Frequently asked questions and things you need to know about the new bridge feature.
The MUNCH bridge is a new way for many people to reach MUNCH, and a new way for existing MUNCH holders to interact with the token.
Learn more about the bridge operates here and if you have further questions you can reach us on telegram.
Will the token supply be duplicated?
No — 100T will be created on BSC side but these tokens will be “frozen” in the bridge’s contract.
If Holder A moves 1B tokens to BSC then these 1B tokens will become “frozen” on the ETH side. If Holder B moves 1B tokens to the ETH side, these will be ‘frozen’ on the BSC side.
How will the redistribution model work?
All MUNCH transactions will be subject to the same 10% fee. 5% will be sent to charity, 5% will be redistributed among MUNCH holders, with your allocation depending on the proportion of your holding.
Redistribution is not cross-chain. This means if you hold MUNCH on the Ethereum network you will only receive distribution tokens from transactions on the Ethereum network. If you hold MUNCH on the Binance network you will only receive distribution tokens from transactions on the Binance network.
If you hold MUNCH on both networks, you will receive distribution based on the proportion of your holding on each network, not combined.
EG: If you hold 2% of the MUNCH supply, split into 1% on Ethereum and 1% on Binance, you will receive 1% of the distribution tokens from each transaction on each network, rather than 2% on both networks.
Will these ‘frozen’ tokens receive distribution tokens?
No. Redistribution will only happen among actual wallet holding tokens, the bridge itself is excluded.
This means that initially, redistribution on the Binance Smart Chain will benefit holders more, as there will be fewer circulating tokens. This will incite people to buy in or transfer some tokens to even the distribution.
Are fees applied to cross-chain transactions?
No. There are no MUNCH fees applied when exchanging BEP20 tokens for ERC20 tokens and vice versa. The bridge is excluded from fees to prevent people from paying multiple fees on the same tokens.
if you swap 100B ERC20 tokens you will receive 100B tokens on the Binance network.
How will the donations work using Pancake Swap?
The donation model will work in the same way. 5% of every transaction will be converted from MUNCH and allocated for charity. The only difference is, when using the Binance Chain, the contract has to return BNB, rather than ETH, as the ‘stable’ token that is sent to the charity.
As very few charities are set up to receive BNB as a donation token, this presented us with a challenge. We evaluated three options to overcome this:
- Having a wallet in which we convert the tokens to ETH and send to the charity’s ETH address
- Donating to charities that are set up to receive BNB donations
- Adding the donations to the liquidity, selling from this pool to ETH, and burning tokens to rebalance the token price
After evaluation, we decided to opt for the first option as it offers the most sustainable, transparent, and commercially viable option.
Donating to charities with a BNB wallet seriously limits our scope. Adding the donations to the liquidity is not a sustainable method. The pools will be drained within months.
To ensure continued trust and transparency MUNCH will send BNB donations to a Gnosis multi-signature wallet that will require the combined sign-off of a minimum of three core team members, and can be checked and verified at any time. Once converted, all donations will be sent to the contract wallet so all ETH donations are tallied up with the donations from the ETH network.
This will donate the ETH directly to the charity wallet with no fees or transaction costs. This will also enable us to track all donations in a single analytics view.
To ensure our standards for security and transparency this wallet address will be made public and will require multi-signature approval. BNB will be converted to ETH and sent to the contract address every 24 hours to prevent a build-up of funds or prevent the charity from liquidating to fiat as and when they require.
This process will be automated to prevent the need for this step.
Can these tokens be automatically converted to ETH in the future?
Yes. It will be possible to program the contract to convert the BNB tokens to ETH automatically and send them to the charity contract address in an automated function.
This will solve the issue of having human involvement in the process and is being worked on.
How will the bridge affect the token price?
The token price will balance itself out because due to arbitrage opportunities, both tokens will have similar prices and volumes on both sides, creating an equilibrium.
Will I receive distribution tokens on Binance and Ethereum?
No. Distribution will work using the same model, but won’t be cross-chain, you will only get rewards from the chain you hold tokens on. If you hold MUNCH tokens on both chains, you will receive distribution tokens relating to the number of tokens you hold on each chain separately.
How will the initial liquidity be provided?
The initial liquidity required to set a price on BSC and prevent sniping has been projected at $50–60K in BNB tokens and has been provided and locked prior to launch
How do I buy on Pancake Swap?
PancakeSwap is a decentralized exchange for swapping BEP-20 tokens.
To buy on Pancake Swap, you can simply add the Munch BSC token address in the “To” field, and swap tokens.
Can I send my current MUNCH tokens from Ethereum to Binance?
Yes. Tokens can be sent between blockchains using the bridge on our website.
We hope this answers your questions, if you want to know more you can email us directly at team@munchproject.io and join our Telegram here.
