Announcing: The Sovryn Circle of Tokens

Announcing the Sovryn Circle of Tokens

Hello Sovryn’s,

I am very pleased to announce the Sovryn Circle of Tokens. This subgroup of Sovryn makes it its mission to present data-based analysis around the Sovryn ecosystem to the Exchequer and Bitocracy, and based on that analysis, make recommendations.

In the past, there was little clarity in the community about tokenomics. One big problem is that the vesting schedule of the various funds (adoption fund, ecosystem fund etc.) did not equal the real issuance rate of $SOV tokens. As an example, there is currently a seven-figure amount of $SOV that has finished vesting but is not available on the open market. These tokens are in the hands of bitocracy and/or in the care of the Exchequer committee.

With the implementation of the Sovryn subgraph, the Sovryn developers have created a way to read this data much more easily than was previously possible. This gives us far-reaching and powerful capabilities for data analysis and informed decision making. It is in Bitocracy’s interest to make this data publicly available to all Sovryn’s and to raise the quality of governance to a new level so that Sovryn has a long and successful future.

The prolonged decline in the $SOV price has not only had a negative impact on sentiment and marketing/adoption, it has also been detrimental to the governance model. $SOV stakers who bought in at a high price last year have received significantly less voting power for their bitcoin than someone who buys in currently and is new to Sovryn. The bitocracy should be concerned about entrusting long-term investors and proven veterans with more decision-making power than new shareholders who have yet to prove their good intentions. The $SOV price plays a key role here.

The Circle of Tokens has the following goals:

  1. Open sourcing of scripts for GraphQL and other programming tools to allow all Sovryns to verify data around the ecosystem and to work together to extend these methods.

  2. Evaluate and present such data for decision-making processes of the Exchequer Committee and bitocracy.

  3. Data-based influence on $SOV issuances. This targets liquidity mining rewards, SIP-24 rewards, token lockups, and liquidity management through incentives in AMM pools, among others.

  4. Continuous monitoring of the ecosystem and the effectiveness of proposed measures.

  5. Establish a balance between protocol revenue and the issuance rate of new $SOV tokens to protect healthy growth and the long-term security of the bitocracy.

Our circle was launched on Friday, April 29. It currently consists of a small group of Sovryns who have been working together on this topic for a few weeks and were inspired by @Yago 's tokenomics-taskforce thread:

A short summary of the kick-offcall is found below:

-What has been done so far and next steps:

  • Group started to use GraphQL and Python to read out data from the subgraph and get an overview.

  • Defining first goals of the taskforce (Analyze AMM pools and change LM rewards).

  • Finding out where the selling pressure is coming from.

  • Create a forum environment with posts on open tasks, analysis, proposals and more.

-Discussions around Liquidity mining and liquidity mining rewards:

  • Get data about Liquidity miners. (How many users are doing liquidity mining? Are they
    whales/fishes? Are they stakers? To what extend do they sell or hold their SOV rewards?

  • Optimize LM rewards.

  • Changing Reward amounts for various pools based on trading activity.

  • Making rewards fully liquid / change the vesting schedule of LM rewards / more rewards for longer
    liquidity lockup.

  • Protocol owned liquidity.

-Discussing Token-Lockups:

  • Evaluate the Adoption fund vesting schedule and usage of the liquid tokens.

  • Potentially locking up parts of it for a longer timeframe.

-Discussion around Founder Tokens:

  • Voluntarily locking up of founder tokens and locking up of founder tokens in ZERO might be a possibility

  • Institutionalizing: Creation of the Sovryn Circle of tokens.

-Election of a Circle Lead (@Sacro was elected temporarily and caught a little off guard ^^)
I would like to say that I am very happy to participate in this task and I hope that this circle will achieve a lot of good for Sovryn. There are so many smart people here with a common goal and we can create something great. Let’s do this. I am ready and motivated to take on the Circle lead for the upcoming tasks!

If you’d like to get involved in this work, we’re always looking for dedicated Sovryn’s who want to make a difference. Just contact me, @dseroy or @yago and we will find a task for you.

Please also make sure to check out the next forum thread of our Circle with regards to short/mid-term and long-term goals, including a list of open tasks. It will be released within the next days.

Stay Sovryn!


Hi Sacro,

Today was a very important day for Sovryn.

I can’t say if it’s more valuable the amount of updates that have been added to the dapp, or the creation of the Sovryn Circle of tokens. Both were released today, May 3rd.

In your post you describe perfectly the community’s concerns about tokenomics. Your group has identified potential problems or opportunities to work on. You describe the work done, the tools, the goals, and something I really appreciate, the transparency you intend to give to the process.

I have observed from the outside the purity of this research, freely developed by people inside and outside the team. It is evident the support of Yago who has been involved and encouraged the whole process. I think it is more than right that you are the one leading the efforts.

I agree that the result of the Circle of tokens’ work will improve the team’s decision making, clear the Community’s doubts and make Sovryn stronger.

Thank you!


‘* Making rewards fully liquid / change the vesting schedule of LM rewards / more rewards for longer
liquidity lockup.’… brilliant!