QuickSwap asks the community to split or not split QUICK Token?

Decentralized exchange running on Polygon, QuickSwap has officially started a voting process related to QUICK. QUICK holders, the platform’s native governance and utility token, vote to reject or approve a process called “redenomination.”

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If approved, the QUICK token will be “split”, increasing the total supply from the current 1 million to 100 million or 1 billion. The latter will be decided by a post-vote if the community decides to approve the event at all.

In this sense, the current voting process started on March 12, with a snapshot, and will conclude on March 17. Holders of QUICK only have one question to answer: Should QuickSwap perform a token split to make QUICK more attractive?

The team behind the DEX calls this process one of the most, if not the most important, board decisions to date. There is apparently a lot of support for the split, but some of the QUICK holders have expressed their concerns.

The proponents of this proposal believe that QUICK is “undervalued” compared to other decentralized exchange tokens. As seen below, the total market of UNI, 1INCH, CAKE, SUSHI, DYDX and other similar platforms is sometimes billions. A much larger offer than that of QUICK.

Source: QuickSwap via Medium

As the chart also shows, tokens with a larger stock than QUICK have also seen a significant positive performance. DYDX and JOE, the tokens for dYdX and TraderJoe respectively, posted gains of +400% and a whopping +1,700%.

It is unclear whether QuickSwap’s native token will enjoy similar benefits. However, the team behind the platform believes that it will be beneficial for all token holders in the long run as it can help attract new users and boost adoption:

The QuickSwap team strongly supports this change, as after extensive market research, we believe this change will facilitate further integrations and attract new buyers who are currently deterred by QUICK’s high unit price.

Why does QuickSwap want to split its token?

The main concern for opponents seems to be the possibility of QUICK losing its value as a result of a larger supply. It seems to be a common idea in the crypto market that only fixed-supply assets can enjoy price increases.

The team behind QuickSwap has tried to allay these concerns. In an official post, they clarified that QUICK holders’ positions do not dilute nor lose value:

Each token holder would keep the value they had at the time of the split and the percentage of QUICK’s max stock. All a split would do is increase the total number of units, which lowers the price per unit.

Only users who keep their QUICK out of centralized exchange platforms such as Binance are eligible to vote. To participate, users must click on the following: clutch and connect their MetaMask wallet or other wallets compatible with the Polygon network.

As Coin-Crypto reported, the token split could bring more users to the DEX. In the crypto market, there are a few instances where this has happened. Polkadot (DOT), the 10th cryptocurrency by market capitalization, underwent a redenomination that some believe could increase the number of users and increase its value.

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At the time of writing, QUICK is trading at $172 with gains of 8.8% over the past week. The price appears to be reacting positively to the potential token split.

FAST trends down on the daily chart. Source: QUICKUSDT Trading Review

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