[Poll]: full OMNI to ERC20 swap

Yes, having the option for MAID holder to choose when to convert their MAID should remove any issues.

Worst case would be a forced conversion right and the end of a bull market, with prices tanking right after the conversion.

Imagine for example MAID was at 10$ and someone had bought 100 000 MAID at the ICO. Those MAID would then be worth 1 million dollars. Then that person wasn’t keeping up to date with everything that’s going on every day and a forced conversion happened. Then a little while later the price is at 1$ and that person is getting a tax bill for, say 20% of 1 million, which is 200 000$. Yet the coins that person is holding is at the time only worth 100 000$, so in the end they might end having to sell all their coins and still owe 100 000$. Tax authorities don’t care if it’s a bear market and won’t wait until prices raise. Instead maybe they’d just forcibly sell their house to cover the rest of the tax bill.

Forced conversions, whether it’s to MAID-ERC20 or SNT, have the risk of potentially getting lots of people into this kind of situations if the timing is bad.

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Forced conversion allows for it to not be a taxable event in some places.

So forced but at your own time is the sweetspot I think.

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Can you elaborate? I think ‘forced’ means at a particular time, so not a time of your choosing.

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Im just going of what I read in earlier posts.
Of course interpretation is important, especially by tax authorities.

To my mind forced means compulsory, which the swap is, maid will be useless, infact are useless except to trade and convert, that is their whole purpose, to be converted, I see that as forced, but as I said, interpretation counts.


We agree on forced meaning compulsory, in which case how can forced be at a time of your choice? I think it is one or the other!


Opinions vary, compulsory means must be done, doesn’t need to have a time limit on it.

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It isn’t so much ETH2 that will be the difference maker, but moreso the DEX moving to layer 2. Uniswap v3 will soon launch on an L2 and the fees should be very low

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@Mendrit here you can see the fees: https://etherscan.io/gastracker

This is how things are at the moment:

$ 213 to buy / sell on the ethereum network in a DEX (UniSwap)…

This is very bad, but it is not the whole story. The Ethereum network is starting to split into sidechains - you can think of them as the Sections in the Safe Network.

Sidechains are emerging mechanisms that allow tokens and other digital assets from one blockchain to be securely used in a separate blockchain and then be moved back to the original blockchain if needed. Sidechain functionality holds tremendous potential to enhance the capabilities of existing blockchains.

Each sidechain is connected to the ethereum network through smart contracts. The fees in the sidechains are incredibly small. For example, to buy / sell in the copy of UniSwap called QuickSwap in the Matic sidechain the price is 0,000277421$ (0.000311 matic fee * 0.892028$ for 1 matic)


The first complete fork of the Ethereum network - the Pulse network - is coming soon. This means that absolutely all tokens, smart contracts, DEXs - everything - will be copied.

If this proves successful, and the copy is made by Richard Heart, ie. most likely it will be successful, we can expect a real boom of sidechains. Why? Currently, these sidechains are connected with smart contracts to the Ethereum network, for which there are admin keys, ie. in theory, someone could steal the money from them.

What Pulse will present is smart contracts connecting the Ethereum network without admin keys. I personally expect this to give a huge boost to the emergence of new “sections” of sidechains.

In conclusion, ETH 2 will not reduce fees, but sidechains will lock billions and billions of dollars (there are already several billions in Matic - for example, UniSwap’s copy alone has $ 500 million in liquidity) and you will be able to trade cheaply there and you will be able to take fiat out through direct ramps connecting the sidechain to the banking system - see Ramp, it has a Matic / Fiat bridge:

Privacy. Security. Freedom


I just remembered i mined some XDN and reading about XDN i found they did a wrapp token for binance chain wXDN with https://wrapping.services/ they have other coins i never heard also MonetaryUnit, Crown, DigitalNote, BitCash, Audax, Zero, IQ.Cash


Why do I need a wrapped token for my coin that has its own blockchain?

Wrapped tokens can be used on decentralized exchanges. And once you have a wrapped token you can trade them on any DeFi exchange.

What type of tokens can you create for me?

Our standard tokens are BEP20 tokens, that we deploy on Binance Smartchain. On request we can also make BEP2, TRX or ETH tokens.

Do you offer ERC20 tokens on the Ethereum Blockchain?

We can build an ERC20 for your project. But actually the transaction fees on Ethereum are to high to be attractive for most projects. Feel free to contact us if you prefer an ERC20 token over BEP20.

Can I keep the trustfunds myself?

Yes, that is an option, but we don’t manage the swapping of coins to tokens, and vice versa. But we can make a smart contract, deploy it, and give you the ownerships of the contract.



MonetaryUnit Development

The company started out in 2014 as one of the earliest cryptocurrencies with its altcoin MUE. Its chief focus has been on increasing the accessibility of cryptos among the masses. The community and the project team has been working on a number of innovations to keep the currency on an upward graph ever since its foundation.


Ah, MUE… Once upon a time I thought to help that project out. Would love to see them turn it around, but MUE is an example of what happens to a well-intentioned project that lacks sound business strategy and acumen.


It occurred to me that the launch of PulseChain would be interesting because 100 million Ethereum users would receive a copy of their tokens from Ethereum to Pulse, which is similar to MAID OMNI to MAID ERC20. It will be interesting to see if anyone pays taxes.

@krnelson what do you think about that?

Privacy. Security. Freedom


I think they would be taxed like regular air drops, which I believe, in the U.S. is like regular income. But only when they are sold or traded.

I’m by no means an expert, so…grain of salt…

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It’s very different, because the issuers of ERC20 tokens have obligations to token holders of their ERC20 tokens, but zero obligations to holders of copies of those tokens.

If I made a new chain called ‘fakeETH’ and gave you 1000 fakeETH, as long as it had no value (which it shouldn’t have), you wouldn’t need to pay tax on it.

I still don’t think changing the format of a token (e.g. MAID omni to MAID ERC20) should create a taxable event, just as a share trading platform upgrading their database software doesn’t create a taxable event for those who hold shares on that platform.


It is not a 1 to 1 swap as you get to keep your Ethereum and PulseChain so I guess it will fall under existing airdrop rules for those that claim tokens. 1 to 1 par value swaps on the other hand have firmly established themselves as being non-taxable events just as they are in related equities and currency markets but I think it is late in the game now for this particular proposal.

Big hurdle all new decentralised projects have is how to quickly scale the userbase organically while fending off vampire attacks that are basically just differing opinions on how to incentivise scaling. Either way the end users win from the exploration of the incentive space.
Be interesting to see what the team comes up with for onboarding and value exchange on/off ramps probably some innovation around DBCs… exciting times.