KateEARNM and StormX are excited to announce the next phase in the IMO, marking a significant milestone in our journey to create the world's largest Web3 rewards ecosystem.
This article will describe the conversion rate and community voting process in detail. As the next steps unfold, we want to ensure full transparency and seamless execution for all token holders and community members.
Why The IMO Matters?
The merger between EARN’M and StormX is designed to unlock significant opportunities for both projects and their communities. Combining strengths will enhance the utility and reach of the products and services offered while staying true to the core principles that have driven both projects. This strategic integration will onboard over 50 million Web2 users into Web3, expanding ecosystems and uniting new and existing token holders in a more robust and dynamic community.
Post-merger, EARN’M will support StormX’s cashback services and help expand the userbase into 16 new earnings and savings verticals, seamlessly bridging Web2 and Web3 platforms.
Designed for effortless integration with both Web2 and Web3 partners, EARN’M’s ecosystem will unlock new markets, broaden user adoption, and enhance the token's utility across diverse industries.
One of the merger's key enhancements is the introduction of a recycling mechanism for unvested tokens. This mechanism will ensure the long-term sustainability and efficiency of the rewards system. It will also help optimize token distribution, reinforcing the ecosystem’s growth and longevity.
Read the IMO Full Breakdown: https://blog.earnm.com/posts/stormxmerger
Conversion Rate
The conversion rate is based on the 30-day average Fully Diluted Value (FDV) from $EARNM’s first trading month. The results highlight a strong and balanced performance for both projects.
Fully Diluted Value (FDV)
EARNM 30-day average FDV — $99,181,944
STMX 30-day average FDV — $75,530,833
Considerations
- The post-merger valuation is determined by the sum of both 30-day average FDVs, adding to $174,712,778.
- The post-merger total token supply is 5,000,000,000 EARNM. The finalized conversion rates for each token are as follows:
Conversion Rate
1 EARNM (v1) = 0.5676856937 EARNM
1 STMX = 0.1729257216 EARNM
This conversion rate, directly proportional to the aforementioned FDV, represents the portion of the new EARNM token allocated to each community: ~56.77% for EARNM holders and ~43.23% for StormX holders.
EARNM’s and StormX’s market makers collaborated to extract raw data and audit the calculations to ensure full transparency. Here’s the raw data used for this calculation: https://docs.google.com/spreadsheets/d/1xkopVX-FNqsgsDDZW1tnv39eff5lKorvqnzcoMBtr8s/edit?gid=747022158#gid=747022158
Community Vote
The EARNM and StormX communities must approve the conversion rate as part of the IMO's final steps. This step is crucial to ensuring the IMO's trustworthiness and transparency for all stakeholders.
A community vote was held on February 21st and lasted for 7 days, allowing holders to decide on the proposed conversion rate.
IMO Update: A Community-led Strategic Shift
After thorough community discussion and voting on the proposed Merger Peg Ratio, the decision has been made not to proceed with the IMO.
Several factors influenced this outcome, including shifting exchange dynamics—most notably, Binance delisting StormX—raising concerns about the merger's long-term viability. Additionally, considerations around the merge token ratio and the need to maintain a strong EARN’M treasury further reinforced the decision to pivot away from this approach.
From its inception, the IMO was envisioned as a groundbreaking model for long-term consolidation in the crypto space. While this specific IMO will not move forward, the broader concept remains integral to EARN’Ms long-term strategy. The team continues to explore alternative opportunities for sustainable and strategic growth, focusing on strengthening core offerings and introducing new products that align with its long-term mission.
"We respect the community's vote. While this particular IMO will not proceed, our commitment to Web3 consolidation remains unchanged."
This decision marks an important moment in EARN’Ms journey. By adapting to evolving market conditions and prioritizing long-term sustainability, EARN’M is leveraging this as a foundation to build stronger, more strategic pathways toward consolidation in Web3.