Polkadot, the blockchain interoperability protocol, has planned to run the final denomination of its native DOT token with real DOTs.
It has been reported that after a similar vote conducted on Polkadot’s “wild cousin” network, Kusama, in May 2020, Web3 Foundation, the creator of the Polkadot project, decided to reconduct the vote on Polkadot with real DOT tokens.
However, Polkadot invited community members to participate in the poll, which will finally define whether to redenominate DOTs 1:10, 1:100, or 1:1,000 on Polkadot.
According to the blog post, the poll is open now and will last for two weeks. Polkadot noted that All DOT holders and those who claimed DOTs on the mainnet are invited to take part in the vote.
Polkadot plans to run a final vote to redenominate its native token, DOT, with a 10x, a 100x, or a 1,000x split from the original sale https://t.co/kQMrpl9Ey5 — Cointelegraph (@Cointelegraph) July 13, 2020
LIVE vote results are available by the link with the Polkadot.js plugin.
A spokesperson for Polkadot said that Polkadot mainnet has transitioned to a LIVE Proof of Stake protocol with a public validator set.
The person added that the network is about to enter the third phase of its launch roadmap, the activation of core governance functionality.
It has been analyzed that at the poll, network participants will be provided with four options for determining DOT’s denomination.
However, those options include “no change” alongside three split variants from the original sale, as the “no change” option stipulates no alterations from the original 2017 sale definitions, which means that total allocations of DOTs will remain at 10 million tokens.
As per the report, the three other options include a 10x, a 100x, or a 1,000x split from the original sale, which will increase a total supply of DOT tokens from 10 million to 100 million, 1 billion, and 10 billion.
Polkadot noted that the change will make the apparent DOT prices 10x, 100x, and 1000x lower, respectively.
Moreover, the DOT redenomination vote was originally initiated in May 2020 in order to avoid using small decimals when dealing with DOT and to achieve an easier calculation system.
According to the Web3 Foundation, the change would bring “the ability to deal with more ergonomic or human-readable units, like whole numbers rather than small decimals.”
It has also been analyzed that the first referendum on the DOT redenomination was carried out in May by offering users to choose whether or not to redenominate DOTs on Polkadot in a 1:100 ratio.
Announcing the vote results on May 14, Polkadot said that the Foundation decided to not sponsor the redenomination despite the referendum recording “very little dissent.”
Polkadot continued:
“Informally, had the referendum recorded very little dissent, it is likely that Web3 Foundation, in its central role over the initial network launch, would have stood behind the redenomination proposal. However, given the non-negligible amount of opposition, including from some within the ranks of Web3 Foundation and Parity, the Foundation decided that we cannot, in good faith, sponsor redenomination at present.”
In a July 13 Polkassembly thread, some DOT owners have already voiced their stance towards the offered change. While some users are supporting a 100x change, others still argue that “re-denomination creates a lot of fuss and confusion.”
Similarly, a pro-redonimation user encouraged the 100x alteration by emphasizing that increasing DOT’s supply to 1 billion tokens will be easier for a “larger portion of the audience to calculate network valuation.”
The community member wrote:
“Great decision by Web3 to reconsider this. In general most token economies have billions of tokens and not 10mm. So it is likely users and investors will misunderstand the token value on a relative basis. […] By changing to simple 1B tokens, it will be easier for a larger portion of the audience to calculate network valuation. I am strongly in favor of 100x for this reason.”
According to LIVE vote results shared by a spokesperson at Parity, the option “split of 100x” is leading the referendum to date as of press time.
Specifically, the 100x split option has about 200,000 DOTs voted, while the 1,000x one has about 95,000 tokens. “No change” option has apparently been getting the least amount of support so far, having collected about 40,000 DOTs, while a 10x split has about 55,000 tokens voted so far.
Thus, the vote will officially end on July 27.
Source: Cointelegraph | Image: Truly Belong