The SOMA team has been promising a token economics article to our community for some time now. Soon, we have repeatedly promised, tomorrow or the next day. However, we’ve all been running full-tilt on initiatives to move the project forward. Transparency is super important, but so are things like, you know, success.
Better late than never, right? Right? Anyway, here it is. After reading, let us know your thoughts/questions in our Telegram group.
For the uninformed, the SOMA Community Token (SCT) is an ERC20 token that enables the SOMA Rewarding System. It also provides liquidity and value for the tokenization of real-world items via the Heimdall Protocol.
The SOMA ICO
SOMA’s ICO began on September 26 and ended on November 15, 2017. Of our 60M SCT hardcap, almost 85% of the total supply was allocated to the ICO (see below for information related to the remaining 15%). The team estimated that a minimum of 450,000 SCT needed to be sold to be able to fund the project. We ended up selling around 4M tokens during the ICO, successfully funding further development of the platform. The remainder of the SCT that were for sale during the ICO were burned to preserve value for our investors.
SCT held in reserve
As part of the ICO, the team reserved 10.4M SCT for the following purposes.
2,000,000 SCT were reserved for marketing. We draw from this pool to execute our go-to-market and brand awareness strategies and brand ambassador programs, and for generally building traction around SOMA as a project.
2,000,000 SCT were reserved for legal costs. Given our adherence to all regulations that impinge upon SOMA’s business operations, we will this war chest for legal compliance costs.
5,100,000 tokens are reserved for institutional capital and key person incentivization. This will include OTC deals* with VC firms and/or crypto funds, as well as compensation for key persons whose incentives are aligned with the goals of the project. Any bonus programs with key persons and executives will include lock-up agreements.
1,300,000 tokens are reserved for liquidity to facilitate trading and increase volume whenever necessary.
The release of these tokens will happen in yearly phases, with an estimated 8,500,000 tokens being distributed into the circulation during years 2018–19 and rest of the tokens during 2020.
By the end of 2020, all 14M+ SCT in existence (the unburned) will be in circulation.
Sold in ICO = 4M
Reserved for legal = 2M
Reserved for marketing = 2M
Reserved for VCs and key persons = 5.1M
Reserved for liquidity = 1.3M
Total unburned SCT supply = 14.4M
The inflation of circulating supply will happen in yearly phases, with 8,500,000 tokens being distributed into the circulation during years 2018–19 and rest of the tokens during 2020.
Questions? Concerns? Unadulterated praise? Hit us up in our Telegram group, on Twitter, or via any one of our many channels.
Join us
Website: https://soma.co/
Telegram: https://t.me/Somacommunity
Twitter: https://twitter.com/SomaToken
Facebook: https://www.facebook.com/socialmarketapp/
LinkedIn: https://www.linkedin.com/company/soma-decentralized-social-marketplace/
Medium: https://medium.com/@soma_sct
BitcoinTalk: https://bitcointalk.org/index.php?topic=2129958
GitHub: https://github.com/soma-mvp
Reddit: http://www.reddit.com/u/soma_sct
*Over-the-counter
