# CP163: AIR to CFG Token Swap Pre-Altair Chain Deprecation **URL:** \ **Category:** Proposals\ **Tags:** centrifuge, cp4, 2025\ **Created:** [July 29, 2025, 6:32pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028 "2025-07-29T18:32:12Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![TheMarcus](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/themarcus/32/187_2.png) [@TheMarcus](https://gov.centrifuge.io/u/TheMarcus)\ **Post date:** [July 29, 2025, 6:32pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/1 "2025-07-29T18:32:12Z")
**cp:** 163 **title:** Proposal for AIR to CFG Token Swap Post-Altair Chain Deprecation **authors:** @TheMarcus **contributors:** none **uses-component:** cp4 **technical-proposal:** no **requires-onchain:** no **impacts/modifies:** none **status:** rfc **date-proposed:** 2025-07-29 **date-ended:** * * * **Short Summary** This proposal outlines a fair and equitable mechanism for swapping Altair (AIR) tokens to Centrifuge (CFG) tokens as part of the deprecation of the Altair chain on Kusama and the migration of Centrifuge’s governance and operations to Ethereum. * * * **High Level Objective** The goal is to protect AIR token holders’ value, maintain community trust, and align with Centrifuge’s transition to an EVM-based protocol. The proposed exchange rate is **100 AIR to 1 CFG** , based on market data, token utility, and community feedback, with the assumption that Treasury-held AIR tokens will be burned. * * * **Background** Centrifuge has successfully migrated its governance token (CFG) to Ethereum as part of CP149, consolidating legacy CFG and Wrapped CFG (WCFG) into a single ERC-20 CFG token with a post-migration total supply of **675,000,000 CFG** (including 115M newly minted tokens for strategic initiatives). The Altair chain, operating on Kusama, is proposed for deprecation, rendering the AIR token obsolete in its current form due to its primary use for transaction fees and governance on the Altair chain. This creates significant sell pressure on AIR and negligible buy pressure, risking value loss for AIR holders. The community has expressed interest in an AIR to CFG token swap to preserve value for AIR holders, as discussed in the RFC for an AIR to CFG Token Swap. This proposal builds on that discussion, incorporating market data, token economics, and community sentiment to propose a fair exchange rate. * * * **Description of Activity** The proposed exchange rate of **100 AIR to 1 CFG** is derived from a combination of market-based valuation, token utility analysis, and community considerations. Below is the rationale: - **Market-Based Valuation** : - **Token Utility and Ecosystem Role** : - **Community Feedback** : - **Treasury Burn Consideration** : - **Impact on CFG Supply** : * * * **Swap Mechanism** - **Eligibility** : - **Swap Process** : - **Timeline** : - **Treasury Burn** : - **Support** : * * * **Change or Improvement** - **For AIR Holders** : Preserves value by converting obsolete AIR tokens into CFG, enabling participation in Centrifuge’s EVM-based governance and ecosystem. - **For CFG Holders** : Minimal dilution (0.37% of total supply) ensures existing governance power is largely unaffected. - **For the Centrifuge Ecosystem** : Strengthens community trust by addressing AIR holders’ concerns, aligns incentives with the EVM transition, and simplifies tokenomics by consolidating to a single token. - **For Governance** : Maintains decentralized control by allowing AIR holders to transition into CFG-based governance, ensuring broad participation in Centrifuge V3. * * * **Risks and Mitigations** - **Risk** : Market volatility could alter the perceived fairness of the 100:1 ratio. - **Risk** : Low participation could leave some AIR holders with obsolete tokens. - **Risk** : Technical issues with the swap contract. * * * **Community Feedback Requested** - Is the 100:1 ratio fair, or should alternative ratios (e.g., 50:1, 150:1) be considered based on additional metrics? - Should the swap include a vesting period for CFG tokens to prevent immediate sell pressure? - Are there additional support mechanisms needed to ensure a smooth transition for AIR holders? * * * **Alignment to the mission of Centrifuge DAO** The proposed 100 AIR to 1 CFG swap offers a fair and equitable solution for AIR holders, aligning with market valuations, token utility, and community sentiment. By implementing a transparent, EVM-based swap mechanism and burning Treasury-held AIR, Centrifuge can maintain trust, minimize dilution, and fully transition to its Ethereum-based future. This proposal invites community feedback to refine the approach before moving to an on-chain vote. * * * **References** : - CP149: Migration of Centrifuge Governance Token (CFG) to EVM - Altair Chain Deprecation Proposal: [https://gov.centrifuge.io/t/deprecating-altair-chain](https://gov.centrifuge.io/t/deprecating-altair-chain) - RFC: AIR to CFG Token Swap Post-Migration: [https://gov.centrifuge.io/t/rfc-air-to-cfg-token-swap-post-migration](https://gov.centrifuge.io/t/rfc-air-to-cfg-token-swap-post-migration) - CoinGecko (Altair): [https://www.coingecko.com/en/coins/altair](https://www.coingecko.com/en/coins/altair) - CoinGecko (Centrifuge): [https://www.coingecko.com/en/coins/centrifuge](https://www.coingecko.com/en/coins/centrifuge) - Centrifuge Docs: Legacy CFG/WCFG Migration to Ethereum - CP141: Initiate the Development of Centrifuge V3 This proposal aims to balance fairness, simplicity, and ecosystem alignment. Please provide feedback on the Centrifuge Governance Forum to refine this RFC before it proceeds to an on-chain vote. * * * The RFC will be open for a minimum of 7 days. Looking forward to any feedback and any concerns you might have with this proposal. * * * **Next steps** If there is support for this proposal, the next steps will be to submit it to the Proposal Repository on GitHub and create an Opensquare snapshot vote. * * * Update 11/06/2025: - The proposal CP163:AIR to CFG Token Swap Pre-Altair Chain Deprecation was uploaded on GitHub - [cps/cps/CP163.md at main · centrifuge/cps · GitHub](https://github.com/centrifuge/cps/blob/main/cps/CP163.md) Next step Author of the proposal will initiate the offchain voting via Opensquare with the duration 7 days. - The OpenSquare [snapshot vote for CP163](https://voting.opensquare.io/p/1671) has been created and will last for exactly 7 days from today. Please cast your vote. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [July 29, 2025, 11:07pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/2 "2025-07-29T23:07:47Z")
Good day there! Thank you for posting this proposal. As a simple CFG token holder, I have a couple of questions that I hope you can answer: > [@TheMarcus](#): > > **Alignment to the mission of Centrifuge DAO** > > The proposed 100 AIR to 1 CFG swap offers a fair and equitable solution for AIR holders, aligning with market valuations, token utility, and community sentiment. By implementing a transparent, EVM-based swap mechanism and burning Treasury-held AIR, Centrifuge can maintain trust, minimize dilution, and fully transition to its Ethereum-based future. This proposal invites community feedback to refine the approach before moving to an on-chain vote. 1. What is the alignment and benefit that CFG token holders and Centrifuge DAO are gaining with this proposal? From what I can read, it’s all about the AIR token holder benefit, but a significant portion of CFG should be given to AIR token holders. 1. What exactly will Centrifuge CFG Token holders receive by providing 2,500,000 CFG tokens? What is the KPI? 2. > [@TheMarcus](#): > > - Swap window opens 30 days after governance approval and closes 6 months later to allow ample time for participation. By CP149, the migration deadline was set by 30th November 2025. Based on the indicated timeline of 6 months from now and an additional 30 days, the deadline for the migration will be set to ~ 1st week of March 2026? > [@TheMarcus](#): > > Unswapped AIR tokens will become obsolete upon Altair chain deprecation (expected Q4 2025). Here i see another deadline that is 3 months earlier…. ---
**Author:** ![TheMarcus](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/themarcus/32/187_2.png) [@TheMarcus](https://gov.centrifuge.io/u/TheMarcus)\ **Post date:** [July 30, 2025, 2:43am UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/3 "2025-07-30T02:43:04Z")
Hey @ImdioR… Here are my thoughts on your questions: 1. Centrifuge is a community. One that is comprised of individuals who have participated and supported all aspects of the community, including Centrifuge chain/services and Altair chain/services. 2. There isn’t a specific benefit to CFG token holders that comes from this proposal, but there is most definitely a benefit to the Centrifuge community. This plan presents harmony and cohesion among the entire community (those who have participated in Centrifuge, Altair, and/or both) without disregarding anyone as the aspects of it shift and change. 3. You’re correct on this contradictory elements of the proposal. Unswapped AIR tokens will become obsolete upon the completion of the swap window, not upon deprecation of the Altair chain. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [August 2, 2025, 7:49pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/4 "2025-08-02T19:49:11Z")
> [@TheMarcus](#): > > You’re correct on this contradictory elements of the proposal. Unswapped AIR tokens will become obsolete upon the completion of the swap window, not upon deprecation of the Altair chain Could you please specify the actual deadline for the token swap if this proposal passes? It is unclear. 1. The Centrifuge Migration deadline is set by the 30th of November 2025, and the Altair migration deadline will be in 1st week of March 2026. As well, how will that work? 2. Who will maintain the Altair chain? If the chain is halted, how will the migration work? Right now, on the Centrifuge chain the migration process looks like: 1. User connects the wallets (substrate +evm) 2. Sign the transactions (both wallets) 3. Tokens from substrate\wcfg are transferring into the [modlcfg/lock](https://centrifuge.subscan.io/account/4dpEcgqFp38bzzT5VruKgbfVs6zcDMFRKUetx3fz2ndLRHMu) 4. User paid CFG (50 CFG) tokens for the migration that covers the costs and gas fee 5. New minted tokens are transferred into the EVM wallet. - If the chain is halted, how will the migration process work? ---
**Author:** ![TheMarcus](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/themarcus/32/187_2.png) [@TheMarcus](https://gov.centrifuge.io/u/TheMarcus)\ **Post date:** [August 2, 2025, 8:25pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/5 "2025-08-02T20:25:16Z")
Good questions @ImdioR. Until you brought this up, I was thinking that the Altair chain didn’t need to be running for the swap as despite the chain no longer being operational, the AIR tokens would still be in our wallets. But without the chain, there is no way to send/migrate the tokens. So yes, the swap would need to occur BEFORE the deprecation of the Altair chain. As such, we would need an exact date for deprecation of the Altair chain from @jeroen in order to set the last day for AIR to CFG token swaps. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [August 11, 2025, 12:30pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/6 "2025-08-11T12:30:56Z")
The proposal CP163:AIR to CFG Token Swap Pre-Altair Chain Deprecation was uploaded on GitHub - [cps/cps/CP163.md at main · centrifuge/cps · GitHub](https://github.com/centrifuge/cps/blob/main/cps/CP163.md) Next step Author (@TheMarcus )of the proposal will initiate the offchain voting via Opensquare with the duration 7 days. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [August 11, 2025, 5:57pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/7 "2025-08-11T17:57:50Z")
The OpenSquare [snapshot vote for CP163](https://voting.opensquare.io/p/1671) has been created and will last for exactly 7 days. The proposal Start date Aug 12 2025 15:00 Please cast your vote. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [August 19, 2025, 7:25pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/8 "2025-08-19T19:25:16Z")
Good day there. The proposal hasn`t reached the quorum. As a result, the proposal was rejected. ![image](https://europe1.discourse-cdn.com/flex013/uploads/centrifuge1/original/2X/f/fde2a76f98ccab6ab96c1f154b4f44874b5e4f00.png) ---
**Author:** ![TheMarcus](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/themarcus/32/187_2.png) [@TheMarcus](https://gov.centrifuge.io/u/TheMarcus)\ **Post date:** [August 19, 2025, 9:07pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/9 "2025-08-19T21:07:04Z")
An unfortunate result, but the DAO has spoken (or in this case, not spoken). As such, Good KarMa has unbonded and concluded our Altair collator services. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [August 19, 2025, 9:57pm UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/10 "2025-08-19T21:57:26Z")
Thank you for your efforts, @TheMarcus Hope that your decision to leave Altair Collators (which I fully understand) will not affect your Centrifuge Collator ---
**Author:** ![TheMarcus](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/themarcus/32/187_2.png) [@TheMarcus](https://gov.centrifuge.io/u/TheMarcus)\ **Post date:** [August 20, 2025, 1:43am UTC](https://gov.centrifuge.io/t/cp163-air-to-cfg-token-swap-pre-altair-chain-deprecation/7028/11 "2025-08-20T01:43:35Z")
Definitely not. Our Centrifuge collator will remain operational until the completion of the migration and longer if needed.