We are excited to announce that the Dock and cheqd tokens and blockchains are merging to form a Decentralized ID alliance.
Why We’re Merging with cheqd
The decision to merge with the cheqd blockchain is rooted in the belief that by harnessing the combined strengths of two industry pioneers, Dock and cheqd will accelerate the global adoption of verifiable credentials, empowering individuals and organizations worldwide with secure and trusted digital identities.
Dock and cheqd will continue as independent companies serving distinct market sectors in unique ways. By merging their tokens, expertise, and strategic focus, they will drive their shared vision forward with unstoppable momentum.
This alliance allows us to combine our strengths, enhancing the value we deliver to our community and stakeholders.
Benefits for $DOCK token holders
Existing $DOCK tokens will be converted into $CHEQ tokens (pending governance approval from token holders in both communities), marking a new chapter of opportunity for our token holders.
Every $DOCK token holder will receive an amount of $CHEQ tokens relative to their existing holdings and based on a determined swap ratio, preserving and enhancing their value and utility within this more powerful decentralized ID network. The swap ratio has been determined based on a 15-day historical average of the closing prices for both the CHEQ and DOCK tokens, as recorded on the day before this announcement, with data sourced from CoinGecko.
Swap Ratio: 18.5178 $DOCK to 1 $CHEQ
Here are some of the benefits for $DOCK holders:
- Increased Token Liquidity: cheqd has over 81,500 token holders and is listed on multiple centralized and decentralized exchanges, with ongoing efforts to secure additional listings. This will provide greater liquidity and trading opportunities for $DOCK token holders.
- Tokenomics That Benefit Holders: On the cheqd network, presently every identity transaction executed results in the burning of $CHEQ tokens, creating a deflationary mechanism. In the coming months, this mechanism will widen from only identity transactions to any transaction using an Ethereum EIP 1559 style burn. Furthermore, a generic burn transaction will be implemented so that $CHEQ which has been minted in excess, e.g. has not been claimed as part of the migration, is burnt.
- Strengthened Financial Stability and Longevity: By pooling the resources of both Dock and cheqd, we are significantly boosting the financial stability and longevity of both projects. This token merger ensures that we have the combined strength and resources to continue innovating and leading in the decentralized identity space for the long term.
- Access to cheqd's Resources and Community: cheqd offers various value-added resources for $CHEQ token holders, such as staking, liquidity pools, market makers, influencers, and an active community—all of which $DOCK token holders can leverage from day one.
- Enhanced Validator Support: cheqd's strong focus on blockchain infrastructure includes dedicated support for validators, offering them a robust environment.
- Expanding the Ecosystem through Web3 Engagement: cheqd’s active involvement in the Web3 space enables us to attract and engage with other crypto communities, further bolstering our collective ecosystem.
- Cosmos Ecosystem and Interoperability: cheqd is built on the Cosmos ecosystem, offering a similar environment to Polkadot in terms of size and capabilities. cheqd’s strong relationships within Cosmos present opportunities for partnerships and interoperability, enhancing our network's reach and potential.
By merging with cheqd, we are not only preserving the value of your $DOCK tokens but also unlocking new opportunities and potential within a thriving ecosystem, ensuring a stronger, more interconnected future for all our holders.
Importance of Staying Through the Migration
As we move through this migration process, your role as a validator remains crucial. The migration to cheqd is expected to start in December, and during this period, we expect a major increase in network activity.
To express our deep appreciation for your ongoing support and to ensure that the Dock network remains secure and stable until the migration is complete, validators on the Dock network will continue to receive 100% of the network rewards.
Following the migration, we plan to continue operating the Dock blockchain until mid-2025.
Validators will continue to receive their rewards during this time, allowing you to fully benefit from your role in maintaining the network. This extended period will provide ample time for a smooth transition and ensure that all stakeholders are well-prepared for the eventual sunsetting of the Dock blockchain.
Your participation during this critical phase is essential for the success of the migration, and we are committed to making this process as rewarding as possible for you.
Looking Ahead: The Future with cheqd
The future of decentralized digital identity is bright, and with your $CHEQ tokens, you'll be part of a dynamic, growing ecosystem that is set to lead the industry. Dock and cheqd will shape a world where secure, verifiable credentials are the norm, and your involvement is key to making this vision a reality.
The Dock team will remain actively involved with cheqd and its community, continuing to support the shared vision of building a blockchain dedicated to decentralized ID. Dock’s expertise and experience will contribute to driving the success and growth of our unified ecosystem.
Thank you for your continued support and for being an integral part of our journey. Together, we are building the future of decentralized identity.
If you’d like to read more about why we’re migrating and the migration timeline, please check out the full announcement.
We will also provide more detailed information about how you can become a validator on the cheqd network in the near future. Stay tuned for further updates as we move forward in this exciting new chapter.
