StrongBlock DeFi V2 Released
We are pleased to announce the release of StrongBlock DeFi V2. The protocol will continue to be governed by the STRONG token. Released just 3 weeks after V1, V2 brings agility and flexibility to the protocol. V2 is the foundation on which features can be easily added via governance and community input.
V2: A New Approach
DeFi with a Purpose — supporting blockchains by rewarding blockchain nodes with the STRONG governance token — is still the protocol’s core mission.
To increase community support for that mission, V2’s new approach significantly reduces inflation, adds deflation, and better aligns rewards. It also makes key changes the community has requested.
V2 is Phase 1 of a rapid, multi-phase movement toward eliminating STRONG inflation, growing the community, and strengthening the value proposition for those actively taking part in the community.
Phase 2 will include significant changes to tokenomics, a greater emphasis on governance, a reduction of STRONG emissions, growth of the value proposition, and a major expansion of the StrongBlock ecosystem.
We will be releasing a roadmap in November regarding future phases and major milestones to come.
What’s New in V2
The best way to find out what has changed in V2 is to go to the App itself. Here are some highlights of what’s new in V2.
Same App, same UI, same URL, easy migration from V1 to V2
- V2 now rewards miners based on providing liquidity and increasing demand
- V1 ETH and LINK holders will receive rewards in V2 by combining their tokens with STRONG to create Liquidity Pool (LP) tokens
- Simple instructions on migrating from V1 to V2 are in the App at https://app.strongblock.com/
- We’ve added UNI-V2 LP tokens for the ETH-STRONG and LINK-STRONG LP pairs, replacing raw ETH and LINK. These LP tokens will be used to mine for rewards
- Simple steps are provided on how to use your ETH, LINK and STRONG to create LP tokens for mining more STRONG
- ETH and ERC-20 mining will not be immediately supported in V2. If and when added, they will have lower and higher fees
- STRONG-ETH address: https://info.uniswap.org/pair/0xc0bf97bffa94a50502265c579a3b7086d081664b
- LINK-STRONG address: https://info.uniswap.org/pair/0x8616e439239bf0c116f430f399502e706dc8b7fb
Early Holders Pool with Whitelist
Extensive STRONG wallet forensics were conducted for the STRONG token contract using an Ethereum archive node. Wallets were cross-referenced against community input regarding pre-launch STRONG holdings. Many of these wallets were then manually checked and verified to ensure accuracy.
Multiple snapshots were taken from the first time STRONG was available (early August, 2020) through 6:30pm Pacific Time on Tuesday, September 29, 2020 (1.5 hours after the end of the first rewards period for V1).
A whitelist has been created for the Early Holders Strong Pool. Only those wallets whitelisted will be able to mine in this pool, and they can only mine for STRONG in the pool with the amount they held prior to launch. This pool has a limited duration. For its duration, EH Strong Pool rewards will be a multiple of Strong Pool rewards.
The complete whitelist is available at https://strongblock.com/docs/whitelisted-wallet-addresses.pdf
Highly adjustable parameters, including:
- Reward adjustments based on TVL
- Reward delays (all rewards in V2 are initially set to 7 days)
- New Pools
- New Node types
- Node rewards
- Signaling rewards
- New LP tokens
Deflation and reduced inflation to be worked on after V2
- Deflationary measures (token burns) for actions in the protocol
- Possible deflationary measures (supply reduction) outside the protocol
- Reductions in rewards/inflation
- Possible team burn to match community burns 1:1
- Increases in holding times necessary to qualify for rewards
- Adjustable rewards per pool
ETH-based transaction fees
- Mining, un-mining and claiming will now have nominal transaction fees
- A significant percentage of transaction fees will go to a new ETH Fees Pool you can mine to receive rewards in ETH
- Eligibility for the ETH Fees pool is conditional on long-term participation in the Strong Pool
- Eligibility for the ETH Fees Pool will not commence until the Early Holders Strong Pool has completed, to ensure that pre-V1-launch holders are able to participate
- Once you’re eligible, ETH rewards will be claimed by burning STRONG
- Additional concepts for rewards in LP tokens, and the introduction of a new utility token
V2 Token Allocation
Initial V2 STRONG rewards will come from the SB Future Community wallet. This will stay in place until V1 rewards have been retrieved from the V1 smart contract, them will be restored to the SB Future Community wallet. Only a portion of the retrieved V1 STRONG will be available for rewards in V2.
Nodes and Signals
All Nodes — approved and pending — will be automatically moved to V2. Nodes will still need to mine with 10 STRONG in the V2 Strong Pool to qualify and receive node rewards.
All nodes will now receive a daily base reward from their mine-seconds in the Strong Pool, whether or not they receive any Signals.
Variable rewards will be added to nodes daily based on the percentage of Signals they receive. The beginning percentage split is 50/50 between base rewards and rewards accumulated by receiving signals. This is a governable parameter, and we will be actively seeking input from the community about the best percentage split after V2 is live.
The Signaling process will remain the same as in V1. Signals made for nodes in V1 will need to be re-Signaled in V2.
Migrating from V1 to V2
Claiming V1 STRONG Rewards
- V1 Rewards output will drop to 0 as of 00:00 UTC on 10/23/2020 (5:00pm Pacific on 10/22/2020)
- V1 Rewards earned through 23:59 UTC on on 10/22/2020 can be claimed daily in V1, as per the V1 delay schedule, over the next 7 days
- V1 Rewards not claimed after 30 days will be burned
V1 Node Rewards
Although no new V1 rewards will be earned after V2 goes live, nodes in V1 will need to continue to mine with 10 STRONG in the V1 Strong Pool to claim their final 7 days of delayed rewards.
Retrieving V1 Tokens
A final V1 Governance proposal has passed and is in the queue to be added to the protocol. This proposal will allow STRONG tokens in V1 (with the exception of unclaimed tokens at the time of V1 rewards ceasing) to be moved back into their respective wallets and then into V2 rewards contracts. This retrieval action would otherwise not have been possible without a governance proposal in V1.
Total Value Locked (TVL)
- Total Value Locked (TVL) will initially decrease as ETH and LINK holders who have earned STRONG migrate to LP tokens
- LP tokens add liquidity to the protocol, so even with the expected decrease in TVL, STRONG liquidity will increase
- Rewards will be adjusted daily as TVL increases to maintain ratios
- Initially, burns of SB Team tokens will occur weekly for all STRONG rewarded above a daily cap of TVL targets used to maintain reward yields
To everyone, and especially our pre-launch holders: Thank you for participating in the protocol up to this point. We will keep pushing to better the protocol for the community.
V2 is just the beginning. It’s a highly flexible protocol that allows us to achieve our original mission, while allowing the protocol to adapt for the benefit of the community.
STRONG enables decentralized governance of its community DeFi protocol. STRONG is not a fundraising device or investment opportunity.