On September 13, Poolin, the biggest mining pool based on hash rate, announced that it would provide IOU (I OWE YOU) tokens with the motive to “limit the effect of withdrawal suspension” for its clients.
Poolin in a September 23 blog post states that the users who are not able to withdraw the holdings of Bitcoin, Tether (USDT), Ethereum, Dogecoin, Litecoin and Zcash, the wallet service of Poolin would deliver IOU ERC-20 tokens to the eligible users.
Poolins to introduce six new IOU token
Due to the published “liquidity issues” after the withdrawal suspension, the mining pool on September 15 will release six tokens such as IOUETH, IOUUSDT, IOUBTC, IOUDoge, IOUZEC and IOUULTC, showing original BTC, USDT, ETH, ZEC, Doge and LTC holdings of users at 1:1 proportion.
Poolin said, “for now, our priority is to restart withdrawal of as many tokens/coins as possible.” “The organization currently is aiming at numerous answers to tackle the temporary shortage of liquidity, including looking for new investments, debt-equity swaps and liquidation of assets.”
As per Poolin, the mining pool claimed that the number of unique tokens residing in the assets account and mining accounts of users can be withdrawn automatically at any time, after the release of IOUs.
Furthermore, after clients were offered the chance to trade the IOU with their original token holdings, the network wanted to ultimately burn every IOUs on chain or with third parties, purchase mining rings or buy stake in the Poolin’s firm.
When confronted with liquidity issues, different platforms have adopted the same strategy by delivering IOU tokens.
In 2021, Furucombo, DeFi exchange mix device experienced an exploit that cost the network $15 million, later giving 5 million iouCOMBO tokens as a feature of a remuneration plan for casualties.
China-based mining pool, Poolin was established in 2017 and works under Blockin. Poolin secured fifth place in the most significant mining pool followed by Foundry USA, Antpool, F2Pool and Binance Pool by mining approximately 10.6% of Bitcoin blocks over the past year, as per BTC.com data.