🔥 Migration from GLB (GLOBAL) to GLBD (GLOBALDAO) token🚀

📣 Dear BGlobians,

❓ These days, these are the most common questions we receive these days:

  • What will happen to my GLB tokens?
  • Do I need to do something?
  • If we migrate to GLBD, does it mean that my GLB will go down?

▶️ This post will try to shed some light on how the migration will be. Bear in mind that there will be some technicalities. You don’t have to fully understand them and we encourage you to skip those parts if it’s not what you are looking for.

When designing the migration, these were the premises considered:

  • GLB token must be integrated in the new version. If we use another token, it must be pegged to GLB. Otherwise, those who invested in BeGlobal from the beginning won’t be rewarded for being there first. Thus, GLB token should still exist when releasing the 2.0 protocol and it should maintain its value pegged to the growth of the new system. If GLBD grows, so should GLB.
  • We could modify the new smart contracts to integrate the original token but this would take a long time. Unfortunately, sometimes the market dictates the timing and using another token (GLBD) pegged to GLB is the most profitable and also the fastest option.
  • We were working on 2.0 since a few days before launch. We have a long list of improvements to do in a POL system (protocol-owned-liquidity) and our idea was to release a much more advanced version of the new protocol. However, the euphoria of the market regarding 2.0 has pushed as to delay the improvements until there is a second iteration and, instead, release the protocol as it is now. We estimate that around 80% of the code is subject to be reviewed.

✍🏻 With this in mind, this is the plan:

We will have a bond of GLB (which pays out in GLBD and has no discount and 1 day of vesting). The bond guarantees that both values are always related to each other with the same ratio. What ratio? It will be set just before 2.0 launches, at the current price. GLBD starts at 1$. Assume GLB is 0.05$. The ratio will be set 20 GLB : 1 GLBD and it will ALWAYS stay constant. That means that if GLBD increases in price, GLB will as well. Both prices depend on each other. You can always arbitrage between both tokens to get the same value in dollars.

What is the problem of the system above? Everyone bridging from GLB to GLBD would drain the liquidity from GLB-XXX farms (like GLB-BNB) resulting in an ineffective arbitrage due to price impact. How come? Say the ratio is GLB 20:1 GLBD and the liquidity left in GLB-BNB farm is 30.000$. If you have 10.000$, the price impact would be so big that, if you try to sell GLB for its USD value, you might end up with a different rate than the bonding one. To sort this out, we will:

✅ Add a swap of GLB-GLBD. With this swap, we guarantee that you can always get the same rate as the bond, because we are swapping both tokens directly with liquidity that we will add (no one will pull this liquidity out). The bond has a fixed ratio, but if the swap GLB-BUSD or GLB-BNB has low liquidity and the price impact is too high, a pair of GLB-GLBD will guarantee an easy arbitrage for anyone who wants to take extra profit of it.

All in all, with a bond which has a fixed ratio and a direct swap of GLB-GLBD, we make sure that people can always switch GLB to GLBD.

Our situation is quite unique because we are jumping from the typical DeFi model to POL. This means that there is an existing supply. What are the implications?

▶️ When people sell GLB (or bond) to get GLBD, GLBD supply increases, but GLB will be burned and it can be considered with 0$ value. That means that treasury doesn’t increase when we do a bond of GLB to GLBD.

▶️ Because there is an existing supply, even if treasury starts growing, we can’t back up GLBD with 1$ from day one. We will be increasing the price floor as more treasury is accumulated while GLB is migrated to GLBD. We will update you with more info regarding this in the future as we believe this is an area of improvement in 2.0 DeFis.

▶️ Talking about supply, it could damage the first stages of GLBD if there is too much supply from the beginning. It would prevent the price from skyrocketting. Because it’s of everyone’s interest to make sure that GLBD price performs well (reminder: as GLB is pegged, it means that when GLBD goes up, GLB goes up), the migration from GLB to GLBD won’t be performed immediately. We will do it in the first 3 months after releasing 2.0. This is the worst case scenario, our aim is to have most GLB switched to GLBD in the first month. To control how many GLB are transferred to GLBD per day, we will only allow an amount of GLBs to be bonded per day and the liquidity added in GLB-GLBD will be limited, resulting in a possible arbitrage but of small quantities.

We believe that it’s crucial that GLBD is successful and whereas we imagine most people will want to switch to GLBD, we will have implemented mechanisms that will allow this step to be done at the right peace. Some people will sell GLB for USD to buy GLBD. Others will want their GLB-BNB LP to go up in price to mitigate impermanent loss. There are many reasons why a migration shouldn’t be done suddenly and this is the best way to control it. We will make GLBD a success and everyone holding GLB will benefit from it.

▶️ Regarding launch, we are looking into the 23rd of December or 29th of December. Ideally, we want to launch it ASAP. However, with a launch, many marketing opportunities come. BeGlobalDAO is powered by BeGlobal, but it’s a different entity. This means that BeGlobalDAO needs its own liquidity. For that, we will do a small presale to buy GLB (for the swap) and to have BNB to create GLBD-BUSD liquidity. This presale will be a small one (we assume a raise of 400.000$ as hardcap) and will be used for liquidity and some marketing expenses in full. Team won’t get any allocation at all.

❓ How does this presale work?

▶️ As BeGlobalDAO will be a different entity (even if both platforms are going to heavily support each other in communication), we have created a discord channel here. Should you want to get a whitelist spot, please join and follow the game and rules.

🌟 Presale conditions: 🌟

  • Not many people will have access to the whitelist.
  • The amount raised per wallet/person will be heavily capped.

With this, we will have:

▶️ Another community ready for 2.0.

▶️ Lots of people interested in the project but out of the presale (whitelist).

▶️ Even if you are in the whitelist, you won’t be able to buy much. There won’t be any whales from day 1 in GLBD.

This is very positive for the project and a mix of good practises when launching a new project. Imagine only 10%-20% of the people can buy and a limited amount of money. What can happen to the price once we launch?

On top of that, working with a whitelist presale allows us to reach multiple communities and offer them 2–5 whitelist spots in exchange for promotion. That brings lots of interest to the platform (again).

We are also looking into setting up live streamings in discord every day (are you a content creator? Reach out to us if you speak English and want to stream in our discord for some hours a week!) and to allocate a small amount of the presale to IFOs launched in different communities. This way, our exposure before launch will be HUGE. Summing up, before this launch, the plan is:

  • No whales allowed.
  • Lots of people waiting for launch, most couldn’t buy the presale or not as much as they want.
  • Initial liquidity wont’ be big and marketcap will be small.
  • We have a very active discord with daily tasks.
  • We will bring other communities thanks to the whitelist process.
  • We will have daily live streaming as entertainment.
  • We will set up some IFOs to have big exposure to big communities.

It’s quite likely that launch will be the last week of December to give us enough time to finish up the possible IFOs and on boarding different communities with us.

▶️ Where does this leave GLB token? Most people still don’t realise that GLBD will likely skyrocket from the start given the conditions above. It will be difficult to catch at the bottom and will fly high fast. Therefore, the only chance to actually make a lot of money buying really cheap is… Buying (or accumulating) GLB right now. You can imagine it as a vested presale. You will be able to swap GLB to GLBDAO in the first weeks and not immediately, but your entry point will be really low compared to the one you will likely get trying to invest in GLBD. Think about it and you will realise that those selling GLB are not gonna make it. It’s programmed.

▶️ Farms. This is another topic. What will happen to them? Eventually (NOT FROM THE FIRST DAY), we won’t have GLB-XXX pairs apart from GLB-GLBD (this won’t happen immediately, do not worry). We will only leave the other farms which consist on strong pairs with BNBs. Once we acquire treasury, we will buy liquidity of those strong pairs and add them to the swap. As you know, part of our treasury will be used to allow cheap swaps in BeGlobal and no LPs will be needed. In fact, around 75% of the emissions are going to GLB-XXX farms right now. With a minting rate of 20 tokens/block and considering that these farms will be removed, we will end up with ~5 tokens/block. On top of that, our APRs are actually one of the best of the markets right now, so we will likely lower down the emission rate even more. Can you see where we are going? We will have a very low emission rate of GLB/day, and we actually plan to use part of the treasury to buyback and burn part, or all, the GLB generated, keeping the rate as close as possible to 0 inflation from GLB side. In the mid-term, GLB will disappear and we will have enough treasury to add LPs of the strong pairs, leaving game farms only, whose rewards will be GLBD that will be redistributed from either bonds sold or revenue generated by the protocol. It’s worth mentioning that from tomorrow and until 48h prior to launch, we will be reducing emissions constantly and readjusting the numbers. Do not be scared. We will share with you a more detailed plan of how we are going to do it. Bottom line, we will reduce non-global farm rewards and reduce the minting rate in general as well. Before and after launch, and to have a smooth 2.0 beginning, we will stop all rewards for 4 days. After this period has gone by, farming will restart.

I believe that’s it (and enough) for today. Please, bear in mind that there can be changes promoted by BeGlobal community or by the management, always focused on ensuring a better migration to 2.0.

🚀 Official references and All things about BeGlobal🚀

🌐 Discord: https://discord.gg/ZSHSxTrmar

💬 TG Chat: https://t.me/BeGlobalFinance

📣 News Channel: https://t.me/BeGlobalAnnouncements

🕊️ Twitter: https://twitter.com/Beglobaldefi

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