UP to UNIFI Migration #4 is Coming!
Another opportunity for liquidity providers to choose their rewards
Key Points:
- Important terms and conditions apply. For information on avoiding token loss, all migration participants should read this entire document before proceeding.
- There are 7500 UNIFI available for this migration
- Not all migrations will be the same, and there is no set interval between migrations.
- This migration will be based on the redeem value of UP on each chain, and not market value.
- Migration will open on Thursday, March 11, 2021 and close on Wednesday, March 17, 2021.
- All UP contributed to the migration process will be burned (not redeemed) at the end of the event. Burning UP benefits everyone.
- This article may be revised at any time, without notice, to reflect the most current information. Participants in the UP to UNIFI migration event should confirm the current information is current prior to participation.
The UP to UNIFI migration process is an essential component of the UNIFI-powered Global Governance Model (GGM). The GGM is currently under development. The community is encouraged to join the conversation on how the GMM will function on Unifi’s Reddit. Access to UNIFI gives liquidity providers and traders on all Unifi blockchains a voice and opportunity to participate in the GGM, including earning UNIFI staking rewards.
UP and UNIFI Use Cases
UP is the blockchain-specific liquidity mining token of the Unifi Protocol. Every UP token has a redeem value backed by the native token of the particular blockchain on which it resides. For example, UPbnb on Binance Smart Chain can be redeemed for BNB, while UPeth on Ethereum can be redeemed for ETH. UP is only minted when fees are earned by the Protocol.
UNIFI is the Global Governance Token. Under the UNIFI Proof of Stake ecosystem, candidates for the Unifi Council of Representatives will campaign for election as a Council Representative. Council Representatives will have the ability to propose or vote on changes to the Unifi DAO while earning Governance Rewards. UNIFI token holders can earn Staking Rewards for staking their UNIFI tokens, and may earn even more rewards from their chosen CR after delegating their staked UNIFI.
Migration based on redeem value, not market value
The ratio of UP to UNIFI will be based on the redeem value of UP on each chain. Unifi would like to remind the community that not all migrations will be similar to each other. Each migration is an individual event and participants should ensure they are aware of all details prior to participation. Unifi — and others — will be proposing and evaluating effective methods of migration that appeal to a diverse community. A variety of options for migrating UP to UNIFI is a benefit to the Unifi ecosystem.
How will this migration work?
Starting on March 11, 2021, UP holders will go to https://unifiprotocol.com/ and select the blockchain on which their UP tokens reside. In the UP tab of the uTrade app, there will be an option for UP to UNIFI Migration. Ensure the wallet address with the UP tokens is connected to uTrade.
Notice: Migration for UP holders on IoTeX is still under development. Please follow our social media channels for updates.
The event will conclude on March 17, 2021. No exact open and close times for migration are being announced, so those that wish to participate are encouraged not to wait until the end of the given time period.
In the Migration dashboard, input how much UP is to be contributed into the migration process. Provide the Ethereum address where you will want to claim the UNIFI. Participants will be able to claim their UNIFI at https://gov.unifiprotocol.com using the ETH address they had submitted. The user must have an Ethereum wallet that is compatible with Unifi (such as MathWallet or MetaMask) that can access and transact with that address using the private key. Information on supported wallets can be found here.
Note: UNIFI will need to be claimed using that address and will not be automatically distributed. ETH will be required to cover the network cost of claiming the UNIFI.
All UP contributed to the migration will be burned (not redeemed) at the end of the event.
If a participant attempts to contribute UP after the event is closed, the UP will remain in their wallet. This may still trigger a transaction fee to be charged by the blockchain. Therefore participants are encouraged to participate early in the event.
How is the ratio of UP to UNIFI discovered?
1. UP tokens on each blockchain will be assigned a USD equivalent value (USDEV) based on the redeem value of UP on that blockchain. USDEV is calculated by multiplying the redeem value of UP on that blockchain in base tokens by the USD market price of that base token on Binance.
2. Each UP contributed to the migration process creates a claimable amount of UNIFI that is in direct proportion to its percentage of total USDEV participating in the migration process by UP tokens on all Unifi blockchains combined.
Example
Let’s make some assumptions for the sake of this example. We will only be looking at two blockchains in this example for simplicity. Also assume 10,000 UNIFI tokens are available for the migration process in this example.
Assume UPbnb can be redeemed on uTrade for 6 BNB, and BNB is valued at $50 USD. Then each UPbnb would be assigned a USDEV of $300. The total amount of UPbnb contributed to the migration was 10, making the total USDEV on BSC $3000.
Assume UPont can be redeemed on uTrade for 2 ONTd, and ONTd is valued at $1. Then each UPont would be assigned a USDEV of $2. The total amount of UPont contributed to the migration was 500, making the total USDEV on Ontology $1000.
The total USDEV contributed to the event from all blockchains was $4000. $3000 from BSC, and $1000 from Ontology. In other words, 75% of the total USDEV was from BSC migration, and 25% was from Ontology migration.
The amount of UNIFI available for this example UP to UNIFI migration is 10,000 UNIFI.
75% (7,500 UNIFI) will go to participants on BSC, and 25% (2,500 UNIFI) will go to participants on Ontology.
If someone contributed 2 UPbnb ($600 USDEV) to the migration process on BSC, that was 20% the total 10 UPbnb that participated (2/10). So they would receive 20% of the 7,500 UNIFI for BSC, which is 1,500 UNIFI.
If someone contributed 300 UPont ($600 USDEV) to the migration process on Ontology, that was 60% of the total 500 that participated (300/500). So they would receive 60% of the 2,500 UNIFI for Ontology, which is 1,500 UNIFI.
Notice how the user on BSC contributed $600 USDEV and the user on Ontology contributed $600 USDEV, so they each received the same amount of UNIFI. But due to market prices of the base tokens, it only required 2 UPbnb while it required 300 UPont for the same result. It is important to realize the final outcome will depend on how much UP is contributed in total on each blockchain. It will not be possible to determine these ratios until the conclusion of the migration process.
User errors which could cause a loss of UP and/or UNIFI:
1. UNIFI for this event will be claimable as an ERC20 token on Ethereum. The participant must provide a valid Ethereum address where they can receive and interact with ERC20 tokens like UNIFI. Providing a Binance Smart Chain address, or address from any other blockchain, could cause a loss of UP and/or UNIFI. Unifi does not confirm or check addresses supplied. Invalid addresses (including those with an extra space in the address) will cause a loss of UP and/or UNIFI.
2. Incorrectly inputting the Ethereum address to receive UNIFI. Be careful for typos and missing/additional characters (including extra spaces).
3. The user must have the private key to the Ethereum address where the UNIFI is claimable. DO NOT use an Ethereum address of an exchange wallet.
Terms and Conditions
The migration process is still a beta utility and no result is guaranteed. The UP migration process is not reversible. All UP deposited into the migration will be burned. There is no way to reverse the migration process and no refunds are possible for any reason. Unifi can not retrieve UNIFI made claimable at an address where the user does not hold the private key. UNIFI requested to be made claimable at an invalid Ethereum address will be forfeit. Unifi is not responsible for any loss associated with the UP migration process, regardless of cause. Migrating UP to UNIFI is a voluntary action taken upon by the UP token holder, and the UP token holder assumes all associated risk of token loss.
The migration process is dynamic and governed by market forces. No ratio of UP to UNIFI is suggested, implied, or guaranteed. The final ratio of UP to UNIFI will be determined following the close of the migration period. UNIFI will be available for claim after the migration process has closed.
Unifi Protocol and uTrade can be found at https://www.unifiprotocol.com. Connect with the Unifi community on Telegram, Twitter, Reddit or Medium.
Stake UNIFI, earn rewards, and be part of the Global Unifi Protocol DAO governance. https://gov.unifiprotocol.com/my-dashboard.
Be a part of developing Unifi Protocol DAO’s UNIFI’s Global Governance Model (GGM). Join the conversation on Unifi’s Reddit
Communications from Unifi are subject to Unifi’s standard terms and conditions, which can be found here.
