Update 4/6/2017: The token redemption is live.
On December 12, 2016, after weeks of contention, the shareholders of Synereo LLC voted to cancel CTO Greg Meredith’s employment contract and remove him from the board. Smith + Crown authored an in-depth summary of the Synereo controversy back in December. It boils down to an unresolvable disagreement between Synereo’s CTO (Greg Meredith) and CEO (Dor Konforty).
Synereo was pitched to investors as a decentralized social media platform built on top of a innovative tech stack called Rchain. The Rchain project is a multi layer architecture consisting of a new language for programming smart contracts called Rohlang. As proposed, Rchain would be highly scalable, efficient, and flexible. However, shortly after successfully raising $4.7 million dollars in a crowdsale, Greg Meredith publicly accused Dor Konforty of attempting to starve the Rchain project and asked for his resignation. For his part, Dor expressed that he had lost confidence in Greg’s ability to deliver a useable Rchain product in time for Synereo’s planned 2017 rollout. The Synereo project stalled, gripped in deadlock, until the shareholders voted to oust Greg.
Rchain Incorporates as a Co-op
After the split, Greg and a dedicated group of his supporters formed a new organization to fund the development of Greg’s vision for Rchain. Greg is mathematician and developer, who worked on a variety of Microsoft architectures and also contributed to Ethereum’s plans for transitioning to proof-of-stake. Rchain will support smart contracts, achieve consensus through proof of stake, and be sharded–that is, broken into dynamic compatible networks based on the blockchain state. This is similar to Ethereum’s future state, though Rchain has some notable differences. The target blocktime is less than 1 second. The Rchain team has created a table comparing Rchain to Bitcoin and Ethereum.
To become a blockchain solution with industrial-scale utility, RChain must provide content delivery at the scale of Facebook and support transactions at the speed of Visa.
Rholang is a turing-complete programming language built from the rho-calculus–which is based on pi-calculus–that underpins the network. Pi-calculus has been used in network modeling.
Rchain has formed The RChain Cooperative (Greg is based in Washington) and The RChain Holdings Company. The co-op will focus solely on building the RChain Platform, while the Holding Company will be responsible for for-profit endeavors building on top of the platform.
In order to fund future development, Rchain is offering a token redemption to investors in the second Synereo crowdsale. Rchain will be open source and many of the components which will make up its architecture (Casper proof-of-stake, Rohlang, Special K etc.) are already licensed under permissive agreements which allows users to use, modify and distribute the code for private or commercial use. Rchain code was licensed earlier in 2016. At the time of writing, Synereo doesn’t have any assets related to Rchain available on their Github account.
Synereo intends to announce its new technology roadmap on January 20th, 2016.
What is the token being sold?
Rchain is swapping AMP for RHOC–an Ethereum meta token that can be redeemed for Rcoin, the proposed native cryptocurrency for the Rchain network, at some point before 2019. It will be used to access the network and pay transaction fees, similar to how ether is needed for the gas transaction fees. The team has stated that AMPs will not be supported on Rchain.
What are the sale terms?
Only tokens minted, issued or otherwise released into circulation prior to December 12th, 2016 will be eligible for the coin swap. As far as Smith + Crown knows, no new AMP have been created since the second Synereo crowdsale. It is unclear what portion of the supply of AMP was issued after December 12th, and therefore won’t be eligible for participation in the redemption event. Investors participating in the token redemption will receive RHOC at a 1:1 ratio with AMP. Investors will need to have an Ethereum wallet (to receive their RHOC) and an Omni wallet (to send their AMP from). This will be the first omni-ethereum swap.
How will RHOC be distributed?
Tokens will be released shortly after the sale ends. Rchain will likely hold additional crowdsales/ICOs in the future. There is no established max supply for the future Rcoin at this time. The detailed development timeline is still under review, but they have targetted Q3 2018 to have the complete platform in place.
Update March 20th, 2017: The token redemption appears to be delayed indefinitely. Smith + Crown is monitoring the Rchain project and will update this memo with new information as it becomes available.
Update January 17th, 2017: The token redemption has been delayed due to technical difficulties. At the time of writing, no official start time has been announced. Rchain’s original timeline indicated that the Redemption period would begin before January 20th, 2017.