Swingby Protocol
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Swingby Protocol

Update to the BNB Staking Promotion

A few changes to keep things fair.

When we launched the BNB staking promotion almost 2 weeks ago now, we set a lofty goal on the upper target of having $5 Million USD staked.
It was a moonshot goal, that we never expected to hit; why would people stake Five million dollars of BNB on a new upstart project, we guessed.
If we were going to hit that goal, we might get there in the final days, once the token was already listed and there was some momentum behind the project, we thought.

This seemed to be true for the first week, as we trickled up to a few hundred thousand dollars staked on the platform as word spread from friend to friend and people threw in a few hundred BNB here and there. The staking totals climbed slowly and steadily and the team were really excited to see the real world validation of the project gaining traction; people were using the staking portal, it worked, it was being user tested and passing with flying colours.

And so things went until midway through this week when the team and our media partners kicked off the community promotions and we saw huge growth in our communities in English and Chinese.

Huge growth in Week two

Within hours, our WeChat community swelled to over 2,500 people, and our English Telegram community tripled in members. The engagement and demand from the DeFi community was so incredible, we were lost for words.

That’s when, late afternoon on Wednesday we checked the staking leaderboard and saw it…

The BNB staked had jumped, massively, to almost $5 Million USD in a single heartbeat.

The BNB staked shot through the roof on the 8th July.

This came as much of a surprise to the team as it did to anyone else…

Something we were not expecting…

So the team happily got to work promoting this on our social media channels and look forward to hitting the next milestones and growing more community engagement. We were shocked and surprised by how engaged and active the community were with our project and started planning more promotions and giveaways.

Identifying some BNB whale stakers

However, a little later in the day, we took a look at the influx of new stakers and we able to track it on chain to see that the majority of staked wallets were automated and tracked back to a single wallet that had distributed funds into hundreds of wallets to get around the 1,000BNB limits of the program.

This was clearly some BNB whale holder that had come to see the promotion and was trying to stake as much as they could on the platform.

Whilst not against the very loose rules that we outlined, it would mean that this one wallet holder was effectively able to swallow the large share of Swingby tokens interest from others that had staked.

What’s worse, we became aware that some others were spreading the idea that the Swingby team ourselves had staked BNB tokens we own in order to inflate our staking numbers.

By now the staked volume had passed $7m.

At this point, other external partners reached out to us with along with the representatives of the exchange we will launch our IEO on.

Need to act

They had the same concerns that distributing so many tokens to a single person, at a zero cost basis would introduce risk to the tokenomics of the project and introduce unnecessary risk to the project at such an early stage.

It was now increasingly clear that if we did nothing to counteract this limit circumvention, we risked causing substantial harm to our community, our early investors, and to anyone that bought into the upcoming IEO.
At the same time, the company wanted to do its best to honour its commitments made at the start of the promotion.

We were stuck between a rock and a hard place.
If we paid out the interest to the whale account, our partners were worried that we could distribute a large sum of tokens at zero cost to a single person and and introduce a whale dumping risk we can not control.

If we simply refused to pay out the staker, we risked losing the confidence of the community that staked with us.

At the same time, it wouldn’t be correct to unfairly punish the staker for having staked up to the rules, but we should not try to encourage any additional circumvention.

Whilst we worked on ideas to try and remedy the situation, we were often going round in circles on the same points above, that unlocking so many zero cost tokens to a single holder could pose too big of a risk to the project. We shared our thoughts with some of our external partners and advisors.

BNB48 Club

We continued to engage with our community, and through that engagement the team at BNB48 club reached out to the team and openly explained that they were the BNB whale behind the large volume of new staking wallets.

We began some very frank and honest dialogue with the BNB48 team explaining the concerns the Exchange had with the token liquidity, and the risks that the situation could open the project to, as well as the FUD we were witnessing in other communities about the large staking from a single wallet.

Thankfully, after some back and forth, the BNB48 team accepted that the tokenomics risk here of the set up were harmful to the long term success of the project and agreed to act in the best interests of the community and other stakers, for which the team is immensely grateful.
We are working on a deeper long term partnership with the group who will be making their own announcement on this soon.

What does this mean?

With that said, what does this mean for everyone else that staked this week?

With the BNB Whale stakes removed, the total staked amount fell below the thresholds to unlock the 1.25M token pool or the 250k token pool, however the removal of the overwhelming majority of staked wallets does mean that each legitimate staker gets a bigger share of the pool.

However, in a further act of good faith to the community, the Swingby team have agreed to increase the pool to the next threshold anyway, and distribute 150,000 tokens among eligible stakers.

This figure was arrived at by looking at the total volume of BNB staked among the remaining wallets, and calculating the amount required to achieve 35% APR, with some buffer ontop.

This means all stakers this week received more than the maximum staking rewards :)

Changes to the promotion going forward

With that said, we do want to keep the promotion running and continue to honour our commitments to the community.

The BNB Whale here didn’t act in bad faith to harm the project or the community, but acted out of self interest which we cannot fault in their own intentions.

However, we do need to be mindful to prevent abuse of the system, particularly by those that may wish to act in bad faith to harm the project or the community.

To that effect, we re-iterate our right to void, at any time, for any reason, any stakes that we feel are seeking to misuse the promotion or circumvent limits.

To bolster this, as of 00:00 UTC Monday 13th July the BNB promotion will be limited to wallets that have on chain transaction history prior to the 1st July 2020 — to prevent using new wallets to circumvent limits.

The team will also be more proactive to police the staked wallets to detect any misuse and may implement further restrictions as we deem necessary down the line.

In the worst case, we may be forced to conclude this promotion early — though we hope we can continue to run it to its conclusion.

None of the above changes are applicable to the SWINGBY token staking, which remains running for SWINGBY token holders to pre-stake their SWINGBY tokens.

We appreciate the ongoing support and understanding of the community and look forward to sharing more details of our upcoming IEO later this month.

Want to trade Swingby? Check us out on CoinGecko or CoinMarketCap.

Get Rewards! Stake your Swingby Token to earn up to 52% annualized (67% compounded) in rewards, airdropped to your wallet weekly. Use the Staking Portal or BitMax.

TestNet Explorer: bridge-testnet.swingby.network/explorer
Staking Program: https://swingby.network/earn

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Discord: https://swingby.network/discord
Github: https://swingby.network/github

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The fastest protocol for cross-chain swaps, allowing DeFi users to move assets between blockchains without the need for a trusted party. https://swingby.network

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