Token history & details
SOMA originally issued a token called SCT in its initial coin offering (ICO). SCT will be swapped out for SOM in February or March 2019. SOM replaces SCT 1:1; SCT holders will receive an additional amount of SOM.
Why two tokens (SCT and SOM)?
Ethereum is the easiest and most common blockchain infrastructure for creating new tokens and issuing ICOs. SOMA created SCT as an ERC-20 (an Ethereum standard protocol) token in the hopes that Ethereum would subsequently improve throughput and other technical issues. By the end of 2018, after a thorough assessment of Ethereum and competing platforms, we knew we needed a better alternative. So, we decided on a hybrid model, using Stellar for the public-facing (permissionless) aspects, and Hyperledger Fabric for the private (permissioned) aspects of our infrastructure.
Because Stellar/Hyperledger operate on an entirely different set of protocols from Ethereum, we couldn’t just take the existing asset (SCT tokens built on Ethereum) and ‘convert’ them to Stellar/Hyperledger Fabric. SOMA needed to issue a new token, which we decided to call SOM.
The initial coin offering (ICO) of SCT
SOMA’s ICO began on September 26, 2017 and ended on November 15, 2017. Of our 60M SCT hardcap, almost 85% of the total supply was allocated to the ICO (see below for information related to the remaining 15%). The team estimated that a minimum of 450,000 SCT needed to be sold to be able to fund the project. We ended up selling around 4M tokens during the ICO, successfully funding further development of the platform. The remainder of the SCT that were for sale during the ICO were burned to preserve value for SCT holders.
Tokens held by SOMA
As part of the ICO, the SOMA team reserved 10.4M tokens as a strategic resource from which to draw. Purposes include, but are not limited to: offering incentives to team members; compensating service providers for such work as marketing, design, legal, etc; providing over-the-counter (OTC) bulk sales to institutional investors; and as an incentive to cement important partnerships.
All such disbursements come with lockup agreements.
At the beginning of 2019, some 8.3M tokens are in circulation with approximately 6.1M remaining in SOMA’s reserve.
By the end of 2020, all 14.4M tokens in existence will be in circulation.