SOMA Community Token: SCT

SOMA has its own native digital asset. It’s called SOMA Community Token, abbreviated SCT, cashtag $SCT on exchanges. 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, SCT provides a transactional vehicle within SOMA, optional for buyers and sellers, which brings unique benefits.

Benefits of using SCT in SOMA

Fees close to zero
When buyers and sellers opt to transact in SCT, they can do so with negligible transaction costs. After the deal is done, sellers and resellers can opt to keep the SCT 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 SCT. 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 SCT.

SCT Tokeneconomics

Tokeneconomics: where we detail how many SCT, how they were issued, how they are apportioned, and other details.

The initial coin offering (ICO)

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.

SCT held in reserve

As part of the ICO, the team reserved 10.4M SCT for the following purposes.

2,000,000 SCT were reserved for marketing. We draw from this pool to execute our go-to-market and brand awareness strategies and brand ambassador programs, and for generally building traction around SOMA as a project.

2,000,000 SCT were reserved for legal costs. Given our adherence to all regulations that impinge upon SOMA’s business operations, we will draw on this war chest for legal compliance costs.

5,100,000 tokens are reserved for institutional capital and key person incentivization. This will include OTC deals* with VC firms and/or crypto funds, as well as compensation for key persons whose incentives are aligned with the goals of the project. Any bonus programs with key persons and executives will include lock-up agreements.

1,300,000 tokens are reserved for liquidity to facilitate trading and increase volume whenever necessary.

The release of these tokens will happen in yearly phases, with an estimated 8,500,000 tokens being distributed into the circulation during years 2018–19 and rest of the tokens during 2020.

Currently, as of autumn 2018, some 7.2M SCT are in circulation with approximately 7.2M in reserve.

By the end of 2020, all 14M+ SCT in existence (the unburned) will be in circulation.

Sold in ICO = 4M

Reserved for legal = 2M
Reserved for marketing = 2M
Reserved for VCs and key persons = 5.1M
Reserved for liquidity = 1.3M

Total unburned SCT supply = 14.4M

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