A Sovryn’s Journal
January 31, 2022
Freedom is a good that has to be obtained again and again. Freedom is Proof-of-Work.
Dear Sovryn Community,
welcome to the 2nd issue of “A Sovryn’s Journal”. In this post I would like to discuss the latest Sovryn news and try to shed some light on the staking revenue and the value of the SOV token. The first part of this blog can be found at the following link:
I would like to take up the following points this time:
-Sovryn Staker revenue calculation with regard to the weekly rbtc payout and staking data
-Mynt bonding curve + airdrop
-News from Sovryn
-Rumors
-Thoughts
Sovryn Staker revenue
After going into more detail about the staking system in Sovryn in the first part, this time I would like to focus on the weekly rbtc payouts to stakers. To give you an overview, here is a list of the different income sources for stakers. A more detailed explanation can be found in the 1st part of the blog.
-SIP 24 liquid SOV
-protocol fee share
-airdrops, i.e. from launching sub-protocols
-early unstaking penalties from other stakers.
Today, the focus is on point 2, protocol fee share. As announced there, I track the weekly RBTC payouts and calculate how much satoshis per voting power are paid out weekly. From this, in conjunction with the current SOV price, it can be derived how much return a SOV staker gets from this point 2.
For January it looked like this:
Week1: 4.2 Sats/VP
Week2: 2.2 Sats/VP
Week3: 3.6 Sats/VP
Week4: 2.7 Sats/VP
Depending on the dapp volume, the weekly payouts fluctuate. On average, there are 3,175 Sats/VP every week for January.
If you simply extrapolate this to the year, it results in about 165 Sats/VP at the current dapp volume. If you then assume a max duration stake, you can argue that you get 165Sats/VP * 10 = 1650 sats per max staked SOV token per year.
If you put the current SOV price of 11500 sats (I know it hurts) in relation to this, you get 1650 sats extra for an investment of 11500 sats within one year. So point 2 alone promises over 14% annual return in rbtc, paid out weekly. Of course this is a bad case of moon math. The numbers fluctuate all the time, it is quite unlikely that this projection will end up being correct, but at least with this calculation you can estimate an approximate fundamental value of the SOV token.
The good news: 14% rbtc profit per year at current SOV prices is quite attractive… The other sources of income for SOV stakers are not yet considered here. So one could argue that the current SOV price is pretty close to its fundamental value. Of course, there is risk involved in this calculation. Not financial advice. But as a hardcore Sovryn I would like to declare: the bottom is near. A weekly payout of 0.25% of the rbtc investment is better than any offer from cexes or even worse, banks.
IT’S FUCKING AMAZING. Sorry for the f word.
So much alpha. DYOR. MEK STEK. If you are here reading this, it might be an insane opportunity that does not come often.
Of course, you have to keep in mind that the weekly rbtc payout may decrease as more people stake sov. But honestly, with zero, mynt, 2-way fast btc, perps and droppr, the volume will probably increase rather than decrease. Asymmetric bet? You tell me.
But while we’re at it, how does the development of staked sov actually look? Here are the current numbers:
W1: 2,170,490 staked SOV and 8,965,286 VP,
W2: 2,279,277 staked SOV and 9,345,948 VP.
W3: 2,315,403 staked SOV and 9,723,119 VP
W4: 2.350.446 staked SOV and 9.740.837 VP
2.35 million voluntarily staked sov, trending upward. It looks as if the hardcore sovryns will continue to stack, not many new stakers coming in. In total, there are just under 5000 stakers. Hopefully this post will encourage more people to stake. Or hopefully not, don’t ruin my nice staking rewards ;-). With the few data points, a chart doesn’t really make sense yet, but this will be available in the next issues!
MYNT
Next UP: Mynt bonding curve + airdrop. This topic is shorter. However, i find it very interesting, so i would like to say a few words about it. The first MYNT airdrop for holders took place on January 3, the second and will take place on February 3. You get about (without going into detail) 3% of the mynt assets that you hold at the time of the airdrop additionally credited. Very nice!
Additionally, Sovryn stakers will also get a Mynt airdrop as described in SIP 0037, starting on February 7.
Here’s a an overview over the current MYNT supply:
37.035.000 bootstrap MYNT were generated via the sale. That’s 84.25% of the initial supply.
6.923.457 incentive mynt were generated in addition to the bootstrap mynt, making up 15.75 % of the initial supply. After the bootstrap event, there were 43.958.457 MYNT.
Right now, there’s 56.255.203 total MYNT. According to
The current bonding curve price for MYNT is 0.01436 SOV. Here’s the bonding curve chart with current Supply:
The market cap of MYNT is currently 4.200.000 USD. What if bitcoin backed stablecoins are a success and MYNT gets more valuable? Could it have a mcap of more than 10 mil USD? You tell me. If the MYNT subprotocol starts to generate value, more SOV will be used to generate additional MYNT. How could the bonding curve look? Let’s assume 100 M total Mynt supply and 130M Mynt supply. I’ll stop here, look at the charts for yourself.
It might make sense just to get some in case it catches on. Also, check the rumor page.
NEWS
So, let’s head over to the current News on Sovryn: While writing this, the SOV price dumped to 11.800 sats, Bad news, it hurts a lot. Down 15% in btc terms in 1 day… Especially on the same day when finally 2-Way fast btc is implemented, which was anticipated for so long.
Even honey badgers can feel pain. But they still don’t even give a shit. This project is too important to fail. It’s not about the SOV price. It’s about freedom and bitcoin.
Anyway, there are exciting times ahead. There will be a perp swap trading competition with SOV rewards for the winners and bug finders! The perps will launch afterwards, hopefully early march!
2 Way Fast BTC is finally here! GREAT JOB!
Limit order and stop losses will be implemented very soon, hopefully in february!
There are many more News but these should be the most important ones. I am still waiting for further updates on OG, MYNT and Zero. But currently, not much can be said. Let’s wait for the announced forum posts and Town Halls!
RUMORS
Let’s see which rumors from the first Journal were correct:
Rumor 1: Jack Dorsey like to drink Sovryn tea. => Definitely Correct.
Rumor 2: Several thousand SOV (unstaking penalty) are waiting to be distributed to loyal SOV stakers => Confirmed. Here you can see the amount: RSK explorer
Yes, that’s a lot of SOV.
Rumor 3: ZERO may not start with its own token. Still a rumor but may be correct.
Rumor 4: SOV might appreciate in price again. => Well… *sigh…
So far, my rumors have a good hit rate. Let’s see how this develops. Here are the new rumors:
-OG might launch without a token, ZERO as well. DROPPR as well.
-Jack Dorsey is addicted to SovrynTea.
-There will be an additional bitcoin backed stablecoin used for MYNT that’s based on the perpetual swaps. Remember, MYNT mcap is 4.2 mil Usd.
Thoughts
That’s it for now. I’d like to point out that @Yago is doing an incredible job with his Sovryntea’s. I’m also very happy with the development that’s going on (for what I can tell) and with the communication on Town Halls / Community calls. Thanks to CEK again for providing the staking data.
But still, these are challenging times. The next months will be crucial for Sovryn. So many exciting developments, but the adoption needs to take place.
The world is in bad shape. Hateful, selfish and old fiat-lords are coming for us.
It’s time to raise our voice.
Freedom is more important than ever.
Bitcoin is more important than ever.
DeFi on bitcoin is here.
Staking Rewards: SOV liquid rewards based on SIP-024 formula
