Hi,
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A bitcoin bridge based on zk tech (BOS) does require 1 token: $BTC. Because that’s the only thing that is accepted on 1 side of the bridge. Tokens on the L2 still do make sense. Not for bridging purposes, but for the typical DeFi stuff. $SOV has a good system with fee sharing from Sovryn smart contracts. If the contracts see more use because we have a trust minimized bridge to bitcoin, it’s great. If Sovryn smart contracts run on zk rollups (which i understand is Sovryn Layer, NOT BOS), this may improve possibilities and user experience by a lot. Such a system does require $btc for the bridge and for base layer fees. It does not require a BOS token or a SOV token for transaction purposes or gas fees. Advertising those tokens for such things seems odd. We have a dream to built DeFi for $btc, not to build DeFi for $SOV or $BOS.
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On L2’s there is not much money to be made on transaction fees and most likely not on bridging fees. It’s a race to Zero. What can generate good revenue is products that require a fee to use: $SOV is built for that and could capture a lot of value from those L2 activities, much more than those pennies for cheap transactions with (almost) unlimited blockspace. 0,1% fee for AMM use, 2% fee for Zero origination, 1% for Zero redemptions, some profits from medium sized lending pools, perps, Sovryn Mynt and so on.
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BOS is a very important system to enable the Sovryn Layer, our rollup that will host our smart contracts. That’s the goal. If they need a token for funding, fine with me. If they help build Sovryn layer with their tech, it’s a deal that makes sense.
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I see no use case for BOS token right now, why should it have any value? What’s the mechanics behind it?
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It’s a smart play from a legal perspective to have Sovryn help with BOS token distribution. They out source risk to Sovryn Bitocracy. But Sovryn can get attention from the fiat lords. This should be worth more than a 10% token allocation. Make it 20%. Give it to SOV Stakers based on their Voting Power.