Upcoming Sonic SNS decentralization sale

I just read through Sonic - Towards a Universal Standard for Decentralized Cryptocurrency Trading - Sonic Whitepaper, this is very helpful!

I have a question about the initial token allocation. Some things are pretty clear to me

  • team gets 14.5%
  • psychedelic gets 4% for acquisition
  • seed investors get 2%
  • 22% is sold in the decentralization sale

Now there are left

  • trading rewards 25%
  • LP rewards 7.5%
  • treasury (contributor grants, LP, programs) 16%
  • airdrop 1%
  • future funding 8%

Who will own those? Is this all going into the treasury controlled by the Sonic SNS? Does that essentially mean that the Sonic SNS will have a treasury of 25% + 7.5% + 16% + 1% + 8% = 57.5% of the supply, and that the further breakdown is mainly to show how you intend for those tokens to be used?

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The setting up is showing signs of great promise

You’re right.

A significant portion, precisely 57.5%, of the remaining tokens is allocated to the Treasury.

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I shared my thoughts in this Nuance article. Please don’t be disheartened by critique. The majority of us want to see Sonic do well. I honestly think you will get there, just maybe not this year.

[https://] nuance.xyz/2vxsx-fae/3241/sonic-is-great-but-its-not-an-sns-candidate-yet

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Thank you for the feedback.

We would like to clarify DFINITY’s reasoning for abstaining on the SNS-W proposal for Sonic.

Before delving into the details, we would like to reiterate the disclaimer mentioned in our voting standards: The SNS framework is a relatively new concept, and both the community and we possess limited experience in reviewing and voting on actual proposals. As we gather more experience over time, our perspectives and focal points may evolve.

Let’s now discuss our actual reasoning. Taking into account our published voting standards for SNS launch proposals, we would like to emphasize that the Sonic team has adhered to nearly all criteria, including forum syndication, white paper, open sourcing, and more. We view this as highly positive.

However, we could not fully follow the explanations regarding security reviews. As outlined in the published voting standards, the need for a security review depends on the nature of the decentralized application (dapp). For dapps where exploits could result in significant financial consequences, the industry standard demands a high level of scrutiny. Decentralized exchanges (DEXs), such as Sonic, fall into this category. Conversely, for dapps with a lower financial focus, a less stringent standard may be applicable.

Given that a security review is vital information for assessing the security and thus the maturity of a DEX, it would be logical to conduct a security review before launching an SNS. However, the Sonic team intends to perform a security review only after the SNS launch.

In conclusion, while the Sonic team’s adherence to most criteria is commendable, the lack of a pre-launch security review raises concerns about the DEX’s security.

The community supported the SNS-W proposal for Sonic. Since we generally prefer not to go against the community’s direction, as stated in our voting standards, we chose to abstain.

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So far, there have been a lot of rejections, and I’m relieved that the community has made the right decision.DEX with only 1% assignment to the community is the same as CEX.

Wait, what? Did you guys tell tell weeks ago you had reservations about the lack of audits? Why wait until the last minute? You know how much weight Dfinity votes holds and should definitely voiced this concern prior now.

I have 0 stake in Sonic but I am worried y’all may be pushing builders out of the ecosystem with these mind-blowing decisions. I am definitely feeling less enthusiastic about $ICP than I was yesterday.

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They choose to abstain how is that bad?

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These concerns have indeed been raised before:

  • The voting standards, encompassing remarks on security audits, were published on April 21st.
  • On May 3rd, specific concerns were raised about security audits and open sourcing the code for Sonic.
  • Furthermore, other community members in this forum thread expressed concerns regarding the absence of security audits before launch, which are especially crucial for a DEX.
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How much is it to get a security audit. Maybe this is why we need smaller rounds of funding for many of the other DEX’s going online as well.

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This is a valid point. Security audits are not inexpensive. While I’m not an expert on the subject, I’ve seen quotes of at least 20k or more. As a community, we should contemplate how to help DEXs overcome this challenge.

I’ve heard that other projects are considering bug bounties. This approach might be sufficient initially for dapps with a lesser financial focus.

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I think you should give up SNS in case of a failure due to a funding problem.I look forward to your hard-working vote.

Community allocation is one percent, team treasure is 99 percent

Reference

I am deeply saddened by this decision as I fear it may force skilled developers to leave IC. I am surprised to see barriers being imposed on DeFi platforms, which in turn will be a place of useless social media dapps which will not bring any value into our ecosystem

After reviewing Sonic’s current DAO proposal, I have concerns about the potential for concerted attacks from propaganda teams, leading to loss of confidence in SNS.

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Disappointingly, Dfinity once again exhibited their characteristic delay in announcing their decision regarding why they abstained from voting

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This is incorrect,
When we look into their proposed allocation they have allocated 25% for trading rewards and 7.5% to LP providers. Its a reward system which will helpful to bring more value to platform and beneficial for investors who put money in the platform (Ref: uniswap, pancakeswap, dydx).

Lets analyze some project approach towards airdrop

Previous SNS project, Open chat allocated 0% for airdrop, very smart plan and good for SNS investors.
Kinic is airdropping 4% against 150 NFT which they have used to raise1500 ICP(160 token/ICP) few months back. They are now proposing a 25% airdrop against 1.5M ICP (at a rate of 1 token/ICP). While this may lead to a lottery for all NFT participants if the hard cap is met, but it could potentially bad for SNS investors.

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Help me understand this please,

  1. People think Dfinity has to much power on network governance.
  2. Dfinity decides to abstain (let the community decide), and people are complaining that Dfinity doesn’t vote…

That said, i guess i doesn’t matter which direction Dfinity moves (vote yes, no or abstain) people will always find reasons to complain.

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Nobody is pushing builders away, there was a standard for them to meet they decided to not meet it and continue with the lunch how is that Dfinity fault?.

If they had done the audit they wone be in this kind of situation, all Dfinity is after is the safety of the network and users, they can always create another SNS proposal but let them do the Right things first

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Like!!, its really tiring when Dfinity tired to do something for our own safety, does not seem like people see it at all, why are they in a hurry to start the SNS lunch when they could actually do it after the have completed the security Audit.

Is ICP not supposed to be decentralized?, why are you looking up to Dfinity before you make your own decisions?, Sonic did not meet the Security Audit requirements, how is that Dfinity fault, all Dfinity is trying to do is protect you and me, yet we don’t appreciate them for it.

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