Introducing the Upgraded Bankera Token
Next week, we are launching the upgraded version of Bankera token to make it compliant with ERC-20 standard instead of current ERC-223 as well as to limit token supply to just 10,000,000 tokens. We expect this change will contribute to better adoption and popularity of Bankera token. In this blog post we will explain main features of the upgraded Bankera token (we will call it BNK-20 in this blog), what will happen to current Bankera tokens (we will call them BNK-223 in this blog) and what opportunities this change will open for Bankera.
The upgraded token BNK-20 is based on the ERC-20 standard, unlike the current original BNK-223 token, which is based on the ERC-223 standard – an advanced version of ERC-20. This decision was made in conjunction with the current trends as the crypto world continues using ERC-20 as the dominant standard for the Ethereum tokens. By rolling back the standard of our token and having an ERC-20 compliant token, we will be able to list it on various decentralized exchanges (DEXes) and decentralized finance (DeFi) projects such as Uniswap, 1inch and others. This will not only provide more visibility for the token and the Bankera project, but will also add more liquidity and price source points for the Bankera token, and the opportunity to employ BNK-20 tokens in liquidity pools.
One more change is that we will limit the total token supply of BNK-20 to 10,000,000. There are several reasons to do so. Firstly, it will reduce the theoretical hard cap and eliminate potential questions regarding the Bankera tokens that could be minted/issued in the future. Secondly, it will be easier to do market making and provide liquidity, as currently, even small increases in price quotes might result in a change of several percentage points, creating arbitrage opportunities and making market making of the BNK-223 token unfeasible. Hence, more market making will provide more liquidity for BNK-20 tokens.
The original BNK-223 token’s contract on the ethereum blockchain is 0xc80c5e40220172b36adee2c951f26f2a577810c5, while the upgraded BNK-20 token’s contract contract on the ethereum blockchain is 0x7707aAdA3Ce7722Ac63B91727DAF1999849F6835.
Burning and decreasing the supply
The weekly revenue attributed to BNK-20 tokens will be used to repurchase and burn BNK-20 tokens, thus reducing the outstanding supply of BNK-20 tokens and potentially contributing to their higher value in the long term.
For example, if weekly net revenue (WR) is 1,000,000 EUR and 3,000,000,000 or 30% of all outstanding BNK-223 tokens have been converted to 3,000,000 BNK-20 tokens there would be 7,000,000,000 BNK-223 tokens left and 3,000,000 BNK-20 tokens minted (issued). Hence, 700,000 EUR (70% of 1,000,000 EUR) will be distributed as weekly net revenue to BNK-223 token holders (same as now), while 300,000 EUR (30% of 1,000,000 EUR) will be used to buy back BNK-20 tokens in the market to be burnt. This is illustrated in the diagram below:
Furthermore, the current BNK-223 token supply is at 10,924,176,189, and the exchange ratio is 1:1000 between BNK-20 and BNK-223 tokens. This means that by issuing the BNK-20 tokens, we will burn (take out of supply) 924,176,189 of the current BNK tokens, which equals nearly 8.5% of all outstanding BNK-223 tokens.
What will happen with the current BNK-223 token?
Nothing. The BNK-223 token will continue to operate as it did until now, and token holders will continue to receive weekly revenue as they always did. However, BNK-223 token holders will have the opportunity to exchange their BNK-223 tokens for the BNK-20 tokens at a rate 1:1000 at SpectroCoin. BNK-20 token can also be seen as 1,000 BNK-223 tokens being wrapped. The weekly revenue attributed to the current BNK tokens, which will be taken out of supply in exchange for the BNK-20 tokens, will be used to buy back and burn the BNK-20 tokens, reducing their outstanding supply over time.
After releasing the BNK-20 token, we will start creating liquidity pools on various decentralized exchanges to provide more liquidity for the BNK-20 token. Also, we will explore options on centralized exchanges (CEXes), which were limited due to the infeasibility of market-making.
In summary, the upgrade should make:
- BNK-20 token more visible and available to more traders and investors due to listings on new decentralized and centralized exchanges
- Market making of BNK-20 easier, which would result in higher liquidity
- Overall supply of BNK-20 to decrease overtime by so making it deflationary
- New opportunities to earn by holding BNK-20 and providing it to liquidity pools
And all this in addition to already existing BNK-20 token utilities:
- Lower interest rates for crypto loans at SpectroCoin Loans
- Discounts for business accounts opening at Bankera
- Free trading of Bankera token pairs at SpectroCoin Pro exchange.
15 February, 2022