BDIP-8: Evolution of BreederDAO to Sovrun; and Token Migration

Title of Proposal: BDIP-8: Evolution of BreederDAO to Sovrun; and Token Migration Category: DAO Structure Submitted by: 0xA3231aAf91f64c3Dd67CbC316CCfb9b655b56584 Proposal Submission Date: November 18, 2024 Idea Post Date: November 12, 2024

Abstract

Since its launch during the 2021 Axie Infinity boom, BreederDAO has been a trailblazer in Web3 gaming, building key infrastructure for digital assets across gaming and the metaverse. Initially focused on large-scale asset production, BreederDAO partnered with leading players like a16z, Delphi Digital, and YGG, establishing itself as a leader in the Web3 gaming economy.

As blockchain gaming has evolved, so too has BreederDAO’s vision. The rise of Autonomous Worlds (AW)—player-driven, self-governing ecosystems—marks a shift toward scalable, collaborative digital environments. To align with this broader vision, BreederDAO is rebranding as Sovrun, expanding from asset production to enabling dynamic, autonomous gaming ecosystems where players and creators shape the future together.

Sovrun's Ecosystem Structure

Sovrun’s ecosystem is built on three layers, each targeting key aspects of decentralized gaming: community participation, developer empowerment, and user engagement.

Genesis (Participation Layer)

Empowering Communities:

Genesis fosters community involvement in decentralized economies. Players can contribute to and govern virtual environments, gaining meaningful roles in the growth of player-owned worlds. This layer provides tools and opportunities for players to earn, build, and thrive within immersive ecosystems.

Labs (Empowerment Layer)

Infrastructure for Creators:

Sovrun Labs equips developers with the infrastructure to create secure, scalable, and autonomous game environments. It provides tools for building and customizing fully on-chain virtual worlds, empowering creators to bring their visions to life.

Nexus (Engagement Layer)

Innovative Consumer Experiences:

Nexus experiments at the intersection of AI and blockchain, driving adoption through gaming applications, loyalty programs, and interactive platforms. It focuses on creating engaging, decentralized experiences that bring more users on-chain.

Rationale

The Brand Evolution and Token Migration: BreederDAO to Sovrun

Sovrun marks a bold new chapter for BreederDAO, shifting its focus from producing digital assets to building decentralized ecosystems where players and developers can thrive. By encouraging community participation, empowering creators, and delivering innovative consumer experiences, Sovrun is redefining blockchain gaming and fully on-chain virtual worlds.

At the core of this transformation is $SOVRN, the new token powering Sovrun’s ecosystem. It supports not just asset creation but the development of entire virtual worlds shaped by the communities and creators who inhabit them.

$SOVRN Token Utilities

1. Staking

By staking $SOVRN, developers gain access to Sovrun’s tools, tech infrastructure, and chain economies. This allows them to create scalable, customizable gaming chains that settle on Sovrun L2, enabling infinite growth.

Sovrun also offers a unique delegation system to outsource game operations seamlessly on-chain.

2. Native Gas Token

$SOVRN powers transactions and smart contract execution across Sovrun’s Layer 2 infrastructure. It supports scalable and efficient digital worlds, enabling developers to build and users to interact with ease.

3. Immersive Economies

$SOVRN drives player-driven economies, where decisions shape resources, trade, and growth. It supports diverse virtual worlds with unique rules and incentives, fueling dynamic and rewarding gameplay experiences.

4. Treasury

Sovrun’s treasury supports partnerships, ecosystem growth, and $SOVRN buybacks to create value for token holders. It funds innovative projects and communities, driving the next generation of blockchain gaming and scalable digital worlds.

With $SOVRN at its center, Sovrun is building a future where decentralized gaming and immersive economies thrive.

Specifications and Timelines

Tokenomics Overview

The tokenomics of $SOVRN largely mirror those of $BREED, with key updates to support the new ecosystem.

Migration Timeline

The migration from $BREED to $SOVRN begins on November 29, 2024, and will remain open for a period of three years.

Token Swap Ratio

$BREED tokens can be exchanged for $SOVRN on a 1:1 basis. The migration process is secure, audited, and designed to ensure the safety of user funds.

Distribution

• A significant portion of tokens (82% of max supply) are already unlocked and held by the public.
• The remaining vesting tokens are allocated as follows:
• Key Partners: 30M
• Team: 124M
• Treasury: 25M

The token distribution and vesting schedule remain unchanged.

Supply

The initial supply of 1B tokens has been adjusted for burnt $BREED tokens, resulting in a final circulating supply of 896,771,567 tokens. No additional $SOVRN tokens will be issued beyond this cap.

Liquidity

To ensure smooth trading:

• The Sovrun DAO will allocate the equivalent amount of the pre-migration $BREED liquidity pool in $SOVRN and in $ETH to provide liquidity for $SOVRN on Uniswap and Sovrun Layer 2.
• Liquidity for $BREED during and after migration will depend on current liquidity providers and is not guaranteed.

Staking Transition

To support the migration:

• $BREED staking will be disabled 1–2 days before the migration begins.
• A snapshot of staked $BREED will be taken when the staking portal is disabled.
• Staked $BREED tokens will be airdropped back to user wallets, with gas fees covered by the team.

Staking Rewards

• Daily staking rewards will remain unaffected up to the snapshot date.
• Vested rewards will auto-claim upon migration and continue vesting over six months.
• Users will bear gas fees for claiming and withdrawing vested rewards.

Migration Process

1. Token Swap

Users initiate the migration by sending $BREED to a designated smart contract via the migration portal on Ethereum. The contract will issue an equivalent amount of $SOVRN to the user’s wallet.

2. Security

The migration smart contract will undergo audits to ensure the safety of user funds and the integrity of the process.

3. Stakeholder Support

FAQs and regular updates will be provided to ensure a seamless migration experience.

Security Measures

The migration process will include robust security protocols, including:

• Audited smart contracts.
• Measures to safeguard against breaches or exploits.

By maintaining $BREED’s core structure while evolving for Sovrun’s ecosystem, $SOVRN supports a seamless transition into a more robust and scalable future.

Budget and Financial Impact

No identified immediate costs pertaining to the actual migration will be incurred from the Ecosystem Development Fund.

Community Input

BreederDAO values the input and engagement of its community members. We encourage tokenholders to review this proposal and provide feedback and suggestions regarding the $BREED to $SOVRN token migration process.

Upon approval of this proposal, the development and publication of the technical implementation will commence. Community members are encouraged to provide feedback on the proposed migration process before its execution.