Token Sale

Synereo’s (second) Crowdsale

Synereo is holding its second crowdsale starting the week after it launches its Alpha version on September 9th.

What is the project?

Synereo is a distributed social network and reputation system built on a custom blockchain. It’s richer than simply building profiles and sharing posts though. The language is Turing-complete and it performs distributed computation, making it more like Ethereum, though the company frequently compares itself to Facebook. It will feature a reputation and identity system, a platform for content creation and curation, and a design that enables it to scale.

Synereo has two currencies in its network: AMPs and REO. AMPs have a couple purposes, discussed below, while REO denominates reputation. AMPs exist today on the OMNI protocol as a result of the 2015 crowdsale, which raised just over $125,000.

Synereo has its own programming language Rholang, which Synereo has said would have prevented The DAO attack. The consensus protocol will be a proof-of-stake system, similar to Ethereum’s Casper [more discussion here and here], in which aspiring validators stake currency in order to participate. The team also worked with Ethereum when the Ethereum team was figuring out Ethereum’s Casper protocol and how to scale distributed computing. It shows–Synereo’s blockchain “Rchain” will shard and can scale quickly and cheaply.

What is the token being sold?

The token being sold is called an AMP. AMP is not the currency of reputation in the system–it  is a completely different currency that is used to pay computational/transaction fees on the network, participate in the consensus protocol, and amplify content.

  • Fees: every computation on Synereo’s Virtual Machine will require small fees from users, including content producers, smart contract authors, and viewers (a miniscule micropayment).
  • Staking: in order to participate in consensus, nodes need to deposit a stake.
  • Amplifying content: Spending amps on content will allow more people to see it. Presumably, anyone conducting outreach or advertising would want amps. Users can earn these amps by consuming content–then either use them or sell them to others.

Synereo also published a great post explaining the value of AMPs.

The AMP distribution is carefully controlled and transparently distributed, though it has been the subject of controversy. Overall, there are 1.7 billion AMPs currenly on the Omni protocol.2 350m are reserved for content creators and users on Synereo. 230m are reserved for bounties. 200m are reserved for founders, locked in a wallet and distributed in 40m chunks when certain milestones are met. 45.8m were distributed in the 2015 crowdsale, and 850m are reserved for future funding. 45 million are for sale in this crowdsale.

What are the terms?1

AMPs trade on the market today and will keep trading, making the crowdsale a tricky one to design and execute.

For the duration of the fundraising campaign, AMPs will be offered on BnkToTheFuture.comsynereo.com/sale and YUNBI at a fixed price, starting at 33000 satoshi per AMP. The price will progressively increase in three steps, and include a bonus phase of 24 hours.

  • The Bonus Phase: During the first 24 hours, AMPs will be offered for 33000 Satoshis per AMP [$.20 at $600 per BTC] and include an extra bonus of 1 million AMPs for the first 24 hours of the sale, distributed among all AMP buyers in proportion to their purchase amount during that period.
  • Stage One (September 19 – October 2): 33000 Satoshis per AMP
  • Stage Two (October 3 – October 9): 36500 Satoshis per AMP
  • Stage Three (October 10 – October 18): 40000 Satoshis per AMP

Additionally, there are bonuses based on how much you contribute, starting at an extra 3.33% for over 2 BTC and going up to 15% for over 200 BTC. The sale has a theoretical cap of approximately $7.7 million to $11 million in order to exhaust the 850m set aside for crowdsales, though this would be an incredible feat.3 

Note: bnktethefuture.com is also offering sharings in Synereo Ltd, a for-profit company building applications on top of Synereo, although US Citizens can’t participate.4 

Who is the team behind the project?

The team behind Synereo is stacked with technical talent. Dor Konforty has a background studying neuroscience that he leveraged in designing the way Synereo processes content. CTO Lucius Meredith is an accomplished mathematician and patent holder, and he worked with Ethereum on sharding. The rest of the team includes microeconomists, computer scientists, and an alumnus of IDF’s infamous intelligence outfit, Unit 8200 (like the US’s NSA).

Additional Resources

Footnotes

  1. Taken from the sale terms.
  2. Two billion AMPs exist on the Omni layer, but 319.6m AMPs were destroyed following the 2015 crowdsale.
  3. The number of BTC needed to reach 45m AMPs at the day 1 price at maximum bonuses is approximately 12,000 BTC. The number needed to reach it at the last day with no bonuses is approximately 18,000 BTC. The USD values above assume $610 per BTC.
  4. The terms and conditions state “The investment opportunity is not directed at persons located in the United States.”

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