An altcoin project has voted to issue tokens to fund its new release. Accordingly, the project will generate an estimated 180 million REN tokens worth approximately $10.8 million. The team will use the tokens to fund Ren’s migration to a second version.
This altcoin will print 180 million tokens
Ren’s management members voted to print 180 million REN tokens ($10.8 million). Meanwhile, Ren’s main backer, Alameda Research, collapsed with FTX last month. After that, the developers will use it as fresh capital to fund a new Ren 2.0 protocol. The news had a positive impact on the altcoin price. The altcoin jumped from $0.0573 to $0.6157. However, he later gave back his earnings.
cryptocoin.comAs you follow in November, the Ren team announced that it would cease operations, a centrally run project called Ren 1.0, due to funding issues.
Alameda Research acquired the altcoin project in February 2021. Thus, the collapse of Alameda eliminated the Rhine’s main source of financial support. The team then decided to cease operations for its current protocol (Ren 1.0). It also decided to replace it with a new community driven alternative (Ren 2.0). The team requested new funding in the form of new REN tokens to fund the upgrade to the second edition.
Ren governance vote
The Altcoin team proposed to issue new tokens on December 15 that will serve as capital for the Ren 2.0 project. The Ren protocol put the proposal on the Snapshot platform for voting by board members or existing REN token holders. As part of the approved vote, members were presented with four choices for how many tokens to issue. These are: 50 million, 100 million, 150 million or 200 million. There was also the option to decline the offer. For the proposal to pass, at least 51% of voters had to choose one of the first four options before reaching the weighted average value of all votes combined.
According to data from Snapshot, only 5.12% of voters rejected the offer. Majority of voters, 80.78%, chose the 200 million token option. A small portion of 1.08% voted for 150 million tokens, 2.05% voted for 100 million tokens and 10.97% voted for 50 million tokens. Using the weighted average of these results, it is estimated that 180 million Ren tokens will be created, worth approximately $10.8 million at current market prices.
Confirming the issuance of new tokens will be the first step for the Ren protocol team. With authorization, the team plans to migrate to a new version of the protocol. Still, making such a drastic change carries certain risks. The team warns that as version 1.0 is retired, renBTC holders (created with Ren) may not be able to recover their original BTC. According to on-chain data, there is still $12.5 million worth of renBTC on Ethereum. So they run the risk of getting stuck.
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