In a decided effort to disassociate itself from Sam Bankman-Fried’s crumbling empire, the decentralized finance (DeFi) buying and selling undertaking Mercurial intends to relaunch as Meteora, distribute a brand new token to virtually all MER holders, and improve its buying and selling portfolio.
The mercurial rebranding efforts make it the newest Solana-based crypto protocol to re-emerge from the ravaging results of the November FTX collapse.
Nonetheless, the deliberate rebranding is coming with important adjustments for present MER holders as a result of buyers are going for the brand new Meteora token, which has a complete provide of 100 million.
Persistent holders of MER tokens will obtain a proportional quantity of the Meteora token to consolidate their portfolio. However Mercurial’s stakeholders are taking an enormous hit.
Earlier than the FTX collapsed, Mercurial stakeholders like seed buyers, crew members, personal buyers, and main backers managed 45% of the MER tokens. The brand new Meteora token regime will give them a 50% haircut on their unvested tokens.
Ben Chow, a founding member of a sister protocol Jupiter Finance, claims that the reorganization will improve token house owners’ affect over the brand new undertaking. He added that the Meteora token was meant to be only a product underneath the Mercurial and MER tokens. Nonetheless, the FTX collapse and the previous lack of $800,000 value of MER to hackers propelled the choice to revamp all the protocol.
Meteora initiative has been within the pipeline since September and was meant to function a dynamic automated market maker and Mercurial’s modern yield-generating DeFi product.
By lending more cash to lending protocols, the AMM vaults are meant to extend the yield on depositors’ property. Along with the buying and selling charges from the AMM, the mortgage yield would produce.
The snapshot for brand spanking new token holders of the Meteora token is slated for late December or early January.
The undertaking additionally introduced the issuance of the brand new tokens, the decentralization of Mercurial social media accounts, and the launch of its yield-generating product.
Furthermore, Mercurial blacklisted the hacker’s tackle from the airdrop. In 2023, it is going to make a significant resolution on what to do with MER tokens within the hacker’s tackle.
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