We have just announced that the Dock and cheqd tokens and blockchains are merging to form a Decentralized ID alliance.
This FAQ will answer your most pressing questions about what this merger means for the future of the $DOCK token, the swap ration, the impact on Dock's clients, validators and more.
What will happen to the $DOCK token?
Existing $DOCK tokens will be converted into $CHEQ tokens. 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.
What is the swap ratio?
The swap ratio will be 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. Any major deviations to what is outlined here up until the migration could require reconsideration of price ratios in the interest of ensuring a successful combined ecosystem.
When will the migration happen?
The migration is estimated to start in the latter half of Q4.
What should $DOCK holders do?
No action is required from you at this time. We are collaborating with the cheqd team to develop a secure process for $DOCK token holders to migrate their tokens to $CHEQ safely. We will share detailed instructions about the migration process in the near future.
What will happen to the Dock blockchain?
In the medium term, we will migrate all on-chain assets from the Dock blockchain to the cheqd blockchain, ensuring that every asset is preserved and seamlessly integrated into the new network. All existing transactions will be transferred to the cheqd chain, guaranteeing continuity and offering enhanced functionality for ongoing Dock operations. In the long term, the Dock blockchain will be gradually phased out once the token migration period concludes (mid-2025). To preserve the network’s history, Dock will maintain a blockchain explorer post-migration, providing an immutable record of the migration and enabling former holders to access past transactions.
How will the migration mechanism work?
We are working closely with the cheqd team to create a secure process for $DOCK token holders to safely migrate their tokens to $CHEQ. Detailed information about the migration process will be announced soon.
How does this impact the Dock community?
The Dock community will gain numerous benefits, including new software tools, increased token liquidity, immediate access to enhanced resources, and tokenomics designed to benefit holders. For a complete list of benefits, please see the full description here.
Will Dock and cheqd remain as separate entities?
Yes. Dock and cheqd will continue as independent companies serving distinct market sectors in unique ways. Only their tokens and blockchains are merging.
How does this impact Dock’s clients?
One of the most significant benefits of this migration for Dock's clients is the increased interoperability it will provide. We are transitioning to a blockchain already being utilized by key players in the digital identity sector. We are positioning our solutions within a broader, interconnected ecosystem by aligning ourselves with a widely adopted blockchain.
As part of this transition, we will begin using the cheqd DID (Decentralized Identifier), a method adopted by numerous companies across the industry. This means your interactions with other companies within this ecosystem will become more seamless, allowing for greater collaboration and integration across different platforms.
Additionally, we'll be able to focus most of our efforts on continuing to develop our best-in-class API and wallet capabilities. By moving to a well-established blockchain infrastructure, we can redirect the resources and time previously dedicated to blockchain development—an often costly and time-consuming process—towards enhancing the features and capabilities of our SaaS products.
Our team will handle the migration of all blockchain-related data, including our clients' existing DIDs, Trust Registries, Schemas, and other on-chain data. We are putting in place a comprehensive migration plan that ensures all of all mainnet and testnet data will be securely transferred to cheqd. All existing credentials will remain verifiable just as before the migration, and new credentials will reference cheqd with minimal changes to customer integrations. Some of the underlying technology is changing, but how our clients use our services will generally remain the same. Their day-to-day operations will not be disrupted, and they can continue to rely on our platform without any interruptions.
How does this impact Dock’s validators?
Validators will enjoy several benefits, including increased token liquidity, enhanced tokenomics, and improved validator support. For a complete list of holder benefits, please see the full details here.
To express our deep appreciation for their ongoing support and to ensure that the Dock network remains secure and stable until the token migration is complete, validators on the Dock network will continue to receive 100% of the network rewards.
Validators will continue to receive their rewards during this time and we will ensure the migration process works for validator wallets, allowing them to fully benefit from their 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.
Following the migration, we plan to continue operating the Dock blockchain until mid-2025.
