The CTC Token Roadmap & wCTC Governance Proposal

Learn more about the future of the CTC token, including our governance proposal for a new wrapped CTC token (wCTC) to help unlock mainnet liquidity.

The CTC Token Roadmap & wCTC Governance Proposal

Dear Creditcoin community,

Today, we have an important announcement to share with you. Having listened to the community’s feedback and questions surrounding CTC liquidity, we’d like to provide more clarity about the future of the CTC token.

In this post, we’ll be detailing the current roadmap for the CTC token, provide further clarity on the current situation, and share more information on our proposed (short-term) solution for mainnet liquidity. Given the trade-offs this entails, we’ll be hosting a governance vote to let the community decide on our chosen path forward.

🗳️ Governance vote:

🗣️ Forum discussions:

If you’re not interested in hearing the ‘why’, please skip to the governance vote section of this post. Let’s get started.

The CTC Situation Today

When we first launched Creditcoin, the mainnet architecture was based on Sawtooth Hyperledger. This infrastructure was not widely supported by exchanges at the time, making a mainnet token listing on exchanges effectively impossible.

Our solution: A temporary dual-token system.

CTC (mainnet) would be the core utility token of Creditcoin, while CTC (ERC-20) aka G-CRE was created as a temporary stop-gap, allowing users to purchase and trade CTC tokens before an eventual 1:1 token merge. For ease of reading, we will refer to CTC (ERC-20) as G-CRE for this article.

Today, the technology landscape has evolved. With the adoption of Substrate and move to Creditcoin 2.0+, the CTC (mainnet) token is more accessible than ever, being integrated into various third-party wallets and more. So, while the infrastructure to list CTC (mainnet) now exists, G-CRE is still the token listed on exchanges. Which begs the question: can’t we just switch the CTC token listed on exchanges?

The short answer is that it’s a two-way process. Ultimately, it’s up to each exchange to switch (or preferably migrate) their listed tokens from G-CRE → CTC (mainnet). Of course we’re working towards this step, but given the technical complexity involved, it’s not a quick or easy decision on the part of each exchange.

Why can’t we implement a two-way G-CRE ↔ CTC (mainnet) swap

The most obvious solution would be a two-way swap tool. This way, users could freely convert their tokens between G-CRE and CTC (mainnet) in order to access staking or trading services whenever they wish.

Unfortunately, a two-way swap is not possible. The G-CRE token contract does not allow for the minting of new tokens. This makes a two-way swap technically impossible. This is different from the Creditcoin mainnet, which has a built-in oracle and specifically designed contract to enable the bridging of G-CRE → CTC (mainnet).

Therefore, due to technical limitations, we can only offer a one-way swap that allows users to swap their G-CRE for CTC (mainnet), specifically designed to enable the long-term merge of the two tokens (the ultimate goal of the Creditcoin Foundation).

With that said, let’s talk about solutions going forward.

Future Roadmap

There are a number of liquidity solutions we’ll be discussing today to help our users understand what they should expect moving forward, both short- and long-term. Firstly, let’s address the main topic of today’s post, the wCTC governance proposal.

1. Wrapped CTC Token

In order to fulfill the community’s request and unlock mainnet liquidity as soon as possible, the Creditcoin foundation is proposing the creation of an ERC-20 wrapped CTC (mainnet) token in order to facilitate mainnet liquidity. This token will be called wCTC.

The foundation is hosting a governance vote in order to either confirm or reject this proposal.

By creating a 1:1 two-way swap between CTC (mainnet) and wCTC, mainnet users will be able to access Ethereum-based trading solutions, primarily Uniswap, in order to liquidate their mainnet tokens. For more detailed information, please consult the wCTC Governance Proposal at the bottom of this page.

2. Creditcoin 3.0 DEX / Bridge

With the full release of Creditcoin 3.0’s Universal Smart Contract feature, users will be able to trade their CTC (mainnet) directly for other crypto assets via Creditcoin’s multichain DEX or bridge functionalities.

wCTC Governance Proposal

Proposal Outline

The Creditcoin Foundation is proposing the creation of an ERC-20 wrapped CTC (mainnet) token on Ethereum in order to facilitate mainnet liquidity. This token will be called wCTC.

A newly created swap tool will allow users to request wCTC at a 1:1 ratio by sending CTC (mainnet) to a specified address on the Creditcoin mainnet. Utilizing the same swap tool, users will also be able to swap back from wCTC to CTC (mainnet) at a 1:1 ratio.

Once users have swapped their CTC (mainnet) for wCTC, they will be able to trade their wCTC for G-CRE on a floating Uniswap pair. The Creditcoin foundation will provide limited liquidity to this pair in order to allow users to liquidate their mainnet tokens.

As there is no direct way to bridge tokens from Creditcoin to Ethereum, the Creditcoin Foundation will operate this swap tool privately.

The advantages of this solution are obvious: short-term liquidity options for mainnet holders. However, there are important factors to consider before voting. We have summarised the anticipated concerns here to transparently inform the community:

  • Centralized - The wCTC token swapping process will be centralized, being conducted manually by the Creditcoin Foundation. To mitigate the associated risks, we will publicize the relevant contracts and wallets to maximise the wCTC ↔ CTC swap transparency.
  • Price impact + slippage risk - As the G-CRE ↔ wCTC pair on Uniswap uses a floating exchange mechanism, there is a significant likelihood of price slippage between the two tokens, meaning that wCTC could end up trading at a discounted price to G-CRE. While CTC (mainnet) ↔ wCTC is a 1:1 quantity conversion, the market will determine what the wCTC → G-CRE price will be.
  • Development time - Implementing a new wCTC token will take development time away from Creditcoin 3.0.

When considering the upcoming release of the one-way swap tool, the overall CTC ecosystem flows would look like this.

Technical Specifications

  • Gluwa will develop a new swap wCTC (ERC-20) ↔ CTC (mainnet) swap tool.
  • The swap interface will be hosted on the Creditcoin Website.
  • The wCTC ↔ CTC (mainnet) swap will follow a 1:1 quantity conversion ratio, excepting any swapping fees (see below).
  • To cover the cost of transactions on Ethereum, the following swapping fees will be applied:
    • CTC (mainnet) -> wCTC (ERC-20)
      • Fee: 10 CTC paid by the user (subject to change based on market conditions). This fee covers the Foundation's wCTC transaction costs on Ethereum.
      • Example: If a user sends 100 CTC, they will receive 90 wCTC.
    • wCTC (ERC-20) -> CTC (mainnet)
      • Fee: No CTC fee. Users must pay any ETH gas fees directly during the transaction.
      • Example: If a user sends 100 wCTC, they receive 100 CTC (mainnet).
  • The Creditcoin Foundation will publicize the CTC (mainnet) and wCTC (ERC-20) contracts and addresses used for the swapping of tokens in order to ensure transparency.
  • As the swap is manual, users should expect a processing period to receive their tokens. Currently, the Foundation plans to send tokens every Monday.
  • Creditcoin will publish a swap guide to help users through the process.
  • Depending on the volume of swap requests, the Foundation may batch transactions in order to reduce transaction fee expenses.

Visit the Creditcoin Governance Platform to cast your vote for the wCTC proposal now:

Voting Procedure

Creditcoin will use the Opensquare governance platform to conduct this vote and any similar governance votes in the future.

How does voting work in Opensquare?

Opensquare uses snapshot-based off-chain voting. After taking a snapshot of all wallets, users can vote based on their CTC holdings at the given snapshot time. This includes any actively staked CTC.

1 CTC = 1 vote. Therefore users with larger CTC holdings have a greater vote in governance.

About Creditcoin

Creditcoin is the world’s leading real-world asset infrastructure chain, with over 3 million credit transactions recorded to-date. By matching borrowers, lenders and investors on-chain, the protocol is paving the way for a new generation of globally interoperable credit markets.

Having integrated with various fintech lenders and connecting them directly to global DeFi investors, the Creditcoin network has helped thousands of borrowers, businesses, and investors secure capital financing, build credit history, and make global RWA investments.

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