Today we clicked a button and sent 21505579 AMPs to eternal damnation.
These AMPs were leftovers from our 2016 funding campaign, which raised an aggregated amount of $4.7M. As we promised last fall, these are now permanently taken out of circulation.
As Synereo is committed to utter and complete transparency in all its dealings, all remaining AMPs held by Synereo can be tracked here.
Why does Synereo need to keep all of these AMPs, anyway?
Synereo is designed as a long term project, with a funding model similar to that of startups planning to experience sustainable growth rather than flame out quickly – as many of the projects in the crypto-space have. With that in mind, we have designed a multi-phase funding model, as well as allocated funds to wallets – closely monitored by our community and under the control of an external trustee – meant to slowly be distributed in a way that benefits the entire Synereo powered Attention Economy network and the participants in it.
Think of the unreleased coins as simply not having been “mined” yet.
Coins waiting for more people to join the network, for more functionality to be spun up on the Attention Economy market, and for content creators to begin publishing. That these coins have already been issued does not mean they will come into play sooner than those of many other projects with large pools of outstanding tokens that aren’t placed in immediate view, like AMPs are.
What will the remaining AMPs be used for?
The main purpose of AMPs in Synereo’s holdings is the creation of the networks effects necessary to bootstrap a functioning Attention Economy.
An attention-economic model can only perform in a healthy and sustainable manner if the number of participants in the attention market crosses a critical figure. Before this point is met, we will incentivise users to join the network, create content and curate it, and reward content creators before the crowds are large enough to compensate them for their work. As the network grows and market dynamics arise, participation will start to incentivise itself and render the need for an external AMP influx unnecessary.
Additionally, some of the existing AMPs will be used to set bounties for tasks and projects that support Synereo’s operations. If you’re in bounty hunting mood, feel free to join our slack. Bounty projects will be advertised from time to time on our #community and #bounties channels.
How are AMPs allocated?
AMPs are bound in multi-sig wallets, with their use having to be authorized by an external trustee. Should any anomaly in their use surface, our diligent community will quickly be aware of it.
Each single AMP in Synereo’s possession has a purpose.
Each and every AMP going out is meant to contribute to the network effect of the Synereo ecosystem and benefit all participants in it.
Will Synereo burn more AMPs if all goals are met with AMP leftovers?
Yes. Synereo’s end-game does not leave it in a position of a centralized AMP bank.
What happens to a founder’s AMPs if he leaves?
AMPs are contractually protected through a legal agreement governing them, similar to shares in the company. Founders can only sell AMPs in agreement with other founders, even if they leave. No one founder can sell all of his coins, transfer them to a 3rd party, or otherwise abuse his stake.
AMPs from the Founder Wallet have not yet been used. All Founder AMPs can be tracked here.
We appreciate your attention,
— The Synereo Team