Staking Update: Temporary Adjustment to Staking Rewards

General Commons
1

Dear Sovryn Community,

The recent significant decline in BTC price has materially impacted our operational position and requires a prudent adjustment to ensure the project’s longevity.

After the next payout, we will be temporarily pausing RBTC and ZUSD payouts to stakers. BOS, SOV, MYNT, and OSSOV reward distributions will continue as normal. Revenue already accrued will remain available for withdrawal.

This move will secure our ability to deliver BTCFi on the Sovryn Layer, bringing our existing user base, brand, and dapp and ecosystem/TVL building know-how to Bitcoin’s premier L2.

The recent BTC price decline has compressed our runway and made it necessary to redirect protocol revenue toward operations and treasury rebuilding in the near term. Treasury report to follow.

Path Forward

We are taking decisive action to ensure long-term protocol growth and sustainability:

  • Significantly reducing operational costs below annual revenue to guarantee that the project remains robust and secure forever

  • Redirecting BTC revenue from the Rootstock dApp temporarily from staking rewards to treasury rebuilding

  • Maintaining our development roadmap and Sovryn Layer launch schedule

  • Creating a sustainable financial foundation that doesn’t depend on market conditions

By bringing operational costs structurally below our revenue generation, we ensure Sovryn can operate indefinitely regardless of market cycles. Once treasury reserves reach appropriate levels and Sovryn Layer generates additional revenue streams, we will resume BTC staking distributions.

Our protocol remains robust, our smart contracts secure, and our development roadmap on track. This is a strategic treasury management decision that positions us for permanent sustainability.

We will provide updates on treasury status and timeline for resuming BTC staking rewards.

We’re also looking forward to discussing these changes in an upcoming community call, to be held this Thursday, February 19 2026, 16:00 UTC on the Sovryn Discord server. Please RSVP:

The fundamentals of what we’re building remain strong. Thank you for your continued support and understanding as we navigate these market dynamics together.

The Sovryn Team

1 Like
Community Concerns - Public Disclosure #1 - Exchequer RBTC to OKEx
Community Concerns - Public Disclosure #2 - Founding Member SOV Collateral Loan
2

1. We haven’t had a financial report since 2023 for Sovryn.

2. People stake in order to receive rewards, especially RBTC and ZUSD.

3. Mynt was sunset and therefore rendered useless.

4. There are no BOS rewards to be paid out. Never were.

5. OSSOV cannot be swapped for anything else - useless.

6. Presenting the stakers with a decision after the fact is borderline criminal. If you are on top of things you should have presented this 6 months ago.

I am fed up with all of this.

The only fair way to proceed is to lift the 30% penalty for unstaking to let the investors decide. Everything else is not fair.

1 Like
3

exchequer should sell batches of SOV that has in treasury. yes it’s at low prices, but there is a market for it.

4

Look back at history when Bitcoin has fallen 50% in less than 6 months. It’s a sign of the bottom. The only times it has fallen further is after moves like 200% or 300% price increases. The resulting downtrends have always been corrections from massive moves up. We went up 100% from 60k so it fell 50% back - to 60k. So many decisions around here seem to be so reactionary to market prices. It’s unwise to do things like this in fast moving markets. Fast moves are weak. Slow steady trends are strong. This downtrend isn’t something you should fear, it’s a fast correction in the slow steady uptrend. Bitcoin will be back up to 120k later this year, the recovery is already starting.

Besides this point it’s quite upsetting that on a whim rewards can be diverted to the treasury that stakers seem to have absolutely zero oversight or control over. Is this how a DAO should operate?

I really wish Sovryn would stop making rash decisions based on market volatility (looking back to early 2023).

1 Like
5

what about the revenue from the BOB dapp? for what I recall it was being accrued into exchequer wallet, what happened to that?

1 Like
6

“temporary”. Much like government, clawing back this tax will be almost impossible, and 100% unlikely.

This is why the people being paid, shouldn’t be allowed to vote for themselves to get money.

This should be brought to a vote like anything else. It is a DAO, and team shouldn’t not have the power to give themselves money.

“Temporary” isn’t good enough. We need a hard answer. Like “when Bitcoin climbs back to 100k”, or “in August”.

Allowing this to happen, means team can give themselves money when ever they want. I can’t believe a system like “Sovryn” is allowing this.

Do it the right way. Don’t be shady.

1 Like
7

Wouldn’t it be wiser to temporarily halt claiming rewards rather than stopping rewards altogether? This way, you can still see what you’re entitled to, based on the risk and investment you’ve made by staking, even if you’re unable to claim those rewards until further notice.

That notice could be tied to BTC exceeding 125k again. Personally, I think once Trump installs his new pick at the Fed, they’re going to crank the money printer hard. That points more toward early 2027 rather than 2028.

8

The recording of yesterdays Community call is available here: