Golem announced earlier this week that it is moving from its previous token to an Ethereum compliant token. The blockchain was part of the first few projects that conducted an Initial Coin Offering (ICO) on Ethereum. During its ICO, the blockchain was said to have made a record after it accumulated about $8.6 million in less than 30 minutes. It set a precedent for other ICOs that took place on Ethereum since its launch.
According to the platform, the native token of the protocol will now move from its Golem Network Token to GLM, a new ERC20 token that will be compliant with the standard of Ethereum. According to experts, this change is partly because ERC20 tokens were not widely accepted when their previous token was launched.
Golem wants to avoid scaling issues
In a statement that was released to announce the launch, Golem said that the migration was very important and necessary for the platform. According to the protocol, the migration was done to curb scaling issues that might develop in the future because it used the Etheruem layer 2 for its transaction, hence the need for ERC20 supported tokens. Notably, when Golem launched back in 2016, it was popular in the crypto space due to its decentralized computing narrative. Despite the hype and the patronage, Golem failed to capitalize on this but has instead waned as the year rolled by.
The coin is presently trading around $0.1 and has a minimal market capitalization of $103 million. It is safe to say that the coin’s performance has been woeful in recent years, judging by its performance in 2018 after the coin touched its all time high figure of $1.32 in January. Even though its performance has been nothing to write home about, the coin is still trying to make a comeback in the crypto market. According to Golem, they are not planning to give up on the token as they envision a token resurgence in the coming years after the migration.
Crypto exchanges announce support for swaps
According to the history of the token, after it launched, the developers planned it to be the ideal marketplace for computing powers. On its peer-to-peer network, users who wish to rent unused computational powers are paired with users renting it out, with the former paying for the services in Golem’s native token. With this, users who have a high-end computer with massive computational powers can rent out their GPU or CPU to users who wish to use them. This means that resources that are not being put to use can be monetized on the platform.
To reward users that offer out their computational powers, Golem pays them in its native token. With the new migration to another token, the holders of the token will be able to use them for most uses and enjoy massive layer-2 scaling solutions. Golem has also informed its users that they can carry out the migration via MetaMask or MyCrypto app if they strictly follow some underlisted steps. Meanwhile, renowned exchanges like Huobi, Bitfinex, and Coinbase have announced that they will support the swap, so users will not need to take any steps.