SOMA Community Token: SCT

SOMA has its own native digital asset. It’s called SOMA Token, abbreviated SOM. It’s not a Bitcoin competitor. It’s not even a true ‘cryptocurrency’ in the most common understanding of the term. Utility token best describes it, as defined by the State of Wyoming, USA.

Yes, Wyoming: land of cowboys, grizzly bears, and coyotes. The statee has been extremely proactive in separating the world of cryptocurrency into different functional groups. Here’s their definition of ‘utility token’:

“The purpose of the token is for a consumptive purpose, which shall only be exchangeable for, or provided for the receipt of, goods, services or content, including rights of access to goods, services or content.”

In essence, SOM provides a transactional vehicle within SOMA, optional for buyers and sellers, which brings unique benefits.

Read more about SOM in the SOMA whitepaper.

Benefits of using SOMA's currency

Fees close to zero
When buyers and sellers opt to transact in SOM, they can do so with negligible transaction costs. After the deal is done, sellers and resellers can opt to keep the SOM in their wallet, use it in other transactions, exchange it for fiat (traditional government-issued currency), or exchange it for other digital currencies such as Bitcoin.
Cross-border transactions
Wherever you are in the world and no matter your national currency, you can buy, sell, resell, and reward with SOM. We remove the friction from transnational commerce, bypassing expensive exchange rates and other bureaucratic hindrances.
Rewards for value-add actions
In the SOMA rewarding system, members can provide value-add services such as reselling/affiliate marketing and escrow. Corporate and enterprise clients can build global salesforces with nearly zero overhead by placing goods for resale and setting a desired commission; the commission would be paid in SOM.

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.

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