The NEM Foundation announced the testnet launch of its open-source blockchain platform SYMBOL From NEM on January 10, 2020. The mainnet launch of the platform is expected somewhere in the first half of this year, and the testnet is currently available.
So SYMBOL is approaching – what does that mean? How will it be distributed to existing holders of XEM, the native token of the NEM blockchain, and what does SYMBOL mean for NEM? Below, we take a closer look.
What is SYMBOL
According to the NEM Foundation, SYMBOL is a next generation, open source decentralized blockchain platform from NEM that connects businesses to blockchain, helping them to reduce cost, complexity, and find new ways to create value.
SYMBOL is a new blockchain platform developed by NEM under the code name ‘Catapult’ which was then, after conducting voting on Branding Proposal, given the name SYMBOL From NEM. SYMBOL’s native token will be referred to by its ticker, XYM.
In short, SYMBOL is an enterprise blockchain solution with its own native token.
How XEM Holders Can Obtain SYMBOL’s New Token
According to the procedures provided by the NEM Foundation, in order to receive XYM tokens, existing XEM holders can manually opt-in from their accounts. This process will be open for several years.
What is Opt-in and Snapshot
A snapshot is a picture that will be taken before the launch of SYMBOL from NEM recording everyone’s XEM balance across the NEM blockchain.
The snapshot will then be used to populate the new SYMBOL (XYM) tokens in the new SYMBOL blockchain. The value of XYM is a 1:1 value of XEM. By opting in, users can choose to receive one XYM for every XEM they hold.
XEM holders can opt-in by logging into their XEM wallets, also called Nano wallet, and manually opt-in via the Services panel.
If a NEM holder does not opt-in, he will not receive any SYMBOL token XYM. While the snapshot is happening before the mainnet launch of SYMBOL, NEM holder can even opt-in after launch.
No matter when a holder opts-in, he will only receive the corresponding XYM tokens that were recorded at the time of the snapshot. Users can access new tokens by using their private keys for new accounts on the new network.
One SYMBOL token for every 1 XEM token at the time of snapshot will be created on the new SYMBOL platform blockchain. Remember new tokens will be created on new blockchain.
For each XEM held at the snapshot date, the holder will have the right to participate in SYMBOL and redeem one SYMBOL token. The user will maintain their XEM tokens. As with bitcoin and bitcoin cash, the user will automatically receive XYM in direct proportion to the amount of XEM they already hold.
What Will Happen to Existing XEM Token and NEM Blockchain
SYMBOL From NEM and NEM will operate on two separate blockchains. Both are owned and operated by the NEM Group. NEM will remain a public blockchain, and XEM tokens will remain tradable on exchanges.