LOOM Token Swap

This article was first published on Loom Network - Medium

Photo by Jordan Rowland on Unsplash

In our previous article we announced that we’ll be integrating zkRollup into the Loom protocol to create the zkLoom protocol. To recap, the zkLoom protocol architecture offers a number of advantages over the existing Loom protocol:

  • Transactions on a zkLoom blockchain are verified on Ethereum, making it practically impossible for a malicious validator to steal funds or cause an invalid state transition.
  • Funds transferred by users from Ethereum to a zkLoom blockchain can be recovered even if all zkLoom validators go offline, or simply refuse to process transactions.
  • Users no longer have to place their trust in validators, instead they can rely on the security guarantees provided by Ethereum.

The process of upgrading Basechain to the zkLoom protocol will require a number of steps. The first step consists of deploying a new LOOM token contract to Ethereum mainnet, and performing a token swap from the existing LOOM token to the new one.

This article covers some of the common questions about the upcoming token swap.

When is the token swap going to happen?

The token swap is currently expected to take place on January 15, 2021.

Why does there need to be a token swap?

The existing LOOM token contract is not upgradable, so we are unable to implement the features necessary for the token to operate with the new zkRollup based architecture we’re building. Therefore we have to deploy a new LOOM token contract, and migrate existing LOOM holders over.

How should I prepare for the token swap?

We’ll be coordinating the token swap with the exchanges LOOM is currently listed on to make the process as painless as possible. If you hold LOOM in an exchange account you may not have to do anything at all when the token swap goes live, you’ll simply get the new LOOM tokens ...

To keep reading, please go to the original article at:
Loom Network - Medium

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