SIP 0004 Outcome: DeFi Governance in Action

brought to you by Yago

February 5, 2021

The Sovryn DeFi trading and lending protocol enjoys the world’s first Bitocracy - a Bitcoin-native governance system that allows stakeholders to steer the direction of the platform through the submission of public, transparent Sovryn Improvement Proposals (SIPs).

The latest proposal, SIP 0004, went to vote on February 3, 2021 by members of Sovryn Bitrocracy v1.0, who had 24 hours to place their vote. Voting on this proposal enabled them to have their voice heard and be a part of Sovryn’s next evolutionary steps. Voting ended at block #3080227 on the RSK mainnet on 2021/02/04 at 16:48:36 -05:00.

Read the full SIP 004 documentation

SIP 0004 Backstory

The cSOV Genesis Reservation presale experienced frenzied demand, exceeding all expectations. The presale was open to all OG Sovryn users who had active addresses prior to January 8th, 2021 and was created to enable these OGs to become stakeholders in the future of Sovryn.

However, in just a few minutes, the funds received during the presale exceeded the allocation determined by SIP 0003, which allowed for 2 million cSOV tokens to be reserved for 50 Bitcoin. Instead of the allowed 50 Bitcoin, 67.956 BTC was received from 800 addresses. Some OG users were left unable to participate due to the almost immediate sell out.

Aware of this, contributors to the Sovryn Community discussed the issue at length and proposed a solution.

Proposed Solution

Community members, led by contributor Edan Yago, created SIP 0004 to:

  1. Approve increasing the Genesis reserve allocation of cSOV through the minting of 641,946.1868 cSOV tokens.
  2. Distribute these cSOV at a rate of 2500 sats/cSOV to all addresses from which funds were received during the Genesis Reservation Presale.
  3. Reduce the allocation of SOV for future programmatic sales by 641,946.1868 cSOV.

The community actively discussed SIP 0004, its ramifications as to the upcoming Origin Presale and subsequent programmatic sales, and any tradeoffs that may exist concerning the Sovryn Treasury. The public may view the full SIP 0004 documentation as well as all comments and proposed changes in the Sovryn Discourse Forum.

SIP 0004 Outcome

Sovryn Bitocracy voted for SIP 0004 by a count of 46,428k votes for the proposal, and 3,571k votes against, thus initiating an increase of the cSOV allocation by 641,946.1868 tokens.

The 24-hour voting period ended and the Bitocracy voted to move ahead with SIP 0004. As a result, the additional cSOV tokens were automatically minted and distributed to all affected addresses (those that sent funds to the Genesis Reservation Presale but did not receive cSOV due to the almost immediate oversubscription).

You may visit Sovryn’s Bitocracy Discord channel to stay-up-to date on current and upcoming votes.

Also, be sure to join the Origin presale waitlist if you wish to expand your participation in Sovryn’s DeFi for Bitcoin revolution.

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