The future of SmartBCH is in trouble! Not even 1-year into the project's Mainnet launch (anniversary is July 30th) and we already face a crisis on the level of Ethereum's The DAO fiasco. And just as the Ethereum community came together and triumphed, so shall we! 💪
You should know! — As of Monday, July 11th 2022, the safety of the $BCH assets in "escrow", which serve to secure the value of the SmartBCH sidechain, are under imminent threat of liquidation by CoinFLEX.
Our plan is simple! Raise the approximately US$10M+ that is required to fully restore the collateral of the SmartBCH network and allow the drama surrounding CoinFLEX's recent insolvency play out in a courtroom (far far away).
To do so, we propose to create a new $SBX token to absorb (and socialize) the current $10M+ insolvency debt of the sidechain.
Any stakeholder of SmartBCH community, with the financial ability to do so, will be offered an opportunity to purchase $SBX tokens, up until the entire Treasury Debt has been consumed.
These Bailout "bag-holders" will receive Daily Payouts from the revenue (0.01%) generated by transaction fees on the NEW Smart Bitcoin Exchange (SBX).
Where's the $BCH Treasury?
For every new $SBCH (the native token of SmartBCH) minted by CoinFLEX, there was an equal amount of $BCH (the native token of Bitcoin Cash) locked up. The locked $BCH remains in "escrow" until an equal amount of $SBCH is burnt.
The SmartBCH sidechain is currently 100% insolvent, and will remain so while CoinFLEX sorts out their own insolvency in court.
You should know! — CoinFLEX currently estimates that the arbitration process, which will permit them to return the "escrowed" $BCH could take up to 12 months.
In order to restore the collateral that was backing the SmartBCH sidechain, we require 101,382.30027849 $BCH(valued at US$10,269,013.20) to be deposited into a NEW Treasury.
We intend to represent this debt by minting 21,000,000 NEW $SBX tokens. The first 10,138,230 $SBX tokens will be valued at 0.01 $BCH each and offered via the SBX.cash website. These initial tokens represent less than 1/2 of the total $SBX supply.
Upon completion of the $SBX debt offering, a snapshot will be taken. Each and every $SBX holder will be automatically registered to the NEW Bailout contract. In the fortunate event that the ~101K "escrowed" $BCH are recovered from the CoinFLEX arbitration, the full balance will be deposited and made available for withdrawal from the Bailout contract.
Did you know? — At ANY time, Bailout account holders can re-assign their debt to a NEW account holder. Withdrawals can ONLY be delivered to accounts that are registered in the Bailout contract.
All Exchange fees redeemed from the Bailout contract will be retained by the token holder. All funds deposited into the Bailout contract are redeemable pro-rata by each of the $SBX token holders. Once ALL funds have been redeemed, no more Exchange fees will be sent to the Bailout contract.
You should know! — At the constant rate of 0.1% for transaction fees, it will take approximately $20B in transactions to recover the full cost of the "original" treasury.
Where's the $2B+ $SBCH Treasury?
While the SHA-Gate manages the $BCH being locked on Bitcoin Cash, there is an account managing the $SBCH being minted on SmartBCH.
Did you know? — The $SBCH Treasury Account has already been locked in an emergency hard fork released by the SmartBCH developers. Funds should remain dormant until the SBX Treasury is ready to receive the funds and resume bridge activities.
We will introduce a NEW SHA-Matrix Exchange to handle the process of minting NEW $SBCH in a process that will integrate with the existing SmartBCH DEXs and other service providers.
Up to Double (2x) Your Investment
Bailout (bagholders) will receive a Daily Payout of the exchange revenue based on their share of outstanding tokens. The Bailout contract will receive 100% of all revenue generated by the Exchange until it expires.
In the event that the "original" treasury is recovered from the CoinFLEX account, then the full amount 101,382.30027849 $BCH (~US$10M+) will be deposited into the Bailout contract and will be instantly redeemable by Bailout token holders.
Are there ANY alternatives?
A group on Telegram are currently working on the BODAO.
The Bailout Plan for smartBCH’s centralized bridge run by CoinFLEX
The organizers of BODAO are working hard on the details and several BCH whales have shown their interest.
The Benefits & Highlights thus far are:
BODAO will issue a governance token $SCG to encourage people to join it.
The SmartBCH chain is also planned to be updated to empower $SCG.
A portion of the (currently) burnt gas fee on SmartBCH will no longer be burnt. Instead, it will be used to buy $SCG back and burn $SCG tokens.
$SCG holders will have 25% voting power, and $SBCH holders will have 75% voting power.
Did you know? — The teams from MistSwap and BlockNG collaborated to create Bridge BOLiVAR as an emergency solution which currently allows users to enter & exit SmartBCH via the Binance Smart Chain (BSC).