THE DAO: Token Migration and Cross-Chain Model
Despite the various challenges presented to us during this year, we are proud to share with you some new developments that are poised to improve the Synapse Network as a whole. These changes are significant both in shape and in form, reaffirming our commitment to a community-driven approach.
The premise
When we initially designed our token, it was anchored across multiple networks, and our vision was to have an environment in which everyone could simply reach out to all projects in the DeFi ecosystem with a couple of clicks while having zero fees and zero delays.
However, the many changes that swept up the crypto world have made the value of this cross-chain approach significantly lower than when we started creating the Synapse Network, and our current cross-chain configuration neither adds significant value to us nor augments the community’s experience.
Transitioning the token to a singular network, given our current technological toolkit, stands to benefit not just our internal team and contract developers, but also our community as a whole, leaving said developers a lot more time to focus on improvements and enhancements and not on cross-chain interoperability and compatibility.
Such a shift is likely to simplify our infrastructure, concentrate liquidity, and sidestep the unnecessary complexities that the current model introduces, while also freeing up a lot of resources that will be allocated towards the betterment of our Network.
The crux of the matter is soon identified: the cross-chain design neither bolsters our project value to our community members nor provides any tangible utility to our product or token.
The question
Are you in favour of introducing the $SNP token to a different, currently popular network and discontinuing the cross-chain token model? For example, Base, ZkSync, Polygon 2.0, or something else 🙂
As you may know, Multichain Bridge suspended its operations some time ago, which resulted in Synapse losing control of some of our $SNP tokens. As a result, we now know that there is a tangible risk of us losing agency and power over the $SNP token as a whole.
This is something our team cannot afford, especially taking into account the various macro-movements that are happening in the DeFi ecosystem at this point.
As a result, we have launched corrective measures to safeguard the interests of our community and use this situation as a real opportunity to correct past mistakes, as well as chart a new path for the entire Synapse Network.
We are currently engaged in in-depth discussions with several networks and we are now proposing to our community a possible transfer of our token to another popular chain, but we are also looking to better our security options, and we want to choose a network with significant potential and no stability issues.
Our proposal covers the following points:
- migration to a new, more appealing network
- discontinuing the cross-chain token model
- conducting a $SNP token airdrop to send the currently staked tokens to a new network (with a vesting period equivalent to 50% of the remaining time in the staking period, but no less than 3 months).
Moreover, we want to remember that if we decide to proceed with the single network route, we still plan to incorporate full integration with Layer0 tech. This way, in the future, we will be able to efficiently harness the flexibility that this setup offers, while also giving our users tangible benefits in the short to medium term.
Furthermore, the token migration will be paired with a marketing campaign aimed at attracting new community members and enhancing our visibility on the new network, and we believe that with the right timing, this maneuver will significantly bolster Synapse’s growth.
Our current marketing plan consists of a series of activations that will be available for both existing community members and new users of our platform, and we will strive to perfect both our product and our campaigns during this transitional period.
Why $SNP token migration?
Moving our token to a different network right now is important for the long-term benefit of Synapse as a whole. We can not predict what’s going to happen with the tokens that are on the Multichain Bridge, and we need to regain control over our holdings.
Currently, the Chinese government owns everything on the Multichain Bridge, leaving us devoid of any influence over a portion of our tokenomics. A possible, yet improbable, worst-case scenario could even cause the Chinese government to dump all the tokens at any time, driving the price to 0.00$
This circumstance is very unlikely but as long as there is even a sliver of a chance of it happening we cannot keep going with our current module and taking into account the potential benefits of this migration, and the various market trends that are shaping up in the crypto landscape, we believe that this is an opportunity that we can capitalize on for the ultimate benefit of our project and community.
As a result, we have launched corrective measures to safeguard the interests of our users turn this situation into real, tangible growth, and straighten up the various issues that popped up thanks to the reprehensible apprehending of our assets, while also charting a new path and a brighter future for the Synapse Network.
Why do we want to terminate the cross-chain token model while migrating?
Firstly, the current cross-chain token model doesn’t provide any real value to us, or our community.
We understand that having the token available on a single network will be a significant improvement with the technology that we have available at the moment, not only for our team and for the developers working on our smart contracts, but also for our users who will have to interact with less complicated UIs, and more efficient solutions.
We believe that In the long run, this shift will bring numerous benefits to the table.
The current cross-chain model introduces substantial complexities in the infrastructure and dilutes the token’s liquidity without providing any of the benefits that it could have in the past.
Moreover, it doesn’t contribute any value to the community or offer any additional utility that would enhance the value of our product or token.
However, this DOES NOT mean that the Synapse Network launchpad will abandon the cross-chain model. We are planning to expand the number of available networks, responding to the community’s needs and market trends, especially for current popular and hot networks that are offering interesting new solutions to problems that have been clear in the space for a long time now.
Why would we like to propose an airdrop of the staked $SNP tokens with a vesting model?
Naturally, we want to allow our token the time to rebuild its potential, and we see this as a fair solution for the community, especially for those who have been with us since the beginning.
The choice of a new network won’t be random. We intend to fully harness the potential offered by this sudden shift to allow our project to establish a strong presence and unveil entirely new possibilities for our community’s benefit and development, and choosing a strong network will be key in this endeavor.
All staking activities will be temporarily disabled, and the new token will be airdropped on our platform immediately after the migration to our new network.
This applies to liquidity staking as well. Tokens will be locked for a duration equal to 50% of the remaining staking period, but not less than 3 months. This timeframe will be sufficient for our project to take root on the new network without the risk of uncontrolled token dumps while providing enough time for further stabilization.
Initial schedule
The voting period is set to start on 27.10.2023, 6PM UTC and end on 05.11.2023, 5:59 UTC.
Your participation is crucial, and we remind you to carefully read our questions before you cast out your vote.
How many DAO tokens do you need to have to cast your vote?
Check the snapshot info here
Tokens were distributed directly to your wallets on 27.10.2023, 1PM UTC.
Your Vote Helps Shaping Synapse’s Future
We’re committed to making the Synapse Network more secure and efficient, both for our users and our partners.
Going forward with those changes means embracing a brighter future.
If you would like to get some more information about the DAO question, please read the FAQs or ask the question directly to the team on our Telegram channel.
About Synapse Network
Synapse Network is developing a cross-chain investment and start-up acceleration ecosystem based on blockchain technology to give everybody an equal chance to contribute to great upcoming projects and to do so early on. We are bridging the gap between the traditional & crypto markets. The idea of the Synapse Network technology goes beyond the standard offer of launchpads available on the market, becoming a true technological brand providing tech solutions.
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