A decentralized ecosystem that uses cryptography to secure identities, transactions, documents and user accounts has announced that it is reducing the total supply of its tokens following a community-wide vote.
Project Hydro says the supply of Hydro tokens will now be set at 111 million. The smart contract redeployment process is now under way, meaning the next step is to contact exchanges to ensure that everything is updated on their end.
The news follows the platform’s announcement that it is going multi-chain — with Binance Smart Chain first on the list. The Polkadot parachains Moonbeam and Plasm, Algorand and Cardano are going to follow within six months, with the project arguing: “There is nothing like ‘one chain to rule them all,’ but a range of many blockchains co-exist with different specific use cases.”
In light of the recent developments, as well as high gas fees on the Ethereum network, Project Hydro has also swapped old ERC-20 tokens directly with ones of a BEP-20 standard.
Project Hydro explained that BSC is fully compatible with the Ethereum mainnet — meaning it can support the DApps, ecosystem components and tools that exist on this blockchain. Binance Coin runs on BSC in the same way as ETH on Ethereum.
How the token swap process works
The process of redeployment began on Feb. 28 — with new tokens being redistributed in phases. During the first phase, those who hold Hydro tokens in their personal wallet received their new BEP-20 tokens on the Binance Smart Chain wallet. CoinEx began distribution to their users on March 1, and in the final phase, other exchanges started their distributions too.
According to Project Hydro, the token swap ratio has been set at 100:1. As a result, someone who currently owns 100,000 Hydro tokens will get 1,000 new tokens. Once the redeployment is complete, the old contract (and the old tokens) will be obsolete.
The Project Hydro team say they are taking a snapshot of all personal wallet holders. All they have to do is import their ETH private key on the BSC wallet in order to access their BEP-20 tokens. CoinEx users won’t have to do anything, as their exchange is supporting the swap process. A backlog at Bittrex means that deposits, withdrawals and trading are being suspended until they are ready to distribute the tokens to their user base. Communication is continuing with other trading platforms at present.
New functionality
Project Hydro added that the new contract offers an additional burning functionality, meaning that tokens will be burned following every interaction. This will result in Hydro becoming scarce over time — something that could potentially have a positive impact on its value. DApps associated with Hydro will be able to utilize this feature, too. The project stressed that the burning mechanism won’t affect transactions between wallets and exchanges.
CoinEx is holding a trading contest across all Hydro trading pairs until March 15.
Milestones on the Project Hydro roadmap have cleverly been given a series of aquatically themed names. While Raindrop is an authentication protocol that vastly improves two-factor authentication standards and utilizes decentralized public blockchain security for logins, transactions and payments, Snowflake is an identity protocol designed to provide a major barrier to identity theft attempts.
Ice is a document signing and verification protocol, and Tide is a payment protocol that allows for the one-click authorization of debit and credit card transactions — as well as instantaneous payments across the blockchain. Hail delivers tokenization on the blockchain.
Project Hydro’s next feature will be Mist — artificial intelligence that creates data modeling of transactions. It’s hoped that this will enable fraud to be detected on the blockchain. Marketing for this new product is set to begin in the second quarter of this year.
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