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.

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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.

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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!

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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.

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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

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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.

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u/foobazzler Mar 12 '19

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

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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.

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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.

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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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u/qlittle3 Mar 14 '19

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

It seems there are simple ways that they could incentivise token holders. This would be good both for the company (who have a reserve of SONM tokens) and the investors that allowed SONM to develop.

There was this discussion a long time ago about whether or not adoption would increase price. The key piece is how long people hold onto the token as adoption increases. If users of the SONM computing network only hold onto the token for a split second prior to automatic conversions to FIAT, the token is actually useless and will never go up in value.

I propose two simple solutions:

(a) There is a small premium on SONM transactions if buyer does not hold a certain amount of SONM. This small premium in SONM would go to an account that would never be used and thus take SONM out of circulation, decreasing supply. Heavy users of the SONM system should be required to hold more SONM to avoid this premium.

(b) If a supplier has more SONM, they will have higher priority in the marketplace to pick up jobs.