INS ERC-20 token migration ...
INS ERC-20 token migration to Insolar native coin — XNSReflecting on the past two years of our journey with Insolar we feel both proud and humbled.We are proud to welcome our first Global Fortune 500 clients; establish an innovation ecosystem featuring UC Berkeley, Microsoft, Oracle and Innosuisse; become the most active blockchain company globally by development activity on GitHub; be ready to launch the most scalable and easy-to-use integrated public-and-private blockchain ecosystem in the world; build a world-class team of over 90 people; file more than 10 patent applications; the list could go on.We are humbled by the fact that this is only the very start of our journey and the quest to become a leading blockchain technology provider for business, whereby enterprises harnesses the power of Insolar MainNet and the unique benefits of Insolar Blockchain Platform’s architecture.After 400,000 lines of code on GitHub and over 160 meetings and calls with business clients just to get to the start line, we understand that significant effort and resources are required to deliver on the vision of building an open, connected and collaborative world, and the mission to facilitate the transactive economy by creating an ecosystem for trusted data and value exchange. Our team is ready to rise to the challenge and the great news is that the opportunity is much bigger than we originally thought. We are prepared to handle various use cases in supply chain, post-trade commodity settlement, decentralized energy networks, reconciliation of procurement documentation and many others. Thanks to: Insolar’s integrated public-and-private network; our blockchain’s ability to store large amounts of data fully on-chain; scalability that increases near-linearly with the amount or hardware capacity involved; and, last but not least, ease of use by developers — we are well prepared to become the preeminent blockchain network.Our upcoming INS token swap to Insolar XNS native coin presents an opportunity to support this expanded vision and provide the necessary resources so that Insolar, our business clients and our community can benefit from these developments. Read below to learn what is happening, why is it happening, and find out more about the details that INS token holders need to know with regard to the migration.What is happening: INS to XNS migrationAs the release of Insolar MainNet approaches, Insolar is conducting a swap from ERC-20 INS tokens to XNS — Insolar native coin. XNS will function as the fuel of the network, serving as a medium of exchange and a store of value. XNS coin is an essential part of our efforts to make Insolar MainNet fully compliant with all major regulations, and for the coin to be readily adoptable by businesses in North America, Europe and Asia. We are in negotiations with all exchanges that currently list INS tokens — Binance, Kucoin and Bithumb — to support the migration. Moreover, we also have new exchanges such as Bitmax and HitBTC who confirmed they will list XNS. You can read detailed instructions on what current INS holders need to do in order to participate in the migration. All INS tokens, including the Insolar team’s tokens and the reserve fund are subject to migration on the same terms. INS token holders will receive 10 XNS coins per 1 INS. In addition to the INS holders’ allocation pool of 500,000,000 XNS, there will also be other allocation pools for funds, enterprises, infrastructure providers, application developers and the Insolar Foundation. Details about these new pools are provided below.New investment in Insolar from Multistack VenturesAt the launch of our MainNet, Insolar is delighted to announce that it has closed a private transaction with investment fund Multistack Ventures to purchase USD 5 million worth of XNS. The price per XNS in the deal was set at USD 0.05 per coin, with a 2x premium versus the current price at which INS holders are going to receive their XNS coins through the swap. This premium demonstrates firm belief in the successful launch of the Insolar MainNet and XNS coin. The XNS coin is immediately available for payments and as a store of value, and later for the purposes of staking and governance, which will be introduced after the Insolar MainNet 2.0 upgrade.Each allocation pool is required to have its own vesting schedule to comply with strict regulatory framework and the terms of the fund’s investment. The reason for the vesting period of the XNS coin is that Insolar network stabilization requires a gradual increase of coins in circulation to match demand and supply. The coin’s release will correspond to growth in the usage of Insolar MainNet and will be in compliance with the SEC’s guidance that requires the coin release to be aligned with network adoption and growth.Participation in the swap for current INS token holders is not mandatory — one can freely sell the INS tokens on an exchange and buy XNS coins when the trading starts.Why is it happening: native coin and enhanced opportunitiesFor each INS token, holders participating in the swap receive 10 XNS coins, each valued at 0.05 USD per coin, based on the deal with the fund. At the same time, current INS token holders will be subject to a vesting period. It is important to state that Insolar’s team tokens are subject to exactly the same terms as those of our community. It is also crucial to align all of our incentives with the long-term goal — adoption of XNS coin by businesses, including enterprises and hardware capacity providers. This is the key driver behind the coin economics of XNS and the staged coin release is to comply with the recent regulatory frameworks. The regulations outline that the release of the coins should correspond to the actual utility value of the network, or simply put — its usage. At the same time, the fund investing in XNS coins provides additional financial support to Insolar’s long-term success. To incentivize the fund to invest, and also to provide long-term incentives to the key pillars of Insolar MainNet’s success — enterprises, hardware providers and application developers — we have instituted vesting and additional incentives for resources. Not only will we emerge as one of a very few public networks ready to onboard businesses, but also with more funds to deliver on the more ambitious long-term vision of Insolar.In sum, the migration will support the utility of XNS coin, long-term growth of development and the business community to continue developing innovative blockchain products. The Insolar MainNet will be compliant with regulations.How the migration will workThe sections below will inform INS token holders all they need to know about the swap from ERC-20 INS tokens to Insolar XNS native coin. While Insolar encourages INS token holders to participate in the swap, it is up to each individual INS holder whether to participate in the swap or sell their INS tokens, with the opportunity to buy XNS native coins when trading starts. You can read more about this in the detailed XNS swap instructions.XNS usageThe Insolar MainNet native coin is called XNS and will function as the fuel of the network, serving as a medium of exchange and a store of value. In the first generation of Insolar MainNet, XNS will be used for payments, while in later versions it will be used for staking and decentralized governance. You can read more about how XNS will be used in our roadmap.Coin allocationsThe final total amount of the XNS coins in circulation will depend on the amount of coins needed to incentivize infrastructure service providers (“nodes”), application developers, enterprise clients and other parties to make the Insolar network successful. The base scenario as per our analysis demonstrates that the final total amount of XNS coins in circulation will be 2 billion XNS. However, the final total amount of XNS coins in circulation may be higher (capped at 10 billion) if the Insolar network will require a greater amount of coins to incentivize infrastructure service providers, application developers and other parties to succeed.Public Sale AllocationThe Public Sale Allocation coin pool is reserved for all existing INS token holders (including the Insolar team).Insolar network stabilization requires a gradual increase in the XNS coins in circulation to match demand and supply. The release will correspond to the growth of the Insolar network usage and will be in compliance with regulations that require the coin release for retail investors to be aligned with network growth.The Insolar team’s coins are included in the Public Sale pool and subject to the same vesting schedule as all other holders of INS (ERC-20 token).Vesting schedule:5-year daily vesting for every portion of the INS tokens submitted for swap to the XNS coinsMigration period for INS token holders is January, 29 — July 29, 2020 (6 months; after July 29, 2020 INS tokens will become non-transferable, so all INS holders need to start the migration to XNS before July 29, 2020)The vesting schedule formula is: y=N (x/N)/ ∑(1 .. N) { N (x/N)} * INS Tokens * 10,Where:x is a day from the start of migrationINS tokens is the amount of INS tokens sent for migration to XNSy is the amount of XNS to be received in a specific day (from day 1 until day 1827)N = 1827 is the number of days in the 5-year vesting period (2020–2025)We are currently in negotiation with exchanges such as Binance, Kucoin, Bithumb and all other exchanges which list INS for them to support the migration. In addition, we also have new exchanges such as Bitmax and HitBTC who confirmed they will list XNS.You can read more about this in the detailed XNS swap instructions.2. Fund AllocationThe Fund Allocation coin pool is distributed to Multistack Ventures, the investment fund that purchased XNS coins during the funding round in October 2019. The pool totals 100,000,000 XNS.Multistack Ventures paid a substantial premium to buy XNS (the fund paid USD 0.050 per 1 XNS vs implied ~USD 0.025 per 1 XNS for the Public Sale participants, i.e. the fund purchased XNS with a 2x premium to the current market price of the INS token.The investment fund is engaged in the acceleration of the network growth and adoption. The funding from the investment fund provides additional financing that will help to further develop the Insolar network and accelerate adoption of the Insolar technology. As such, this pool is not subject to vesting.3. Enterprise AllocationThe Enterprise Allocation coin pool is reserved to incentivize enterprise customers to start using applications running on the Insolar network. As such, this pool is not subject to vesting of XNS. Insolar endorses enterprise customers to buy XNS from exchanges. The pool totals 300,000,000 XNS.4. Network IncentivesThe Network Incentives coin pool is reserved to (i) reward coin holders for delegating coins (DPoS) and (ii) incentivize hardware providers (i.e. nodes) to join the Insolar network and provide computing, storage and networking capacities.The vesting period is 20 years (2020–2040). The pool totals 700,000,000 XNS.5. Application Developer IncentivesThe Application Developer Incentives coin pool is reserved to incentivize application developers to create useful applications (i.e. dApps) for enterprise clients in the Insolar network.The vesting period is 20 years (2020–2040). The pool totals 200,000,000 XNS.6. FoundationThe Foundation coin pool is reserved for future business development and ecosystem building initiatives to accelerate growth and development of the Insolar network.This pool’s coins will be locked until January 1, 2021. The vesting schedule will be determined by the Insolar Association, which is planned to be made up of a group of up to 100 diverse organizations from around the world. The Insolar Association will be established in 2020. The pool totals 200,000,000 XNS.Below is a chart which demonstrates an illustrative example of how the coin release will take place. The exact release schedule will depend on real adoption of the Insolar network.What’s next?The Insolar community support team has developed a detailed FAQ about the migration. You can read more about this in the detailed XNS swap instructions. If you haven’t found the answer to your question in the FAQ or this article, please feel free to get in touch via our Telegram chat.https://medium.com/media/599ac36c9dc824f0e9b3e2e95d7f130c/hrefCheck our Github and leave feedback on the code.Follow Insolar on social media:Insolar LinkedInTelegram (Eng)Telegram (Announcements)Insolar TwitterInsolar FacebookInsolar RedditInsolar WebsiteINS ERC-20 token migration to Insolar native coin — XNS was originally published in Insolar on Medium, where people are continuing the conversation by highlighting and responding to this story.
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