What is a Contract Migration & When do they occur? – Ryan CMO
Many crypto investors have or will experience a contract migration in their crypto career. If done properly contract migrations can be very beneficial to a cryptocurrency and to the holders. Recently Mandox just went through a contract upgrade or contract migration. I am going to talk about the process and why if it is done correctly, it is safe and beneficial to holders.
What is a contract migration?
When a crypto currency token wants to do a contract upgrade or relaunch giving their holders new tokens, there is a process that is called a migration. There are a couple reasons why this could happen. The first reason is that a development team sees benefits of having a new contract and can add more value to the token and its holders. The second reason is that a token fails and wants to do a relaunch, still giving the token and its holders a chance to be successful. The migration happens when the liquidity is transferred to a new contract and new tokens are sent to the holders, this process is called a migration.
What is the process? (simplified)
1. New contract is created
2. New contract is tested
3. Liquidity is added to the new contract
4. Tokens and holders of old contract are screenshotted
5. New tokens from the new contract are then airdropped to the holders of old tokens
6. Trading is then resumed and then new token/contract is now live.
7. During this process exchanges are notified (if any) that there is going to be a contract upgrade or migration
a. Exchanges then pause trading
b. Screen shot holders and token count
c. Replace old tokens with new tokens
d. Resume Trading
e. Because exchanges are big, you will have to allow for sometime for this process to be completed
If the contract upgrade is done successfully this can give holders and the token a fresh start to accomplish what they were set to do and attain those goals. For Mandox the migration was supper successful, we now have complete ownership of our contract which we didn’t have before because our contract was renounced. Another reason is that our contract is now flexible and can use it for our utilities we have planned. Exchanges also need to be whitelisted in order for listings and some require the taxes and burn mechanism to be removed, so we are now prepared for the future of top tier exchanges. We were also able to reduce supply and dev team holdings.
This was just a quick rundown to help you better understand the migration process. There are so many new people coming to the crypto space that may be confused as to how the process works and why it happens. This is not financial advice, just written to spread information.