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- A decentralized polygon exchange, QuickSwap, has announced that the exchange can split its native governance token, QUICK.
- The split targets individuals who are interested in investing in QUICK but back out due to “small chances” or “too expensive.”
- Previous stances of the split in the crypto industry have resulted in a price appreciation.
Moving with a general sentiment in the market, QuickSwap, a decentralized polygon exchange, could enhance its fundamentals. As per the recent announcement, the exchange could split QUICK, its native governance token.
On its official social media channels, the discussion is being called the “most important governance discussion to date” a heated debate took place between Polygon users. The process is a significant one, and as per the results, it would be decided whether the voting on the token split could be followed by it.
The potential expansion of the Polygon token supply, QUICK, is the major argument behind the proposal. Changes in its tokenomics are the immediate goals of the project. The change in the supply of QUICK remains to be the first and significant.
After the approval, a community voting will be conducted on whether the split of the Polygon token should be a relation of 1:100 or 1:1,000. The QUICK Team explained that it means after the split, you would either 1 QUICK would either hold 100 QUICK or 1000 QUICK. The maximum supply would also increase from 1 million to 100 million or 1 billion.
The split would aim to take QuickSwap to new users, targeting individuals who are particularly interested in investing in QUICK but find it “too expensive” or back out thinking “small chances” of future appreciation. While many remain skeptical, the proposals have gained strong support from QUICK holders.
Roc Zacharias, co-founder of QuickSwap, commenting on the potential spilt of the token, said:
If the split turns out to be like how we are expecting it, it would further strengthen the treasury, which is owned by “you”, said the CEO addressing the platform’s community. As a result, the reward value will increase, which would increase liquidity and volume. And, emphasizing he said, new users, “Please think hard about this.” he added.
Can Polygon QuickSwap Token Split Will Have The Similar Fate As Of Polkadot Case?
The potential split behind the token split, including the QuickSwap’s team, compared it with the stock market. Through a concept called Unit Bias, the companies in the legacy financial system often issue more stocks.
In the past, other projects in the crypto industry that have conducted token splits have experienced price increments.
The team verified this with an example of Polkadot on their Twitter handle:
When Polkadot went through a 1:100 split, $DOT increased from a sub-100 market cap to the 7th position. Gains Network did a 1:1000 token split and shifted from GFARM2 to GNS. GNS did in dismal conditions.
It still remains to be seen if history will repeat itself with QUICK. However, second-layer solutions on Ethereum and Polygon are looking to attract a lot of attention as they render users with a scalable and efficient getaway into the DeFi ecosystem.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
