The market has been on a positive path over the past 24 hours, and Polygon QuickSwap is likely to boost its fundamentals. Recent research has shown that the market is on a positive trajectory. announcementThe project might split its native governance token QUICK.
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Dubbed the “most important governance discussion to date” on the platform’s official social media channel, a fierce debate has taken place between Polygon users. This debate is crucial and may precede the voting on splitting tokens, depending on how it ends.
This proposal supports the expansion of the Polygon token supply, which is QUICK. The tokenomics of the project are currently under review. A change in QUICK’s supply stands as the first and one of the most important.
If the vote is approved, then the community will vote for possible splitting of the Polygon token in a 1:100 and 1:1,000 ratio. QuickSwap has clarified these points:
It would be possible to hold 100 or 1000 QUICKs for each 1 QUICK that you currently have. QUICK’s maximum supply would increase from 1 million to 100 million or 1 billion.
The split would attempt to “open up” QuickSwap to new users, particularly those with intention to invest but that consider QUICK “too expensive” or with “small chances” of future appreciation. While the proposal was supported by a small number of QUICK owners, some remain skeptical.
5/ The split might be considered a tax event.💸
💰We know how much dragons value their treasure & wouldn’t want you to part with yours
🪙We aren’t tax experts & can’t give tax advice, but stock splits aren’t taxable events & token splits shouldn’t be either
— QuickSwap (@QuickswapDEX) March 5, 2022
QuickSwap’s Co-Founder Roc Zacharias commented the following on the potential implications of the token split on the DEX ecosystem, and its capacity to improve the platform’s components, such as its treasury:
We believe this split will work out. If it does, it may strengthen the Treasury (which you all own), it could raise reward value, increase liquidity, increase volume, etc., but most importantly it could bring in new users. This is something you should think about.
Polygon QuickSwap token split and the Polkadot Case
This token split has been compared to the stock market by many users including those behind Polygon’s decentralize exchange platform. In the legacy financial system is “common” for companies to issue more stocks via a similar process addressing a concept called Unit Bias.
This idea indicates, as explained by the team behind QuickSwap, that an investors might be willing to own “more of a less scarce asset”. There have been token splits that led to price appreciation in the cryptocurrency industry.
As an example, the token swap team cited Polkadot (DOT) as an example. QuickSwap stated via their Twitter account:
(…) when Polkadot did a 1:100 redenomination, $DOT rose from a sub-100 market cap to the 7 position. More recently, Gains Network did a 1:1000 token split & migrated from GFARM2 to GNS. GNS managed to do a 6x in bleak conditions.
It remains to be seen if the history of QUICK will repeat itself. Polygon, a second layer solution for Ethereum on Polygon seems to be drawing a lot of interest as it provides users with an efficient, scalable, gateway into DeFi.
Today, https://t.co/Y7yxw3SzE7 published a piece analyzing $QUICKThe price💰
Wallet Investor stated that QUICK may be worth $7.95 per year at the end
It’s close to the $7.67 average I used in my calculation #DEX tokens
If QUICK did a 1:1000 token split & rose to $7.67, WWYD?
— 🤗 NrdGrl007 🤗 🐇 🕳 (@nrdgrl007) March 7, 2022
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The current price of Polygon (MATIC), at the time this article was written, is $1.43. There has been a 1.7% gain in the past day.
