LOOM Token Swap Q&A
First, an update! We’ve been coordinating the LOOM token swap with multiple exchanges, and a few of them have requested for additional time to prepare for the swap. To ensure that the swap goes as smoothly as possible we’ve decided to push back the go live date by a couple of weeks, so the new tentative go live date is February 1st, 2021.
Second, there’s been a lot interest in the token swap in the last few weeks, and many questions about it since the last article, so we’ll answer some of the common ones…
Why are you doing a token swap?
The existing LOOM token contract cannot be upgraded, so we’re going to deploy a new LOOM token contract that implements the features necessary for it to operate with the new zkRollup based architecture we’re building.
How will the token swap work?
Tokens will be swapped through a smart contract on Ethereum mainnet, each token holder will transfer their old LOOM tokens to the contract and the contract will transfer back new LOOM tokens to the token holder. The old LOOM tokens will stay in the token swap contract forever.
What is the total supply of the new LOOM token?
The total supply will be 1 billion, just like the current LOOM token. The swap is 1:1, so whatever amount of LOOM tokens you hold you’ll get exactly the same amount of new LOOM after the swap.
What do I need to do if I hold LOOM in my own wallet?
If you have LOOM in your own hardware wallet (e.g. Trezor, Ledger), or some other Ethereum compatible wallet, then you will need to swap the LOOM tokens yourself when the token swap goes live. You’ll be able to do the swap through the Token Swap page of our new dashboard, using either a web browser that supports the MetaMask extension, or a mobile wallet that supports WalletConnect.
The token swap UI on the dashboard will show you how many LOOM tokens you hold, and will allow you to swap your entire LOOM balance. This will require two Ethereum transactions, so expect your wallet to prompt you for authorization twice. The first transaction will approve the transfer of old LOOM tokens from your wallet to the token swap contract, and the second transaction will exchange the old LOOM tokens for the new LOOM tokens.
What do I need to do if I hold LOOM in my exchange wallet?
If you have some LOOM stashed on your favorite exchange the best thing to do is nothing, just wait for the exchange to handle the token swap on their end. We’re coordinating the swap with multiple exchanges, but not every exchange will swap funds on the go live date, some may take a few days to do so. If you’re impatient you can always withdraw your LOOM from the exchange and swap it over yourself (as described earlier), but you’ll have to pay the Ethereum transaction fees yourself.
What do I need to do if I have LOOM locked in delegations on Basechain?
You don’t have to do anything, we’ll swap any locked tokens. On the go live date we’ll migrate the existing Basechain delegations (including unclaimed rewards) to a new staking smart contract on Ethereum mainnet, this will take a few hours, during this time you will be unable to stake or withdraw. Don’t worry, you won’t loose any rewards during the downtime. After the migration is complete you’ll be able to stake and withdraw new LOOM on the Staking page of our new dashboard.
When will my exchange make an announcement about the token swap?
Probably shortly before or after the go live date.
When will my exchange list LOOM? When will they add a new LOOM trading pair?
We don’t know, ask the exchange.
How can I access my staking account after the token swap?
If you’ve previously staked on Basechain you’ll need to use the same Ethereum account on the new Staking page in order to access your migrated lockups. If you haven’t staked before you can start doing so using any Ethereum account, no registration required.
To use the new Staking page you will need a web browser that supports the MetaMask extension, or a mobile wallet that supports WalletConnect.
What kind of staking rewards can I expect after the token swap?
Reward rates will stay the same after the token swap, the longer the lockup the higher the rate.
For example, if you stake 1M LOOM over a whole year, and renew/extend lockups continuously as they expire, this is what you can expect to earn after one year:
Keep in mind these figures don’t include Ethereum transactions fees which you will need to pay to create or extend your lockups.
Got more questions? We’ve probably got more answers! Reach out to us on Twitter, or leave a comment here.