Blockchain project VeChain announced on Monday that it has revised its development roadmap in response to community concerns related to its token swap.
Yet the swap has also been a point of contention for some token holders, especially those with so-called 'X Node' status.
According to the VeChain Foundation, the X Node program rewards early project supporters who hold a set amount of tokens by giving them the opportunity to run a low-level node in the network. They also have the opportunity to upgrade to a more privileged node status in the future. To maintain their X Node status, users must continue to hold the necessary balance, which will be "monitored" by the VeChain foundation.
In order to transfer users' X Node status from ethereum to the VeChain mainnet, the foundation initially said in its wallet manual that eligible users must transfer their tokens to VeChain's mobile wallet app by August 1.
However, despite VeChain's assurances that the wallet is secure, users in community forums were concerned about its use, particularly about what would happen to their X Node status if they lost their phone.
Likewise, many expressed frustration that the available alternative to the mobile wallet, the VeChainThor Ledger app, would not be released until after the cut off date for X Node migration.
"This means everyone has to do it without Ledger support because that is not due until after that date," a Reddit user named _Neil_ wrote on the VeChain subreddit. "This is going to make people nervous...me included as a want to keep my tokens secure but definitely do not wish to lose X status."
Another user, spellboundaries, criticized the VeChain Foundation by saying:
Fork in the roadmap
On Monday, the foundation announced that it would address the community's concerns by extending the X Node migration period for ten days after the VeChainThor Ledger app is available. It also said that X Node monitoring will start three weeks after the mobile token swap service becomes available – though it has not yet provided exact dates for these events.
Additionally, VeChain will introduce a "wallet observation function" that will allow users who create their VeChain private key addresses through alternative means (such as hardware wallets or desktop wallets) to manage and swap their X Node status through the mobile wallet.
The foundation also said it will "backdate and compensate VTHO to token holders" for the X Node migration and token swap period "as the entire migration timeline is completed," though it did not provide further details on when or how it will do so.
"Your voice has been heard," the foundation wrote. "We believe this is the best way to strike a balance between our desired security level and user functionality."
Users in community forums appear to be responding positively to the changes. While some Reddit users thanked the foundation and said they "admired" its "responsiveness," others were less impressed.
One user, identified as sevletor, wrote: "It's called professionalism."
Business miniatures image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.