Community Observation: 2019.08.12

Community Observation publishes insightful opinions and interesting thoughts collected from the SimpleChain community. If you have any thoughts/opinions about blockchain/crypto that you’d like to share, feel free to contact us through our Telegram group.

By 白糖可塔朵

Recently, Nervos announced rules for its token issuance. The overall strategy seems quite radical.

First of all, there is no issuance cap. Base issuance is issued through PoW mechanism. First year supply is 33.6 billion, and the halving happens every four years. Secondary issuance is actually a constant inflation, with an annual supply of 1.344 billion (4% inflation rate). Distribution of these tokens should be flexible each year. The secondary issuance ensures that there is no issuance cap for their tokens.

In addition, the initial total supply of tokens released in the Genesis block will be 33.6 Billion CKB. This can be understood as the ICO part or about 50% of pre-mined CKB will be used in distribution of all parties involved earlier. Also, 25% of the Genesis tokens will be burned, which means that all previous investors got their CKB allocation at a discount of 25% off the secondary market. Furthermore, in the Genesis token distribution, the private sale price is 0.006USD, and the public offering price is 0.01USD. The discount on private sale is 40% off public offering, which means that the private sale price is 55% off the secondary market. This is very lucrative.

SimpleChain and Nervos both adopt a layered cross-chain design. Base issuance of Nervos CKB is actually like the mining rewards of SimpleChain SIPC, except that CKB is halved every four years like Bitcoin, and SIPC is halved every year. Secondary issuance of CKB can also correspond to the SIPC sub-chain issuance mechanism. Except that CKB uses a fixed inflation rate while SIPC has designed a relatively complex algorithm to decide the liquidity demand.

The biggest difference between CKB and SIPC is that SIPC did not arrange Genesis block distribution, so the price of SIPC is directly linked to mining cost, and less anchored to fiat currency. The advantage of SIPC is a real free market pricing. But the downside is that it was difficult to attract investors, since there were no tokens with discounted prices for early investors. It is hard to say that which project is better. I think both have a lot of potential. The team of Nervos has a deep technical community gene, and SimpleChain may be more about applications. Just have to say that SimpleChain has no pre-mined tokens and is pure PoW, should have spent a lot of their own money on the project. Admirable.

About SimpleChain

SimpleChain is a PoW main chain with flexible sub-chains. Different sub-chains can adopt different kinds of consensus and block data structure as needed, to support a variety of applications and use cases on blockchain. Sub-chains also support sharding to improve performance. This double-layered structure of one main chain and multiple sub-chains can fuel various applications while ensuring the consistency of the network.

Built on Baoquan Chain, SimpleChain’s first sub-chain, Baoquan.com provides electronic data services including electronic evidence service, online evidence gathering service, and copyright protection platform. Based on the non-traceable and non-tamperable features of the blockchain, the advantages of Baoquan.com is that user data can be permanently stored on the blockchain, independent of corporations.

In June 2018, Hangzhou Internet Court of China judged a case of a dispute over information network communication rights. For the first time, the court confirmed the legal effect of the electronic data stored on Baoquan blockchain, and clarified review methods of electronic evidence on blockcahin.

We have launched the mainnet beta version in January (see blockchain browser), and we will be launching mainnet official version 1.0 in Q3 this year. Also, our codes are open-sourced on Github.

Find SimpleChain at:

Website: https://www.simplechain.com
Twitter: https://twitter.com/SimpleChain
Medium: https://medium.com/SimpleChain
Facebook: https://www.facebook.com/SimpleChainOfficial
GitHub: https://github.com/simplechain-org
Telegram Group: https://t.me/SimpleChainEN