Poolin Bitcoin mining pool unveils plan to resume withdrawals

Facing a liquidity crunch, mining pool Poolin выпустит tokens as IOUs to address withdrawals.

In early September, founder and CEO Kevin Pan admitted financial difficulties and pledged to present a plan to resolve the situation soon.

As part of the announced solution, the platform will issue six ERC-20 tokens on Ethereum: IOUBTC, IOUETH, IOUUSDT, IOULTC, IOUZEC and IOUDoge. Each token will 1:1 represent the underlying assets: BTC, ETH, USDT, LTC, ZEC and DOGE.

Poolin will distribute IOU tokens to users based on a snapshot, replacing the cryptocurrencies in both the wallet service and the mining pool.

The distribution of the tokens will take place on September 15.

There are no restrictions on withdrawing the “debt” tokens.

The platform will burn a portion of the tokens quarterly, allowing clients to exchange them for the underlying assets. The company believes that gradual improvements in liquidity will accelerate the pace of IOU-token redemption.

Owners will be able to use the coins for trading, buying mining equipment, and acquiring shares in Poolin US, the U.S. division. The assets will also serve as collateral in the lending service.

More detailed information and additional use cases for IOU tokens will be disclosed by the company later.

Since the start of the month, the BTC.com-sourced data show that the Bitcoin hash rate controlled by Poolin has fallen by more than half, from 26.6 EH/s to 11.3 EH/s. With a 3.93% share of the overall metric, the platform slipped to seventh place among pools.

Back in July 2021, Poolin faced problems amid a crackdown by Chinese authorities on miners. halted payouts on hash-rate tokens pBTC35A and pETH18C, blocked in the Mars protocol. Only two months later did the entity partially resume accrual of assets to users.

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