LBank AMA Recap with SYS
On 11 March we held an AMA with the SYS, hosted on LBank official telegram channel. If you missed this telegram session, here’s another chance to get a full transcript of the AMA event.
So Mr. Stevenson, could you please give us a brief introduction and let people know who you are and what do you guys work?
A: Yeah, sure. So Syscoin is a project that’s been around for quite a while. So the very first main net release of Syscoin was version one was back in 2014. There’s no CEO of Syscoin. It’s a decentralized network. I am a board member on the nonprofit System Foundation, but yeah, just to cover those bases. As far as our team, our lead core developer is Jag (Sidhu Jag). He’s got a long history in Blockchain. He was involved in Blockchain, probably back in 2012. He had worked on previous Blockchain projects and he’s got a pretty deep background in computer science as a lead core developer should. So his specialties are AI communication protocols. And he’s got a very intimate understanding of economics as well. So that’s very helpful. As for me, I have a background in enterprise systems. I’ve worked for Fortune 500 companies, with 20 plus years of It experience, especially in database development. I learned about Syscoin. It was around 2016, right? So the project had already been around for a while. And the things that I observed in the project, the methodology, the maturity of the project’s approach to development, the quality of their work, the vision that they had for how they were going to help change the world in a better way through Blockchain technology.
Q1. Can you tell us about your team members? Are they qualified and professional in their fields?
A: Jag Sidhu is the chief technology officer of Blockchain Foundry Inc. a publicly-traded Corporation called that’s traded on the Canadian Securities Exchange. We’ve got other people as well from different backgrounds. For me, I’m intimately familiar with database things of that nature, and there are a lot of other team members as well. There are currently five foundation board members, and each of them has a lot of experience in their respective fields, professional experience. And we have quite a vast community having the project, having been around as long as it has. We have an entire community of people involved in contributing to Syscoin, whether it be spreading awareness or developing on the platform, developing DApps, and things like that. We have quite a talent pool within our project.
Q2.All project tokens have Main Utility and use in real life! So can you tell us what is the important role of your tokens in your ecosystem? Explain its Utility & Real Life use cases?
Yeah, certainly. I’d have to disagree with you a little bit. Not all projects have real-world utility. Right. But in that sense, that’s very important. Right. So what’s this Coin provides today, the elevator pitch essentially for what the protocol is, which I think is very important to understand. What I say to people to keep it brief is wouldn’t it be great if you had all of the security of Bitcoins Miners? Right. They’re in the Bitcoin mining network and its proven security model of decentralization for secure store value. Wouldn’t it be great if you had that and you could couple that with the flexibility of Ethereum and create synergies between those two models which are kept intact and take all of that smart contract capability and Bitcoin grade security and scale that out to where that can serve metaverses Internet of things, whatever future use cases require grand scalability smart cities, what have you? Essentially that vision is sort of a Holy grail of a layer one platform. Right. And that’s essentially what Syscoin is designed to be. So Sys, the Coin, the native coin of our blockchain or Blockchains, because we’re a dual chain architecture.
Right. Sys is used as gas for executing smart contracts, just like on Ethereum utility. It has the same utility use as Ethereum and more. Right. So on our EVM style blockchain, which we call any VM network, an enhanced virtual machine is used as gas there, and then that same Sys supply is also used as a gas back on our Bitcoin-style chain, which has an asset platform and some other things as well. And both of those chains are interlinked trustlessly. You can move value from one to the other without any intermediaries, so you can kind of bounce between the worlds of Bitcoin-style lightning networks on the Bitcoin side and then go over to the EVM with your Sync and utilize in the near future you’ll be able to utilize ZK roll-ups, things like that. That’s a very interesting topic. How ZK roll-ups are really going to change the future and Syscoin, in particular, is poised specifically for a future where almost all user experiences are taking place for the end-user within roll-ups which sort of abstract away the layer one where they don’t really interact with it much, right? So in the future, layer one really becomes the focus for developers.
Them choosing a layer one at that point will really boil down to things like security and low cost, not so much speed because all the speed and everything is going to be on the roll-ups. So I hope that answers your question. Yes, this one has quite a bit of utility.
Q3: I’m mean, as you mentioned the speed and security for your client. Which one is more important for the project?
A: Yeah, security, absolute security. Yeah, security, absolute security. I mean, if someone’s putting speed before security, that’s very bad. Coming from the background that I do an enterprise database, the first thing that you focus on with any kind of about an infrastructure is that you make sure it’s secure. So, what we do is we take the Bitcoin model of security, which is by far the most proven, not essentially Nakamoto consensus, and that becomes the security layer of our protocol, the base layer, and we build other solutions on top of that to achieve things like scale and low fees and things of that nature. So, the things that we build on top will include ZK roll-ups. As soon as ZK Sync 2.0 is released to maintenance, that is an innovation being done by Matter Labs for introducing roll-ups into the industry. Our layer one, which is incredibly secure, is of course it’s designed specifically to scale with layer two solutions like CK roll-ups. But our priority is by far security.
And when you’re talking about literally potentially billions of dollars worth of value, and not just that, but unique assets and things of that nature that might be owned by large institutions or family trusts and things like that, you’ve got to be very careful with security. And there’s a lot of projects. In fact, would say the vast majority of projects out there today are sort of experimenting with their security. I consider proof of stake of an experimental security model. Compared to proof of work, we remain proof of work and we’ve been able to solve the limitations that have been associated with proof of work.
Q4:Typically, investors buy tokens that are likely to increase in price in the future. I saw that the total supply of the tokens was huge. So, do you have any plan for burning tokens in the future?
A: Our token supply really isn’t huge, so I’ll have to disagree with you on that.
Syscoin has 635,000,000. So we have substantially less than I would say even the vast majority of projects out there. It’s not a tiny supply, but it’s nowhere near what a lot of these other projects have. So to understand, a little bit like the supply mechanism associated with Syscoin, it’s almost identical to Ethereum as far as how tokens are minted and how they’re burned.
Sys is based on EIP 1559. So basically what that means is that there is a burning mechanism for fees. So when people spend SYS on gas, a significant portion of that is
as far as how they’re minted, it’s all controlled by protocol admission, just like Bitcoin or Ethereum. There’s block rewards that are generated and paid out to minors and master node owners. So we have a master nodes network as well.
Our inflation rate on a yearly is at Max, like around one point 1.323% per year. But it’s generally a lot less than that. Right. According to the model that we have because of fee burning. Right. Speaker. And at that point, it becomes more of like a store of value than a utility. Right. It’s going to be in such short supply. And there have actually been some projects that have tried to take Bitcoin and use it as a utility token, like a utility coin, such as wrapped Bitcoin on Rootstock, for example, which is also an EVM that provides smart contract execution that’s compatible with Ethereum. But nobody wants to spend Bitcoin on Gas. So the gas fees are burned, but as a protocol, we don’t have some kind of a big burning event that will just get rid of a whole bunch of tokens to deflate the supply and just in order to manipulate the market price or something like that. We don’t do any of that kind of thing. We feel that the utility of the platform is what drives adoption and that adoption is really what will affect the price of the token. If it happens to increase the price of the token. Great. Right. But our main focus is utility.
Q5. How profitable is New Era to sustain your project? What is your business model?
A: We don’t have a business model. We’re not a profit company. Right. So that would be kind of like asking, Bitcoin, Hey, Bitcoin, what’s your business model or Ethereum?
Think of us more in terms of a layer one protocol, like Bitcoin or Ethereum. That’s really what we are. It’s an open participation network.
I can say that we kind of have a business model just in the sense that we focus on, as I said before, we focus on the utility of the platform. So our business model, I guess you could say, is to provide the best utility for scalable, smart contracts and to drive adoption of our platform, which we’re doing very actively. So we’ve got a Foundation Treasury that is very well funded and is able to incentivize projects to adopt Syscoin as a layer one platform, we offer TVL incentives or time value locked incentives. So when a DeFi project or something that’s on Ethereum or other platforms, or maybe a new one that doesn’t have a platform, when they roll out on Syscoin layer one, depending on how much value they accumulate within their DeFi protocol, whether it be a Dex or something else, we pay bonuses to them
the higher the TVL that they draw into our platform.
So there’s that. We’ve got a dedicated business development team of multiple professional guys that are constantly talking with new projects. We launched our Ethereum virtual machine. We launched that on December 6, 2021. So that’s a relatively new
While SYS has been around since 2014, our EVM chain is very new.
Q6. Is there a strategic partnership coming?
We’ve got quite a fire lit under a lot of projects that are very interesting in Onboarding. If you look at our news feed, which is available on Twitter, Twitter.com/SYSCoin, or our news blog, you’ll see just a huge number of announcements that we’ve made of different projects that are coming on board. Some of those projects are waiting for layer two to become available.
But yeah, we’re working very hard. Last week there was one day where our business Developer team talked to about six projects in a single day and a lot of projects, as I said, are very interested in rolling out. We already have our first native decks, which is Pegasus, so you can check that out,
We don’t announce our partnership only because of the hype which is great but we want the hype to stay and the community to embrace and to be very excited for our new partnerships to come.