Written by Logan Smith

On May 28, 2021

Metallicus to move all Proton holdings off of Ethereum and onto the Proton Blockchain

We are excited to announce that we will be moving all company-held XPR (ERC-20 wrapped version) off of the Ethereum blockchain and onto the Proton blockchain where it belongs. This action has been planned since the creation of Proton and will allow us to continue pouring our efforts into developing the Proton ecosystem without being restrained by slower, less-flexible blockchains. Of the XPR that we are moving over to the Proton blockchain, we will be locking 1 billion XPR into a 365-day long staking contract, and 2 billion XPR into a 90-day long staking contract.

The Proton-to-Ethereum Bridge

While the Proton-to-Ethereum bridge remains open for the everyday user, we will be rarely utilizing this bridge as a company. We have full confidence in the ecosystem that we are rapidly building, and we find few reasons to use XPR outside of this ecosystem. Moving forward, the block rewards paid out to short stakers, block producers, and the governing council will be reduced from 5% to 3%, dialing back the rate at which new Proton enters the ecosystem.

As a refresher: XPR that is wrapped in Ethereum has the constraints of the Ethereum blockchain – meaning high gas fees and long transaction times. Any XPR that is held on the Proton blockchain enjoys no gas fees, instant transactions, and easy access to every inch of the Proton ecosystem.

What this means for LOAN

Recently, we reached out to our community to determine what they thought would be the best course of action for how Metallicus and its founders should use the LOAN received via the upcoming airdrop. We believe that community is at the heart of every successful cryptocurrency project, and we want to give our community more control as Proton becomes increasingly decentralized. You made your voices heard, and the votes are in! We will be giving up all voting rights of the LOAN tokens that we receive, ensuring that the governance model remains more decentralized.

By securing all company-held XPR on the Proton blockchain, we will also be reserving our resulting stake of the upcoming LOAN airdrop to Proton holders by locking a portion of this XPR into a long staking contract. As a reminder, wallets that hold XPR at the time of the LOAN snapshot and airdrop will receive LOAN according to the amount of XPR that is held and the manner in which that XPR is held. If you hold XPR in your wallet, you receive a 1:1 ratio of XPR-to-LOAN; if you hold XPR in a 365 day long staking contract, you receive a 30:1 ratio of XPR-to-LOAN. You can read more about the various ratios and what this airdrop means here.

Receiving a large stake of LOAN from this upcoming airdrop ensures the company is able to provide sufficient liquidity for LOAN transactions on Proton Swap. Additionally, we will be able to use this LOAN to fund hackathons, bounties, and other activities that would encourage the accelerated development of Proton blockchain and the Proton Lend protocol.

Bringing XPR home to the Proton blockchain serves as a strong signal of our continued commitment to developing this growing ecosystem into a world-class enterprise-ready and user-friendly cryptocurrency environment. Proton is the perfect blockchain to bridge the gap between traditional and decentralized finance, and we can’t wait to show the world all of the things that Proton can do.

Welcome to Proton, we’re glad you’re here.

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