UP to UNIFI Migration #5 is coming
Migration #5 will open on May 10th, 2021
Key Points
- All potential migration participants should read and understand this entire document, all terms, conditions, and attachments before proceeding. Participating incorrectly or violating the terms and conditions can cause a loss of tokens.
- The Migration Madness event will start in May and extend into June. This series of migrations is inspired by UNIFI holder’s responses to Core Referendums and community input.
- The first in the series is Migration #5. Migration #5 will open on May 10, 2021 and close on May 17, 2021.
- All UP contributed to the migration process will be burned (not redeemed) at the end of the event. Burning UP benefits everyone.
- There will be 15,000 UNIFI available for this migration.
- It can take over a week after the migration closes to process a migration and make UNIFI claimable. Join Unifi’s social media to get updates as they available.
- UPDATE May 10, 2021: Migration on IoTeX is now available.
The integration of IoTeX into the migration process is under development. Join Unifi’s social media (links at the bottom of this article) to be notified if IoTeX integration becomes available during this series.
Unifi Protocol asked the community about migration
In April, Unifi posted its first Core Referendum to UNIFI holders. The topic of this referendum was UP to UNIFI migration. Migration is a critical part of the Unifi ecosystem as it allows liquidity providers on Unifi blockchains to participate in Unifi’s Global Governance Model (GGM).
The launch of Referendums is a very important first phase of the UNIFI GGM, giving UNIFI holders a meaningful voice in Unifi’s development. UNIFI holders can cast votes in proportion to the amount of UNIFI they hold. The Core Referendum on migration can be viewed by clicking here.
UNIFI holders speak — Referendum Results
The Core Referendum asked “Should Unifi increase access to UNIFI to Liquidity Providers through Migration?”
There were 5 choices to choose from. UNIFI holders clearly favored two choices, as the other 3 choices only received a combined 2.59% of the vote.
The highest voted choice was:
The second highest voted choice was:
The result was clear. UNIFI holders want to see a balanced approach to providing UNIFI governance access to liquidity providers, but are also concerned with how introducing additional UNIFI into the market will affect the trading value for current UNIFI token holders.
Migration is deliberately designed to be a flexible process. This allows it to adapt based on input from UNIFI holders via the GGM. Unifi has listened to UNIFI holders and is continuing to work on testing migration models that balance the concerns UNIFI holders have identified as important to them.
Migration Series in response to referendum vote
Beginning in May 2021, Unifi will be running a series of UP to UNIFI migrations. May is the beginning of Migration Madness! Each migration in this series will test out different styles or processes of migration that come from the community. The migration style for one of the Migration Madness series will be selected by UNIFI holders via the referendum process! As the migration process matures, migration may take many forms. This will provide different options for liquidity providers to migrate UP into UNIFI. The GGM will play a significant role in the maturation of the migration process.
What is migration?
Migration is the process of sending UP tokens to the Unifi Protocol. Those UP tokens are then burned. Based on the details of that specific migration, participants are then allowed to claim an amount of UNIFI tokens.
Unifi would like to remind the community that not all migrations will have the same process. Each migration is an individual event and participants should ensure they are aware of all details prior to participation. Unifi — as well as community members via Referendums — will be proposing and evaluating effective methods of migration that appeal to a diverse community. A variety of options for migrating UP to UNIFI is a benefit to the Unifi ecosystem.
Why is migration needed?
UP is the blockchain-specific liquidity farming token earned as a reward for liquidity providers. UP earned can then be migrated to UNIFI to give access to the UNIFI Proof of Stake ecosystem. This includes UNIFI holders having a meaningful voice in the GGM and earning UNIFI staking rewards.
More on the differences between UP and UNIFI can be found on Unifi’s Medium, or in this article on Tokens of the Unifi Ecosystem.
How will migration event #5 work?
Starting on May 10, 2021, UP holders will go to https://unifiprotocol.com/ and select the blockchain on which their UP tokens reside. In the UP tab of the uTrade app, there will be an option for UP to UNIFI Migration. Ensure the wallet address with the UP tokens is connected to uTrade.
The event will conclude on May 17, 2021. No exact open and close times for migration are being announced, so those that wish to participate are encouraged not to wait until the end of the given time period.
In migration #5, the ratio of UP to UNIFI will be based on the redeem value of UP on each chain. Liquidity providers earn UP based on the UP mint rate at the time the UP was earned. Since the redemption value of UP rises with each trade on that blockchain, UP earned will likely have a higher redeem value at migration than it did when it was earned. This means liquidity providers that farm UP with their liquidity have an advantage in migration over people who choose to purchase UP from the open market.
15,000 UNIFI will be available for migration #5, which is the first migration in the Migration Madness series.
In the Migration dashboard, input how much UP is to be contributed into the migration process. Provide the Ethereum address where you will want to claim the UNIFI. Participants will be able to claim their UNIFI at https://gov.unifiprotocol.com using the ETH address they had submitted. The user must have an Ethereum wallet that is compatible with Unifi (such as MathWallet or MetaMask) that can access and transact with that address using the private key. Information on supported wallets can be found here.
Note: UNIFI will need to be claimed using that address and will not be automatically distributed. ETH will be required to cover the Ethereum network cost of claiming the UNIFI.
If a participant attempts to contribute UP after the event is closed, the UP will remain in their wallet. This may still trigger a transaction fee to be charged by the blockchain. Therefore participants are encouraged to participate early in the event.
UNIFI will be claimable after the close of the event and the results are processed. Efforts are made to make UNIFI claimable promptly, however no claim date is promised. It can take a week or longer for migration processing depending on the circumstances. An announcement will be made when the UNIFI is claimable on Unifi’s social media outlets. All participants are encouraged to join Unifi’s social media to ensure they have the latest information on all migrations.
Current information on UP tokens for various blockchains can be found at https://unifi.report/.
How is the ratio of UP to UNIFI discovered?
1. UP tokens on each blockchain will be assigned a USD equivalent value (USDEV) based on the redeem value of UP on that blockchain. USDEV is calculated by multiplying the redeem value of UP on that blockchain in base tokens by the USD market price of that base token on Binance.
2. Each UP contributed to the migration process creates a claimable amount of UNIFI that is in direct proportion to its percentage of total USDEV participating in the migration process by UP tokens on all Unifi blockchains combined.
Example
Let’s make some assumptions for the sake of this example. We will only be looking at two blockchains in this example for simplicity. Also assume 10,000 UNIFI tokens are available for the migration process in this example.
Assume UPbnb can be redeemed on uTrade for 8 BNB, and BNB is valued at $600 USD. Then each UPbnb would be assigned a USDEV of $4800. The total amount of UPbnb contributed to the migration was 1, making the total USDEV on BSC $4800.
Assume UPont can be redeemed on uTrade for 6 ONTd, and ONTd is valued at $2. Then each UPont would be assigned a USDEV of $12. The total amount of UPont contributed to the migration was 100, making the total USDEV on Ontology $1200.
The total USDEV contributed to the event from all blockchains was $6000. $4800 from BSC, and $1200 from Ontology. In other words, 80% of the total USDEV was from BSC migration, and 20% was from Ontology migration.
The amount of UNIFI available for this example UP to UNIFI migration is 10,000 UNIFI.
80% (8000 UNIFI) will go to participants on BSC, and 20% (2000 UNIFI) will go to participants on Ontology.
If someone contributed 0.2 UPbnb ($960 USDEV) to the migration process on BSC, that was 20% the total 1 UPbnb that participated (0.2/1). So they would receive 20% of the 8000 UNIFI for BSC, which is 1600 UNIFI.
If someone contributed 80 UPont ($960 USDEV) to the migration process on Ontology, that was 80% of the total 100 that participated (80/100). So they would receive 80% of the 2000 UNIFI for Ontology, which is 1600 UNIFI.
Notice how the user on BSC contributed $960 USDEV and the user on Ontology contributed $960 USDEV, so they each received the same amount of UNIFI. But due to market prices of the base tokens, it only required 0.2 UPbnb while it required 80 UPont for the same result. It is important to realize the final outcome will depend on how much UP is contributed in total on each blockchain. It will not be possible to determine these ratios until the conclusion of the migration process.
User errors which could cause a loss of UP and/or UNIFI:
1. UNIFI for this event will be claimable as an ERC20 token on Ethereum. The participant must provide a valid Ethereum address where they can receive and interact with ERC20 tokens like UNIFI. Providing a Binance Smart Chain address, or address from any other blockchain, could cause a loss of UP and/or UNIFI. Unifi does not confirm or check addresses supplied. Invalid addresses (including those with an extra space in the address) will cause a loss of UP and/or UNIFI.
2. Incorrectly inputting the Ethereum address to receive UNIFI. Be careful for typos and missing/additional characters (including extra spaces).
3. The user must have the private key to the Ethereum address where the UNIFI is claimable. DO NOT use an Ethereum address of an exchange wallet.
Terms and Conditions
This article may be revised at any time, without notice, to reflect the most current information. Participants in the UP to UNIFI migration event should confirm the current information is current prior to participation.
The migration process is still a beta utility and no result is guaranteed. All participants should be certain they have read and understand the entire announcement prior to participating. The UP migration process is not reversible. There is no way to reverse the migration process and no refunds are possible for any reason. Unifi can not retrieve UNIFI made claimable at an address where the user does not hold the private key. UNIFI requested to be made claimable at an invalid Ethereum address will be forfeit. Unifi is not responsible for any loss associated with the UP migration process, regardless of cause. Migrating UP to UNIFI is a voluntary action taken upon by the UP token holder, and the UP token holder assumes all associated risk of token loss.
The migration process is dynamic and governed by market forces. No ratio of UP to UNIFI is suggested, implied, or guaranteed. The final ratio of UP to UNIFI will be determined after the close of the migration period. UNIFI will be available for claim sometime after the migration process has closed.
Additional Terms and Conditions related to Migration can be found here.
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