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Sova Protocol

🤑 Token(WIP)

Here’s a proposal for the issuance of the Sova token, which will serve as the governance token for the Sova DAO.

Sova Token Issuance Plan

Token Overview

The Sova token will be the native governance token of the Sova DAO, a decentralized autonomous organization modeled after the Roman Senate. Built on the Ethereum network Migrate to the BTC mainnet if op_cat passes, the Sova token will empower holders to participate in the governance and decision-making processes of the DAO.

  • Token Name: Sova
  • Blockchain: BTC (rune)
  • Total Supply: 1,000,000,000,000 Sova

Token Allocation

The allocation of the Sova token will be carefully designed to balance the needs of the Sova DAO’s long-term sustainability, governance decentralization, and early-stage development. The following distribution is proposed:

  • Airdrop and early user: 10% (100,000,000,000 Sova)

    • These tokens will be used to incentivize participation in sova protocol early, reward contributions.

  • Community and Ecosystem Growth: 30% (300,000,000,000 Sova)

    • These tokens will be used to incentivize participation in governance, reward contributions, and fund community initiatives. This allocation is designed to support the growth and decentralization of the DAO.
    • Vesting Schedule: Linear release over 5 years.

  • Founding Team and Contributors: 20% (200,000,000,000 Sova)

    • Reserved for the founding members, developers, and early contributors who played a critical role in developing the Sova DAO and its infrastructure.
    • Vesting Schedule: 1-year cliff followed by linear vesting over 4 years.

  • Treasury and Reserve: 20% (200,000,000,000 Sova)

    • Held by the DAO’s treasury to fund future projects, grants, and strategic partnerships. Treasury funds will also be used for liquidity provision on decentralized exchanges (DEXs) and to maintain the long-term health of the DAO.
    • Vesting Schedule: Gradual release based on DAO votes and community needs.

  • Public Sale (IDO): 10% (100,000,000,000 Sova)

    • The Sova token will be sold via an Initial DEX Offering (IDO) on a decentralized platform, providing early access to community members and supporters.
    • Sale Price: To be determined based on market conditions prior to the IDO launch.

  • Liquidity Provision: 5% (50,000,000,000 Sova)

    • Dedicated to providing liquidity on decentralized exchanges (e.g., Uniswap) to ensure that there is sufficient liquidity for Sova token trading.

  • Advisors: 5% (50,000,000,000 Sova)

    • Allocated to strategic advisors who will help guide the Sova DAO’s growth, governance structure, and technical development.
    • Vesting Schedule: 6-month cliff, followed by linear vesting over 3 years.

Token Utility

The Sova token will play a central role in the governance of the DAO, allowing token holders to participate in the following activities:

  • Governance Voting: Token holders will use Sova tokens to propose and vote on key governance decisions such as protocol upgrades, budget allocation, partnerships, and other important changes.
  • Staking: Token holders can stake Sova tokens to earn rewards, including additional Sova tokens and influence over governance decisions.
  • Incentivizing Participation: Sova tokens will be used to reward active participants in governance, including those who submit valuable proposals, contribute to working groups, or provide liquidity to the DAO’s treasury.

Vesting and Lockup Mechanisms

To ensure a healthy distribution and prevent market manipulation, vesting schedules and lockup periods will be enforced for all major allocations:

  • Team and Advisors: Vesting over a period of 4 years to align long-term incentives.
  • Public Sale: No lockup, but liquidity will be managed to prevent price volatility post-launch.
  • Community Rewards: Gradual release over time to encourage ongoing participation and prevent token dumping.

Governance Integration

As the governance token for the Sova DAO, Sova will be essential to the DAO’s decision-making processes. The token will enable decentralized governance on Ethereum, with proposals and voting managed through smart contracts. Additionally:

  • Quadratic Voting: To prevent plutocracy, quadratic voting may be implemented to give smaller holders more influence relative to their stake size, promoting more balanced decision-making.
  • Staking for Governance: Sova token holders may stake their tokens to participate in governance, securing their position as voting participants while earning rewards.

Liquidity and Exchange Listings

Post-IDO, the Sova token will be listed on various decentralized exchanges to provide liquidity and trading opportunities for participants. Additionally, part of the treasury will be allocated for initial liquidity provisioning to ensure that early traders can access Sova tokens easily.

  • Planned DEX Listings: Uniswap, Sushiswap
  • CEX Listings: Potential listings on centralized exchanges (e.g., Binance, Coinbase) will be explored as the DAO grows and governance votes on this issue.

Conclusion

The Sova token is a critical component of the Sova DAO’s governance system, designed to ensure decentralized decision-making and active participation from the community. By carefully managing the distribution, lockup periods, and use cases for the token, we aim to create a sustainable and active governance ecosystem on Ethereum.