Yes, I expect the price to go up if we add an ERC20 token.
Privacy. Security. Freedom
I hear you and hope you are right. I wonāt claim to be a tax expert, but consider the following example: if you own 2 different ETFās but they both contain exactly the same underlying securities in the same relative amounts and you sell one to buy the other it is a taxable event. Not because the underlying securities changed, but simply because the ticker symbol changed. Maybe you could fight this because āmorallyā this isnāt a taxable event. And wash-sale rules certainly push this point from the other side, BUT you can get around that by buying āsimilarā products (i.e. a different ticker symbol) and not be questioned. I still think there is a decent chance of at least needing an attorney or going through an audit to get past this concern. A change in symbol will potentially cause āthe systemā to flag a question.
OK, Iām not sure I would call that increasing liquidity, as it is rather one sided. I could see it increasing the price though, if more demand was created on the buy side. Ofc, it also makes it easier to sell during the bust phase too, mind.
What is Liquidity?
Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its [market price](Market Price: Definition, Meaning, How To Determine, and Example). The most liquid asset of all is cash itself.
I have old Maid coins sitting around collecting dust. The opportunity to stake some of them in a liquidity pool and earn some fees would be most welcome as a positive for the project and earn a little on the side. This fee sharing incentive model has attracted $50 billion in liquidity just to Uniswap alone (Sushiswap and other take the available liquidity higher), so the model has easily proven itself to attract liquidity.
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As I said in UniSwap I will add pairs with the tokens I have: MAID / Storj, MAID / NOIA, MAID / ETH - all these pairs are different but if you sell it will take you through all of them and vice versa if you buy. I will certainly not be the only one to bring in such liquidity.
Privacy. Security. Freedom
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Just saw this and great point. If we can keep the same token symbol (MAID) then that would likely greatly reduce the chances of running afoul of the tax authorities. I donāt think they necessarily care (or can care) much beyond a symbol change.
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Note that these are different projects, different symbols and do trade at vastly different prices sometimes. Here the proposal is to transfer from Maid (omni) to Maid (erc20), on the same project.
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Not in my country and, as far as I know, not in other European countries either (France, Spain, UKā¦) if we speak of cryptocurrency (of course nor if you speak of bank accounts).
In fact, this case was presented as an official question to the tax authorities, who declared that any exchange, regardless of what is exchanged and whether one or more persons are involved, is a taxable event.
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I added this clarification to the OP.
Privacy. Security. Freedom
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I have filed in the EU: Exchange is not a transfer. Move $100EUR from one of your bank accounts to another bank. It is not taxed because it is a transfer. Pull it out of the ATM, it is not an exchange it is a transfer. Asking for your Stock certificate from the broker is a transfer not an exchange. Exchange or " disposal" means changing asset class ($100 Eur for $100 USD), that is a NOT a simple 1 for 1 transfer.
Honestly, I feel this is extreme fearmongering to try and shut the effort down. Worked last time I guess, soā¦ carry on.
Pony up a shred of evidence in your exotic regime for taxable transfers would go a long way for to support your case.
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New exchange == new traders == higher demand == higher price == more supply from hodlers == more traders at the table == higher liquidity.
I donāt agree with full OMNI to ERC20 swap though - Iād rather wait for SNT. But getting on new exchanges would drive the price higher and increase liquidity almost certainly.
Donāt know how uniswap works, but presume requires ERC20 no? Or can it wrap OMNI tokens?
Are you changing the poll from full swap to partial swap then?
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Maybe you didnāt see what I wrote above, so Iāll repeat it. The poll has always been for partial swap. I used the word full as opposed to wrapped ERC20 because thatās which we talked the previous months. Full ERC20 MAID as is Equal to OMNI MAID. Iām sorry for the confusion I caused, I didnāt understand what people were complaining about at first. Totally my fault.
Privacy. Security. Freedom
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Cool, thanks.
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Sure it has got us a long way. So far we still have an overwhelming Yes vote, yet again, and we have had a chance to hear the pros and cons. The main con being hand waving fear about taxes, which now in 2021 we know a lot more about for cryptocurrencies.
There already is a lot of friction to trade Omni. Those that are objecting appear to want to leave their Omni in cold storage until the SN Token arrives, and why not let them. Those that want to trade will continue to be able to do: Tauchain project moved from Omni to ERC20 with no problems on Bittrex, whitebit and one other exchange apparently (that I canāt find atm). If the cold storage Maid holders change their mind they are free to convert to ERC20 to start tradingā¦ nobody needs to be left behind.
Soā¦ disrespect the majority that took the effort to vote and also post why they voted yes? because a minority felt motivated to repeat old concerns mainly about Tax, many of which do not stand up to basic scrutiny? @piluso has a post calling out that bias here.
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With the both tokens you can claim Safe tokens in the future.
Privacy. Security. Freedom
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It doesnāt matter why people have the concerns - the point is that the concerns exist AND that they believed they were being forced into a position wherein theyād have to confront those concerns via a forced transfer from OMNI to ERC20.
As Dimitar has now explained that wasnāt the intention and none are being forced, the tax issue becomes a personal decision and nothing confrontational to oneās beliefs regardless of the truth or falsehood of those beliefs.
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Snapshot is the logical answer. As fee rise, burning tokens can be impossible for thousands and thousands of holdersā¦
Privacy. Security. Freedom
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Well, I havenāt felt so bad in a long time. It wasnāt until @krnelson pointed out to me that I had confused people with a wrapped token with an unwrapped one that I realized my mistakeā¦
Privacy. Security. Freedom
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Itās a complicated topic for sure and explaining such is never going to be easy.
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Pls could you clear this up @krnelson ?
Your making statements for conversion that make no sense to me while dismissing other peopleās concerns.