Summary of Function X — Pundi X Chain Merger: Community Call (25 Jul 2024)

On 25 July 2024, we hosted our second Community Call to clarify and address questions from our community regarding the upcoming Function X — Pundi X Chain Merger.

Below is a summary of points made by Function X Foundation President David Ben Kay, Pundi X and Function X cofounder Zac Cheah, and MarginX core contributor Danny.

Why the merger of Function X’s f(x)Core and Pundi X Chain

• Pundi is the stronger brand of the two. By unifying both chains under a single Pundi brand, it builds on the strengths of both platforms, allowing us to streamline our operations and development to be more efficient and effective.

What will happen to Function X’s f(x)Core and Pundi X Chain?

• Currently, we have 2 chains — Function X’s f(x)Core and Pundi X Chain
• The Pundi X Chain will be retired. Why? Due to some inherent limitations such as lack of EVM compatibility, which is an important feature that f(x)Core has.
• The new merged chain will be a combination of the upgraded f(x)Core and Pundi X Chain.
• The new merged chain will be called Pundi AIFX

What will happen to $FX tokenomics?

• The ticker name $FX will be changed to $AIFX
• The total supply of $FX which is currently at ~1.8 billion, and the total circulating supply which is currently at ~735 million, will be reduced by a factor of 100 (i.e., 100 times less).
• In other words, there will be no dilution. After the redenomination, 100 $FX tokens will be converted to 1 $AIFX token. The total supply actually decreases.

Why the redenomination of $FX?

• To reduce the spread, which facilitates better prices for retail users.
• To explain in detail: If you look at the current largest market for $FX, it’s the FX/BTC pair on Upbit. FX/BTC is currently trading at ~180 sats (or satoshis).
• Every 1 sat increase or decrease — let’s say, $FX increases from 180 sats to 181 sats or decreases from 180 sats to 179 sats — is a 0.55% price movement.
• After the 100:1 redenomination (as mentioned above), $AIFX will no longer be priced at 180 sats, but will be priced at 18,000 sats. In this case, every 1 sat increase or decrease is a 0.0055% price movement.
• This reduction in % price movement per 1 sat increase/decrease represents less spread, which translate to retail users getting better prices when they buy/sell $FX.

Other reasons for the rebranding and redenomination

• We need a new narrative to push Function X (to be renamed Pundi AIFX) back to public consciousness and attract market attention.
• We want to reawaken our dormant token holders. What do we mean? There are more than 6000 inactive wallet addresses on Ethereum and >50,000 inactive wallet addresses on f(x)Core. We want to revitalize this community and get them interested once again in our project, since they now have to convert their $FX to $AIFX.

How will users be able to convert their $FX to $AIFX?

• For users who have delegated their $FX, the swap to $AIFX will be done automatically.
• For users holding ERC20 $FX tokens or undelegated $FX on f(x)Core, users will need to manually swap them to $AIFX via one-click swap mechanism.
• For users holding $FX tokens in centralized exchanges, we will try to work with exchanges to allow for a seamless automatic conversion.
• In the event that some exchanges do not support this automatic conversion, users will have to withdraw their $FX to manually swap it to $AIFX.

How long do users have to swap their $FX to $AIFX?

• 3 years
• Also, to incentivize users to swap to $AIFX, we will offer higher APY rewards for $AIFX.

What will happen to FX Validators?

• They will automatically or almost automatically become the designated Pundi AIFX validators.

What will happen to $PUNDIX tokenomics?

• Nothing at all, no changes.

What will happen to $PUNDIX holders who have delegated their tokens?

• Currently, $PUNDIX holders who delegate their tokens receive $PUNDIX and $PURSE tokens as rewards.
• After the merger, $PUNDIX holders will no longer be able to delegate their tokens to receive rewards.
• Instead, $PUNDIX holders will have other opportunities to stake their tokens to earn yield, such as staking on MarginX, Baklava Space, and other applications.

Questions from the community

What will happen to the FX Community Pool?

• The $FX in the Community Pool will be converted to $AIFX. Nothing will be lost or taken away.

What about holders of classic $FX tokens?

• Classic $FX token holders will be able to upgrade their token directly to $AIFX.

When are we going to commence the rebranding of Function X to Pundi AIFX

• We will announce the rebranding to Pundi AIFX some time in beginning of Q4 2024.
• Before that, the team will be busy traveling to different conferences around the world such as Malaysian Blockchain Week, Istanbul Blockchain Week, Korea Blockchain Week, and Coinfest in Indonesia. We will also co-host events with Base and TON.
• As part of the rebranding campaign, we will also activate local communities in different countries to host community meetups.

What’s the long term goal of the rebranding?

• We want to once again get people excited about Pundi AIFX, by both revitalizing our dormant community and getting new people interested in us through new products/features such as omnichain and chain abstraction and new partnerships with AI projects.

What’s the ETA for new developer documentation?

• The current dev documentation will still apply to Pundi AIFX.

What will omnichain feature go live?

• Omnichain feature is currently on testnet. Mainnet launch date is not determined yet.

Are we in discussion with centralized exchanges regarding the redenomination of $FX?

• Yes, we are.

We at Function X would once again like to thank our community for being so supportive and engaged as we embark on this momentous next step of our journey. We will keep our community updated at every step of the way. Cheers!