[Poll]: full OMNI to ERC20 swap

[krnelson]

@davidpbrown

What problem is this solving?

I voted yes because it solves quite a lot of problems, in addition to hedging risk:

1. MAID-ERC20 provides a bridge to where the majority of the decentralised developers currently work and have invested their liquidity. Developers who will be seduced by the SN technology, come over and become dApp developers over a period of time after the SN launches and gains traction, earning trust as it continues to secure larger and larger amounts of value. This goes beyond SN launch date as a single event where Maid just stops on that date.

2. It opens up Maid to CEX and DEX markets that do not and will not support omni tokens. This is the majority of the market.

3. It allows people with even small amounts of MAID-ERC20 to provide them as liquidity to large markets such as Uniswap, earning fees while maintaining control of their private keys, reducing risk off loss and improving the liquidity of the market for Maid at the same time, which ties into…

4. Improved Price discovery. Helping zone in on the true value of the Safe Network and its utility token. This has not happening as efficiently under the extremely limited market that Omni protocol offers access to. A few that have opposed MAID-ERC20 swap in the past have cited that maintaining Maid-Omni keeps the it from circulating, keeps the price lower and allowing early adopted to accumulate more at cheaper prices. This is true, but I think this is fairly selfish thinking as the true value for SN will only be unlocked when there is Secure Access For Everyone. Everyone can’t be involved if there is little to no access to the Maid or later the SN Token soon after launch. Note that the market infrastructure for delivering SN tokens into the hands of people will likely not be available immediately on the SN launch, perhaps even for quite some time after launch other than farming - but most of the market use mobiles only that may not be able to farm right away (?). Maid-ERC20 helps with the “Everyone” part of the Safe name.

5. Supported by a very large list of wallets, hardware, desktop and mobile.

@digipl

2.- This swap requires the payment of taxes in most countries, including Great Britain. To think that this will not happen is immensely naive. This fact could endanger the company itself.

This has been stated like this for several years now. It would be constructive to see a least a little evidence this time around because it has always appeared to be framed as extreme fearmongering to me:

When you transfer 100 (Pounds, dollars, yen, frequent flyer miles, whatever can be taxed) from account A to account B, it is still 100 and there is no taxable event if accounts are owned by same person or entity. You are not redeeming your flyer miles, your not loaning them to yourself, your not exchanging asset classes. It does not matter than account A uses some new Fintech protocol technical system with pooled funds to store its 1s and zeros vs account B that uses a completely different protocol or keeps those accounts on paper in a cabinet. It also does not matter that the price of the asset fluctuated vs some other asset class. When we transfer 100 MAID (Omni) to 100 MAID (ERC20) some people are stating that the transfer is a taxable event. In my tax experience it sounds like quite an extraordinary claim. Transfers are not transactions, or loans unless you decide to change who owns them. Only transactions are considered taxable events and transactions only happen when there is a change in asset class, at least in any jurisdiction I have been taxed in. Filled out enough damn tax forms to recognise this basic difference. I am happy to be educated about how your individual exotic local rules tax transfers as well as transactions (extraordinary claim, lets see the extraordinary proof). In the unlikely event that some people do pay taxes on transfers as well as transactions, then please also add reasons why we should hold back on all the benefits because of it? Or are we just trolling @dirvine past negative experiences with the tax authorities and hoping for once burnt twice shy reaction to bolster a very weak premise?

@anon61899651

Sure, we can add ourself to Uniswap which is great. On the downside however, we risk getting delisted from the 3 exchanges that we currently have.

No, this is very unlikely based on recent example, the fear your expressing is unfounded. The smaller Tauchain project with their Agoras Token (AGRS) transitioned perfectly on three exchanges including on Maids biggest exchange, Bittrex. ERC20 transition is actually cheaper and more secure for exchanges to maintain because literally nobody else but Maid uses Omni. So exchanges get to reduce their support costs and increase security. Note that Agoras Token has a much smaller market cap than Maid and it was even then still worth Bittrex facilitating the swap. The larger market cap Maid will reduce much more operation risk for the exchanges.

Add on top that the amount of quality exchanges Maid-ERC20 would open Maid-ERC20 up to far outweighs the almost non-existent risk.

@amaizenblue

I have a question about OMNI. It is my understanding that its a pretty stagnant project. If it ends up taking longer than we think to get to SNT launch, is there a chance we lose that functionality, say 2 years down the road?

I do no think the functionality will be lost so much as it just stops being updated like appears to already be the case. Omnicore development looks like it is just treading water and Omniwallet is already underwater with lots of outstanding issues on the log. Only a real concern if a security issue is being exploited and there are no capable devs or users with enough eyes on it to notice in time for real damage to be done. Are there community members that track or participate in Omni development and monitor for security events?

@Josh

Both Thorchain and Sifchain are about to launch crosschain DEX’s. It may be worth waiting to see if they implement OMNI. Both will allow crosschain bitcoin trading.

Note that we have a very credible Omni DEX already, and nobody uses it (see second half of post here). Maid.ERC20 is not just about access to a DEX. Note also that cross chain swap DEX technology has been around for a few years on several chains now yet there has been no traction. Some claim they are complicated, slow, high frequency of rollback etc. Even if these secondary market cross chain DEXs you list do buck the trend and manage to launch successfully, they will not address the reasons I gave for voting Yes above. Not worth waiting for a “maybe” vs what we would be giving up.

@Traktion

1.Did any of the projects that switched reap clear benefits in terms of liquidity and asset price and were these sustained?
2. Were these other projects using OMNI as a temporary (like we are) or permanent token?

1: Liquidity wise, yes. Since Tauchain announced that AGRS would transition to ERC20 they got a big spike of activity, then a pullback, and since the conversion both liquidity and price appear to have been ticking consistently up, probably because of the reasons I list in point #4 for voting Yes above.
2). AGRS(Omni and ERC20) is a temporary transition coin to be converted when their project launches, just like Maid.