## Introducing SOV: The Governance and Value Accrual Token of Sovryn
Community Call #21 was a foundational session, providing the first detailed, public explanation of the **SOV token**, the native token of the Sovryn ecosystem. The team walked through its dual role as both a governance instrument and a mechanism for value accrual, and detailed the full tokenomics model.
### The Dual Utility of SOV
The SOV token has two primary functions:
1. **Governance:** SOV is the key to participating in the **Sovryn Bitocracy**, the protocol’s on-chain governance system. By staking SOV, holders receive Voting Power (VP), which allows them to propose and vote on Sovryn Improvement Proposals (SIPs). This gives the community direct control over the protocol’s treasury, its future development, and its economic parameters.
2. **Value Accrual (Fee Sharing):** The Sovryn protocol is designed to be a profitable, sustainable system that generates revenue from fees on trading, lending, and other activities. All of these fees are distributed to SOV stakers. This means that by staking SOV, holders are not just governing the protocol; they are also earning a share of its success in the form of a ‘real yield’ paid in assets like Bitcoin.
### SOV Tokenomics
The team presented the complete token distribution and emission plan:
* **Total Supply:** A fixed total supply of **100 million SOV**, ensuring the token is not infinitely inflationary.
* **Allocation:** The supply is allocated to various stakeholders and purposes, including:
* **Community Distribution:** A large portion allocated to the Genesis Sale and ongoing liquidity mining rewards.
* **Treasury:** A development and adoption fund, controlled by the Bitocracy, to ensure the long-term growth of the protocol.
* **Founders and Early Contributors:** An allocation for the team and early backers, subject to a multi-year vesting schedule to ensure long-term alignment.
* **Emission Schedule:** The tokens allocated to the treasury and liquidity mining are released gradually over many years according to a pre-defined emission schedule. This ensures a predictable and transparent supply inflation.
This session established the fundamental value proposition of the SOV token. It is not just a speculative asset, but a productive one that grants its holders both a voice in the protocol’s future and a claim on its cash flows.