Symphony Token Migration Proposal

Simple Summary

Migrate $CAD to $SMY, the native utility token of the Symphony Network.

Abstract

This proposal outlines a path to migrate $CAD to a new token called $SMY. A snapshot on Nov. 8th will determine the initial balances of the $SMY token. This transition will not dilute current $CAD holders.

Motivation

We started Cadence in March of 2023 to create a perpetual protocol with the most capital efficient use of liquidity through RWAs, LSDs, and CSR. Despite the size of the ecosystem we launched on, Cadence quickly grew to over $300M in volume and earned ~$1M in fee revenue.

However, as we kept building, we discovered the two main issues preventing DeFi from scaling:

• Liquidity fragmentation across chains and protocols
• Poor user experience interacting with apps

It became both our passion and mission to solve them.

We spent months researching how we could solve these issues correctly. With strong backgrounds from Axelar, Metamask, ConsenSys, Kraken, we had the perfect mixture of expertise in cross-chain communication, retail DeFi UX, account abstraction, and DeFi infrastructure.

We realized that we would not be able to solve these issues with a single protocol on a single chain – we had to build Symphony, the first agnostic execution network.

We believe that the Symphony product suite will lead our future growth and that the Cadence community will continue to supercharge adoption, as they have over the past few months. Over the next 1-2 years, we intend to capture a significant share of on-chain execution by leveraging six distinct components that will make crypto usable, scalable and accessible:

1. Maestro - An omni-chain user state management protocol
2. Intent Pooling Engine (IPE) - An AI intent decomposer and communication engine
3. Cortex - The first permissionless Solver/AI agent network that innovates non-custodial cross-chain general executions and micro-duration loans
4. Symphony Wallet - A chain agnostic account abstraction wallet with omni-chain session keys
5. Orchestrator - The chain agnostic liquidity coordinator and executor
6. Symphony Sharding Engine - The first high-performance, scalable engine that enables multiple executions across various protocols and chains simultaneously

In the near future, there will be millions of chains and protocols, along with trillions in liquidity. Symphony’s scalable network unifies our ecosystem to handle the future state and accelerate the present. Through its product suite, it is able to handle near instantaneous cross-chain executions, globally manage user state, and coordinate omni-chain liquidity. It does all this completely hidden from the end user, taking the on-chain world to a level that is accessible by all.

Over the past year, we built Symphony’s core infrastructure and the first chain agnostic perpetuals aggregator, set to launch after the proposal approval. Six months following this, we envision hundreds of protocols following suit, integrating into Symphony’s agnostic execution network. Our goal is to first dominate perpetual execution and then expand into other DeFi primitives. Advancing not only the infrastructure side, but also the consumer side - we will launch Symphony Perps on mobile, targeting retail users, as well as other disruptive systems that will be unveiled down the line.

In 2-3 years we envision countless chains, AI agents outnumbering users, and rapid DeFi growth with TradFi migrating to crypto rails. Symphony will power this future, bringing its full potential to life. It will serve as the interconnecting network for crypto, pioneer the essential infrastructure for AI agent communication and execution, and advance the boundaries of financial innovation.

This migration process enables us to accomplish this vision. We have taken inspiration from other successful relaunches and believe that Symphony will receive many benefits, such as top CEX listings, strategic partner investments, Symphony’s virality campaign, $SMY integrated across infra/app stack, and go-to-market customer acquisition strategies.

Specification

$SMY will be the native token of Symphony’s network

$SMY Details

The maximum total supply of $SMY tokens will be 1,000,000,000.

Each $CAD holder will have a 1:4 claim from $CAD to $SMY as determined by their balance at the snapshot.

Each $esCAD holder will have a 1:4 claim from $esCAD to staked $SMY as determined by their balance at the snapshot.

No dilution will occur.

$CAD to $SMY Migration Sequence

$SMY Snapshot

On November 8th at 11:59pm UTC, a snapshot will be taken of $CAD and $esCAD balances on the Ethereum and Canto networks. $SMY balances will be seeded per this snapshot, targeting launch at the end of Q1 of 2025, pending discussions with centralized exchanges, investors, potential partners, and more. This will give us time to ensure that Symphony launches with the support needed for our vision.

• All $esCAD will convert to staked $SMY.
• All users that claim their $SMY as staked $SMY will receive a 5% bonus in staked $SMY upon migration – this will reward long-term early community members for the interim period.

$SMY Launch

The $SMY launch will aim to happen before the end of Q1 2025. The exact date depends on liquidity and exchange partnerships. $SMY will aim to launch with liquidity on centralized and decentralized venues and this period is in line with the typical time period for conversations to finalize.