LOOM Token Swap
In our previous article we announced that we’ll be integrating zkRollup into the Loom protocol to create the zkLoom protocol. To recap, the zkLoom protocol architecture offers a number of advantages over the existing Loom protocol:
- Transactions on a zkLoom blockchain are verified on Ethereum, making it practically impossible for a malicious validator to steal funds or cause an invalid state transition.
- Funds transferred by users from Ethereum to a zkLoom blockchain can be recovered even if all zkLoom validators go offline, or simply refuse to process transactions.
- Users no longer have to place their trust in validators, instead they can rely on the security guarantees provided by Ethereum.
The process of upgrading Basechain to the zkLoom protocol will require a number of steps. The first step consists of deploying a new LOOM token contract to Ethereum mainnet, and performing a token swap from the existing LOOM token to the new one.
This article covers some of the common questions about the upcoming token swap.
When is the token swap going to happen?
The token swap is currently expected to take place on February 1st, 2021.
Why does there need to be a token swap?
The existing LOOM token contract is not upgradable, so we are unable to implement the features necessary for the token to operate with the new zkRollup based architecture we’re building. Therefore we have to deploy a new LOOM token contract, and migrate existing LOOM holders over.
How should I prepare for the token swap?
We’ll be coordinating the token swap with the exchanges LOOM is currently listed on to make the process as painless as possible. If you hold LOOM in an exchange account you may not have to do anything at all when the token swap goes live, you’ll simply get the new LOOM tokens when withdrawing from the exchange back to your own wallet on Ethereum mainnet.
If on the other hand you hold LOOM in your own wallet on Ethereum mainnet then you’ll need to use the Basechain dashboard to convert the existing LOOM tokens to the new LOOM tokens. The token swap UI will be very simple, and we’ll provide step by step instructions for using it to swap your tokens.
What will happen to my Basechain delegations?
You will continue to earn rewards on LOOM tokens that you’ve staked to secure Basechain, even after the token swap. The Basechain dashboard will be updated to support staking and withdraws of the new LOOM tokens. After the token swap goes live any rewards you earn and withdraw will be paid out in the new LOOM tokens.
