Governance & Token Swap

Alex Hidalgo
· 3 min read
Storm X AMA 1200 632px 12

Hello StormX community!

This October we will have the biggest and most important StormX governance vote since its creation.

With Ethereum’s upgrade to POS, we will be upgrading our smart contract to be upgradeable and, as a result, will need to have a token swap.

The new StormX token is being created to ensure the project is flexible and future-proofed against any upcoming changes to the Ethereum ecosystem. The token will be upgradeable following OpenZepplin’s proxy contract pattern and audited before release.

Token holders and exchanges can swap their old STMX tokens for the new token using the swap.stormx.io dApp. There are no changes to the token ticker name or logo. Gas is required for the swap and is paid for by the user.

The swap will not be closed until the governance community votes to close it. We are aware many users have their STMX tokens locked in Voyager. As a result, a vote should not be proposed until STMX token holders in the Voyager community regain access to their funds.

Changes to Staking

As many of you know, our staking program has been a user incentive to grow the StormX ecosystem and users for the past few years. It was funded by treasury starting at 50% and has continuously decreased until today’s rate at 6.5%.

As part of the smart contract upgrade, we will implement a new staking logic to make staking more sustainable without relying on treasury, which will eventually send staking rates to zero.

We will implement a staking fee similar to many DeFi protocols with a cooldown period. Any user that wishes to unstake in the new contract will have a 14-day cooldown period. If the user unstakes before the timer ends, then they will incur a 10% penalty on their rewards plus their principal. For example, if a user has a principal of 100 STMX tokens and a reward of 10 STMX tokens and they unstake early, that user will incur a penalty of 11 STMX tokens. If the user waits 14 days, then they will incur no penalty.

Only the new STMX token can be staked in the new staking contract and can be done at staking.stormx.io.

StormX’s current staking contract will change its reward rate to 0% late November, 2022. A new staking contract will be available at a starting rate of 10% late November, 2022.

Governance vote for Growth Pool

For the past five years since the StormX (formerly Storm) token was launched, there has been no inflation in the total supply. With this upgrade, we will propose a growth pool to increase the max supply by 25% over the next three years.

If the community votes to create a Growth Pool by October 6th, 2022*, then the total supply of the new token will increase by 25%. The Growth Pool will be used to pay for membership and staking rewards and partnerships. If the Growth Pool is not passed, the total supply will remain unchanged.

With the debit card, shop products, and future growth we have planned, we’d like to be aggressive with rates in a bear market to continue growing the ecosystem when the opportunity is the greatest.

Year 1: 10%

Year 2: 10%

Year 3: 5%

We believe this growth pool will be the best for the further expansion of StormX. We are placing the hands of this vote to the StormX users and community through ATH governance.

As always, thank you for your continuous support of StormX, and we will be setting up a governance call on Wednesday to address questions as well.

*Vote will run September 28th until October 6th Thursday next week.

Token Contract Details

Old Token

Ticker: STMX

Logo: Current

Contract: 0xbE9375C6a420D2eEB258962efB95551A5b722803

New Token

Ticker: STMX (no change)

Logo: Current (no change)

Contract Address: TBD

New Staking Contract

Contract Address: TBD

Swap Contract

Contract Address: TBD


Keep reading