QuickSwap is a distributed exchange, running on Polygon. QuickSwap officially began a voting process about QUICK. The platform’s native governance and utility token, QUICK holders will vote on rejecting or approving a process called “redenomination”.
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If approved, the QUICK token will be “split” thus increasing its total supply from the current 1 million to 100 million or 1 billion. If approved by the community, this will result in the outcome of posterior voting.
This means that the voting began March 12, and a snapshot was taken. It will end March 17. QUICK holders only have to answer one question. Is QuickSwap going to do a token-split to make QUICK even more attractive?
This process has been called one of the most important and most significant governance decisions by the DEX team. While there appears to be a lot of support, QUICK shareholders have raised concerns.
4/ Those who are opposed to the token split have expressed their concerns & addressed them with the team, including co-founder @CryptoRockyWho knows what it takes to pack a punch?🥊 pic.twitter.com/pyHtSBMdj4
— QuickSwap (@QuickswapDEX) March 5, 2022
The proponents of this proposal believe QUICK is “undervalued” when compared to other decentralized exchange tokens. The total market for UNI, 1INCH CAKE, SUSHI and other similar platforms can sometimes reach billions. A much larger supply than QUICK’s.
The chart shows that tokens having greater supply than QUICK also have a positive result. DYDX (the tokens for dYdX) and JOE (the tokens to TraderJoe), saw a +400% as well as +1.700% in profits, respectively.
It is unclear if QuickSwap’s native token will enjoy similar gains. But, it is believed that the token holders will all benefit in the end as the new user base could be attracted and adoption can increase.
The QuickSwap team fervently supports this change because after conducting extensive market research, we believe this change will help facilitate further integrations and attract new buyers who are currently put off by QUICK’s high price per unit.
QuickSwap Would Like To Divide Its Token
One of the main concerns for detractors is that QUICK may lose value because of a larger supply. The crypto market seems to believe that assets with a fixed supply are the only ones capable of price appreciation.
QuickSwap team tried to put these worries at rest. In an official post, they clarified that QUICK holders’ positions won’t be diluted, nor will they lose value:
Each token holder would retain the value they held at the time of the split and the percent of QUICK’s max supply. A split will increase the overall number of units while decreasing the unit price.
Users who hold their QUICK in a location other than centralized exchanges, like Binance, are eligible to vote. You will need to follow the below link in order to connect your MetaMask or another wallet that is compatible with Polygon network.
NewsBTC reports that the DEX could be more popular due to the token splitting. This has been seen in a handful of cases on the crypto market. Polkadot (DOT), 10ThCrypto by market capital, underwent a redenomination which some believe enabled it to grow its users and increase its value.
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QUICK trades for $172 at the time this article was written. This represents an 8.8% gain in the previous week. The potential token split seems to have a positive effect on the price.
