Attention: This SIP goes to vote on December 6, 8 a.m UTC.
SIP-0085: $BOS token distribution within Sovryn
Summary
Sovryn treasury to receive 2% of total $BOS supply.
Sovryn Stakers to receive 8% of total $BOS supply.
Sovryn stakers receive a pro rata share in accordance with their share of the total voting power on Rootstock.
A snapshot of the Voting Power will be made at the date of the $BOS token creation event (Date currently unknown).
Explanation
If this SIP is approved by the Sovryn bitocracy, the $BOS tokens for Sovryn will be distributed in accordance with SIP-0083 as follows:
Sovryn will retain 10% of the total $BOS token supply as agreed in SIP-0083.
This 10% will be distributed as follows:
2% of the total $BOS token supply will go to the Sovryn treasury where it can be managed by the Sovryn exchequer.
8% of the total $BOS token supply goes to Bitocracy and thus to all individual addresses of stakers who hold voting power on Rootstock in the form of staked $SOV.
At the time of the $BOS token creation event, which is not known yet, a snapshot of each $SOV staker’s VotingPower will be taken. All $SOV stakers will receive their fair share of $BOS tokens according to their percentage share of the total voting power on Rootstock.
The Sovryn bitocracy also decides with approval of this SIP that the Sovryn developers may not add any vesting periods or cliffs to the $BOS tokens to which Sovryn is entitled.
We believe in a free market and are very confident that BitcoinOS will be a groundbreaking and successful project. Overprotection and overregulation of token distribution is not necessary and rather detrimental to the success of the project.
As in previous years, Sovryn and its individual members will be spearheading the innovation. We want to be the first to use and discover the BitcoinOS ecosystem. We want to set off into the new worlds and discover the exciting partnerships. This means we need unlimited use and access to the tokens made available to us. We are not waiting for vesting periods and cliffs.
I assume its for continued development and incentives. I know a lot of us are disappointed in the current conditions, but if Sovryn is going to continue as a project they are going to have to find a way to add to treasury once in a while.
And while I dont know if I agree with 2%, I understand stakers cant get 100% of everything, everytime, or the project dies. Why stake for 3 years if the project funding ends in 1?
Ill be voting yes. Thanks for the hard work Sacro.
Please correct me if I’m wrong, but this is my understanding:
The decision to allocate 10% to Sovryn was made by BOS. However, I couldn’t find confirmation that this percentage is final, nor any detailed terms and conditions (T&C) for this allocation.
Dharkmattr explicitly outlined the T&C and obligations to other stakeholders, as well as the justification for the need for vesting in this post. Despite this, these concerns were completely ignored.
Given the above, passing this SIP as it stands could potentially violate existing agreements with other parties. This might also hinder the launch of BOS tokens by Sovryn, potentially leading to the cancellation or changing of the allocation or T&C for this altogether.
To clarify the 10% allocation was initiated by Sovryn, so Bitocracy can decide on the distribution and vesting of these funds. HOWEVER, I think we should heed to Dharkmatter’s comment that distributing a large % of BOS to holders with no cost basis, and have that allocation be liquid from day 1 is potentially detrimental to the BitcoinOS project as a whole. It may dismay other teams from adopting this token as the canonical token of the platform. In my mind this is an important factor that this SIP does not take into account.
I have to admit that I have mixed feelings. In my view, this SIP might be a bit premature. There are still aspects we need to learn and clarify first. I don’t see any reason to rush this proposal, especially since we don’t even know when the $BOS TGE will take place.
Another concern - some SOV stakers are on BOB as well. What about them? Even though they don’t participate in Bitocracy, some have locked their SOV on BOB for a considerable amount of time. Why are they not included? If SOV stakers on BOB are left out, I would have to vote against this SIP.
Personally, I would prefer to see this SIP put to a vote after the next Community Call, which I hope will happen as soon as possible - ideally on December 12.
Thank you for your, as always, valuable contribution. We also mentioned the BOB stakers in the long discussion. I myself suggested involving their VP. However, I did not see any agreement on this. The consensus was that BOB stakers receive Spice and should not participate in a VP-based distribution. This is certainly not perfect.
We can write a lot in the forum and in other chats, we have done that. What matters is the voice of Bitocracy in the SIP Vote. This SIP goes live tomorrow. There is no shame if this SIP fails. It might even be a good thing. I don’t have all the answers, i try to build consensus.
In any case, it will capture the mood of bitocracy and be a valuable building block in the further course of this discussion.
Would this sip take into account those who have earned OSTOKEN over the last year? Possibly giving those who have earned the token a 10X based upon their tokens they received through staking?
$OSSOV was part of the discussion but the biggest consensus was to distribute the tokens based on VP rather than distribute it based $OSSOV holdings.
A VP based distribution is forward-looking while a distribution based on OSSOV is more favourable of the past. It could work, but i think it’s important to keep things simple if possible.
Sorry @Sacro, but to me this confirms that the SIP is premature. Please consider delaying it by at least another week to properly address the situation for SOV stakers on BOB.
From what I can see, the issue of SOV stakers on BOB has not been discussed in the forum thread here. I am not aware of any other discussions, as I don’t have time to sift through all the chatter on TG or Discord. And that’s exactly why we have the forum - to ensure a well-documented, organized discussion for everyone to review. If something as important as BOB stakers was only considered elsewhere, that means the forum thread isn’t capturing the whole picture.
SOV stakers on RSK receive various incentives, but SOV stakers on BOB only receive Spice - which is about to end at some point (my bet would be relatively soon). Excluding SOV stakers on BOB from this distribution would be both unfair and harmful to the Sovryn Community and Sovryn as a whole. SOV stakers on BOB have the same voting power as RSK stakers, the same penalties, the same math behind it, so it shouldn’t be an issue to include them in the snapshot.
Apart from this, the pros and cons of the SIP seem balanced to me. However, failing to include BOB stakers makes it unacceptable. It comes down to treating all Sovryns equally, and right now, that’s not the case.
Thank you for putting this SIP together Sacro. I personally find it very generous to Sovryn team with the 2% treasury allocation. But I understand your thinking behind it that led to you to have it in the SIP.
Other than, it is a fair SIP and Sovryn community has the right to decide as they please on that matter. I expect huge majority of stakers to support it and embrace all together with their vote in the bitocracy feature and then to look forward to a new era for both Sovryn and BOS.
Thanks. I must have missed that, as well as @666SOV’s comment. Had I noticed it earlier, I would have raised this point sooner. To me, it’s only natural that all Sovryns be treated equally. If someone stakes their SOV - no matter where Sovryn allows it - they deserve the same treatment. After all, staking locks SOV in a contract, removing it from circulation and benefiting the entire ecosystem.
Right now, this proposal would effectively force SOV stakers on BOB to liquidate their positions at a loss just to restake on RSK for the $BOS distribution. As a result, they would end up receiving fewer tokens than other Sovryns, which doesn’t seem fair at all.
If the SIP continues to exclude SOV stakers on BOB, I will have to vote against it. This issue needs to be addressed properly.
@Dante Just to clarify - the treasury isn’t the Sovryn team. It’s a community-owned resource designed to support and foster development across the entire ecosystem - not simply to pay the team. Let’s be careful not to conflate the two, especially since we also need to maintain reserves to fulfill our obligations to BitcoinOS.
You are right Hyde, thank you for correcting me. I still find that the community-owned resource designed to support and foster development across the entire ecosystem too generous. I personally would go for 10% to stakers no vesting.
But it is what it is and at least the no vesting is part of it which is something that I am in favour for and is only fair for Sovryn stakers.
I am looking forward to see Sovryn stakers supporting this SIP tomorrow.
There was a bug discussed where Stakers on BOB receive maximum VP with a 2week+ stake. You get that sweet 10x multiplier on VP by staking for longer than just 2 weeks on BOB (so i was told).
This (beside several comments against the inclusion of BOB stakers) made me exclude them in the final version.
Multi-year lurker and SOV staker here(RSK & BOB). Thanks Sacro for all of the efforts present and past. However, I agree with Hyde that SOV stakers on BOB should not be excluded(penalized) for trying to support the expansion of the SOV ecosystem. We already sacrificed revenue and ossov and only get spice for a very limited time and with unknown value. There were also sizable transaction fees to export SOV to BOB.
I believe a vesting compromise should also be discussed with the team.
The current proposed Sip is a no for me, though I think it’s on the right track.
Thank you for your feedback @Hyde , @KilrayWH and others that contacted me privately. I will add a last minute change to include BOB stakers for the $BOS distribution.
SIP-0085: $BOS token distribution within Sovryn
Summary
Sovryn treasury to receive 2% of total $BOS supply.
Sovryn Stakers to receive 8% of total $BOS supply.
Sovryn stakers and BOB and RSK receive a pro rata share in accordance with their share of the total combined voting power on Rootstock and BOB.
A snapshot of the Voting Power will be made at the date of the $BOS token creation event (Date currently unknown).
Explanation
If this SIP is approved by the Sovryn bitocracy, the $BOS tokens for Sovryn will be distributed in accordance with SIP-0083 as follows:
Sovryn will retain 10% of the total $BOS token supply as agreed in SIP-0083.
This 10% will be distributed as follows:
2% of the total $BOS token supply will go to the Sovryn treasury where it can be managed by the Sovryn exchequer.
8% of the total $BOS token supply goes to Bitocracy and thus to all individual addresses of stakers who hold voting power on Rootstock and BOB in the form of staked $SOV.
At the time of the $BOS token creation event, which is not known yet, a snapshot of each $SOV staker’s VotingPower will be taken. All $SOV stakers will receive their fair share of $BOS tokens according to their percentage share of the total voting power on Rootstock and BOB.
The Sovryn bitocracy also decides with approval of this SIP that the Sovryn developers may not add any vesting periods or cliffs to the $BOS tokens to which Sovryn is entitled.
We believe in a free market and are very confident that BitcoinOS will be a groundbreaking and successful project. Overprotection and overregulation of token distribution is not necessary and rather detrimental to the success of the project.
As in previous years, Sovryn and its individual members will be spearheading the innovation. We want to be the first to use and discover the BitcoinOS ecosystem. We want to set off into the new worlds and discover the exciting partnerships. This means we need unlimited use and access to the tokens made available to us. We are not waiting for vesting periods and cliffs.