Upcoming OpenChat SNS decentralization sale

So will the price of chat token be different among the community fund and decentralization sell buyers ??? Because I don’t understand that 0.2 to 0.4 icp price u put in your whitepaper

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“Adoption of the proposal will enable and mandate DFINITY to install the required SNS canisters on the SNS subnet.” Is this a necessary step? In other words, is Dfinity a necessary intermediary in the process of installing SNS canisters, or could OpenChat have done it independently? Do all decentralization sales have to go through a centralized intermediary?
Secondly, how can an NNS vote ‘mandate’ or force Dfinity to do anything? The NNS does not control Dfinity, does it? So, it is just that you have used the term ‘mandate’ when it actually a request which we know Dfinity will accede to?

It would be great if we could run a decentralization sale with 2 or more tiers as you suggest but this is not currently supported by the SNS and is out of our control.

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Hey! I am one of the OpenChat devs.

The tiered setup you suggest would be great if we could do it! But unfortunately we can’t…

This is the first version of the SNS decentralisation sale (excluding the SNS1 test sale), and currently the options are very minimal.

The SNS sale options will grow and mature over time, but we can’t sit around and wait for it to be perfect before we launch, so we are going to launch and use the configuration options that are available to us right now.

Every configuration option we have selected can be disputed and there are pros and cons to raising or lowering each one.

Realistically, we think it is likely there may be 1 or 2 whales who decide to invest the maximum, and then the vast majority of people will invest smaller amounts. If we set the maximum amount a person can invest too low, it makes it much more unlikely that we hit our target of 1M ICP. We feel that the maximum of 100k reaches a good balance.

Additionally, by setting the minimum number of participants to 500, we ensure that the service is suitably decentralised. If the sale is snapped up by only a handful of whales, the sale will be invalidated and everyone will get refunded.

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No, everyone gets the same price, but this can vary depending on how much we end up raising.

Hopefully this post answers your questions:

Great development. We hope the best for OpenChat and the IC Blockchain.

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Question regarding the OpenChat investor/team allocations.

Is there a locked vesting schedule? How much of the tokens will become accessible (sellable vs. locked, dissolving) after the launch.

Also curious on behalf of my own interests of launching an SNS project in the future!

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Thanks. It answers one question, which is that Dfinity has decided not to allow anybody else to install SNS canisters. The second one remains open: how does one ‘mandate’ Dfinity to do anything through an NNS vote?
This seems one more instance of what happens in governance proposals. We hope and pray Dfinity will agree to do what the community has proposed. It usually does, but only because no vote can get through if Dfinity is opposed. I know it can happen theoretically, but I don’t recall any actual instance where Dfinity voted against a proposal and it passed.
That is not actually ‘liquid democracy’ or any kind of democracy. And then people get upset when the crypto community calls the IC centralised…

So set it to 400icp max per anchor.
This is something like buying 10,000 chat tokens (approximately 0.002% of the 500million total initial supply).
100k icp can buy 2.5million chat tokens which about 0.5% of the 500 million initial supply.
This is not decentralization.
This is allowed to happen only when the openchat team knows that big centralized exchanges are about to buy the chat token.
It is a prearranged sale with no other option left to the team by the cexes.

Shortly, the end to end process of launching an SNS will be handled by a single NNS proposal.

But that functionality isn’t ready yet so the path to launch the OpenChat SNS is slightly different and has to involve a manual call being made by a Dfinity controlled principal to the SNS-Wasm canister.

Dfinity made the decision to give the SNS launch the green light now rather than wait for the ‘single proposal’ version to be complete since that would mean delaying again.

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The neuron configuration is defined here - open-chat/sns.yml at master · open-ic/open-chat · GitHub

Each of the 3 devs will receive 5% of the total CHAT supply which will be locked into 5 neurons which vest over 4 years.

They each have a dissolve delay of 1 month but have vesting periods of 0, 1, 2, 3, and 4 years. Having a vesting period on a neuron is a new feature on neurons. A neuron which hasn’t vested yet can be used to vote but cannot be modified in any way.

By doing it this way we minimise the developer neurons’ voting power (1 month is the minimum required to vote in OpenChat), while also giving confidence to the community that the devs are sticking around for the long term.

Each dev also has an additional tiny neuron (4 CHAT, which is the minimum stake allowed) with 12 month dissolve delay which is the one they’ll use for voting.

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If we set the max to 400 ICP we would have almost no chance of raising enough funds.

We have made no prearranged deals with anyone and we know of no individuals or groups who will be investing the maximum amount.

We haven’t spoken to any centralised exchanges either. CHAT can’t even be listed on centralised exchanges yet because ‘rosetta’ (which is how exchanges communicate with ledgers) hasn’t been implemented for the SNS ledger.

So I am fairly certain that no centralised exchanges will want to buy up any CHAT.

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May I ask if this ‘rosetta’ is part of the roadmap? Is there any time plan? Because it is a kind of belief for many investors that CHAT will be able to go to Binance or Coinbase.

Hi everyone.
First of all, congrats to the Open Chat team and my best wishes to your upcoming SNS sale.
I think I understand the basic configurations and requirements of the sale.
I would like to also have a question if you don’t mind:
How Open Chat will compete with “free-of-charge” apps such as iMessage, messenger, etc. in the market, especially in terms of financial sustainability and mass adoption? And what is the business case of the CHAT token (beside the governance thing)? Many thanks.

Yes it is. Eventually SNS tokens will be tradable on centralised exchanges.

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OpenChat is also free of charge!

Users can pay for additional benefits but the app is still fully functional without paying anything.

Many chat apps use a similar model, for example Telegram is free to use, but ‘Telegram Premium’ is $5 per month.

So what you say is that there is a disbelief about the cap target.
On the other hand whitepaper seems pretty sure of possible mitigation 51% and how to avoid it.

What will the raised funds be used for and how?

The funds raised will be used to cover all costs incurred by OpenChat.

Funds can only be moved from the treasury by proposal.

We have a canister called the ‘CyclesDispenser’ which is in charge of topping up all of our top level canisters, and whenever it runs low on cycles it burns ICP from an account it controls into cycles. So every so often we will need to make a proposal to send ICP to its ledger account.

The salaries of the dev team will also need to be paid out of the treasury by proposal.

Currently there are only 3 of us in the team but having a large amount of funds in the treasury opens up the opportunity to grow the team and give good bounties out to contributors.

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