Months of building have laid the foundation for the App Layer and Rujira products, and we’re excited to be nearing one of the major milestones, The Merge, expected to go live on February 27th (subject to CosmWasm being live on THORChain mainnet before that date).

On this date, users from Kujira, Unstake, Levana, The Wink Team, and Fuzion can take the first steps toward converting their Merge tokens into $RUJI by locking them into the Merge contract. The supported tokens for the Merge are $KUJI, $rKUJI, $FUZN, $WINK, $NSTK, and $LVN.

What does the Merge mean for you, and how can you best prepare?

⚡️How many $RUJI will I get?

The amount of $RUJI you will receive depends on both the number and type of tokens you deposit. The conversion rates for the different tokens are shown in the image below. For the calculation tool or for more details about the rates, visit: https://kujira.network/merge

⚡️Bonding curve and decay

Starting from the 27th of February, users will have 12 months to convert their tokens to $RUJI. During the first four weeks, you will get 100% of the conversion rate. After this period, the rate will gradually decrease on a linear scale, reaching 0% by the end of the 12-month window.

Users who have their $KUJI or other merged tokens staked should begin the unstaking process as soon as possible. Since unstaking takes 14 days, starting now ensures that tokens will be liquid when the Merge contract goes live. Make sure your tokens are fully unstaked and deposited into the Merge contract by March 28th to benefit from the full conversion ratio.

Note: Users who will deposit their tokens into the Merge contract, won’t be able to claim RUJI just yet. Users will be able to claim their RUJI after the Token Generation Event (TGE), which is expected for the end of March. 

⚡️Staked $KUJI or other merge tokens

Kujira users can unstake their $KUJI at kujira.network/stake. Be sure to check both deactivating and inactive validators, as some have stopped validating due to the migration.

For users who have staked one of the other Merge tokens, please follow the unstaking process specific to your respective project.

• Staked and vested LVN will automatically unlock on February 16th and be available for claiming. Follow the Levana X announcements for more information
• FUZN can be unstaked from here (unstaking period: 14 days for yFUZN + 7 days for FUZN)
• NSTK can be unstaked from here (unstaking period: 14 days)
• WINK can be unstaked from here (unstaking period: 14 days)

⚡️What will the Merge look like and what steps do I have to take?

Once the Merge contract goes live, we will share a link with the communities to begin the process. There are four groups of users that own $KUJI or one of the other Merge tokens:

• Native $KUJI and other Merge tokens with IBC compatible wallet (e.g. Keplr, Leap)
• Native $KUJI and other Merge tokens with Passkey wallet (e.g. Sonar if you set it up using Passkey)
• $KUJI on a different chain
• $KUJI on a CEX (Kraken, Mexc)

Depending on the group, users may need to follow additional steps to participate in the Merge process and deposit their tokens in the Merge Contract. The specific steps for each group are outlined below.

⚡️Native $KUJI and other Merge tokens with IBC compatible wallet

The Merge process consists of two steps, assuming you have your Merge tokens unstaked and liquid on the Kujira chain.

1. Send your Merge tokens from Kujira to the Cosmos Hub via an IBC transfer (box on the left).
2. Transfer and deposit the Merge tokens to THORChain (middle box).

At a later stage, after the TGE (Token Generation Event) has taken place which is expected for the end of March, users will be able to complete the final step:

3. Convert the deposited Merge tokens into $RUJI (box on the right).

You will be able to perform those actions from a dedicated UI which has not not yet been published. Be careful of scammers, they will be sharing malicious links everywhere!

⚡️Native $KUJI and other Merge tokens with Passkey wallet

Passkey accounts only work for the Kujira Network and won’t be able to interact with Cosmos or THORChain. Users that have $KUJI or the other merge tokens need to transfer those tokens to an IBC compatible wallet like Keplr. If it is your first time using the Keplr wallet, please follow the steps below to get started:

The steps 

1. Download Keplr wallet via https://www.keplr.app/get
2. Choose “Create a new wallet” or select “Connect hardware wallet” if using a Ledger.
3. Choose either private key or google account based on your preference. Make sure to store your private key somewhere safely!
4. In the “Chains” window, deselect all chains and press Finish.
5. Open the extension or app, search for Kujira in the search bar, and press Enable.
6. In the new window, select Kujira and press Save.
7. Open Keplr, scroll down to find $KUJI, and click the two squares icon to copy your Kujira address.
8. In your Portfolio, search for your tokens, press the three dots for the menu and press Send. Use the copied address from step 7 when sending the $KUJI and other merge tokens from your Passkey account to your Keplr Kujira address.

Note: make sure to first do a small transaction to your new Kujira address before sending your entire amount to ensure you are sending the funds to the right address.

⚡️$KUJI on a different chain

Users holding bridged $KUJI on Osmosis, Arbitrum, or other chains must bridge their tokens back to Kujira and follow the same steps as mentioned in the section “Native $KUJI and other Merge tokens with IBC compatible wallet”.

• For users with $KUJI on other cosmos chains, users can IBC their $KUJI to the Kujira network via the “Send” button in the Keplr Wallet extension.
• Users on Arbitrum or Optimism can use Squidrouter to bridge their $KUJI back to the Kujira chain.
  

⚡️$KUJI on a Centralized Exchange (Kraken, Mexc)

Since we cannot predict how exchanges will handle the migration, we strongly encourage CEX users to complete the process themselves. If you hold $KUJI on Kraken or MEXC, withdraw it to your Kujira address and follow the steps outlined in the section “Native $KUJI and other Merge tokens with IBC compatible wallet”.

If this is your first time using an on-chain wallet or you don’t have a Kujira address, the easiest way to get started is by downloading the Keplr wallet, which supports both Kujira and THORChain.

The steps:

1. Download Keplr wallet via https://www.keplr.app/get
2. Choose “Create a new wallet” or select “Connect hardware wallet” if using a Ledger.
3. Choose either private key or google account based on your preference. Make sure to store your private key somewhere safely!
4. In the “Chains” window, deselect all chains and press Finish
5. Open the extension or app, search for Kujira, and press Enable.
6. In the new window, select Kujira and press Save.
7. Open Keplr, scroll down to find $KUJI, and click the two squares icon to copy your Kujira address.
8. Use this address when withdrawing the $KUJI from a CEX to your own wallet.

Note: make sure to first do a small transaction to your new Kujira address before sending your entire amount to ensure you are sending the funds to the right address.

⚡️Bonus tokens

If not all tokens are converted or exchanged at a rate lower than 1:1, a surplus of $RUJI will accumulate. These excess tokens will be periodically distributed as rewards to users who do not immediately withdraw their $RUJI from the Merge contact.

The amount of rewards accrued depends on when a user initiates the conversion and how long they wait before withdrawing. Rewards accumulate until the moment of withdrawal.

Users can withdraw both their converted and reward tokens at any time without an unbonding period. However, once withdrawn, tokens cannot be locked again to earn additional rewards.

Each merging token, including $rKUJI, will have its own separate Bonus Token pool and distribution. For example, any $RUJI from unconverted $FUZN will be distributed among the locked $RUJI that originated from $FUZN conversions.

⚡️Kujira Ecosystem Altcoins (non-merge tokens)

On the same day as the Merge, the migration of the token for the other projects on Kujira will also start. After the projects migrate their liquidity to the App Layer, holders of $MNTA, $NAMI, and $AUTO will be able to follow similar steps as outlined in the section “Native $KUJI and other Merge tokens with IBC compatible wallets” to migrate their tokens from Kujira to the App Layer.

Steps:

1. Unstake your staked $MNTA, $NAMI or $AUTO
2. IBC $MNTA, $NAMI or $AUTO from Kujira to the Cosmos Hub 
3. Transfer and deposit $MNTA, $NAMI or $AUTO into THORChain
4. Receive the new Rujira native token version of your token

Please note that for ecosystem altcoins, there is no urgency in migrating as there won’t be any decay functions. The Rujira team, alongside migrating projects, might decide to close the migration window at some point, but probably not before a year post launch of the migration process, and this will be communicated to the community well ahead of time.

⚡️Important remarks

The deployment of the Merge contract depends on CosmWasm going live on THORChain mainnet, which was planned for THORChain v3.2 upgrade, but might be delayed due to recent events. We currently don’t have full visibility on the planned upgrade date and will keep the community posted if we hear of any delay.

We urge the community to exercise extra caution as the Merge approaches. Scammers may attempt to take advantage of this event by creating fraudulent links. The Merge will not go live until the 27th and links and announcements will exclusively be posted from the official Rujira Network communication channels.

⚡️Questions

If things are unclear and you still have questions about the Merge, feel free to join our Telegram chat and we will be happy to help you!