COVAL UPDATE 0417
As the crypto dust settles after the ₡OVAL migration to Counterparty and all ₡OVAL has been swapped from legacy wallets and Bittrex accounts, it’s time to review where COVAL is currently at as a project and reiterate a few points that have been previously expressed here on this blog and in our Slack.
The total supply of ₡OVAL had been 1 billion from the legacy chain and that amount was applied to the new Counterparty COVALC asset when the swap began. About 1 billion ₡OVAL was swapped. Most of this was automated on Bittrex with a 15% bonus as promised by us. The total amount of mined ₡OVAL at the time of the swap was around 1.2 billion. ~200 million ₡OVAL was unclaimed.
We will be increasing the total supply of ₡OVAL to 1.2 billion to reflect these numbers and the COVALC asset will be locked so no other tokens can ever be issued. The extra ~200m tokens is an adjustment from the unclaimed amount and 100m of this will be reserved for various reward programs via the CORD Fund.
The Swap is now over and the swap app will be disabled. The legacy chain will now be deprecated by EOD today.
Additional supply details:
- 20m ₡OVAL (premine) is owned by both COVAL developers/founders.
- 85,114,504 ₡OVAL was given away to Bittrex accounts as part of the 15% swap bonus.
- ~65,000,000 ₡OVAL was given away to private wallets as part of the 15% swap bonus.
- 250,000 ₡OVAL (premine) was sent as an initial donation to the CORD Fund. This amount will increase to 100m once our final accounting audit is finished today.
- The remaining balance will go into a reserve account (~100m) and usage of these tokens will be determined in the future. They may be used for partnership strategies, to replenish the CORD Fund or to cover certain other types of business expenses, developer bounties or possibly made available via new “mining” algorithms that could be introduced by COVAL in the future.
It should be noted that originally we had wanted to conduct the swap as an opt-in system including for Bittrex accounts, not an automated balancing of all accounts. We were looking at the migration as more of a restart so we could adjust the total supply based on how much was intentionally swapped by holders in the given timeframe. Anything not swapped would have been burned and/or re-allocated as per previous blog posts describing such plans.
However, Bittrex would not allow this and it is understandable why. Since COVAL is not considered a new currency, any legacy RBR accounts needed to be balanced accurately whether or not these people had any interest in COVAL. Therefore, some earlier published intentions are no longer accurate representations of what occurred.
Speaking of Bittrex, we want to thank them for their patience and assistance during this migration and market reactivation. They were professional, highly responsive and available throughout the long migration plan.
So now that we are here once again with a functioning open market cryptocurrency, why did we bother with the trouble to first keep the legacy coin alive to begin with and then put all the effort in to migrate it (over 3 month span) to the Bitcoin Blockchain compatible Counterparty platform?
Counterparty is the humble veteran in the blockchain space. Launched about 2 1/2 years ago, it was the first innovative Bitcoin meta layer platform that actually worked as advertised and still does. The uptime and maintenance has been excellent. It is a trusted platform.
Over the years, the core team and community has shown that they are cautious yet eager to enhance the platform. The Counterparty codebase is treated with the same kind of delicate respect that Bitcoin core developers have. Thoughtful discussion and decisions have always been part of the Counterparty ethos. They don’t hype XCP and have happily existed with little to no drama which sais a lot for a project in the cryptocurrency space.
Counterparty faces some challenges moving forward as it is tightly integrated with and leverages the Bitcoin Blockchain which is itself going through growing pains and important decisions in the Bitcoin (and hence the Counterparty) community will need to be made over the course of the next 12–24 months. Counterparty recently addressed some of these issues in a blog post — Counterparty: On scalability and the future which we encourage everyone to read.
The strategy to migrate ₡OVAL to Counterparty boils down to these points:
- We do not want to spend time and resources maintaining an outdated vulnerable mineable blockchain or inventing a new distributed ledger and consensus algorithm of our own.
- We need ₡OVAL to exist on a secure and trusted distributed ledger network and crypto asset platform so that we can focus our efforts on building the COVAL components that will enable ₡OVAL to be a useful digital currency.
- The differentiation of the ₡OVAL currency (COVALC asset) and the materialized ₡OVAL on other networks (distributed ledgers and traditional systems) via our Circuit Jumper Sidechains is important to note as it will remove certain limitations and poor user experience of Bitcoin/Counterparty (i.e. slow transactions, high transaction fees) while maintaining the highest security for the core currency.
- Counterparty provides a variety of compatible wallets and related software as well as a helpful community that COVAL users can benefit from.
- Counterparty is moving forward with new developments and improvements that COVAL can benefit from.
By now, it should be clear that COVAL is not a project touting a unique blockchain alternative with a yet another token used for things like computing costs (gas) and mining/validation incentives. So the value proposition is not in the underlying ledger used for the currency, which at this point is more akin to being a commodity layer of a tech stack with so many alternative ledgers available on the market. We have offset the currency’s chain related tech and security to Bitcoin and the Counterparty platform so that we can work on actually making this cryptocurrency useful in the real world and move beyond the common speculative silos of many cryptocurrency projects where a currency is born into and eventually dies within.
This is not to say that we are not building interesting technology involving the movability of value through cryptographic based token systems. We are! In fact, we will be incorporating multiple distributed ledger instances as sidechains within COVAL’s “Circuit Jumper” system in order for ₡OVAL to traverse in and out of other blockchains such as Ethereum and networks like Loyyal among others. But our base ₡OVAL currency is best suited to have presence on the most secure Bitcoin Blockchain while we innovate on how to move and materialize ₡OVAL elsewhere.
Now we can focus on the aforementioned interoperable strategies in addition to making traditional API based connections for practical redemption paths that everyday people can benefit from. We are actively working on integrations with popular services such as Zapier and IFTTT to let ₡OVAL owners spend normally as if using a credit card or loyalty points. This is low hanging fruit stuff that should be done without question for any project that wants to make a digital token useful and have utility for the people who possess it.
As we move forward from logical API integrations into more complex sidechain-powered integrations and further yet into strategic partnerships including Loyyal, the usefulness and value of ₡OVAL will become more apparent. It takes work to bring a digital currency to “life”. This is our pragmatic philosophy. No, we are not betting on a technical reinvention or fringe innovation to draw attention to COVAL and to drive the currency’s value and usefulness. That won’t work well. After all, Bitcoin and the usual suspects that are leading the space are moving the cryptocurrency needle and yet still are surrounded by controversy and an unpredictable future. Joining this foray will not be sustainable and is not the primary goal of COVAL at this time. Instead, this is an exercise in how to take a digital token using the current state of the art technologies into existing economies.
The crowded space of cryptocurrency alternatives often tend to attempt to duplicate the profitability phenomena and first-mover advantage of those who have come before them and have a positive network effect. They do this by depending on variations of features and approaches to solving a set of commonly and sometimes not so commonly debated problems and challenges. This is done both with best intentions and bad intentions (scams). COVAL is not about that. COVAL can be portable and flexible and blockchain agnostic. It can be as resilient as we want it to be. COVAL can hop around and persist while still maintaining its connections with it’s own systems, integrations and partners. Being a useful and practical digital currency need not be tethered to the far side fringes of cryptocurrency communities where controversy and drama often leads the story. Meanwhile, these currencies have little or no real world use case and end up stuck in the speculators bubble.
The Honest Conclusion
Having said that, we cannot today give anyone a great reason to own ₡OVAL no more than Ethereum could promise anything of the Ether tokens back in 2014 before an ecosystem of developers and projects emerged. We will strive to achieve our goal of making ₡OVAL a useful currency that can be transformed in ways that allow it to permeate into apps, services, games, reward programs and many other incentive based and value transfer systems. We invite developers, artists and innovators of all kinds to work with us. We encourage the support but make no promises. We will express our ideas and intentions, but will avoid needless hype. We will enhance our presence and properties, but will not artificially market vaporware. We will communicate honestly and be as transparent as we can.
Internal Development Projects
Apps and Services
Development continues on ODEOKEE and will resume on VOCAL, the two projects that I (Michael) am working on that will integrate ₡OVAL. More on those will be discussed in a future update.
Along with the above projects, a COVAL desktop app is under development that will encompass all things COVAL in one interface (both local and cloud-based). Work on mobile app(s) will resume as well. These will showcase how ₡OVAL can be transacted quickly inside other systems to make purchases or p2p transfers. We will be looking for others to join us in these development efforts.
Shannon has been doing some great work on rapid development tooling so we can build things efficiently. The main focus is our Circuit Jumper system which will use a network of sidechains to provide interoperable opportunities. We will do a deeper dive into those projects when they are open sourced.
The CORD Fund
CORD stands for Coval Open Reward Distribution and is a community donation fund. A new website for CORD will be available in the coming weeks.
We recognize the irony in having a project that solicits donations of our own cryptocurrency right after we gave away a lot with the 15% bonus, but that is what we are now doing with CORD.
Donating ₡OVAL to the fund allows for this program to sustain itself beyond the initial deposit of 100m ₡OVAL.
COVAL, through the CORD Fund, will support certain projects and partners by rewarding people such as users, employees, students, volunteers etc, with ₡OVAL cryptocurrency. These rewards are based on the user’s earnings or achievements on these platforms.
The purpose of CORD is to widen the distribution of ₡OVAL to a broader user base and encourage interest and curiosity in the COVAL Project as well as any CORD partner projects and companies.
It’s also just an expression of generosity by the COVAL community.
All donations over 250k ₡OVAL will trigger a broadcast message transaction on the Bitcoin Blockchain from the CORD Counterparty asset owner address. This immutable blockchain message will state the from address and amount of ₡OVAL that was donated. This is a receipt and proof of donation.
For every 250k ₡OVAL that you donate, you will receive a CORD token which will be meaningful and useful at a later date.
CORD is not a COVAL development fund. This is not an “ICO”. We are not soliciting any currency such as bitcoin. This is a fund explicitly for ₡OVAL and only to distribute freely to others who qualify.
The CORD website will be launched this month.
Websites will be launched for COVAL, CORD and a few others over the next month or so.
We do appreciate those who are interested and who have been supporting us, no matter what your motivations and intentions are ;-) We hope that you keep COVAL on your radar over the next few months and beyond to see how we are progressing with our efforts.