After launching its mainnet earlier this summer, Elrond continues its new developments. The company recently introduced a new economic model for its native cryptocurrency and a token swap, which was initially implemented on Binance and switched ERD to the new coin called eGLD at a 1000: 1 ratio.
Elrond’s Token Swap implemented on Binance
As CryptoPotato reported in late July, Elrond launched its mainnet when the company also unveiled the first application to use the Elrond blockchain called Maiar.
The further developments were continued with some listings for the native cryptocurrency on various exchanges and with the integration with Aurachain AG – a provider of low-code workflow automation layers with which companies can digitize and automate their business processes.
Another announcement shared last week has paid more attention to the blockchain firm. Elrond unveiled a significant alternative for its ERD cryptocurrency, now called eGLD – an acronym for eGold. According to the company, this is “the most intuitively powerful metaphor of what the Elrond currency should become”.
The token swap that made the transition possible is currently available in two ways – via the leading cryptocurrency exchange, Binance, or via the Elrond swap bridge.
Binance, which carried Elrond’s IEO on its Binance Launchpad last year, initially stopped trading the old ERD tokens on August 31, and then reactivated them on September 3 at 3:00 a.m. (UTC) under the name eGLD. The exchange process at the switch was fully automated and users who previously had ERD should now have eGLD.
ERD investors who keep their coins outside of Binance have been able to exchange them on the Elrond swap bridge for a few days now.
The exchange takes place at a ratio of 1000: 1. This means that the investor should receive an eGLD for every 1,000 ERD tokens.
What does the token exchange really mean?
CryptoPotato reached out to Dan Voicu, Head of Communications at Elrond, who explained the profound meaning of token exchanges. He noted that the new economic model “deducts transaction fees from issuance”. In other words, the more transactions that take place on the network, the fewer new coins will be minted. “Scarcity increases with adoption,” added Voicu.
In addition, ERD’s supply was not limited and an inflation rate of 5% per year was planned. In contrast, eGLD will start with 20 million coins and have a “theoretical delivery limit of 31,415,926” that can be reached over the next ten years.
First aid with Elrond (eGLD). Source: Medium
Completion of the exchange enables all “native Elrond services such as general stakeout and delegation as well as native DeFi options”. The company is also planning additional listings for new exchanges and integrations.
“All in all, an exciting time for Elrond. The token exchange is an important milestone for us. Upon completion, the Elrond economy will be ready to begin in earnest. Staking out, delegating, DeFi products and many other cool things are coming. “- Voicu closed.
Price development and changes for eGLD
The 1000: 1 token swap ratio mentioned above is expected to have had an impact on the price of Elrond’s native digital assets. Prior to the swap, ERD was trading at around $ 0.025, which automatically moved to $ 25 as soon as Binance introduced the new eGLD token.
The high level of interest in the token came in the first few hours when it peaked above $ 35 but has since declined. According to Voicu, the trading volume rose to $ 5 million in the first hour alone.
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