BSOV’s Rainbow of Decentralized Token Distribution — A deeper look.
Does BSOV possibly have the most decentralized token distribution in the cryptocurrency universe, I wonder? Most of the tokens are timelocked, unmined or evenly distributed between long term holders.
BSOV (BitcoinSoV) is a PoW-mineable and deflationary-by-design cryptocurrency, which was created by an anonymous founder called “Mundo”, and started with no premine or dev-fees. It is an ERC20+ERC918 Token which is 100% governed and run by its community. BSOV has many similarities with Bitcoin (BTC), but has a unique deflationary aspect, which is that 1% of every on-chain transaction is burnt/destroyed forever. The theory to BSOV’s deflationary mechanism, is that the token holders are incentivized to hold, instead of moving, transacting and/or trading, which rewards long term holders by making their proportion higher in relation to the others — Quite the opposite to the inflation we experience every day in fiat-currencies all over the world. The community has made a website at https://bsov.io for more information.
First a look at all the BSOV which are already mined.
Since the BSOV smart-contract was deployed by Mundo at the 17th of June, 2019, nearly 3.9 million BSOV have been Proof-of-Work (PoW) mined by the community.
Timelock contract — 28% (1,087,699 BSOV)
By far the most prestigious achievement of the BSOV Community is the SovCube Timelock contract, where voluntary community members/token holders have timelocked over a quarter of circulating supply. As of now will take a minimum of 9 years to fully empty, since each address who timelocked, can only withdraw a maximum of 1000 BSOV per 7 days. Now nearly 1.1 million BSOV are timelocked in total.
Burn Address — 3.6% (138,548 BSOV)
The deflationary mechanism of BSOV works by utilizing Ethereum’s burn address. It looks like this: 0x0000000000000000000000000000000000000000. It is an address which provably is not owned by anyone, so by sending any ETH or ERC20 to this wallet, they will be burnt/destroyed forever.
Projections of burnt BSOV: I’ve made a little projection to see how many BSOV might be burnt in the near future. Following the earlier trend, it looks like we might be seeing around ~300,000 BSOV burnt by year 2022. It will be interesting to see how the amount of Mined BSOV will compare when the time comes. There are many factors that impact the deflation & inflation rate of BSOV, and is quite difficult to predict.
Uniswap — 3.1% (121,047 BSOV)
The Uniswap Decentralized Exchange (DEX) and the new (UNI) token have been in the spotlight recently, and BSOV is already out early by providing over 120k BSOV in liquidity. You can trade BSOV using Uniswap at https://bsov.io/trade — (Due to BSOV’s 1% Transaction burn, you will have to adjust the Price Slippage Tolerance of Uniswap to a minimum of 1.00%, 1.25% or 1.50%.) Uniswap helps make BSOV deflationary, since the trades are all happening on-chain and therefore triggers the transaction burn.
Mercatox — 1.9% (72,943 BSOV)
Mercatox.com is a centralized exchange where BSOV’s deflationary transaction burn doesn’t happen, but again nearly no trading volume is happening there lately, compared to for example Resfinex.com — However it is not quick and easy to become a big shareholder of BSOV, because most of the BSOV is not on the market. They are either timelocked, sitting in wallets of hodlers, or simply aren’t mined yet.
Mundo’s Deployment Wallet — 1.1% (44,363 BSOV)
The creator of BSOV has about 44k BSOV in his/her/their wallet.
Mundo’s Donation Wallet — 1% (40,110 BSOV)
Then we add nearly 17 million Unmined BSOV to the equation
As you can see in the image below, most of the existing BSOV are not mined yet, and is not owned by anyone yet. Nearly 19% of total supply have already been mined, so looking at the current holders, and the Timelock Contract, they are miniscule compared to total supply in the future. There is still time for everybody else to get a share of BSOV, without being at risk of big shareholders to destroy or manipulate the market price — Manipulate it in such a degree similar to what many developers of new tokens do today, especially in the recent and hot DeFi craze.
Inflation rate of under 0% — BSOV is currently now deflationary. (Sept, 2020)
Ever since Uniswap became popular, the transaction fees of the Ethereum Blockchain (ETH) have shot through the roof. These high transaction fees make it much more expensive to mine BSOV, just as mentioned in this recent article: “The High ETH Transaction Fees are impacting Market Price of The Mineable Ethereum Token.” Currently it costs more to mine BSOV than the current market price, so fewer people wishes to Mine BSOV for immediate profit, so the inflation rate of BSOV is now under 0%, meaning that more BSOV is burning than what is mined.
Mining = Inflation
Burning = Deflation
The Deflation & Inflation Rate of BSOV is a dynamically changing metric that reacts to how people and the market currently feel about BSOV.
BSOV is on a trend to become more deflationary than Bitcoin (BTC), since even if BSOV and BTC follow the same “halving” schedule, where mining reward halve for every epoch — BSOV is deflationary by design and will trend towards becoming more scarce and held by a ratio of more committed holders.
I do not provide investment advice.
Be on the look-out for what the self-governed BSOV Community, and possibly the upcoming BSOV Foundation is working on the next upcoming months and years — and join us in the Community Telegram Chat at https://bsov.io/telegram
What is your conclusion about the token distribution of BSOV?
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EDIT: Right after writing this article, the BSOV community nearly doubled the liquidity at Uniswap with a UNI-BSOV pairing. Now you can buy BSOV directly with UNI. (Remember to adjust the 1.00%, 1.25% or 1.50% Price Slippage Tolerance)
Thank you, all!