Avalanche Migration FAQ
Smaugs was first established in April 2021 as an AI-powered Nft Marketplace project on the BSC network. In November 2021, the Smaugs Launchpad project became active and continued with these two products.
While Smaugs continues actively with these products, Subnet work has continued in the background for a long time.
Since the project was launched for a specific area under the name Smaugs NFT, it was not possible to fully cover the new subnet system to be established as a brand.
Therefore, the Smaugs project is entering a transformation process with a new name, a new logo, a new contract, a new website, new social networking channels, a new supply, in short a brand new brand, and this transformation will take place with a Subnet that will be active in the Avalanche network.
Information about the transition process:
SMGs in the staking pools must be withdrawn to the wallets before the snapshot to be held on June 2. Investors with SMG tokens on exchanges do not need to take any action. Please read the Medium Information Article.
UPDATED SNAPSHOT DATE: : June 2, between 13.00 UTC and 16.00 UTC
Smaugs — Avalanche Subnet Migration
The Smaugs project was released as a project focused on the NFT marketplace and DEFI. This purpose does not cover a…
- What is a subnet? What benefits does it bring to the project?
It is the blockchain structure that allows different project ecosystems to create their own networks instead of gathering them in a single network, so that the mainnet (Avalanche) is scalable, reshapeable. As the name suggests, we can say that it is a subnet connected to the Avalanche network.
With the new project, we will have our own subnet connected to the Avalanche network, unlike the Avalanche network, we will be able to configure the transaction fees as we want. The token that will be released with the new name will be the subnet’s fee token. Users will pay with the newly released token as a fee for all transactions they will make on the subnet. The advantage of making Fee payments with the new token is that it will be cheaper than payments made with AVAX. For example, due to the intensity caused by the Crabada game, the fees that rose in the Avalanche network decreased to about $ 0.25, although it was variable with the transition of Crabada to its own subnet. In Crabada’s own subnet, it is seen that the average low of around $0.02, the maximum fee of around $0.10.
Once you have the subnet, you can also configure how to evaluate the fee. For example, it is possible to set up the system so that 40% of the collected waste is burned. One of the aims with Subnet is to have a constantly decreasing supply with a permanent burning mechanism in this way.
One of the important goals is to include different projects, especially Web2.0 projects, in Subnet. All applications without blockchain integration can be counted in the Web2.0 category. For example, Twitter is a web2.0 application. With the new network, we want to move many different applications in the Web2.0 category to web3.0.
- As Smaugs Nft, will the products, stake pools, burn, etc., which are announced to the investors or in effect, continue?
SMG had a target of reducing the supply from 90 million to 60 million. Since the new token and new supply planning has been started, the burning mechanism has also changed. It will be a dynamic and continuous burning mechanism based on fee payments. Event-based burnings will be made instead of previously announced incinerations on certain dates. For example, burning is done when the subnet is opened or the dragonia game is active. Detailed documents about the combustion mechanism will be shared.
The launchpad system will continue, a new launchpad system is being developed that will use the subnet-specific ecosystem token.
There will be a single pool of stakes after the transition. Different opportunities previously offered to different pools will be defined in a single pool, and investors will be able to access all the rewards and different opportunities offered by the ecosystem in a single pool without the need to switch between pools.
Detailed documents related to the launchpad and staking system will be shared.
- Has a formula been considered to prevent inflation with the transition?
Since there is no such thing as continuous token printing or supply increase, token inflation expectation will not occur. In order to prevent inflation, the supply will be reduced with a continuous burning mechanism.
- In the announcements, it was said that the staked tokens should be withdrawn to the wallet until May 30. What will happen to those who have not made an unstake transaction on this date?
There will be no loss of rights, they will be able to complete the process if they apply later. No one will lose any rights as existing Smaugs platforms will remain open for a long time after the transition.
- Will there be burns planned in the game?
Some changes have been made in the game-related SMG burning mechanism, related to the transition process. These changes will be documented in the coming days and explained by the Twitter space.
- Will the SMG liquidity on the Gate.io exchange be withdrawn?
As new tokens will be sent to all SMG holder wallets on the Gate.io exchange according to the new tokenomics rates, there will be no liquidity withdrawals for the tokens on Gate.io or other exchanges. There is no obstacle for those who wish to withdraw their tokens to their wallets. Since all tokens, including liquidity, will be transformed at Gate.io, there is no harm in keeping it in the stock market.
- Why was the total supply kept so low?
With the SMG subnet transition, it ceases to be a project token and turns into an ecosystem token. One of the main purposes of this transition is the increase in the need of ecosystem users for tokens and the positive reflection of this need in terms of price. Although the effects of low supply may not be felt at first, since the token conversion will be proportional, the decrease in supply will become significant due to its use as a fee token and its constant burning in the medium term.
- Will the Dragonia Land testnet be in the new subnet? When will the game testnet and mainnet be available?
Yes. The testnet is planned in q2 as planned in our new subnet, and the mainnet is planned in q3 as announced in the roadmap.
- Will a new security certificate be obtained as a new token and contract address will be created?
Yes. The codes have been sent for the new audit report, a new audit report will be exited.
- Wouldn’t it be easier and painless for you to start production from scratch with a new project with a new identity, instead of moving the Smaugs project as a subnet to the Avalanche network?
It may seem easier to produce a new project. However, after developing the subnet with a new project, this would mean extra workload since it would be necessary to integrate the SMG into the subnet. Therefore, we can say that a transition that will take place with the transformation of SMG is an easier way for us.
- Although reducing the supply may seem positive at first, from the investor’s point of view, with the falling supply, the token price may fall below the pre-transition level, wouldn’t this cause you to start the game by scoring an own goal?
We think that we will pass this process by explaining the transition process to the investors correctly. We spread the process over a period of 10 days in order to move forward the process in the most accurate way and eliminate all question marks. Before the transition, the tokens in your hand will be calculated in dollars and the distribution will take place in such a way that you will get tokens of the same value in the Avalanche listing.
- As far as we understand, the important project of the subnet will be Dragonia Land. So, will the token of the subnet be DRG or will it be SMG in its changed form? Swimmer network preferred TSU over CRA.
Subnet’s fee token will not be DRG, it will be our new token. Since one of the subnet’s goals is to include new projects from the Avalanche network in the ecosystem, we find it more appropriate to use the more inclusive and neutral ecosystem token instead of the game token.
- When will trading start on the Avalanche network?
With the migration process that will continue until June 2, it is planned as the early June.
- Is there a DRG airdrop for SMG holders?
An airdrop is planned for SMG holders from the slot reserved for the airdrop within the DRG supply.
- Will there be a pre-sale of the new token?
There will be no pre-sales.
- Why is the entire supply not circulated?
A certain amount of tokens remain locked as it may be necessary to issue tokens for developments, incentives and different activities within the ecosystem. Since there are no tokens to be distributed to investors with a certain vesting schedule, locked tokens do not cause selling pressure.
- Will the artificial intelligence application, which is the reason for the Smaugs NFT project, continue?
By integrating our artificial intelligence applications into different projects, we are working to include these projects in our ecosystem. Thus, we will be able to carry out these studies not only in Smaugs but also in a more comprehensive way.
- What will be the fate of the tokens we have after the snapshot?
Since there will be no liquidity in the pool and exchanges, trading will not be possible, so SMG tokens will have no value.