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You Voted for a Token Split! Should QuickSwap Split QUICK by 1:100 or 1:1000?

March 17th 2022

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The first phase of our governance vote just concluded. 93.19% voted yes in QuickSwap’s proposal to do a token split to make QUICK more appealing. Now, we will move on to the next phase of our governance vote. Should QuickSwap split QUICK by 1:100 or 1:1000?

TL; DR

  • 93.19% of QUICK and dQUICK holders recently voted in favor of a token split to make QUICK more appealing
  • Now that the decision to redenominate QUICK has been made, we have one more choice to make
  • Should we split QUICK by 1100 (for a maximum supply of 100 million QUICK) or 11000 (for a maximum supply of 1 billion QUICK)?
  • The snapshot for this vote will take place tomorrow on Friday, March 18th
  • The vote will begin immediately after the snapshot and will run for 5 days until Wednesday, March 23rd
  • When the vote concludes and we know by how much the token will split, we will announce further details about how and when holders can go about converting their QUICK
  • For the purposes of this blog, we will use xQUICK to refer to QUICK after redenomination. This ticker is not confirmed or finalized. We will discuss it with the community before any final decisions are made
  • Details about the proposal, voting eligibility, and how to participate in QuickSwap’s upcoming governance vote follow

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Dragons breath fire

When we first opened our governance temperature check on March 1st to talk through this proposal and gauge the community’s sentiments, several dragonites expressed extreme doubt about the need for a token split. Many felt as though scarcity were more important than having a low price per unit. Others felt as though the QuickSwap team reached the conclusion that a token split was needed without doing adequate research and that working on other developments was more important than splitting the token. After nearly a week of discussion, and with a lot of urging from the elder dragons, the community seemed to come around to the proposal, realizing that unit bias is an important issue that affects even sophisticated investors. In short, most people would prefer to own 1,000 of a token with a 1 billion max supply than 1 of a token with a 1 million max supply, even though they represent the same fraction of ecosystem ownership.

With the community (mostly) behind the proposal, we moved to vote. We asked all eligible QUICK holders if QuickSwap should do a token split to make QUICK more appealing. We’re thrilled to report that a vast majority of 93.19% voted in favor of the proposal. We’re also happy to report that 42.9 thousand QUICK from 383 wallets voted in this proposal. Of the 384 voters, only 33 (~8.6%) opposed the proposal.

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Now that our dragons have spoken, it’s time to decide about the next phase in our governance proposal: Should we split QUICK by 1:100 (with a max supply of 100 million xQUICK), or should we split QUICK by 1:1000 (with a maximum supply of 1 billion xQUICK)?

The snapshot for participating in the second vote will take place in approximately 24 hours on Friday, March 18th. The vote will begin immediately after and will run until Wednesday, March 23rd. Here’s everything you need to know about QuickSwap’s upcoming governance vote:

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What does this mean for me?

We’re confident that redenominating QUICK will have a net positive impact for all QUICK holders, stakers, and farmers. By increasing QUICK’s maximum supply, the price per unit will decrease, bringing QUICK more in line with other native DEX tokens like UNI, SUSHI, CAKE, etc to which many compare QUICK’s price.

At the time of writing 1 QUICK equals $175.17. If we split QUICK at 1:100, 1 xQUICK will equal approximately $1.75. If we split QUICK at 1:1000, 1 xQUICK will equal approximately $0.18. Each QUICK holder will receive whichever quantity is equivalent to their current holdings after going through the conversion contract.

That means if you hold 1 QUICK today and we split at 1:100, you will receive 100 xQUICK after completing the conversion. Likewise, if we split at 1:1000, you will receive 1000 xQUICK for each QUICK you deposit into the conversion contract. Doesn’t that just sound better than only owning 1 of something?

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It might seem silly to some, but human psychology dictates that most people would rather own many of a less scarce asset than 1 of a scarce asset. That’s why 7/9 of the top performing assets from March 1, 2021 — March 1, 2022 started their epic runs at a price per unit of under $1.

We will release more details about how to deposit QUICK on one side of the conversion contract and receive xQUICK on the other side of the contract once this governance vote is complete and we know the ratio at which QUICK will split.

Everyone who currently owns QUICK or dQUICK will need to convert it to xQUICK to continue earning in the form of liquidity mining rewards, syrup rewards, and staking rewards by a date not yet specified, but which we will announce when this vote concludes and the conversion contract has been audited.

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1:100 or 1:1000?

The choice is up to you, QuickSwap’s community, to decide, but there are some things you should know before you vote.

Average DEX tokens

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When the QuickSwap team was evaluating QUICK relative to other DEX tokens, we discovered that the mode (or most common) max supply is 1 billion. That’s what xQUICK’s max supply would be if we did a 1:1000 split.

If we exclude the outliers with much higher and lower supply (SUN and QUICK, respectively) to find an average DEX supply…

1 billion + 1 billion + 1.5 billion + 659.6 million + 240.7 million + 1 billion + 500 million + 13.67 million = 5,913,970,000 / 8 = 739,246,250

We discover that the average DEX token supply is about 739.25 million, which is still significantly higher than QUICK’s supply would be if we do a 1:100 split.

Future Token Burns?

Larger maximum supplies enable the possibility of future token burns. Many of the DEX tokens that now have max supplies under 1 billion started with max supplies of 1 billion or more and have since decreased due to token burns. If we were to do a token burn in the future, of course, our community would have to vote for that too.

Evaluating Market Cap

Finally, as we briefly mentioned earlier, most of the top performing coins/tokens in the last year started the year at a price of under $1/unit. At QUICK’s current value of $175.17, if QUICK’s max supply increases by 100x, xQUICK’s price would be about $1.75. If QUICK’s max supply increases by 1000x, xQUICK’s price would be about $0.18.

That’s all we’ll say. The choice is now in your hands… errrr claws.

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Eligibility

We believe this is the most important governance decision we’ve made yet, so we would love for all QUICK holders to participate in this vote; however, some QUICK holders aren’t currently eligible. To be qualified to vote, your QUICK must be held on the Polygon Network in a self-custodial wallet by the time of the snapshot on Friday, March 18th.

To be clear:

You are eligible to vote if you meet any of the following conditions:

  • You hold QUICK in a MetaMask Wallet or another Polygon-enabled wallet to which you control the private keys. Please note: To qualify, your QUICK must be held on the Polygon Network and not on Ethereum, BSC, or any other chain.
  • You deposited your QUICK into the Dragon’s Lair and are now holding dQUICK in its place while you accumulate more QUICK.
  • You deposited your QUICK into the Dragon’s Lair and then deposited your dQUICK into one of our Dragon’s Syrup pools that is still running on the old model.
  • You deposited your QUICK into a Dragon’s Syrup pool and are farming other tokens with it.
  • You are providing liquidity for select QUICK pairs on QuickSwap and have staked your LP so you’re earning trading fees and dQUICK rewards. Select pairs include
  • MATIC-QUICK
  • TEL-QUICK
  • ETH-QUICK
  • USDC-QUICK
  • GENESIS-QUICK
  • START-QUICK

You are not eligible to vote if:

  • You hold QUICK on a centralized exchange wallet (such as Binance, Coinbase, Crypto.com, etc) to which you do not hold the private keys.
  • You hold QUICK in a self-custodial wallet (like MetaMask), but you hold that QUICK on Ethereum, BSC, or any network other than Polygon.
  • You are providing liquidity for a QUICK pair not mentioned above on QuickSwap or for any QUICK pair on another DEX. (To be clear only the QUICK you are using to LP for pairs not mentioned above will be excluded from the snapshot. If you also hold QUICK that you are not using to LP with, you will be eligible to vote with that).

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Timeline

The snapshot will take place on Friday, March 18th, 2022. The vote will begin immediately after and will run for 5 days. Eligible QUICK holders will have the opportunity to cast their votes from Friday, March 18th — Wednesday, March 23rd.

When this vote passes, we will move to the next phase in our plan to become a fully decentralized DAO, giving more authority to QUICK holders.

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How to participate in the vote

  1. Visit https://snapshot.org/#/quickvote.eth (after the snapshot on Friday, March 18th)
  2. Connect your MetaMask Wallet (or other Polygon-compatible, self-custodial wallet)
  • Make sure you’re connected to the Matic Mainnet
  • The combined $QUICK and $dQUICK in your wallet at the time of the snapshot will dictate the weight of your vote
  • $QUICK staked in select liquidity pools will also be counted in the weight of your vote
  • $dQUICK staked in Dragon’s Syrup pools will also be counted in the weight of your vote

3. Select the open proposal titled, “Should we split QUICK by 1:100 or 1:1000?”

4. Click on the option you prefer

5. Confirm your selection in your wallet

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Which way to vote?

At QuickSwap, we encourage all voters to get educated and vote their conscience. While much of the team supports the 1:1000 ratio, you don’t have to agree with us. In any case, we invite you to come discuss the topic openly in any of our online forums. At QuickSwap, our primary goal is to ensure that our DEX not only survives but thrives, and we know we can’t do that without valued community members, like you. Come let us know what you’re thinking anytime.

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By QuickSwap Official on March 17, 2022.

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Exported from Medium on May 2, 2023.