A short update on the SNS for Sonic

Very interesting thread, and in short it seems the traditional SNS approach is too complex, and too expensive for a small firm or startup with limited funds.

Question to those reading this thread, who has not used the SNS and raised funds for an Internet Computer project?

I do remember the folks at TAGGR had something built in-house, who else has gone this route, and what were the results? I think we would all like to know real stories from real teams.

I have not built a project on ICP (yet), raised funds, tried to get a grant, or tried to do an SNS sale. With that said, I’m guessing if a small project came along that:

  • Has consistent team of developers working on the project from the beginning.
  • Has a strong online presence across social media channels.
  • Has a strong and active community who was constantly engaged in the project and was engaged by team members.
  • Has vetted team members with a proven history through education, development, or work experience.
  • Has been open source from the start.
  • Wasn’t asking for more than 10%-20% from the community fund.
  • Wasn’t looking to manage user funds.

It probably won’t be THAT difficult to convince the community to approve the SNS without an audit. That’s strictly my opinion and a guess.

But, if you’re going to be handling user funds potentially in the multi-million dollar range, change the majority of the core development team a few months prior, only open source when the community pushes for it, are in the middle of changing the core architecture of your product, etc., then the community is probably going to be a little more demanding and critical when looking to approve an SNS. Obviously I can’t speak for everyone in this community, but that’s the feeling I get the more I hang around.

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I would like to emphasize that the necessity and depth of a security audit can significantly vary based on the type of dapp. For instance, in the case of a DEX, potential bugs can directly affect financial transactions, necessitating a thorough level of scrutiny. On the other hand, for example a dapp hosting a blog, which has lower financial risk, might not require such intense examination.

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This has aged well. The state of ICP and SNS has deteriorated so much.

  1. So many people asking for free money. Above 30% CF.

  2. So many projects with 0 revenue came via SNS and it’s happening right now.

  3. No Auditing for any of these dApps. Literally everyone is storing thousands of data and we are following “trust me bro” verse.

Sonic went through the door first and they got shot. But I’m so happy to see that they literally flipped every DEX and dApps on ICP.

I’m also sad that we didn’t let them go to SNS. Looking back at their proposal this was 100% better than many who raised funds here in the past and ongoing SNSs.

Hopefully they will get funding via Institutional investors and stay away from SNS as I don’t believe in it anymore

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100% factual. I am sure their next proposal will go through smoothly.

There’s a significant beef between Psychedelic and the community & DFINITY. Psychedelic took over 1 million in grants from the foundation and then after butting heads with DFINITY over roadmap priorities, left.

From what I’ve heard, the products they created and sold back to the ecosystem (Sonic, Plug) had acquisition contracts that would reward Psychedelic with significant vesting token stake after the SNS sale had completed. Asking for a large amount of funds from the CF to pay Psychedelic is where many have issues. DFINITY, and many of these other early whale investors feel slanted by Psychedelic and unfortunately this will make things difficult for Sonic to SNS if they decide to for a significant portion of the CF.

That being said, the main prior concern for Sonic, a DEX that’s main purpose directly involves handling funds, was a code audit.

Yeah, could do without the 4% going to the weird hippie guys, but it is what it is. The main concern wasn’t the ownership, more the technical debt incurred by running with a new codebase.

Personally I’m over that and supporting the projects as much as I can.

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So Psychedelic got 1M grants and then sold it to Sonic instead of giving it over to the community?

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It’s a win win for them. They got a fresh new 23 million dollars funding from VCs. No wonder they jetted out of ICP. Anyways ICP need a DEX/Swap with a good team behind. The current team has done well so far. I doubt the community could with such an unfinished product.