The Unifi Protocol community has expressed its desire to see migrations via voting referendums. Unifi has responded by releasing the details of a proposed “May Migration Madness” by the community.
Unifi Protocol Announces UP to UNFI Migration
Unifi protocol has announced the migration of UP to UNFI in a Tweet, after the conclusion of user voting via a referendum. The protocol posted its first core Referendum in April to holders of UNFI. The topic was “UP to UNFI migration.” Migration is a core aspect of the Unifi ecosystem. It helps Liquidity providers (LPs) on Unifi blockchains to take part in its Global Governance Model (GGM).
The essence of the referendum is to allow users (UNFI holders) to dictate what is needed to develop the Unifi ecosystem. Therefore, it is a very important first phase of the GGM. Users get to cast votes according to the amount of UNFI they hold, giving the community reigns of the protocol. More details about the referendum have been published here. Before we explain the migration process, what is migration?
Migration Explained
The process of bringing UP tokens to Unifi’s protocol is called migration. These UP tokens will eventually be burned. Users who participate in the migration will be allowed to claim an amount of UNFI tokens. Overall, all migrations are unique; they have different processes. Each of them is an individual event and partakers are urged to understand the details before participation.
Users Decide via Referendum Vote
The result was very obvious with 52% of holders voting in favor of the proposal. Holders want to see Unifi provide UNFI governance access to liquidity providers who are initally rewarded in UP. However, they are concerned about how the addition of UNFI will affect the trading value of current holders of UNFI. This is reflected in the votes seen below:
Migration Series Provoked by Referendum Vote
Unifi will run a series of migrations from UP to UNFI starting from May 2021.This marks the beginning of “May Migration Madness.” The series will feature different forms of migration processes, which will be tested. As the migration process matures, migration will take different forms. This will ensure that liquidity providers have different options for UP to UNFI migration.
The Need for Migration
UP is the specific blockchain farming token which liquidity providers earn as rewards. These earned UP tokens can be migrated to UNFI for access to the UNFI Proof of Stake ecosystem. To learn the differences between UP and UNFI, users should read this article.
Migration Event #5: How Will it Work?
Holders of UP will visit and choose the respective blockchain as their tokens on May 10th 2021. There will be an option for UP to UNFI migration in the UP tab of the uTrade app. Users are urged to make sure that their wallet addresses which contain UP tokens are connected to uTrade.
On the 17th of May, 2021, the event will end. Presently, there is no specific date for the opening and closing times of migration. Therefore, participants are advised not to wait until the end of the given period of time.
Here is the details of migration #5: The ratio of UP to UNFI will be dependent on the redeemable value of UP on each chain. Liquidity providers will earn UP according to UP mint rate at the time which UP was earned. Since the redemption value of UP rises as trades on each blockchain increases, the amount of UP earned will likely have a higher redeem value at migration than when it was earned. Liquidity providers that farm UP tokens with their liquidity have an edge in migration over those that choose to buy UP from an open market.
Also, 15000 UNFI be available for migration #5 — the first migration process in Migration Madness series. To learn more about migration #5, read the official Medium post.
About Unifi Protocol
Unifi protocol is a group of non-custodial, interoperable multi-chain smart contracts that aims to provide tools for decentralized finance (DeFi) product development. It is more than just a protocol. Unifi provides a bridge to connect the existing economy of Ethereum-based DeFi products to growing DeFi markets on other blockchains. The protocol utilizes time tested SEED Bridge to connect any Ethereum or EVM/NVM-based DeFi products to several blockchains.
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