15 Feb 2021
Sovryn is taking another step in its journey to decentralized financial sovereignty with the vote on SIP 0005. This proposal will enable participants of the Genesis Reservation system to redeem their reserved cSOV tokens for SOV. They will also have the choice to redeem cSOV for RBTC if they decide to exit the system, it is completely their choice. The vote will complete on Tuesday 16th February at 11:30am UTC.
**It is expected that cSOV holders will be able to redeem SOV from 3pm UTC on Thursday 18th February
Users will be able to access the redeem function in “My Wallet” on the Sovryn app. There, they can easily choose to redeem their cSOV for SOV or RBTC.**
- SOV Redemptions: those that redeem for SOV will be subject to a 10-month linear vesting period and will be part of the Sovryn Bitocracy governance system which controls the protocol and treasury. This is the basis for Sovryn’s qualified governance system which ensures and incentivizes long term participation.
- RBTC Redemptions: Those that redeem for RBTC instead of SOV choose to exit the governance system but are still welcome to use the Sovryn protocol and purchase SOV tokens on the free markets when they become liquid.
- Those who choose neither of these options will have of 2 months to redeem their SOV. At the end of this 2 month period they will automatically loose the right to redeem cSOV for SOV and will have their funds returned.
SOV Governance Token Features**
The SOV token is the key to Sovryn’s on chain governance system, the Bitocracy.
- SOV stakers hold voting power in relation to how long they have staked SOV.
- Liquidity is suspended during staking period, neutralizing the risk of flash loan exploits.
- While anyone can buy, hold or trade SOV, only users who stake can participate in the governance system. .
- A system of quadratic voting calculates the amount of tokens staked and the duration of the staking period to program the weights of each vote. This automatically enables the Sovryn protocol to distribute fees from the trading platform in direct relation to the weight of SOV tokens staked by users.
Participation in the Bitrocracy governance model requires only a browser wallet and a small amount of rBTC to cover gas fees, providing a completely permissionless way to help steer the protocol as well as its revenues.
Welcome to DeFi for Bitcoin.