SIP-0081: Burning Unclaimed and Unallocated POWA Runes

SIP-00xx: Burning Unclaimed and Unallocated POWA Runes

Background

More than 35% of POWA is yet unclaimed, more than 60 days after launch. We propose to burn it all.

The POWA Rune token was introduced in the 2024 halving block to symbolize individual sovereignty and empowerment. The distribution of POWA tokens was based on the points accumulated during the POWA Campaign, which rewarded users for staking, trading, and influence activities within the Sovryn ecosystem. As part of the ongoing commitment to maintain the value and integrity of the POWA token, it is essential to address the unclaimed and unallocated (for which users have not provided their addresses) tokens.

Token Allocation Breakdown (values might change until claiming is disabled):

  • Total POWA: 1,000,000,000,000.00
  • Pre-sale POWA: 30,769,230,769.23 (3.08%)
  • Marketing POWA: 169,230,769,230.77 (16.92%)
  • Claimed POWA: 449,004,507,628.20 (44.90%)
  • Unclaimed Trading POWA: 37,697,735,279.93 (3.77%)
  • Unclaimed Staking POWA: 125,711,756,546.98 (12.57%)
  • Unclaimed Influence POWA: 75,506,059,358.54 (7.55%)
  • Unallocated Influence POWA: 112,079,941,186.32 (11.21%)

Total unclaimed and unallocated POWA: 350,995,492,371.77 (35.10%)

Description and Reasoning

This proposal outlines an approach to burning unclaimed and unallocated POWA tokens to enhance the value of the remaining tokens, ensure fair distribution, and reinforce the principles of individual sovereignty and empowerment that POWA represents.

Unclaimed and unallocated tokens can potentially dilute the value for active participants and create a perception of inefficiency in token distribution. By burning these tokens, we aim to remove “dead” tokens from circulation, draw attention to the initiative, and encourage more users to claim their POWA before the deadline.

Influence POWA campaign participants will have a chance to provide their RSK addresses until July 8th, 2024, at 12 PM UTC. All users will have the opportunity to claim their POWA tokens until July 15th, 2024, at 12 PM UTC. The distributor contract will be stopped after this time. The Sovryn Team will perform the necessary calculations and remove the specified amounts of POWA tokens.

Implementation

  1. Technical Execution:
  • Stop the distributor contract on 15th July, at 12 PM UTC.
  • Determine the amount of POWA to be burned.
  • Inform the community about the final amounts of tokens to be burned.
  • Execute the burn of the specified amount of POWA tokens.
  1. Burning Process:
  • Remove the designated POWA tokens from the distributor contract.
  • Send the POWA tokens designated for burning to a specified address.
  • Bridge the POWA tokens back to the Bitcoin chain.
  • Perform the burn of the bridged POWA tokens on the Bitcoin chain.
  1. Execution Timing:
  • Execute the burn of all unclaimed and unallocated POWA tokens when market conditions are favorable to maximize the effect.
  • Ensure the burning is completed not later than the end of September 2024.

License

Copyright and related rights waived via CC0 .

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Can someone explain “Unallocated Influence POWA”?

There are still some users, who participated in the influence POWA campaign and earned POWA. But they didn’t provide us with their RSK addresses. That means we have some POWA reserved for them, but it cannot be allocated to their addresses. If they won’t provide us addresses until 8th July, they will miss the opportunity to get POWA for free.

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Vote is now live!

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Updated Token Allocation Breakdown (values might change until claiming is disabled):

  • Total POWA: 1,000,000,000,000.00
  • Pre-sale POWA: 30,769,230,769.23 (3.08%)
  • Marketing POWA: 169,230,769,230.77 (16.92%)
  • Claimed POWA: 464,589,202,281.83 (46.46%)
  • Unclaimed Trading POWA: 34,425,576,604.94 (3.44%)
  • Unclaimed Staking POWA: 116,352,722,699.46 (11.64%)
  • Unclaimed Influence POWA: 93,343,149,985.26 (9.33%)
  • Unallocated Influence POWA: 86,678,123,289.50 (8.67%)

Total unclaimed and unallocated POWA: 330,799,575,579.16 (33.08%)

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