" The SOV acquired by the syndicate will be bonded as collateral for the SovrynBTC bitcoin peg, subject to the vesting period. This will ensure that users can peg their bitcoin for use within the Sovryn protocol."
comes directly out of the text of the proposal.
i’ve edited the post you are responding to reflect that the bonding is for the length of the vesting period., correcting my mistake.
Isn’t it bonded and locked up for 3 months and partially locked up for 16 months and reduced over the vesting period 1/16 per month? How do we get to 10M for 3 years?
Perfect, got it. Thanks @exiledsurfer.
lets stop talking in dollar terms and use BTC. 180 BTC - whatever that value is on the day of closing the purchase.
My understanding is that the BTC will be bonded for the 16 month length of the vesting period, and that only the SOV will be unlocked at 1/16th / month, which each individual member of the syndicate can choose to sell or stake.
Bitocracy and the SOV token
The governance structure of the Bitocracy is a combination of the best elements of previous governance models found in competitor protocols – while seeking to avoid their individual pitfalls.
To participate in the Bitcocracy by way of voting, SOV holders must stake their SOV tokens. Votes are weighted to the amount of SOV held and the length of time staked.
Bitocracy creates a long-term incentive to act in the best interest of the platform by giving weighted voting rights to participants based on how much SOV they stake, called ‘qualified governance’.
Staking is done in three year cycles, during which liquidity is suspended, thus removing the arbitrage opportunities that lead to abuses of the system.
As an incentive to stake fee revenue distributions are automatically paid out to stakers in direct relation to the weighting of their staked tokens. These fees originate from the trading platform.
The token itself should be considered a ‘coordination (governance) token’.
Sounds look a good idea all though I have a few suggestions:
I feel everyone who found and did their research early should not be level playing field with an influencer who comes in late with a lot of money because they missed out. Doesn’t have to be a crazy amount but early investors should feel rewarded.
If we really want to accept an investment of 10mill, we should know who is investing to gauge how beneficial it will be to take on the set of influencers / syndicate
3 months is too little. The cliff should be extended to ensure that they truly want to help SOV.
These are just a few pain points that I though of!
" Each of the participants in the syndicate are nominated by Pomp and vetted by Sovryn’s core team"
Seems many are getting caught up in the length of the vesting period. Seems a balance between adding SOV to the exchanges so they are available and keeping the Pomp team in the project and not just making a quick btc. I think they will be in the project for the things you stated before. How much of allowing the Pomp team to sell on their exchanges is a motivation vs. a longer vest period? Both are needed, especially if we don’t have an evolution sale but still need SOV in the market and available. Do I have that right? I am personally, I think, fine with 3 months and then a straight line vest over 16 months. Locking up for 12 months only helps will liquidity on the site and them not dumping but doesn’t help get SOV on the exchanges. Thoughts on that?
As someone who has been critical on the tokenomics before - this proposal sounds more than fair to me. You have my vote.
so you want to know every single people who invested ? where is the Privacy thing ?
Increase the price being offered and the vesting period and the SIP has my vote, otherwise Pomp can always market buy
Congratulations, the community has taken a big step forward
Thanks for this amazing take on the syndicate investment, @exiledsurfer I think you nailed it. I guess the one and only info we are missing from @Pomp proposal is the distribution of the token among the syndicate members, of course while having the full respect for their wish to be kept anonymous with the public for now, to get an understanding of how big the larger holders would be. It’s a common and perfectly reasonable concern to have once you invest in a project/company and a new investment round comes up, together with your “shares dilution”.
I’m a bit confused by this statement. It is my understanding that the BTC are acquired by Sovryn to fund his treasury, to be used however fit in accordance with the blackpaper and the bitocracy.
It is the SOV token acquired that the syndicate that will be bonded for the full 16 months to allow liquidity to the Bitcoin peg, which is indeed amazing news, as this is one of the major upcoming challenges for the team and gets solved by this huge opportunity for the project.
If anything, this will greatly accelerate the project and the potential adoption of Sovryn’s financial framework, it’s an amazing news!
I want to clarify a misunderstanding about the vesting period.
The total vesting period proposed is 16 months, meaning that all SOV purchased is fully liquid after this period. These 16 months include the cliff period of three months so effectively the vesting is as follows:
First three months: no liquidity
Months 4-16: 1/13 of the SOV purchased becomes liquid each month.
Hope that clarifies.
I also want to mention that market selling SOV may bring in a higher price, but will not allow for the bonding of the SOV in favor of the BTC peg, which is of strategic importance to the protocol.
I think this overall is great for the project. Pomp will bring attention to the project as well as other resources.
The only thing I struggle with is this eliminates the next pre-sale I assume. Can origins/genesis holders add to their investment at the same rate as Pomp? I think many of us want to invest more but were limited to .1 BTC on the last round. Can we have another presale that gives access to current hodlers to add to their position to a meaningful amount?
I don’t know how many tokens are left with the 10M investment but maybe a parallel SIP to have an additional presale for origins/genesis owners before this goes to the general public. I would even be fine with having the same lock as Pomp.
I think many of us aren’t just here for flip of the SOV and are here for the long haul.
$10M Pomp Round + $10M Origin/Genesis Resale Round
The clarification is really helpful since there were 2 ways of interpreting it. So in short, it’s a 19 month period, which tracks pretty closely to the Genesis sale terms.
So, no 19 month period.
Although it is proposed to be priced in sats the equation would be 10 000 000$ / 1 500 000 SOV = 6.66…
Hahaha, I’m such a fool sometimes,