Cudos token migration update
In case you somehow missed all the buzz from last week, we successfully launched the Cudos network mainnet, bringing to fruition a years-long dream to build out a robust blockchain ecosystem that serves as the foundation for a slew of emerging technologies. Our collective excitement is as much about the future as the present. With the network churning out new blocks every 7 seconds or so, lightning-fast transactions with low gas fees make Cudos an attractive blockchain for a wide variety of users.
With the network up and running, its security and governance depend on the active participation of our community and the use of the CUDOS tokens natively on the chain. We’ve discussed the utility of CUDOS in more detail in a previous update. During the network’s developmental phase, CUDOS staking, use, and transfer were mainly possible on the Ethereum side. With our mainnet now live, CUDOS holders can benefit from securing the network and contributing to its governance by migrating their ERC20 tokens to our blockchain.
As described in our token migration plan, for staked ERC20 CUDOS, this was previously possible via our Address mapping functionality. With the window for the mapping tool’s use now closed, users who haven’t mapped their accounts can still reclaim staked tokens via the Cudos Wallet page.
The window for reclaiming staked tokens opens on 6 July 2022.
For non-staked CUDOS, token migration to our native chain is now possible via the Gravity Bridge.
Tokenomics and ERC20 migration
- Total supply and circulating supply
- The CUDOS token has a total supply of 10 billion on Ethereum. About 3.1 billion tokens are currently in circulation, referred to as circulating supply.
- No tokens are physically transferred between the Cudos and Ethereum networks. When a user “sends” tokens from one chain to another, those tokens are locked on the source chain, and an equal number of tokens are released on the destination chain.
- Consequently, there is a total supply of 10 billion tokens on the Cudos chain, matching the total supply of CUDOS tokens on Ethereum.
- At all times, however, the total number of tokens locked at both ends of the bridge will equal exactly 10 billion. This means that the amount of tokens locked at the Cudos end will equal the amount unlocked on Ethereum, and vice versa, so the 10 billion total supply cap remains intact across all ecosystems.
- With the launch of the Cudos blockchain, tokens staked by users of our staking platform on Ethereum were migrated to Cudos together with their future staking rewards. In other words, we helped our users “bridge” their tokens without actually having to use the bridge. To account for this practical solution, we needed to manually lock those tokens at the Ethereum end of the bridge.
Effect of the token migration and the bridge logic on the circulating supply:
- Tokens staked on the staking platform, which are part of the circulating supply, have already been moved to and locked at the Ethereum end of the bridge. Future staking rewards, however, come from the non-circulating supply. Therefore, moving them to the bridge would put them in circulation, resulting in a huge and sudden increase in the circulating supply.
- To address this issue, we are collaborating with key listing sites to reflect the changes brought about by the launch of our blockchain. In the interim, we will refrain from transferring the aforementioned future staking rewards to the bridge to prevent abrupt changes in the CUDOS circulating supply. Meanwhile, our Gravity bridge remains completely operational, although with low liquidity that poses no practical usage restrictions.
Related: Cudos Labs: development update! (09/06/2022)
Please follow our weekly updates for the latest developments. You can also follow our social media communities to stay informed on the latest announcements about our ecosystem, partnerships, initiatives, and more. In the meantime, go to explorer.cudos.org to learn more about the network.
Related: Cudos’ mainnet brings interoperability and lower gas fees.
Build on Cudos!
We’re out to improve blockchain and cloud technology whilst reducing their harmful environmental effects. Our network offers a cheaper and more energy-efficient alternative for dApps, asset ownership, and transfer. Check out our docs and start building on Cudos today!
- Join Cudos’ Discord server
- Join Cudos’ Telegram community
- Buy CUDOS
- Become a Cudos’ ambassador
Come build on the Cudos network!
Cudos is powering the metaverse bringing together DeFi, NFTs, and gaming experiences to realise the vision of a decentralised Web3, enabling all users to benefit from the growth of the network. We’re an interoperable, open platform launchpad that will provide the infrastructure required to meet the 1000x higher computing needs for the creation of fully immersive, gamified digital realities. Cudos is a Layer 1 blockchain and Layer 2 community-governed compute network, designed to ensure decentralised, permissionless access to high-performance computing at scale. Our native utility token CUDOS is the lifeblood of our network and offers an attractive annual yield and liquidity for stakers and holders.
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Originally published at https://www.cudos.org.