Welcome to the SuperNET!
- ICO summary
- TOKEN > SuperNET/UNITY
- Dividend announcement
- Funding request: SuperNET online wallet
- Agreements between SuperNET and CoinEvolve terminated
- Development update
- Moving to SuperNET forum
- SuperNET related links
- Attention coin representatives
SuperNET was announced on August 30th.
jl777 made the announcement Aug. 30, just 7 days after announcing the ‘Nxt Inside’ initiative on the Nxt forum. The idea for Nxt Inside is to offer Nxt’s 2.0 features to other coins, allowing them to benefit from the GUI, Asset Exchange and other aspects of Nxt’s ecosystem, and extending the adoption of NXT in the process – a mutually beneficial arrangement. BTCD, the anon coin for which James is now core developer, would be the first to have these features (read more).
The SuperNET ICO began on Saturday 6 September, 14:00 GMT. The early hours of the ICO saw a flurry of activity. Those who knew James and his work well bought in almost immediately to take advantage of the 15 percent ‘early bird’ discount, plus the 5 percent discount for NXT/BTCD purchases. Some 2,000 BTC were raised in two hours.
For others, due diligence was hard. Many had not encountered jl777 or his work before, and were similarly new to NXT and the Asset Exchange. Although a large amount of material had been published in the SuperNET thread on bitcointalk.org and the SuperNET pdf provided a good overview, there were still a great deal of questions and uncertainty that needed answering.
Total funds raised
The ICO continued for a period of 16 days. James had stipulated that it would last for a minimum of two weeks and a maximum of four. If the daily volume dropped below 3 percent of the total after 14 days, the ICO would end two days later. In the event, the huge interest in the early stages meant that low volumes (by comparison) brought the ICO to an end at the earliest point possible.
The ICO resulted in a total number of 571,243.1402 TOKEN being sold, with an equivalent value of 5737.1589 BTC at the time the process ended. The breakdown of currencies used to purchase TOKEN – and therefore the balances ‘backing’ SuperNET assets – was as follows:
BTer: 303,370.1402 TOKEN.
NXT AE: 267,873 TOKEN
This makes a total of:
Additionally, 5,403 VIA and 435,658.49 VRC were paid.
At the exchange rate at the end of the ICO, this meant the following BTC equivalent was raised:
BTCD: 0.01252290 BTC * 37,559.38107027 = 470.3524 BTC equivalent
NXT: 0.00007890 BTC * 47,088,699.1745 = 3,715.3 BTC equivalent
CNY: ¥713,706.73861822 / ¥2,486 per BTC = 287.09 BTC equivalent
VRC: 0.00014073 BTC * 435,658.49 = 61.31 BTC equivalent
VIA rate 0.00029967 BTC * 5,403 = 1.6191 BTC equivalent
Total BTC equivalent = 5,737.1589
It’s worth noting the support given to SuperNET by the Nxt Community, who gave 4.7 percent of the currency’s total market cap to the project. Similarly, BTCD – a far smaller coin by market cap – gave 3.1 percent by market cap. You can read more about the fundraising outcome here.
SuperNET is broadly analogous to a closed-ended mutual fund consisting of the cryptocurrency balances, plus a series of revenue-generating services. The coin balances invested by participants at the ICO will give it its ‘floor’ value. But in addition to this, James has added the NXT assets representing the SuperNET services for free. Thus the initial value-per-share will be significantly higher than that paid by participants – in theory, representing an immediate profit. (In practice, SuperNET/UNITY may trade at any value determined by the market and parties’ desire to buy and sell.)
The assets added by James to SuperNET include 24.15 percent (241,485 each) out of a total of 1,000,000) of the three key services:
These core assets own proportions of other asset-based services, which will therefore also be indirectly held by SuperNET.
InstantDEX owns 30 percent of NXTventure. Tradebots owns 18.5 percent of jl777hodl. NXTprivacy owns 30 percent of cryptocard and 60 percent of Privatebet. With 24.15 percent of each of the above three core assets, the following percentage of each asset will be directly or indirectly owned by SuperNET:
InstantDEX 24.15 percent
Tradebots (NXTcoinsco) 24.15 percent
NXTprivacy 24.15 percent
Privatebet 14.49 percent
cryptocard 7.245 percent
NXTventure 7.245 percent
jl777hodl 4.46 percent
Using the asset prices (NXT AE) and BTC/NXT exchange rates at the time the transfer into the SuperNET account was made, these core assets represent a total of 26,322,130 NXT * 0.000085 = 2,237.38105 BTC. (By the time the ICO ended, due to both fluctuating asset and cryptocurrency prices, the value had risen to 38,270,542.5 NXT or 3,019.5458 BTC equivalent.)
These assets, and the BTC they represent, are essentially gifted by James to SuperNET. However, because this effectively leaves James significantly out of pocket, he proposed the following solution. In addition to the assets held by shareholders, his initial 10 percent stake, and the 10 percent operating stake owned by SuperNET itself, a further 10 percent of UNITY assets would be created. These would be withheld by SuperNET to pay two bonuses of 5 percent each to James, if the following conditions were met:
- A tripling of market cap by the end of 2014.
- A tenfold increase in market cap by the end of 2015.
If these conditions were met and the shares were awarded, they would necessarily slightly dilute the assets owned by SuperNET investors. However, since the value of SuperNET overall would have increased by 3x and 10x multiples, it would be a small price to pay. Nevertheless, because participants had originally entered into the ICO under the expectation of no bonus being paid (and a 10% smaller proportion of the core assets being given to SuperNET), the proposal was put to a vote.
The text of the voting ballot posted on BTer and the SuperNET thread of the bitcointalk forum was as follows:
#### Proposed voting ballot
The BTC equivalent raised would be the total BTC equivalent at the time the fund raising is closed using the then current coinmarketcap prices for the NXT, CNY, BTCD. Let us call this the “BTC raised”
5% bonus achieved when the BTC marketcap from coinmarketcap (or other reliable source) sustains 3x BTC raised for 24hrs+ and another 5% bonus achieved at 10x
In the event the 3x bonus is not achieved before year end 2014, the 5% goes to SuperNET working capital. Similarly the other 5% would go to SuperNET working capital if 10x is not achieved by year end 2015
On the closing of TOKEN fund raising, 10% of SuperNET assets to go to working capital, 10% to jl777 for the 2000BTC of assets, 10% held in reserve for the 3x and 10x bonus. The minimum dilution is 10% if neither bonus is achieved and the maximum dilution is 20% if both bonuses are achieved.
The TOKEN holders’ vote was executed on BTer and in Nxt AE after the ICO concluded.
Each asset counted for one vote. Thus someone who owned 1,000 TOKEN had 1,000 votes.
The 3x bonus threshold is 5,737.1589 BTC * 3 = 17,211.4767 BTC.
The 10x bonus threshold is 5,737.1589 BTC * 10 = 57,371.589 BTC.
Result of vote:
Rejected: 15.2 percent
Approved: 84.8 percent
Total 325681/571243 = 57% turnout
The remainder of the initial TOKEN assets were sent straight to the Nxt Genesis Account.
59’834’343 unsold TOKEN were burned (txid 1698643550463930707)
TOKEN > SuperNET/UNITY
BTer TOKEN have been swapped automatically for UNITY (SuperNET asset).
There is a separate (manual) redemption process for those who bought TOKEN on the NXT AE. This process has been created to avoid confusion about the continued existence and value of TOKEN on AE after UNITY has been released, and to prevent fraudulent or mistaken trading of a redundant asset.
Nxt AE: Transfer TOKEN to NXT-7Y5B-J8LQ-SL5P-3ULFL (alias: RedeemTOKEN).
SuperNET asset (12071612744977229797) will be transferred back within 24 hours.
The SuperNET asset (id: UNITY) will come from address NXT-QP45-4LQ8-853H-7XF3N.
After redemption, the TOKEN will be sent to Nxt Genesis account to prevent further trading.
TOKEN will always be exchangeable for SuperNET. However, TOKEN assets will receive no dividend from SuperNET and has no voting rights, so there is no advantage to holding TOKEN rather than exchanging it for SuperNET as soon as possible.
Trading of UNITY is now live on BTer. Both SuperNET and TOKEN can be traded on AE. (Ultimately, of course, all TOKEN should be redeemed for SuperNET.) Withdrawals of UNITY assets from BTer to NXT AE are expected to be enabled early this week, if not already.
As agreed before the end of the ICO, a buy wall at NAV has been put up on BTer and NXT AE. This is a courtesy to allow holders to sell at NAV (Net Asset Value) should they need to (i.e. without losing money on their investment, over any they may have lost on the fluctuation of the underlying currencies in the meantime). It should not be necessary in an efficient market at all.
The buywall is based on non-asset NAV (the value of the cryptocurrencies backing SuperNET, but not the assets added for free).
It is one thing for me to personally put in 3000 BTC for 570 BTC worth of SuperNET, but then to base the buywall using the asset value is not reasonable. To allow people to cashout and weaken SuperNET to tap into this amount is not right. The buywall NAV is to provide liquidity in case the market isn’t.
People should view this both as a courtesy backstop (it shouldn’t need to be there if the market is anywhere close to efficient, but it gives peace of mind, and a guaranteed opportunity to cash out if someone really needs liquidity) and as an additional opportunity for those who plan to hold long-term. Just as companies will buy back their own stock when they feel it is undervalued, you don’t want your “company” to always be trying to buy back shares at the fair market price. If there are temporary market disruptions, or occasional panic sells, UNITY buying back its own shares at a discount is accretive to you the UNITY holder. It increases your percentage ownership at a favorable price.
Supernet accounting will be done by NXTinspect.
SuperNET will make revenues from the fees its core assets receives, as well as advertising revenue and shared fees with third parties. There will be transparent account to receive revenues. 50% of these will go to SuperNET assetholders using the NXT dividend mechanism.
The other half will be distributed as follows:
10 percent for overhead
20 percent for coin communities, according to their proportional contribution
5 percent for NXT core development
5 percent for BTCD stakers
10 percent unallocated, for discretionary spending to maximise the market cap of SuperNET
How UNITY dividend payments work
Each asset entitled holders to a proportion of the 50 percent of SuperNET revenues set aside for dividends. A holder with 1 percent of the asset would receive 1 percent of the dividend, or 0.5 percent total revenue for that period.
To begin with, dividends will be made automatically. James will make a dividend announcement detailing the specifics of what each SuperNET asset will receive and the ex-dividend time. When that time arrives, a snapshot of assetholders will be created, the dividend allocated accordingly and sent out automatically.
For small holders of SuperNET, the transaction fees to send out the dividend may cost more than the dividend itself. If this is the case then it makes sense to delay paying until such time as the dividend is worth more than the tx fee.
The intention for next year is to design a process whereby any assetholder can look up their unpaid dividends and click a button to have them sent when it is convenient. This ‘on-demand’ method means each assetholder can decide when it is worth paying the tx fee to receive the dividend.
50000 NeoDICE assets (id 18184274154437352348) will be dividended out to SuperNET asset holders at the rate of 0.06126992957634 NeoDICE per SuperNET asset.
If the UNITY is on BTer, you will get NeoDICE on BTer and if you withdraw UNITY to SuperNET on NXT AE, you will get the NeoDICE in NXT AE. If you have TOKEN on NXT AE, you will get no dividend.
Please do not ask when the dividend will be sent out. It will happen when it happens, I hope it can be done this month, but no guarantees. Please do not expect regular SuperNET dividends like this. This is a special case with not guarantee of anymore like this in the future.
FUNDING REQUEST: SuperNET online wallet
The funding is authorized and made available to pay an established and well-regarded Nxt company to create an online wallet site for SuperNET users. (The identity of the company is not being made public for now, but interested parties can contact jl777 for details.)
Such a site will be of huge strategic importance for SuperNET, due to the popularity of such wallets over downloadable clients. The site will be the Blockchain.info equivalent for SuperNET.
Following negotiations by whale, three tranches of investment have been made available, in return for assets in the stated company:
1) 17.2 percent for 2.5 million NXT immediately
2) OPTIONAL 12.9 percent for 1.875 million NXT by 31 January 2015
3) OPTIONAL 12.9 percent for 1.875 million NXT by 31 March 2015
The asset itself will not be traded before 1 January 2015, unless all the options are exercised. The expectation is that this investment will have a good ROI due to the strategic significance of a SuperNET wallet site. It is hoped that SuperNET will thus be able to recoup the initial investment via AE sales within a year, and still have significant holdings remaining.
Agreements between SuperNET and CoinEvolve terminated
CoinEvolve was a new business created by ‘Christian Sommer’. It was supposed to offer a series of services such as freelancing marketplaces, a cryptocurrency business directory, and so on.
CoinEvolve entered a revenue sharing agreement with SuperNET. SuperNET was essentially selling advertising services to CoinEvolve, this arrangement was almost risk free, since nothing was being purchased by SuperNET.
However, soon after the agreement had been made public, Christian created a series of new assets relating to aspects of CoinEvolve that had not been discussed with James. Although these had nothing to do with SuperNET, James offered advice in how to go about creating these and furthering his business (advise which Christian agreed to follow but did not). None of the assets were purchased by SuperNET and James did not endorse them. Nevertheless, taking advantage of the publicity and status provided by the existing association between CoinEvolve and SuperNET, Christian promoted these assets and many were bought by members of the SuperNET community – driving the price up steeply.
Soon afterwards, the asset prices crashed and the funds paid to Christian Sommer for them were sent to BTer and exchanged for BTC. After disappearing for a few days, Christian briefly resurfaced on NXT forum, claiming he had been the victim of a theft by one of his co-workers. This news was treated with open-mindedness but a degree of scepticism. Christian Sommer was asked to provide proof of his claim, ideally a copy of a police report relating to his employee. To date, there has been no documentation of any such incident, nor any further contact from Christian Sommer.
James sent the following AM (txid 6374368705651792002) to CoinEvolve:
All agreements between SuperNET and coinevolve are hereby terminated due to abandonment by Chris Sommers.
Additionally, James posted the following message with regard to the situation:
In spite of my cautions and lack of endorsement, people went out of their way to buy coinevolve assets. As an advertising vendor SuperNET cannot do a due diligence on every single revshare partner. However, since just my mentioning anything seems to make it go up, I have decided to not mention any future revshare advertising deals. This will be done by a separate person.
Also, PLEASE beware of false assets, unproven issuers and if I am not making a specific recommendation, there is usually a reason. If you want to copy my market moves, there are things like JLH, sharkfund0 and SuperNET/UNITY. If you are going outside the recommended paths, then you need to make sure to do your homework and know the risks you are taking. Also, do not put much weight on having real world identity. The two largest scams in NXT have been by people with known real world identities. This seems to lull people into false sense of security.
Investors are reminded to do their own due diligence on any coin or asset they purchase.
SuperNET development update
We need 10 servers to test ASAP
VPS Ubuntu that can run NXT and BitcoinDarkd is all that is needed, each with unique IP. Everybody who can help please come to https://forum.thesupernet.org/index.php?topic=66.0 to coordinate!
We’ve got a test network that is working with the basics that allow each node to discover the other nodes and send messages to each other. Still need to efficiently propagate the info to all the nodes.
Now that there is a live network, I can verify proper discovery of the routing info. I also figured out how to make all onion packets the same size, but running out of space, so I think I will add a compression/decompression to the first stage of the onion. this should get 50% to 100% more capacity.
If things go well by early next week, I will be able to finalize the Teleport, which is currently being design reviewed by anonymint and will also be reviewed by Kristov Atlas
I would say 95%+ of everything other than Privatebet is coded. However, the last 5% is always the toughest and going through deployment testing can take a while. I speak of my code, not about the GUI side.
In the last days the SuperNET [ANN] thread has unfortunately been somewhat overtaken by trolls. As a result of this James has decided to leave it. The thread will not be locked, but the main action will move to https://forum.thesupernet.org. You are hereby invited to join the forum.
James, on Sep 28, 2014:
I remember the NXT threads on BTT, it was just horrible and today reminded me of that.
OK, I am closing my browser tab with this thread on it, so see you in the SuperNET forum!
That is where the real action will be. All the latest news on the latest coins, assets, dividends, all on the SuperNET forum and maybe some time later it will get posted here.
I will not be monitoring this thread on a regular basis, others will. If you want to post something to me, please go to http://forum.thesupernet.org, I will monitor things there more actively, though I am in the middle of much coding now, so do not expect immediate response.
SuperNET related links
Follow SuperNET news
SuperNET related projects:
Affiliated websites (revenue sharing or partial ownership)
Author of SuperNET newsletters: NXTER MAGAZINE: http://test.nxter.org
Attention coin representatives
Please send your application to join SuperNET CORE to email@example.com
The next SuperNET Newsletter will contain more information about the core coins and assets, as well as news and development updates.