We are excited to announce that the Dock and cheqd tokens and blockchains are merging to form a Decentralized ID alliance.
By harnessing the combined strengths of two industry pioneers, Dock and cheqd will accelerate the global adoption of decentralized identity and verifiable credentials, empowering individuals and organizations worldwide with secure and trusted digital identities.
Existing $DOCK tokens will be converted into $CHEQ tokens (pending governance approval from token holders in both communities). This will mark a new chapter of opportunity for our token holders who will benefit from all the Web3 resources cheqd has at their disposal.
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. The swap ratio has been 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.
Swap Ratio: 18.5178 $DOCK to 1 $CHEQ
This upgrade will position $DOCK token holders at the forefront of the future of decentralized identity, with increased potential for growth and innovation.
Dock and cheqd will continue as independent companies serving distinct market sectors in unique ways. By merging their tokens, expertise, and strategic focus, they will drive their shared vision forward with unstoppable momentum.
The Dock team will remain actively involved in the cheqd network, contributing to its ongoing success and growth. This commitment includes participation in governance, code contributions, and driving real world adoption.
The vision for the future of identity
You can't deny it: identity verification is going digital. The shift from physical documents to digital IDs is one of the most significant changes in the history of identity management.
At the forefront of this technological evolution is Decentralized ID technology.
Decentralized ID enables companies to accelerate ID verification, enhance transaction speeds, and streamline business processes. And at the heart of Decentralized ID is blockchain technology, which ensures that digital identities are always verifiable.
With around 40% of users abandoning ID verification mid-process, simplifying these procedures represents a multi-billion dollar opportunity. That’s why KuppingerCole calls decentralized ID the biggest disruption to ID in decades, and Gartner affirms that the transition to decentralized ID is already in motion.
Over the next five years, the decentralized identity market is projected to grow at a Compound Annual Growth Rate of over 90%, rapidly evolving into a multi-billion-dollar industry. Private sector identity ecosystems can now build off of the native digital credentials that governments are increasingly issuing to their citizens, allowing them to automate processes that were previously too cumbersome. The enforcement of Europe’s eIDAS regulations for verifying individuals, businesses, and electronic documents will further fuel this growth, presenting a significant opportunity for decentralized solutions that cater to the needs of both regulators and enterprises.
We're already witnessing a race to dominate the decentralized ID space—a race that will demand significant resources, innovation, and expertise. By forming an alliance, Dock and cheqd can safeguard a truly decentralized approach that empowers digital identity while prioritizing full transparency and user privacy.
The stakes are high, and only those with the right combination of vision and capability will emerge as leaders. That’s why Dock and cheqd are merging their blockchain capabilities to position ourselves to lead this revolution, ensuring that we are not just participants but frontrunners in shaping the future of decentralized digital identity.
Leaders in Decentralized ID
Dock specializes in the issuance, verification, and monetization of verifiable credentials for Identity Solution Providers, including KYC, background check, and biometrics companies. In parallel, cheqd has built a robust blockchain infrastructure that supports some of the leading projects in the digital identity space.
Here are the unique strengths and capabilities each company brings to the table in this groundbreaking partnership:
cheqd:
- Cutting-Edge Trust and Payment Infrastructure: cheqd has built the most advanced trust and payment infrastructure atop its blockchain, specifically designed to power Self-Sovereign Identity, eID, digital credential businesses, and entire ecosystems. Their solutions support privacy-preserving payments for credentials, offer bespoke network options, and are compatible with multiple credential formats. Get to know the cheqd team here.
- Strategic Engagement in the Web3 Space: cheqd is deeply embedded in the Web3 community, actively collaborating with and attracting other crypto projects and communities. This engagement positions cheqd as a key player in the evolving decentralized identity landscape. cheqd’s unique focus on providing privacy-preserving payment rails is a perfect complement and differentiator to Dock’s market focus, enhancing the combined offering.
Dock:
- Comprehensive Decentralized ID SaaS Platform: Dock is a leader in decentralized identity solutions, empowering businesses to launch ID ecosystems where their partners can create, share, and monetize verifiable digital credentials. By creating an ID ecosystem, companies accelerate customer onboarding, boost transaction speeds, and enhance overall business efficiency. Dock offers a complete solution with a robust API, an intuitive web app, and secure ID wallet infrastructure, delivering everything needed for decentralized identity management.
- Innovative Credential Monetization Approach: Dock’s approach to Credential Monetization is different, yet complementary, to cheqd’s payment rails. Dock’s innovative ecosystem-bound credential format requires membership in a closed ecosystem for credentials to be verified, enabling a unique value flow: verifiers can be invoiced, issuers receive payment, ecosystem administrators are incentivized, and non-paying entities can be excluded from verification.
- Proven Track Record with Traditional Web2 Organizations: Since 2017, Dock has successfully bridged the gap between Web2 and Web3 by offering a robust SaaS platform for decentralized ID, making it easier for organizations to adopt cutting-edge verifiable credentials solutions. Dock serves some of the largest Identity Solution Providers in the world, such as KYC, background check and Biometrics companies, and will continue to drive the real-world adoption of the cheqd blockchain through its comprehensive offerings.
One of the most significant benefits of this collaboration is the increased interoperability it will provide. Dock will transition to a blockchain that is already being utilized by key players in the digital identity sector. By aligning ourselves with a widely adopted blockchain, we are positioning our solutions within a broader, interconnected ecosystem.
Committed to compliance with key standards, including the EU Digital Identity Framework and eIDAS 2.0, this alliance will provide builders and end users access to the latest innovations from both platforms, such as cheqd’s MiCA-compliant stablecoin, fee abstraction technology, and Dock’s upcoming verification of mobile driver’s licenses (mDLs) and cloud wallet.
Benefits for $DOCK Token Holders in the $CHEQ Merge
As a $DOCK token holder, this merger with $CHEQ brings a host of compelling benefits that enhance both the value and utility of your tokens:
- Increased Token Liquidity: cheqd has over 81,500 token holders and is listed on multiple centralized and decentralized exchanges, such as Uniswap, Osmosis, Kujira, and ShadeSwap, with ongoing efforts to secure additional listings. Dock will seek to transition $DOCK’s existing exchange listings to $CHEQ, ensuring greater trading volumes and access to new markets and geographies. This will provide greater liquidity and trading opportunities for $DOCK token holders.
- Immediate Access to Enhanced Resources: cheqd has a wealth of resources that will be available to $DOCK token holders from day one. These include a selection of software tools, staking opportunities, participation in liquidity pools, support from market makers, engagement with influencers, and access to a vibrant, active community. These resources provide immediate value and create new avenues for engagement within the ecosystem.
- Tokenomics That Benefit Holders: On the cheqd network, presently every identity transaction executed results in the burning of $CHEQ tokens, creating a deflationary mechanism. In the coming months, this mechanism will widen from only identity transactions to any transaction using an Ethereum EIP 1559 style burn. Furthermore, a generic burn transaction will be implemented so that $CHEQ which has been minted in excess, e.g. has not been claimed as part of the migration, is burnt.
- Strengthened Financial Stability and Longevity: By pooling the resources of both Dock and cheqd, we are significantly boosting the financial stability and longevity of both projects. This token merger ensures that we have the combined strength and resources to continue innovating and leading in the decentralized identity space for the long term.
- Continued Involvement and Support: The Dock team will remain actively involved with cheqd and its community, continuing to support the shared vision for the future of decentralized identity.
- Cosmos Ecosystem and Interoperability: cheqd is built on the Cosmos ecosystem, offering a similar environment to Polkadot in terms of size and capabilities. cheqd’s strong relationships within Cosmos present opportunities for partnerships and interoperability, enhancing our network's reach and potential.
This merger not only preserves the value of your $DOCK tokens but amplifies it, providing you with more tools, opportunities, and potential for growth within the rapidly expanding decentralized identity ecosystem.
What Happens Next
The two companies—cheqd and Dock—will remain independent legal entities, with projects and roadmaps remaining largely unchanged. This token and blockchain merger enables both companies to accelerate growth and innovation at an even faster pace.
Near-Term
- Governance Vote: The token merger is subject to approval from $DOCK token holders. Your vote is crucial in enabling the worldwide adoption of verifiable credentials. $DOCK token holders can vote here.
- Token Migration Process: We will collaborate with the cheqd team to establish a secure way for $DOCK token holders to migrate their tokens to $CHEQ safely.
- Validator Collaboration: Existing $DOCK validators will continue validating transactions, ensuring a smooth transition and continued network reliability.
- Exchange Coordination: We will work closely with exchanges to manage the token migration process, ensuring a seamless transition for all trading activities.
Medium-Term
- Token Migration: $DOCK tokens will be migrated to $CHEQ, enabling token holders to benefit from the new ecosystem. This is estimated to commence in the latter half of Q4.
- On-Chain Asset Transfer: We will transfer all on-chain assets from the Dock blockchain to the cheqd blockchain, ensuring that all assets are preserved and integrated into the new network.
- Porting Blockchain Transactions: All existing blockchain transactions will be ported to the cheqd chain, guaranteeing continuity and providing enhanced functionality for all ongoing Dock operations.
Long-Term
- Dock Network Shutdown: The Dock blockchain will be sunsetted once the token migration period has ended and the data has been migrated. Dock will maintain a blockchain explorer post-migration to preserve the network's history, serving as an immutable record of the migration and allowing former holders to check past transactions.
- Primarily use of the cheqd Network: Post-migration, Dock will default to using the cheqd network, though we will still support clients who request to use an alternative chain, multiple blockchains, or ledgerless identity systems. We believe defaulting to the cheqd chain will ensure that Dock continues to operate within the most advanced and secure decentralized ID ecosystem.
This token merger is not just a change; it's a monumental leap forward. By merging the $DOCK token with $CHEQ, we are unlocking unprecedented opportunities for our community, positioning you at the cutting edge of decentralized identity innovation.
The future of decentralized digital identity is bright, and with your $CHEQ tokens, you'll be part of a dynamic, growing ecosystem that is set to lead the industry.
Dock and cheqd will shape a world where secure, verifiable credentials are the norm, and your involvement is key to making this vision a reality. The journey ahead is filled with potential, and we are thrilled to have you with us as we pave the way for the next era of digital identity.
FAQs
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.
