Poolin Has Introduced New Tokens Called IOU For Users Whose Funds Are Frozen
- Poolin has recently offered freshly-minted IOU (I owe you) tokens to its users whose assets are frozen due to liquidity issues since last week.
- The distribution of these IOU tokens took place on Thursday, September 15. These tokens will be minted under the ERC-20 protocol on Ethereum Network.
- The Poolin team is “striving for multiple solutions to solve the short-term shortage of liquidity, including seeking new investments, debt-equity swaps, and assets liquidating.”
After suspending user withdrawals on the platform last week, the troubled crypto mining pool service provider Poolin has recently offered freshly-minted IOU (I owe you) tokens to its users whose assets are frozen due to liquidity issues.
According to a recent announcement by the platform, the distribution of these IOU tokens took place on Thursday, September 15. These tokens will be minted under the ERC-20 protocol on Ethereum Network.
“The team has come up with the IOU-tokens scheme to minimize the impact of withdrawal suspension. The tokenomics of IOU-tokens will bring intuitive & various options and easy-to-use operations,”The China-based Poolin stated.
The announcement further states that the Poolin team is “striving for multiple solutions to solve the short-term shortage of liquidity, including seeking new investments, debt-equity swaps, and assets liquidating.”
It is crucial to note that a total of six different IOU tokens IOUBTC, IOUETH, IOUUSDT, IOULTC, IOUZEC, and IOUDOGE have been issued in a 1:1 ratio to represent BTC, ETH, USDT, LTC, ZEC, and DOGE, respectively. Poolin customers will get the same amount of IOU tokens as what they have in Poolin’s Asset Account. A user with 10 BTC and 20 ETH, for instance, will receive 10 IOUBTC and 20 IOUETH in their asset or mining pool account.
Users’ initial holdings have been reset to zero after they received their IOU tokens. Notably, the users now have an infinite number of automatic withdrawals from the new assets. Interestingly, the IOU tokens will eventually be burned after users receive permission to swap them for the original ones. Users can also purchase mining equipment or shares in Poolin’s United States division.
Notably, Poolin is the fifth-largest mining pool with 10.6% of all BTC blocks mined during the last year, behind Foundry USA, AntPool, F2Pool, and Binance Pool. However, despite being one of the most popular mining pools, the company could not shield itself from the ongoing crypto winter season and liquidity problems.
Last week, Poolin suspended withdrawals, internal transfers, and flash trade amid mass withdrawals threatening to severely affect the liquidity and disrupt operations. The platform stated at the time that the extreme decision aims to preserve liquidity and to find a solution to this crisis.
According to Poolin, as the platform’s net worth is still positive, the users’ original holdings are safe with it. Moreover, the newly-mined BTC and ETH are paid out daily.
In addition to issuing IOU tokens, the company has also launched two zero-fee mining programs to entice users to keep using its mining pool services and support the liquidity supply on the platform.