Polkadot revealed new details of its upcoming Denomination Day where the native DOT token will undergo a redenomination as we are reading more in the upcoming blockchain news today.
The block number 1,248,328 new DOT tokens will be 100 times smaller than before and with the user balances showing as 100x higher and the price will be lowering by the same multiplier. On August 21, DOT tokens will undergo a redenomination from its original sale and new tokens will be 100x smaller than the old. As outlined in their blog post, the redenomination and the percentage of DOT owned by holders relative to the total supply will still be unchanged and the value of the users will be completely unaffected. Ecosystem projects displaying DOT values were used to split the currency, modifying the number of the base units that form one single DOT on the front end.
The interchain protocol led by ETH co-founder Gavin Wood, Polkadot acquired an additional $43.7 million in funding in a three-day private sale. During the 2017 ICO boom, the company raised $145 million in the capital. As Polkadot revealed, the redenomination follows a vote from two months ago in Kusama where the decision was made to change the token denomination. Fearing that the community views could not be in line with the Polkadot ecosystem, the Web3 Foundation made more research and considered alternatives such as introducing a new name for the Denomination of DOT. The original vote was upheld with the majority of the stakeholders backing 100x redenomination.
Three days before the Denomination Day, the DOT transfers will be enabled at block number 1,205,128. Some service providers with questions concerning the process are being encouraged to contact the Web 3 Foundation. In the network, the native DOT token serves three main purposes, staking, bonding and network governance. Fees for transporting messages across the chains are denominated in the DOTs. The D-Day is said to be inspired by the Decimal Day 1972 when the UK government abolished the shilling. Web3 foundation which founded Polkadot, warned the users about the low DOT prices saying that any DOT trading currently is unsanctioned:
“Impatient exchanges have implemented the 100x DOT split before our community is ready to make the change. Such actions put users at risk and may lead to fraudulent activity.”
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