The Role of XMT on Denaria

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Hi everyone,

MetalSwap is going through a period of profound change. As already decided by the previous two votes on Snapshot, a new financial derivative will soon be added to the dApp, specifically the Perpetual DEX, and MetalSwap will undergo a rebranding process, changing its name to Denaria.

These changes require us, as a community and token holders, to reconsider the role of the XMT token within the new suite of derivatives.

Certainly, some elements will need to change, such as the incentive system, to align with the new product. However, I believe this rebranding and evolution process presents an opportunity for a deeper transformation.

In recent months, I have analyzed many “token swap” operations in DeFi, i.e., processes of migrating from an “old” token to a “new” one, all completed following rebranding efforts.

Some examples are: MKR → SKY; FTM → S; BTRFLY → DINERO; MATIC → POL; MUTE → KOI.

As mentioned earlier, I believe this is a unique opportunity to rethink the structure and purpose of our governance token. The token swap offers an exciting chance to revitalize the token and adapt it to the needs of Denaria’s new suite of derivatives. This approach will allow us to essentially start fresh and position the token in a new light.

I invite you to share your opinions so we can begin a conversation about it.

Diego.crv

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Hi Diego,

Very interesting topic, I also think it’s a good opportunity for a token swap for several reasons:

  • Rethinking the Token allocations based on new needs
  • Designing a solid revenue share system – maybe it’s time to abandon buybacks. I’ll address this in another post.
  • Avoiding confusion between the new Denaria brand and the fact that XMT refers to Metalswap since it’s named that way onchain.

I’m curious to know what other members of the community/DAO think about it.

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Hello Diego and to the whole community,

I fully agree that this rebranding process represents a valuable opportunity to rethink the role of the $XMT token within the new Denaria ecosystem. The rebranding is not just an aesthetic evolution, but a concrete opportunity to renew the identity and functionality of the token, better aligning it with new financial products, such as Perpetual DEX.

A token swap could not only resolve any confusions related to the old name, but also allow tokenomics to be restructured to fit future needs. In my opinion, this would give us the opportunity to build stronger governance and incentivise more active community participation, as well as improve the incentive system for users to interact with the new derivative instruments.

It would be interesting to explore how these changes could make Denaria even more competitive in the DeFi landscape.

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I agree with what you say, this is the best timeframe to rethink the token.

Regarding its allocation, I am curious to see what ideas there are in your minds. In this moment, and IMHO, I see a 1to1 change from XMT plus some rewards if vested - I’m pretty sure you have something more to discuss here.

It’s a good idea to change the revenue share system, we talked about that some time ago. I will read the thread about it with interest.

Naming: DENARIA is too long, let’s get a shorter ticker, better 3 or 4 characters. I see that other tokens have already been deployed on various chains with similar names, but none worth mentioning. I think we can simply choose the one that suits Denaria best, I would use DNR, XDNR or something similar to tie the token to the brandname.

I would add an argument about the reference blockchain: I am aware that all the development of XMT has been focused on the security of the Ethereum core layer, and it was a very good choice in 2021. So, now talking about a token swap, perhaps the time is ripe enough to consider token generation on a well-secured layer-2.
MetalSwap has already concluded interesting partnerships with Optimism and Linea, and can certainly have more appeal for other Layer-2s with the integration of the PerpetualDex tool. This can lead to new partnerships, new users, new liquidities, and new possibilities for brand awareness. Also new VCs, why not.

What do you think about it?

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Hey Diego and everyone,

I wholeheartedly agree that it’s time for change. The evolution of MetalSwap into Denaria and the addition of Perpetual DEX necessitates a reevaluation of the XMT token’s role.

It’s crucial that we retain the core functionalities of XMT as both a governance and utility token. This means ensuring it plays a meaningful role in the incentive structures of Denaria’s new derivatives suite.

When considering a token swap, it’s imperative that we maintain fairness and proportionality. Existing XMT holders should see their voting power and overall stake in the ecosystem preserved through a proportionate swap.

This is an exciting opportunity to revitalize the token and align it with Denaria’s vision. I’m eager to participate in further discussions about how we can best achieve this.

Let’s continue this important conversation.

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