Deep Dive
1. In-App Governance Integration (November 2024)
Overview: SwissBorg embedded governance features directly into its app, enabling users to vote on proposals (e.g., token burns, reward allocations) without leaving the platform.
The update introduced a "voting power" metric tied to BORG holdings, with locked tokens (in vaults/premium) weighted higher than liquid tokens. For example, 100 staked BORG = 200 voting power vs. 100 roaming BORG = 100 power.
What this means: This is bullish for BORG because it incentivizes long-term token holding and active governance participation, potentially reducing sell pressure. (Source)
2. BORG Staking Mechanism (March 2025)
Overview: A new staking feature allows users to lock BORG for governance influence, with a 14-day cooldown period for withdrawals.
Staked tokens receive 2x voting weight compared to vault-locked tokens (1.5x). Rewards are calculated quarterly based on participation frequency and average locked balance.
What this means: This is neutral for BORG short-term due to the unlock delay, but bullish long-term as it encourages token retention and deeper community engagement. (Source)
3. Sustainability Score System (Q4 2024)
Overview: A financial health metric (1-10 scale) now dictates quarterly BORG buybacks for rewards, ranging from €30k to €450k. Higher platform profitability triggers larger buybacks.
The system combines a fixed 7.5% reward pool allocation with the Sustainability Score. For example, a score of 5 creates a 12.5% total reward pool.
What this means: This is bullish for BORG because it aligns rewards with SwissBorg’s profitability, creating deflationary pressure during strong performance. (Source)
Conclusion
SwissBorg’s updates prioritize governance participation and token utility, with mechanisms to stabilize BORG demand through staking and profit-linked buybacks. Will increased voting activity translate to measurable protocol improvements in 2026?