RFC: AIR to CFG Token Swap Post-Migration

Altair Governance
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Short summary: Provide the opportunity for AIR token holders to swap their AIR to CFG post migration to EVM.

High-level objective: Altair contributors, supporters participants, and token holders should be taken into consideration with the impending migration of Centrifuge to EVM. This proposal aims to allow AIR token holders the ability to swap to CFG post EVM migration at a predetermined and fair rate.

Background: With the successful passing of CP141 and the current proposal of CP149, Centrifuge is set to migrate from the Dotsama ecosystem to the EVM ecosystem. As such, both the Centrifuge and Altair substrate parachains will be halted at a currently unspecified/known date as part of the migration process.

CP149 outlines a clear approach and process for the conversion of CFG and WCFG tokens to the new EVM CFG token. However, aside from the plan of sunsetting and halting the Altair parachain, there are currently no plans for the associated AIR token moving forward.

Currently, the AIR token has the following metrics (according to Subscan):

  • Total Issuance: ~457,532,000
  • Circulating: ~305,971,000 (66.87%)
  • Treasury holdings: ~85,601,000 (18.70%)
  • Others holdings: ~65,959,000 (14.41%)
  • Holders / Total Accounts: 30,418 / 33,470

Meanwhile, the CFG token has the following metrics (according to Subscan):

  • Total Issuance: ~561,420,000
  • Circulating: ~484,550,000 (86.30%)
  • Treasury holdings: ~27,606,000 (4.91%)
  • Others holdings: ~49,262,000 (8.77%)
  • Holders / Total Accounts: 55,979 / 60,819

Proposed Opportunity: The Altair Parachain, as the long-standing test network for the Centrifuge project, has provided positive value and attracted TVL since launch. We believe the fair value is equal to 20% that of the Centrifuge Parachain for the project. As such, we propose the idea that AIR token holders be given the opportunity to swap their AIR tokens for CFG tokens as follows:

Token Swap Ratio: 1 AIR : 0.2 CFG

NOTE: This opportunity would not be available to the Treasury’s holdings which would be excluded from the proposed swap opportunity.

This would equate to ~74,386,000 CFG being distributed from the new proposed total supply of 675,000,000 CFG (of which 115,000,000 will be newly minted) to those that choose to participate in the swap opportunity. All AIR tokens utlized as part of this swap process will be burned.

Calculations: (305,971,00 AIR Circulating + 65,959,000 Others Holdings) * 20% = 74,386,000 CFG

Conclusion: With the impending deprecation of both Centrifuge and Altair Parachains and the imminent migration of CFG to an EVM-based token, we believe the migration should include those who hold AIR tokens (which are also part of the Centrifuge project and ecosystem) and include them in the migration/swap process.

This RFC is being put forth by the team at Good KarMa Capital and will be open for a minimum of 7 days. In full transparency, Good KarMa Capital operates collators for both the Altair and Centrifuge Parachains.

We look forward to any feedback, comments, questions, and concerns you might have with this proposal.

If there is support for this proposal, the next steps will be to submit it to the Proposal Repository and create an Opensquare snapshot vote.

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I like this idea a lot as well, Marcus.

One of my first crowd loans on Kusama was Altair, because I’ve always believed in Centrifuge’s mission and vision to tokenize RWAs. Moreover, like you / Good KarMa Capital, Lucky Friday also operates collators for both chains.

Even if the ratio isn’t set at 0.2 CFG per Altair token, there should be some consideration for the chain and tokens to be converted at a specific rate (personally I would love to have 0.2 CFG for the Altair tokens I own, which, admittedly, is not a lot).

Thanks for raising the proposal and posting the RFC!

Cheers,

Ryan / Phunky

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