defioasis
[On-chain investigation] A simple rebranding actually hides a mystery - the token issuance increased by 4 times, but users exchanged 1:1, which is equivalent to a 75% dilution of users
Recently, Frontier ($FRONT) completed its rebranding to Self Chain ($SLF). According to the official 6.12 Mainnet Phase 2 blog, an important part of the rebranding was to convert FRONT to SLF at a 1:1 ratio, and launched a so-called community vote. It is worth noting that neither the 6.12 blog nor the community vote mentioned an increase in the total amount of tokens. The proposal vote itself is also very interesting. The 1:1 conversion ratio and total amount were not stated, and there were only 11 voters who voted for 100% of the 1,548,149 FRONT, of which 0x55b6918866B147B2a13C1Dc167aE04D806F035B5 voted for 1.5 million FRONT. It is obvious that the authorities manipulated everything. https://blog.selfchain.xyz/self-chain-mainnet-update-transition-to-stage-2/ & https://dao.selfchain.xyz/proposal/0x80aa7f26d76afd99d2f26b83494f532ed682d760f228fe52636c59e9841034f5?ref=blog.selfchain.xyz
In the announcement on August 19 that Binance supports the remodeling of Frontier->Self Chain, it was mentioned that the total token supply increased from 90 million to 360 million and the exchange of 1 FRONT = 1 SLF; Binance's announcement linked to the Self Chain token economics blog, which also mentioned a 4x increase in the total token supply.
That is, in this rebranding, the total amount of tokens increased by 4 times, but users still exchanged at a 1:1 ratio, and the value of users' holdings decreased by 75% relative to the total supply. In other words, the value of users' tokens was reduced to only 25% of the original value, that is, it was diluted by 75%.
From the token economics of Self Chain (SLF), it can be found that of the 360 million SLF, except for 90 million FRONT (25%) for replacement, most of the additional 270 million have nothing to do with users, specifically divided into equity investors (10%), verification nodes/growth sales (28%), ecosystem (19%), basic nodes-permanent lock (25%) and team (8%). Take equity investors and team as an example, the total increase of 64.8 million SLF token distribution is now worth about 38.88 million US dollars.
This raises a new question: why did the original SLF increase so much non-user shares? Did the early investors and team have no shares in the original 90 million FRONT? The result is obviously not.
FRONT is actually an old coin that has existed since 2020. In the exposed FRONT token economics, the seed allocation is 10%, the private placement is 25%, the early supporters are 0.625%, the reserve is 10%, the team is 10%, etc. Except for the 10% of the team that was destroyed, the rest of the early investors have completed all unlocking allocations, and all completed the last allocation in 2022. https://docs.google.com/spreadsheets/d/e/2PACX-1vQj9JqXWsknSBVmBcaccneNHAcg2T9jufbn3e6OpLfGGsrXvkheNkw3EaqdTH5n-9dBkHmDbaGuL5ER/pubhtml#
This is interesting. Since all the early investors have sold out, this brand reshaping has introduced new investors and new teams. Will new investors come in, or will the old investors continue to benefit? Has the project owner sold the shell and replaced the team?
