Token Migration
A protocol-initiated replacement of an existing token with a new one, requiring holders to swap old tokens for new within a defined window.
A token migration replaces an existing token contract with a new one — typically to change token mechanics, fix a critical bug in the old contract, implement new features, or rebrand. The protocol deploys a new token contract and a migration contract; existing holders approve the migration contract to spend their old tokens, call the migration function, and receive new tokens at a set ratio.
Notable migrations: LEND was migrated to AAVE at a 100:1 ratio in 2020 (1 AAVE for every 100 LEND). Augur migrated from REP v1 to REP v2 to fix a fundamental market resolution vulnerability. SNX underwent several contract migration cycles as Synthetix upgraded its staking architecture. In each case, a migration window was announced; tokens not migrated by the deadline became worthless.
The primary risk for holders is missing the deadline — particularly for tokens held on obscure wallets, hardware devices set aside, or exchanges that don't handle migrations automatically. Always monitor official project communication channels and confirm whether your exchange will handle the migration on your behalf before any migration deadline. Missing even a well-publicised migration has resulted in permanent loss of value for many holders.