Polkadot to Run Ultimate DOT Redenomination Vote with Actual DOT Tokens

Blockchain interoperability protocol Polkadot is planning to run another vote in regard to the denomination of its native token, DOT.

Following a similar vote conducted on Polkadot’s “wild cousin” community, Kusama, in Might 2020, the creator of Polkadot challenge, the Web3 Basis, determined to reconduct the vote on Polkadot with actual DOT tokens.

Announcing the information on July 13, Polkadot invited neighborhood members to take part within the ballot, which can lastly outline whether or not to redenominate DOTs 1:10, 1:100 or 1:1,000 on Polkadot. Based on the weblog submit, the ballot is open now and can final for 2 weeks. All DOT holders and those that claimed DOTs on the mainnet, are invited to participate within the vote, Polkadot famous. Reside vote outcomes can be found by the link with the Polkadot.js plugin.

A spokesperson for Polkadot confirmed to Cointelegraph that Polkadot mainnet has transitioned to a dwell Proof of Stake protocol with a public validator set. The community is about to enter the third section of its launch roadmap, the activation of core governance performance, the particular person added.

DOT holders might be supplied 4 choices within the vote

On the ballot, community members might be supplied with 4 choices for figuring out DOT’s denomination. These choices embrace “no change” alongside three cut up variants from the unique sale. The “no change” possibility stipulates no alterations from the unique 2017 sale definitions, which implies that complete allocations of DOTs will stay at 10 million tokens.

The three different choices embrace a 10x, a 100x, or a 1,000x cut up from the unique sale, which can improve a complete variety of DOT tokens from 10 million to 100 million, 1 billion, and 10 billion, respectively. The change will make the obvious DOT costs 10x, 100x, and 1000x decrease, respectively, Polkadot famous.

Why is DOT redenomination wanted?

The DOT redenomination vote was originally initiated in May 2020 with a view to keep away from utilizing small decimals when coping with DOT and to realize a better calculation system. Based on the Web3 Basis, the change would carry “the flexibility to take care of extra ergonomic or human-readable items, like complete numbers fairly than small decimals.”

The primary referendum on the DOT redenomination was carried out in Might, providing customers to decide on whether or not or to not redenominate DOTs on Polkadot in a 1:100 ratio. Announcing the vote outcomes on Might 14, Polkadot stated that the Basis determined to not sponsor the redenomination regardless of the referendum recording “little or no dissent”. Concluding that the change would require yet one more ultimate vote, Polkadot continued:

“Informally, had the referendum recorded little or no dissent, it’s seemingly that Web3 Basis, in its central position over the preliminary community launch, would have stood behind the redenomination proposal. Nonetheless, given the non-negligible quantity of opposition, together with from some inside the ranks of Web3 Basis and Parity, the Basis determined that we can’t, in good religion, sponsor redenomination at current.”

In a July 13 Polkassembly thread, some DOT house owners have already voiced their stance in direction of the supplied change. Whereas some customers are supporting a 100x change, others nonetheless argue that “re-denomination creates a whole lot of fuss and confusion.”

A professional-redonimation consumer inspired the 100x alteration, emphasizing that growing the variety of DOTs to 1 billion tokens might be simpler for a “bigger portion of the viewers to calculate community valuation”. The neighborhood member, Ken Seiff at Blockchange Ventures, wrote:

“Nice choice by Web3 to rethink this. Usually most token economies have billions of tokens and never 10mm. So it’s seemingly customers and traders will misunderstand the token worth on a relative foundation. […] By altering to easy 1B tokens, it will likely be simpler for a bigger portion of the viewers to calculate community valuation. I’m strongly in favor of 100x because of this.”

100x cut up possibility is the most important supported possibility up to now

Based on live vote outcomes shared by a spokesperson at Parity, the choice “cut up of 100x” is main the referendum so far as of press time. Particularly, the 100x cut up possibility has about 200,000 DOTs voted, whereas the 1,000x one has about 95,000 tokens. “No change” possibility has apparently been getting the least quantity of assist up to now, having collecte about 40,000 DOTs, whereas a 10x cut up has about 55,000 tokens voted up to now. The vote will formally finish on July 27.

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