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