An estimated 180 million Ren tokens with a value of about $10.8 million will be generated.
The governing members of Ren, a group that administers renBTC, a tokenized version of bitcoin, decided to manufacture 180 million REN tokens ($10.8 million). They will be used as fresh funds to support a new Ren 2.0 protocol after the demise of Ren’s primary sponsor, Alameda Research, one month ago.
Due to financing concerns, the Ren team stated in November that it will cease activities as a centrally managed project, also known as Ren 1.0.
Ren was bought by Alameda in February 2021, but its failure eliminated its primary source of financial support. The team subsequently opted to replace its current protocol (Ren 1.0) with a community-run alternative (Ren 2.0), according to the statement. To support the transition to the second version, the team sought fresh REN coins as an additional investment.
The Ren team suggested minting new tokens that would serve as funding for the Ren 2.0 project on December 15. The Ren protocol posted the idea on Snapshot for governance members or current REN coin holders to vote on.
Members were given four alternatives for how many tokens to manufacture as part of the now-approved vote: 50 million, 100 million, 150 million, or 200 million. The plan was likewise susceptible to rejection.
In order for the proposal to succeed, at least 51 percent of voters needed to choose one of the first four alternatives before achieving the weighted average of all votes cast.
According to statistics from Snapshot, just 5.12% of voters opposed the idea. 80.78 percent of voters chose the option for 200 million tokens. A minority of 1.08% voted for 150 million tokens, while 2.05% voted for 100 million tokens, and 10.97% voted for 50 million tokens. Using a weighted average of these outcomes, it is predicted that 180 million Ren tokens, worth about $10.8 million at current market values, would be generated.
The first stage for the Ren protocol team will be to get clearance for the minting of additional tokens. The team intends to switch to a new version of the protocol in response to the directive. Nonetheless, making such a significant adjustment has some hazards.
As version 1.0 is decommissioned, holders of wrapped bitcoin (created using Ren) may no longer be able to retrieve their original bitcoin, the developers cautioned. According to on-chain statistics, Ethereum still has renBTC worth $12.5 million that is in danger of being trapped.
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