New Kind of Network (NKN), a United States-based decentralized data relay project, has announced an optional token swap for NKN token holders who wish to migrate to the Ethereum network. The NKN NEP-5 token on the NEO blockchain can be swapped 1:1 for an identical NKN ERC-20 token on the Ethereum blockchain.
Optional NKN Swap
The swap comes prior to NKN’s planned launch of its standalone NKN blockchain, which is “currently planned for June 2019,” according to NKN. NKN further states that despite the swap, “There is no change to total number of NKN token issued or token economics,” as every token issued on Ethereum will correspond to a token redemption on the NEO blockchain.
Any NKN holders who do not want to manage Ethereum-based assets may keep holding their NEP-5 tokens on NEO, until the upcoming independent NKN MainNet is launched at a later date.
Token Swap Reasoning
NKN states that it is conducting the swap “based on feedback from community members, institutional investors, and leading digital asset exchanges” in order to “enable improved liquidity as well as leveraging the larger ecosystem built by Ethereum.” However, upon launch of the NKN MainNet, both the NEP-5 and ERC-20 tokens will need to be redeemed for NKN tokens native to its own blockchain.
At the time of this publication, the centralized exchanges Gate.io and Bilaxy handled over 99 percent of NKN’s 24 hour trading volume, with the Switcheo decentralized exchange a distant third place.
Users with NKN tokens on Gate.io will have their tokens swapped to the Ethereum blockchain automatically, planned to start on January 7th, 2019. Manual swaps can be performed by following the instructions found at this link.
NKN Token Smart Contracts
NKN states that its NEO smart contract “will stay intact” with support for both NEP-5 and ERC-20 tokens before NKN’s MainNet launch.
According to NKN, blockchain security specialist CertiK has completed a “comprehensive security audit” of the NKN token contract on Ethereum; and that CertiK reported on December 27th, 2018, “CertiK believes this smart contract passes security qualification to be listed on digital asset exchange.”
NKN’s token swap announcement can be found at the following links:
https://medium.com/nknetwork/nkn-token-swap-nep-5-to-erc-20-c476d064718e
About The Author: Colin Closser
Colin Closser, M.D., was a speaker at the first NEO DevCon in San Francisco. A devoted contrarian, he has managed the improbable: a peaceful and healthy life, despite holding a medical degree. He aspires towards the wisdom of Michael Lewis and Nassim Nicholas Taleb.
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