Poolin mining pool will issue “debt” tokens to solve liquidity issues

Each quarter, the pool will burn part of the assets, allowing them to be exchanged for basic ones to gradually repay the debt

14.09.2022 - 09:00

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What’s new? One of the largest mining pools, Poolin, which announced liquidity problems on September 5, unveiled a plan to restore withdrawals. To that end, the company will issue IOU (I Owe You) tokens. The Poolin team announced this in a blog post on the Medium platform on September 13.

Announcement on Poolin’s blog

What steps has the company planned? The mining pool plans to issue six types of ERC-20 tokens on the Ethereum blockchain: IOUBTC, IOUETH, IOUUSDT, IOULTC, IOUZEC, and IOUDOGE at a 1:1 ratio for their respective cryptocurrencies: BTC, ETH, USDT, LTC, ZEC, and DOGE. These “debt” tokens will be credited to pool users on September 15. Each quarter, the pool will burn part of the tokens, allowing customers to exchange the “debt” assets for basic ones and ensuring that the debt is gradually repaid.

IOU tokens can be used to be traded on chain, to buy cryptocurrency mining equipment, and shares of Poolin US, the pool’s US unit. In addition, “debt” tokens will be able to act as collateral in Poolin’s lending service.

Poolin acknowledged a liquidity problem in early September, but the founder and CEO of the company, Kevin Pan, said that users’ funds were safe. They began complaining about difficulties with withdrawals from their wallets back in August.

On September 2, cryptocurrency mining equipment maker Bitmain added new firmware for the Antminer E9, released in July. This version will allow Ethereum Classic (ETC) mining. The firmware supports only Antpool, Poolin, and F2pool for now, versions for other mining pools are under development and will appear on the network soon.

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