On August 21st, Ocean Protocol completed their token swap moving OCEAN to a new ERC20 contract. The successful token swap is part of the project’s Ocean V3 release which will bring staking and incentives into the Ocean ecosystem. Essentially, they are preparing to activate network rewards scheduled for Q4/2020 which will primarily go towards community funding programs.
Well, that’s all great news?
While it is positive to see Ocean Protocol’s development moving forward, even this successful token swap may be a bearish indicator for the market. The total supply of OCEAN has doubled overnight and is now 1.41 billion. The team was quick to remind traders that the current circulating supply has remained at 350 million, so there should not be any immediate price impact.
- Many investors dove into OCEAN following the increased attention due to their recent Binance listing, just days before the token swap happened. They may now find that the Ocean Protocol is much deeper than expected!
Lower your pitchforks: the tokenomics change (increased total supply) is not actually a surprise or unplanned roadmap change. It was communicated in their original 2017 whitepaper, though that was 3 years ago and Binance could have highlighted this better.
In the new Ocean token contract, the maximum total supply will be set to 1.41 billion Ocean tokens. Originally planned and communicated in 2017, we’re now ready for this update to the maximum total supply.
Looking to the horizon: if you have been caught out by the supply change, then don’t think about throwing out the anchor just yet. The Ocean V3 release in September will enable a decentralized data marketplace accessible to everyone. Buying and selling of datasets will be simple, powered by Data Tokens, opening up a new era of data and DeFi economy.