Hey there ProfitFarmer!
You might have seen ERD related trading signals within Profitfarmers, created a trading form, only to find out after a few days all your ERD coins just went missing. Subsequently, you might have seen an announcement within Binance about the swap of Elrond coins (ERD) to Elrond Gold (eGLD).
What is eGLD?
eGLD is the native Mainnet token, replacing the old ERD tokens. Please take note that eGLD is not Elrond’s second currency, but a major update and improvement, which should replace the old ERD token.
This is the swap: 1000 ERD will be equal to 1 eGLD. When the trading for eGLD begins, it will automatically start at 1000x the price of ERD. This process has already been solved within Binance and should be up and running on September 3, 2020. In the U.S Dollar, the value of your ERD coins will be exactly the same as the value of your eGLD.
I.E you have 1 000 ERD coins which is worth $25 USD, It will become 1 eGLD coin which is also worth $25 USD. The USD price is merely an example for the price at the time of the swap.
The swapping from ERD to eGLD inside Binance began on August 30, 2020 and ERD should be swapped into eGLD by September 3, 2020. Until then if you hold any ERD coins, you don’t have to do anything. ERD delegated and staked into the Genesis SCs are automatically swapped into eGLD 1000 : 1 via the genesis block.
Since Binance is one of Elrond’s listing partners, the exchange of your ERD into eGLD will go easily and smoothly. Once swapping is enabled and eGLD is integrated within Binance’s wallet and exchange, eGLD will be the main token listed. Swapping from ERD into eGLD will be supported for a sufficiently long period of time – around 12 months.
There are no major changes to Elrond’s existing Economic model, but since 1 eGLD is equal to 1,000 ERD, the calculations have been adapted. It went from 20 Billion ERD to 20 Million eGLD.
During the first 10 years the maximum possible number of eGLD to be issued for validator rewards is capped at 11,415,927 eGLD. The maximum total supply for Elrond Gold is 31,415,927 eGLD, which should be better than Elrond’s old model since eGLD will be capped.
According to a statement in Elrond’s website:
“Since adoption via fees paid reduces the issuance of new eGLD, the maximum supply will never be reached and will be significantly lower depending on the fee sum accumulated in total in the next 10 years. If enough TPS demand is generated we can reach 0% issuance much sooner than the 10th year.”
You can read more about Elrond’s decision to swap coin tokens in the following announcements:
At the time of writing, the Elrond (ERD) token is currently ranked 64 in coinmarketcap.com; how will this change affect Elrond’s coin holders and the company in general? Only time will tell. All this indicates for us is a seemingly better coin to trade within our platform. Keep your eyes open for the new eGLD token, as we might be trading it in the future!
