The cryptocurrency markets are having difficulty to recover since the 2018 corrections. Due to that the team behind Magnet made a decision regarding the future of the network. A full transition from coin to digital asset (token) needs to be made in order for the project to move further. This means that after the update, masternodes will no longer be supported.
Stellar Asset Transition
What pushed the developers to this decision is pretty much a matter of survival for the network. After doing some research they found out that roughly 70% to 80% of projects that were launched in 2017 have stopped or are already closing down due to their inability to fund their operation. The MAG anchor on Stellar has seen steady growth from 2018 on and has accumulated roughly 7 million MAG. The Stellar blockchain gives Magnet access to smart contracts, although not Turing-complete, escrow and crowdfunding will be available. Also, staking is fully supported by the Anchor on Stellar meaning that you will not need to run a wallet to stake, as any amount will be staked automatically. Further information regarding a new distribution model to account for the loss of masternode rewards is expected in the coming weeks.
Swapping MAG to Stellar
If you would like to be on the safe side and start taking precautions from an earlier stage, it is a great idea. You can start swapping your MAG tokens to Stellar immediately through two methods that will be listed below.
LITEMINT WALLET
Maybe the easiest way to swap your MAG is with the Litemint wallet. You can either use it through your browser or download it to your computer or device from their official Litemint website. Here is a step by step guide:
- Create a new account by entering a PIN
- Send at least 2 XLM to your wallet
- Under the “Assets” tab, you can add the MAG asset
- Select the MAG asset and click on the “Receive” button to get an address
- Use the generated address as a receiver when you send your MAG
Using the Anchor API
The alternative method is to use the Anchor API, which will automatically swap your MAG tokens to Stellar. You can use the endpoint given below to get a MAG deposit address, which then you can use to send MAG there and then will be swapped to your Stellar address.
https://api.litemint.com/.magnet/deposit?address=ENTER_YOUR_STELLAR_ADDRESS
MAG Wallet v2.0.0 Live
With the new updates and transition of assets, a new version of the MAG Wallet is now available for download. It is called version v2.0.0 and it will set all rewards from block 545,000 to 1 SAT on the old chain. If you decide to not update your wallets, your current one will not be able to connect to the MAG anchor and swap to Stellar. In order to update and have a successful swap, you will need to re-download the new v2.0.0 wallet from Mag Network GitHub and wait for it to sync up after installation. This process can take a long time, especially if your current internet connection is slow.