UPDATE ON PHASE 1 OF THE FLOKI DAO UPGRADE (PLUS KEY INFORMATION FOR INVERSE FINANCE BORROWERS)
Phase 1 of the FLOKI DAO upgrade will be proceeding soon — seamlessly, and as planned.
This article gives specifics about the upgrade and key information you should know if you’re a FLOKI holder using the Inverse Finance protocol.
The why of the upgrade
Perhaps the most important question you might have about this upgrade is why this upgrade and why now?
We’d like to make it clear that the decision to upgrade and gradually transition FLOKI into a DAO isn’t something we take lightly. This decision is informed by data and information from key advisors.
In essence, here’s the why:
- Specifically, we’ve been told that FLOKI becoming a DAO positions the project strongly for better adoption and makes it further decentralized.
- We’ve been very clear about the fact that FLOKI would eventually be a DAO — and if, based on information we have, becoming one sooner makes it easy to get adoption for FLOKI then this is the perfect time to do this.
- Data and trends show clearly that the DAO is the future of crypto as indicated by moves by crypto giants Binance, Kucoin, ByBit and respectable names like philanthropic giant Kimbal Musk.
So in essence this move is being made both out of necessity and to key into what is essentially the future of cryptocurrency. More importantly, it positions FLOKI to truly be where we can get the kind of adoption we need for our utility.
The when of the upgrade
Phase 1 of the DAO upgrade will begin Saturday morning UTC (22/01/2022) and is expected to complete within 48 hours barring unforeseen circumstances.
We will give you further details as soon as the upgrade process begins so you are up to date on the upgrade.
The what of the DAO upgrade
You don’t have to do ANYTHING to be a part of phase 1 of the DAO upgrade.
It is going to be a completely seamless process.
Regardless of where you have your FLOKI tokens, just hold and relax.
Yes, that’s it.
We have contacted all key CEXs that have listed FLOKI and they will all be supporting this upgrade — so you will be covered regardless of whether you have your tokens on a CEX or in your wallet on the blockchain.
We have also contacted our key DeFi partners such as Chainlink, BarnBridge and Inverse Finance and they are all in support of this upgrade.
Key Information If You Took a Loan on Inverse Finance
If you have taken a loan on Inverse Finance using your FLOKI token as collateral, it is VERY IMPORTANT to pay attention to this notice:
You have until Friday (a little less than five days from now) to repay your loans to avoid getting liquidated.
We understand that this isn’t expected or planned for, but we can assure you that we will do right by our users.
While we had hoped it wouldn’t have to come to this, proceeding with the upgrade without properly carrying Inverse Finance along would negatively impact the stability of their platform — and we value our partners and take our relationships seriously. Needless to say, we won’t let that happen.
Of course, we also aren’t for having our users get rekt so we are working out a plan to reimburse users affected by the Inverse Finance issue in some capacity.
Our lead dev Jackie is running a script to determine the extent of the impact so that we can give specifics about the reimbursement involved (which is one of the reasons why this announcement was a bit delayed!) but the script is taking a bit longer than expected.
So all we can say for now is that you can rest assured we won’t simply watch and let you get rekt. We’ve got your backs.
Regardless, once we have all the technical details we will communicate our exact reimbursement plans.
In the meantime, make sure you repay your loans on Inverse Finance ASAP. This is VERY IMPORTANT!
If you haven’t borrowed on Inverse Finance, you do not have to do anything.
What about BarnBridge and other DeFi Protocols?
We are in touch with the BarnBridge team and they will be supporting this upgrade as well.
You do not have to do anything if you have your FLOKI tokens staked on BarnBridge.
We are working together with the BarnBridge team and will automatically airdrop FLOKI users who have their tokens staked on BarnBridge to their wallets.
How about other DeFi protocols?
If you use DeFi protocols other than Inverse Finance and BarnBridge, we strongly suggest that you unstake your FLOKI tokens and have them in your wallet before the time of the upgrade so that you don’t lose your tokens.
FLOKI has gone through a series of necessary upgrades in the past, so this isn’t unfamiliar territory.
During these upgrades we tend to see bad actors with nefarious intent create FUD in order to cause uninformed holders to panic sell their holdings — only for these panic sellers to regret it after.
FLOKI has ALWAYS come out stronger after these upgrades, because these upgrades are informed by data and done out of necessity and to help us secure key strategic advantages.
It won’t be different this time around.
Don’t get shaken and don’t let the FUDDERS get to you. HODL strongly, trust the team, and move on with your business.
As we’ve said repeatedly, this will be a seamless upgrade where you have to do nothing!