Decentralized digital ID providers Cheqd and Dock merge tokens

The token holders for $CHEQ and $DOCK have approved a merger in the hopes of accelerating the global adoption of decentralized digital identity and verifiable credentials. All chain-related elements, such as revocation registries, decentralized identifiers (DIDs), and testnets, will be transferred to cheqd. The token migration is scheduled for the latter part of Q4. Both companies will continue to operate independently, focusing on their specific areas within the decentralized digital identity space.

All existing $DOCK tokens will be exchanged for $CHEQ tokens at a rate of just over 18.5 to 1. This will be done using a swap ratio calculated based on a 15-day historical average of the closing prices of both tokens. After the migration of assets and transactions to the cheqd blockchain, the Dock blockchain will be gradually phased out, with the process expected to be completed by mid-2025.

Nick Lambert, CEO of Dock, explained the decentralized infrastructure of Dock in an interview with Decentralized Identity Foundation (DIF), saying, “The vision behind this is to allow Dock to focus on what differentiates us in the market: our issuing and verification platform, API, and our various platform features. Not all of these innovations take place at the blockchain layer but above it.”

The token merger will offer several benefits to the $DOCK token holders, such as increased token liquidity, access to more resources, improved tokenomics, robust financial stability, and interoperability. The integration will provide $DOCK token holders access to software tools, including identity management and credential issuance frameworks.

Dock anticipates that the token migration will lead to increased activity on the cheqd network, with a projected 300 percent surge in traffic on the mainnet and a 50 percent increase on the testnet. The company also predicts the merger will increase demand for $CHEQ tokens. Token holders do not need immediate action, as the cheqd and Dock teams collaborate on the migration process. Detailed instructions will be provided closer to the migration date.

Dock develops a framework and platform for the issuance, verification, and monetization of verifiable credentials. The company’s platform, Certs, is a reusable digital ID platform that manages processes such as know your customer (KYC), background checks, and biometric verifications.

According to Lambert, Dock is focused on enabling businesses to develop sustainable models around verifiable credentials and digital identity. The company takes pride in its approach to transform credential issuance into a revenue-generating activity.

“We’re enabling credential issuers to turn what today is a cost center into a revenue source. When you combine that with our ecosystem enablement and the rest of our stack, it makes us differentiated in the market,” Lambert adds.

Article Topics

blockchain  |  cheqd  |  decentralized ID  |  digital identity  |  Dock  |  reusable digital ID  |  verifiable credentials