Proposal for the Deregistration of Equilibrium Parachain
Introduction:
The purpose of this proposal is to address concerns regarding the recent referendum initiated by Equilibrium, which suggests a strategic shift in tokenomics and introduces a new token, Q, in a manner that qualifies the project as a potential scam.
This proposal asserts that investors have been misled, and, that if this proposal moves forward, as a response, it suggests the deregistration of Equilibrium as a Polkadot parachain and the early refund of crowdloaned funds.
Context:
Equilibrium recently presented a new referendum: Referendum. Additional details about this proposal were made available in a Medium article titled "Introducing Q Token and Enhancing Equilibrium’s Ecosystem"
This proposal introduces Q as a new token and proposes a conversion rate of 502.96 EQ for each new Q token, effectively diluting existing investors by 100. The disconcerting aspect is that only 5.915% of the original tokens are allocated for swapping, suggesting a dubious attempt to print new tokens at the expense of the original investors. It's important to note that Equilibrium (EQ) tokens are actively traded on platforms such as Gate.io, exposing original investors to potential harm.
Concerns:
The unsettling elements of Equilibrium's proposal include:
Deceptive Tokenomics Adjustment: The proposed tokenomics adjustment is perceived as deceptive, potentially constituting a scam that undermines the trust and confidence of loyal investors.
Opaque Decision-Making: The referendum reveals a lack of transparency in the decision-making process, raising concerns about the project's commitment to community engagement and open communication.
Detrimental Impact on Original Investors: The proposed changes, especially the substantial reduction in token value, disproportionately affect original investors who have been integral to Equilibrium's growth.
Proposed Action:
To address these concerns, we propose the following actions if the Equilibrium referendum moves forward:
Deregistration of Equilibrium Parachain:
Initiate the process to deregister Equilibrium as a Polkadot parachain.
Early Refund of Crowdloaned Funds: Refund the crowdloaned funds to contributors given the change in project direction and potential harm to investors.
Governance Mechanism:
The OpenGov system will facilitate the governance process for this proposal. Polkadot token holders will have the opportunity to review and vote on the proposal through the Polkadot governance platform.
Conclusion:
This proposal aims to protect the interests of Polkadot token holders and maintain the integrity of the Polkadot ecosystem. The community is encouraged to review and participate in the governance process to ensure a fair and transparent resolution to the concerns raised by the Equilibrium referendum.
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