The Internet Computer’s SNS-1 DAO: The Most Important Facts to Know
The SNS-1 launch came with its fair share of bugs and controversy, but overall, it is a resounding success and a huge step forward for decentralized projects running on the Internet Computer! Before I get into the details, there is one essential thing that you have to know if you have received an SNS-1 token.
There is currently no way to increase the dissolve time!
What does this mean? Basically, it means that if you start dissolving your neuron and it gets below 30 days, you won’t be able to increase the dissolve to regain your voting power. So don’t dissolve your SNS-1 tokens to less than 30 days unless you are dead set on selling them instead of participating in the DAO.
Okay, with that out of the way, let’s dive into the tokenomics, launch details, mess-ups, controversies, and successes of the SNS-1 token.
The SNS-1 Initial Tokenomics
There are only 10,000 SNS-1 tokens, and there is 0% inflation. That means there will never be more tokens unless the existing DAO members vote to change the tokenomics. How was the token initially distributed?
· 3860 – Airdrops
· 3141 – Decentralization Sale
· 2937 – SNS-1 Treasury
· 50 – Token Designer (Ludo)
· 12 – SNS Dev Team
The big takeaway is the SNS-1 already has a nice treasury to work with in order to accomplish whatever goals it sets out. These tokens could be used to pay developers, sold to add ICP to the treasury, or anything else the DAO can think of to do with it.
This Is What Test Launches Are For
Fine, the launch didn’t go as smoothly as some would have hoped. There were bots that purchased 1,377 tokens, creating concerns regarding the actual decentralization of the token. Some people were charged twice and are awaiting refunds. Others received their tokens with exceptionally long delay times. But DFINITY is helping work out the bugs, and it’s better for this to happen during a test launch than when the first project holds a decentralization sale.
In the meantime, we can be thankful that the Foundation has been so transparent with everything from the token distribution to the errors that occurred in the launch.
Should I Purchase SNS-1 Tokens on a DEX?
Obviously, I can’t give you any sort of advice on what to buy or not to buy. I’m not a financial advisor, and nothing I write is financial advice. I want to remind you that there is currently no way to lock an SNS-1 token. Therefore, the tokens you buy on a DEX will have no voting power until this is resolved, and there is absolutely no timeframe for that. It will be up to the DAO to determine when and if SNS-1 tokens purchased from a DEX will be able to be locked. Even then, the community will also have to develop the dApp themselves in order to make this possible.
DFINITY has made it clear that they will not be developing the SNS-1 dApp. This is why they legally cannot endorse the purchasing of SNS-1 tokens, as they clearly stated in a recent tweet.
So, once again, while this may not be the answer you want to hear: you will have to do your own research to determine whether to buy or sell SNS-1 tokens on a DEX.
So What Happens Now?
That’s up to the holders of the SNS-1 token (at least those who don’t dissolve it below 30 days). The SNS-1 may have been a test, but it is still a fully functional DAO. And the DFINITY Foundation has been very clear that they intend to be completely hands-off. This is the community’s project. So if you got your hands on an SNS-1 token (or more than one) and have it locked for more than 30 days, it’s up to you to determine the future of this organization!
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