This is the second post in our four-part series about Dock’s up-and-coming token migration. You can read the first one here. The purpose of this post is to discuss incentives, specifically the two different types, their value and how holders can claim them.
As mentioned in part one, all holders will be able to migrate either directly via Dock’s own migration service or through exchanges. As we revealed last week, all major existing Dock exchanges are supporting the migration and will be listing our new token, but more on that in our next post. For now let’s get back to incentives.
Two bonus pools
Dock will create two bonus pools with a combined value of $650,000 (at the time of writing) with 20 million (circa $260k) Dock tokens being allocated to the Swap Pool and 30 million (circa $390k) to the Vesting Pool.
- The Swap Pool will be shared amongst holders that migrate within the first 4 weeks.
- The Vesting Pool will reward holders who lock up 50% of their tokens. These tokens vest at a rate of 33% of lockup every 2 months. Token holders would receive all their vested tokens back in 6 months.
Both pools will be available to any holders migrating within the first 4 weeks of the migration, and holders will be required to decide if they also wish to participate in the Vesting Pool.
If they opt not to participate in the Vesting Pool, they will receive a new Dock token for each ERC20 DOCK they sent as part of the migration (1:1), with their swap bonus becoming available 4 weeks after they requested the swap.
Should a holder opt to participate in the Vesting Pool, they would receive 50% of their new Dock tokens immediately while the remaining 50% would be locked. They would then receive their swap bonus 4 weeks after their migration request and their remaining tokens, including the 50% locked plus the vesting bonus, would be paid back in line with the vesting schedule; 33% after 2 months, 33% after 4 months and the remaining after 6 months.
Bonus pool example
Note that this example is used for illustrative purposes only, as both bonuses are set up as pools and each holder’s bonus amount will not be known until the 4-week participation period is over.
- To help illustrate we consider a holder who has 100 tokens who participates in both swap and vesting pools. The bonus will be 20 tokens for Swap Pool and 30 tokens for the Vesting Pool, so 50 in total.
- They would be sent 50 tokens to their Dock mainnet wallet shortly after making the migration request.
- The other 50 tokens would be locked.
- After 4 weeks, they would receive their 20 token Swap Pool bonus.
- The remaining 80 tokens (50 lockup + 30 Vesting Pool bonus) would be paid in line with the vesting schedule:
- 26 tokens (33%) 2 months after the migration event
- 26 tokens (33%) 4 months after the migration event
- 28 tokens (34%) 6 months after the migration event
- In total they would have received 150 tokens.
- If the holder chooses not to participate in the vesting bonus, they will receive 100 tokens instead of 50 tokens in step 2 and will receive 20 tokens in step 4, thus receiving a total of 120 tokens.
- Any holder participating after the first 4 weeks of the migration would not be eligible for any bonus.
We hope this post provides clarity around the migration incentives. Our next post, which we’ll publish next week, will discuss the exchange process itself in more detail, specifically: the exchanges that we are working with during the migration, how to migrate directly with Dock, the token migration security audit, and user support and wallets.