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CENNZ to ROOT swap

We are pleased to announce the mechanisms for The Root Network CENNZ to ROOT burn to swap. The CENNZnet community has been an important part of our journey and we have designed a system which allows CENNZ holders to participate in The Root Network as it expands alongside the growing ROOT community.

This opportunity is entirely optional, there is no need to participate in this process. CENNZnet is an open source, decentralised community project and anyone is welcome to continue to build and support CENNZnet on an ongoing basis. The CENNZ to ROOT burn will be open to both Native CENNZ on CENNZnet and eligible ERC-20 CENNZ on Ethereum.*

The burn to swap at a high level is designed to allow CENNZ holders to access ROOT tokens in step with the ROOT token rollout. Each cycle we will look at the total circulating supply of ROOT that has entered the market and 10% of this supply will then be available in the burn to swap mechanics.

Since 10% of the total ROOT tokens are allocated to this activity, this will mean CENNZ holders available tokens will be consistent with the overall ROOT rollout.

The first cycle ended 31st March 2024 NZST. Deposits are open and pay-outs from CNZFV Ltd happen after the end of each cycle.

 

Preparing for the burn to swap:

  • Transfer any CENNZ you have on exchanges you wish to burn to your CENNZ wallet. Details for setting up a CENNZ wallet can be found here.
    • Do NOT  transfer CENNZ to ERC-20 wallets on the Ethereum network
  • You will require ~2CPAY per burn transaction as gas payment for Native CENNZ. If you do not hold enough CPAY in your wallet you will be able to use Native CENNZ for gas.

In each cycle, Quota gets defined as 10% of the ROOT that has entered circulating supply over the 90 days for the first 12 cycles. After 12 cycles there will be a linear release.

Note: the quota for any given cycle does not include the ROOT introduced from the quota of the previous cycle from the CENNZ Burn-to-Swap pool, this mechanism ensures no more than 10% of the current circulating supply is related to CENNZ burn-to-swap pool.

 

To ensure we have a system that is fair to large and small holders and to reduce the possibility of one holder ending up with most of each cycles quota we have designed 2 tranches:

 

Tranche 1 – Fixed Payout is 20% of the quota and will be paid out at a flat amount to each wallet that has burned CENNZ (max 1:1 CENNZ – ROOT). If you have less than the fixed pay-out, then your entire burned amount will process as a pay-out.

For example: if there are 100,000 tokens in a cycle and 100 wallets participate in the cycle they will get 20% of the tokens in that cycle divided by 100. i.e 100,000 x 20% / 100 or 200 tokens each. Unless their available tokens are less than 200.

 

Tranche 2 – Pro Rated pay-out, 80% of the quota is paid out based on your share of the total CENNZ burned in this Cycle. For example: if you have burned 55% of the total CENNZ in this cycle after the flat rate has been processed, you get 55% of the remaining 80% of the quota.

If the total CENNZ in the burn pool exceed the Quota in any cycle, they will be available to receive ROOT in the next cycle.

 

*Please note: ERC-20 wallets holding CENNZ on the Ethereum network eligible for the burn to swap have been whitelisted. A snapshot has been taken of eligible ERC-20 wallets CENNZ token balances, these wallets will be able to burn to swap ROOT tokens equivalent to the CENNZ balance held at the time of the snapshot. Any new ERC-20 wallets or additional balances of ERC-20 CENNZ tokens after the snapshot will not be eligible for the burn to swap program.

 

There are no restrictions on Native CENNZ (CENNZ tokens that were bridged to CENNZnet) tokens and wallets.

 

For questions and support please see our Discord

The CENNZ to ROOT Burn to Swap is now live – Get Started