Hello everyone - this is not a FUD post, however, it does intend to open an important dialogue for everyone that doesn't actively read the subreddit.
In a nutshell, 7m Sumos are unlocked in 2020 by the devs, meaning that they will control 25% of all coins.
edit: I've gotten a couple replies saying "email the PR team" or "take it to telegram and away from here" -- aka calls for silence. What's wrong with you guys? Sumo is about transparency. I think we were above blind pumping.
Edit 2: I'd like a rational explanation from the devs for why the vesting schedule is 600k, 900k, 7.2 million. That's 1.5x from year 1-2, and 8x from 2-3. I like the vesting. But it should be a decreasing scale, not increasing. See edit 3 for why.
Edit 3: something else about premines - when done up front, each coin sold by the devs to fund development is sold at a low price per coin. This is the opposite. These coins will be sold at a high price per coin when development is less necessary. Can anyone explain why that method was selected?
I think we need to have a conversion guys.
I'm glad & relieved the team has started an open dialogue about the coins being released this summer (see here:
https://medium.com/sumokoin/spring-plan-2018-9d0218c8db40). That's awesome. But I'm more concerned about the 7,200,000 SUMOs that will be released to the team in July 2020. Assuming a price per SUMO in 2020 to be $100/sumo, that's $720,000,000 - almost a billion dollars.
Did you know that? The release schedule of coins to the team is as follows:
July 2018: 600,000 coins
July 2019: 900,000 coins
July 2020: 7,200,000 coins
Community Concern
When those 7,200,000 coins unleash, the core team will hold 25% of all coins in circulation on that date. The expected total number of coins as of blockheight 416581 (the release trigger, estimated July 2020) is approximately ~28.9 million coins. I'll post the code below to calculate. This is the opposite of decentralization and extremely concerning to me. In the best case scenario, SUMO acts like a bank and sells tokens to the public. At the worst, they pocket the billion dollars. I trust the devs but avarice is unpredictable and we have no way of knowing who will be part of the team in 2020.
Re Sumo's approach to pre-mine: When I first heard 10%, I thought they got 10% up front or something to speed the coin up. That's wrong of course. It's 10% of the total coins when all is said and done and they got none up front. That's cool. And 10% of total coins is a fair premine. Total coins = 88,888,888, total to SUMO = 8,888,888.
I didn't realize the 88,888,888 coins would be mined 20 years from genesis aka in 2037. So that "10% of Final" is more accurately described as "25% Pre-Mine 3 years from launch."
This is not the point of premines. Premines are designed to be used up-front to spur development, pay devs, etc. Instead, the community is spurring development and offering to help raise community funds to get onto exchanges. I like the premine with vesting, but this is the wrong execution. We are suffering slow take-off, doing the work that is supposed to be done by the premine that will release in 2020
Fast forward. At this point, I incorrectly thought that they would receive those ~9 million over the life of the coin. Turns out no. While the 10% is calculated on coins mined by 2037, they get those coins 3 years into SUMO's launch.
Pre-Mine Analysis
The point of a premine is to accelerate development. It is not and has never been to line the pockets of developers. And I'm not saying that is what SUMO intends at all -- in fact, I suspect they'd do the opposite. But to my point, a premine as late as 2020, when SUMO coin is either clearly a success or failure, is pointless. At that stage it does just reward the developers. there's no way in hell 700 million dollars of funding are needed at that stage. Can you even imagine what injecting 7 million SUMOs into the market would do? Mass inflationary panic.
In short, I'm glad the devs posted an update because it is the perfect trigger to open a discussion about SUMO's future. And we need to have this convo NOW, while the community is small and nimble, the devs are accessible, and we are NOT on other exchanges. Frankly it just looks bad. And with bigger exposure, it'll get torn apart as a scam coin / fraud.
TLDR
We deserve to be informed what is going to happen with those 7 million coins released in 2020, in a secure decentralized manner, one where SUMO is not suddenly a bank holding nearly a billion dollars in assets, way ahead of time.
Wallet 1:
Address: SumonzyoAnidrp3B6WhbntJLRJsPRD7LiSd2e5HjRV9h6qWj6ia2ihgRXn8ZwmwfQgZ1mL9EkcsBcEL
L4h84v1yhMF9opLgjM1j Viewkey: e6e58faa93dba88315f67f53cba9413ebf0f423badb62696aa28ce6c0db2df00 Locked amount: 600,000 -- Until height#: 153600 (July 2018)
Wallet 2:
Address: SumonzyopdC7egt7MWhJcNfR3ktmfWqPNcu3Sb9aejAZ48W4a1ZW95vjXyQDuLLg2gSN8GkP3474R2w
Rr1h9ggy2BUHhbrLJJ51 Viewkey: 25ba5fa5abb5f99962754001ff631e01684f9a59871d798a20a1658ba31c950c Locked amount: 900,000 -- Until height#: 285091 (July 2019)
Wallet 3:
Address: SumonzyoK3hCffFQ8djaKZhokmPZsiuEaeLfEtnJfTXVQV3ce3mNHKHQ5kYLPVfNMsS7dhmyHihvhfK
U6xXCrmaL4RVDo8eR3gB Viewkey: 1a8c55e52f7f80da3dfd2eadf71a74afb3242c20168ad888b57f483dbc38b00e Locked amount: 1,100,000 -- Until height#: 416581 (July 2020)
Dev Wallet:
Address: Sumoo4aMxWbLgqVazxbiNNFSDyhBEonRf99KmceTEnYUCWUQR2gXF1617P8xQxaMcGi5BAU7juzThST
boV6e1gitSjkfjq2zgY2 Viewkey: e12497b6dc6c2cbaf7b311e54b93e4e5f6367acda69a49f9ef20c51d9c689f00 Locked amount: 6,100,000 -- Until height#: 416581 (July 2020)
