Basically, users can add pairs of tokens to liquidity pools and be rewarded with the transaction fees paid by traders.
QuickSwap has grown in popularity thanks to the low transaction costs and fast speeds of Polygon, formerly known as Matic. Polygon is a Layer-2 network designed as a scaling solution for Ethereum.