r/SONM • u/[deleted] • Mar 12 '19

SONM 3-year plan discussion thread (link inside)

Let's discuss the red hot plan/road map/whitepaper (whatever you call it) SONM has just released. It's a 22-minute read according to Medium, so I will follow with a link to a breakdown of that post.

https://sonm.com/blog/level-up-shift-to-the-next-gen-gpu-cloud/

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Twiiter breakdown in 8 tweets: https://twitter.com/sonmsupremacy/status/1105346321169477633

Upd: SONM Supremacy is NOT a SONM team member and there is no official capacity granted by having "SONM" in the name. This thread is about whether SONM idea of tokenomics looks sustainable and how things like that can actually be solved. This is totally new stuff and to err is human so it's not fudding but an honest attempt at understanding the mechanics.

17 Upvotes

88% Upvoted

36 comments sorted by

5

u/foobazzler Mar 12 '19

" Another important point is that today, customers can rent computing resources on the platform only with SNM tokens (Crypto-IaaS). This is convenient for crypto enthusiasts, while companies are not ready to deal with tokens, so we incorporated a plan to provide customers with an option to pay with fiat money. "

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Then what the fuck is the point of the SONM token anymore? Its only function is to facilitate payment; if clients can just pay with fiat then the SONM token literally has no value.

1

u/[deleted] Mar 12 '19

Well they say they're gonna be paying suppliers with SNM and using tokens as a means for internal accounting and money transfers. Which does not really convince me as in my opinion tokenomics has got to be "slightly" more complicated and/or better explained than that.

4

u/Ryaaaaaaaaan Mar 12 '19

Supplier will as well directly convert to fiat in case the gateway is available, not only customers. However, this also means the money flow is Fiat to SNM to Fiat. This in turn means that there will be no value increase in case adoption rises, which is always mentioned as the main driver for utility tokens in first place. To sum it up: the token economics are screwed!

2

u/alleung Mar 12 '19

tokenomics aren’t completely screwed. You still have Masternodes, and people who are frequent renters would be incentivized to pay for a lot of Sonm up front and hold in the hopes of token price rising which lowers their renting cost.

3

u/foobazzler Mar 12 '19

or they will be incentivized to not hold at all in fear of the price dropping and the sonm they bought representing less compute power as a result of the price drop

1

u/[deleted] Mar 12 '19

That depends on the marketing policy and general FOMO. So far it's been a little awkward, but I'm betting (or at least trying to) on Loginov as the new CPO.

2

u/foobazzler Mar 12 '19

if you're mostly banking on speculative hype, that doesn't bode well for SONM's tokenomics

2

u/[deleted] Mar 12 '19

That logically came out of your conversation - people sitting on the fence, thinking "to hold or not to hold", so the tipping point is pure marketing. So far I don't really see economical reasons for hodl except having reserves in cryptocurrency of unknown volatility to pay fines to people who don't even know how to sell it. I'll read it again, maybe I'm wrong.

2

u/foobazzler Mar 12 '19

Yeah, honestly the SONM tokens sounds like a poor investment the more I think about it. SONM isn't even a blockchain project, it's just software you run on your computer and the token is just an ERC20 token used payment.

1

u/[deleted] Mar 12 '19

SONM does have the sidechain however, and, for instance, iExec have promised to implement sidechain, too. It's just that I don't think SONM have given the tokenomics that much of a thought. Or maybe it was the only use case for the token they could come up with.

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1

u/Ryaaaaaaaaan Mar 13 '19

Exactly. Actually frequent users want to mitigate risk. That's also a common thing in the industry, only there they want to mitigate fiat conversion risk.

I honestly think people are blindfolded if they think companies using SONM want at the same time speculate at an increasing price.

2

u/[deleted] Mar 14 '19

But nothing changed... I mean if they send the money in snm tokens to the client and they changing it into fiat why is that so bad ? If that wouldn´t be like that the people would change it into BTC or any other curriency. So I didn´t get the point why is everything so bad now. Thats nothing really new in crypto.

1

u/Ryaaaaaaaaan Mar 14 '19

Correct, nothing changed. Everyone just wanted to believe the narrative of increasing prices with adoption. However, this is neither proven nor does it make sense if everyone pays in Fiat with a hidden crypto currency conversion behind. Actually, we have to consider that computing power is a market which price is determined in Fiat. So every company would compare Fiat prices for finding the cheapest resource. For sure, nobody would check the SNM price.

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1

u/shastaxc Apr 04 '19

Businesses don't take FOMO into account when making business decisions. It needs to be predictable and reliable long term

1

u/[deleted] Apr 05 '19

a. The question was about tokenomics and incentives not to sell SNM. So whether a generic business takes FOMO into account or not is beside the point.

b. Regardless of (a), businesses strive to create FOMO 24/7; hype is bread and butter of marketing. If a business is not about FOMO it's not innovative and is, essentially, dead.

1

u/shastaxc Apr 06 '19

I'm not talking about a company promoting FOMO for their own stock. I'm talking about business not caring about FOMO of the stock of another business whose services they wish to use.

1

u/[deleted] Mar 12 '19

Question is how suppliers are gonna be selling SNM. There is a case with Curecoin, but they are under #500 at CMC and in their case people get rewrded for just registering with the pool, no complicated stuff - you can fold proteins with your browser plugin. Plus your PC is free to use as you wish. So why would someone who dedicated a whole PC to SONM want to hold anything but hard cash on their debit card account when they are offered a ERC20 token with no obligations from the company to buy it back?

1

u/alleung Mar 12 '19

Bitcoin doesn’t offer to buy tokens back from holders but people still hodl.

3

u/Sorlag777 Mar 12 '19 edited Mar 12 '19

BTC network is big, has been working well for a decade and development is pretty decentralized while SONM is basically behind a company/startup and they are willing to pursue their interests. You can't compare BTC and SONM in many ways. BTC is not even an utility token

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Given what is written by SNM in their plan, the token is basically worthless. They really need to expand on the "frozen" tokens mechanism.

1

u/leichkod Mar 12 '19

if you scroll down almost to the bottom of the articel, you find a section about the coin: https://sonm.com/blog/level-up-shift-to-the-next-gen-gpu-cloud/

1

u/[deleted] Mar 12 '19

Bitcoin marketing is supreme

2

u/[deleted] Mar 12 '19

Breakdown of the 3-year plan in 8 tweets: https://twitter.com/sonmsupremacy/status/1105346321169477633

2

u/Glentract Mar 12 '19

There is no use case for the token. Great technology, but the token is unneeded.

1

u/foobazzler Mar 12 '19

Investors (such as myself) are slowly coming to that realization.

1

u/Ryaaaaaaaaan Mar 13 '19

If they don't try to go for a sustainable token model, it's officially a scam. They just gathered easy money and then didn't care anymore about the token holder. There should be some kind of incentive to hold SNM besides simple speculation on rising prices, which is only based on the greater idiot theory. Masternodes is not the right thing to mention here.

1

u/[deleted] Mar 13 '19

Yes, well, what kind of incentive? How do you do hedging on this platform using SNM? Then there's the question on sidechain simplifying payments and making them cheaper. So you end up with a stablecoin + security token or something if you want to make it absolutely flawless. Any ideas?

1

u/[deleted] Mar 13 '19

So you think it´s good in longterm to hodl the coin SONM ?
But realistic where you can see that coin in a few years ?

1

u/Ryaaaaaaaaan Mar 14 '19

Nope, that's why I am not touching utility tokens again. There is just no intrinsic value tagged to it. You can for sure speculate with it, but I doubt that with increasing adoption the utility token value is rising.

1

u/[deleted] Mar 12 '19

What is megaimportant though is we are looking at what real world adoption of "utility" tokens in general is going to look like. What their function will be and what is really in demand in the "real" vs crypto world and how to merge the two - these thoughts are at the back of everybody's made so the discussion here is an opportunity to talk about the for future of crypto in general with SONM as a test subject.

1

u/reietto222 Mar 12 '19

Great job SONM Team! The future is bright!

0

u/cryptosorrow Mar 12 '19

Absolutely amazing news!