FRONT changes its name to SLF and increases its issuance by 4 times; unfair token swap sparks heated discussion

Author: Climber, Golden Finance

Currently, project name changes are the norm, such as MakerDAO changing its name to Sky Protocol, MATIC changing its name to POL, and Fantom changing its name to Sonic Labs, but usually investors are given equivalent tokens when swapping tokens. However, recently some project parties have played "sexy operations", increasing the issuance of tokens by 4 times but still only swapping them at the original ratio.

On August 30, Binance announced the completion of the Frontier (FRONT) token swap and brand upgrade to Self Chain (SLF). SLF will be used as the new FRONT token code, and all FRONT tokens will be swapped for SLF tokens at a ratio of 1 FRONT = 1 SLF.

However, such an announcement has caused dissatisfaction and condemnation among community members. The main reason is that FRONT increased the number of tokens by 4 times at the same time as the replacement and name change, from the original 90 million to 360 million, but the replacement compensation is still based on the original ratio, which undoubtedly dilutes the value of investors' tokens. Binance's previous announcement was also accused by the community of failing to disclose it in a timely manner. So has the project party Frontier really been hiding the information of the additional issuance? How do members of the community view this matter?

FRONT changed its name to SLF, and Binance was accused of lacking additional issuance information

After Binance officially changed the name of FRONT and launched SLF, KOL@bitcoin136 published a long article stating that because Binance failed to clearly mention that the token would be issued in the announcement of FRONT's name change on August 19, it suffered financial losses from buying it in advance.

At the same time, he also posted the chat record with Binance's customer service. During the conversation, the customer service repeatedly stated that users need to conduct their own research to understand the background information of the project party. In addition, Binance also stated in a subsequent reply that they did not include the token issuance in the announcement, and will optimize the subsequent process later.

@bitcoin136 also mentioned that another exchange, gate.io, stated the FRONT issuance information in an earlier announcement. Therefore, it is hoped that Binance can give a corresponding response to this incident.

@bitcoin136's remarks also attracted the support and approval of many community members, who accused the project party of changing its name and issuing additional tokens and Binance of failing to fully disclose information.

In fact, Binance did not mention the additional issuance of tokens in the announcements on August 19 and August 30 regarding the replacement of Frontier (FRONT) tokens and the upgrade of the brand to Self Chain (SLF). However, in the announcement on September 1, Binance has updated the changes in the total supply of SLF tokens.

The announcement update information is: Please note that after this brand upgrade, the total supply of project tokens will increase from 90,000,000 to 360,000,000. Users can refer to the SLF project token economics and project announcements for more information.

However, as of writing, Binance has not made further explanations and responses to the missing token issuance information.

The issuance has sparked heated discussions in the community, and the Self Chain new coin proposal was hidden at the beginning of the year

Many community members have expressed their questions and opinions about the experiences of @bitcoin136 and similar FRONT holders.

On-chain analyst @defioasis believes that the SLF token issuance increased by 4 times, but users exchanged at 1:1, which is equivalent to a 75% dilution of users. The previous project's proposal vote also showed that the project officials were behind the token renaming.

KOL@nft_hu said that Binance and the project party had gone too far, and the tokens should not be exchanged at a 1:1 ratio after the issuance. The lack of additional explanation in the announcement would make investors think that the total amount of tokens is unchanged by default, which is exploiting loopholes to deceive users.

KOL@hongshen6666btc also said that the project party had no bottom line in exchanging FRONT coins.

KOL@Bingege888 explicitly questioned why Binance approved the exchange of coins for the disguised additional issuance of the project, and asked Binance about the process of renaming old projects and listing new coins.

Some radical community members believe that this additional issuance event was initiated by Binance and the project party to cut leeks, but in fact there is no conclusive evidence to prove that Binance was indeed involved.

Self Chain officially gave an explanation and explanation for this name change and additional issuance.

On August 31, Self Chain wrote in a blog post that before the team launched the brand conversion and token exchange, Self Chain DAO conducted a voting proposal from January 12 to January 19, 2024, which included details such as the increase in the total supply, distribution, unlocking schedule and use of SLF, and the voting results reached 100% approval rate.

The total supply of SLF has been set at 360 million, which is higher than the previous total supply of FRONT. 28.8% of the total supply will be released on TGE, about 103.6 million SLF. 90 million comes from migration allocation and 13.6 million comes from ecosystem allocation. Therefore, 3.78% of new tokens will be issued on TGE.

At the same time, Self Chain hopes that FRONT holders can benefit from the swap and renaming. The specific reasons for this adjustment are:

Network security: In order to protect the self-chain network from 51% attacks, it is necessary to increase the total supply to ensure a higher host ratio.

Attract investors: The new token economics aims to attract investors and equity holders, which is essential for running a secure layer 1 blockchain.

New era: The shift from simple utility tokens to strategy-centric first-layer blockchains requires a more comprehensive token economic structure to support enhanced functions and infrastructure.

Summary

Recently, more and more project parties have changed their brand names, including many well-known projects. As mentioned above, token swaps should guarantee the rights and interests of investors. Although Binance failed to disclose the additional issuance information in a timely manner, Self Chain, as the responsible entity, should in any case replace the tokens in proportion to the value of the additional issuance.