AMA, April 4: News, major changes, and preparations for the mainnet launch
During the stream, the CEO of Cellframe Dmitriy Gerasimov has talked about news, major changes, and preparations for the mainnet launch.
Features in the main network
The basic functionality of the mainnet will be launched today. The most important will be post-quantum protection for the money that we run. It will be based on Proof-of-Authority Zero Chain and Support Chain. We also launched our native token and presented CF-20 standard. TON subchain will be run later.
We are an L0-L1 project, and our ecosystem will grow. None of the other ecosystem projects, such as Polkadot, Ethereum, Solana, and Cosmos, have Max supply because it is growing.
As an ecosystem project, we reviewed and tested different tokenomics options since the main network launch.
I want to talk with you about the difference between Bitcoin and Ethereum. What the difference is like.
The X-axis is time, and the Y-axis is emission.
ETH has an unlimited supply, and BTC has a limited supply. So if we have a long period (e.g., 100 years), there won’t be much difference between the two. And for single users, the emission decreases with each moment.
That’s why BTC price charts look the same as ETH price charts, i.e., they have almost the same price growth and move the same way. So, what about CELL?
If the network grows and we need to continue to emit it, and you vote for this — we continue; if not — we don’t. Ever could you say we stop it forever, ever this is possible? (possible to vote for 0 emissions). So we still have the same graphs, the same decreasing emission, and a similar tokenomics model with Ethereum or any other cryptocurrencies with deflation tokenomics. So it’s still deflation tokenomics even with emission.
And also one more thing about control and inflation.
In the diagram above, you can see how transactions work. So when you send some money (CELL), you need to pay some commission (network fee). And this commission is possible to burn. That’s the same burning commission as Ethereum does. Or also, it could not be burned; it could be returned back, and what do we do if it returns? If it returns, we have a network governance-controlled transaction fee. What does it mean? If the price grows too fast, we have high growing transaction fees. And to prevent this, we could return some of the transaction fees to the sender. So it’s not about price control but also about transaction fee control.
Now in more detail
You can stake your CELL tokens but not run a node and delegate your stake to someone else who doesn’t have his stake and he will not only stake his reward from service but also shut the mission. When we calculate, we see the average APY for the staking is between 5 and 30 percent. It will be high APY because it depends on how many nodes will have this year.
If this average number has about 10 thousand, it will be 30 %. If we have up to one million, it will be around 5 %. So, three million tokens will be emitted next year for masternodes. Let’s imagine that we have an average of 10 000 nodes this year. They will lock 10 million tokens and go out of circulation. So, you lock 10 million and obtain 3 million. It’s about 33% APY, and anyway, it will be dynamic because we will decrease the stake amount for being a validator. When the total nodes number grows, your APY decreases. So, we will balance these two processes to keep your APY on some middle level. By the way, it will be huge in the beginning, and it will be 100%.
The entry premine in 3 million will be reserved for development funding and out of circulation.
We will use some of these tokens for OTC deals and liquidity, but that will be later when we run AMM trading. Another 3 million tokens will be spread as a reward for nodes. Also, it could be obtained through single token staking. So, in our previous model, you earn only on the service fee. For this fee, the reward will be added based on emission. So, our supply is growing by 10 %, and next year will grow by more than 10 %. Next year this emission will decrease. It will only be decreased. The amount of decreation will be decided on the governance. At the end of the year, it will be voting where all holders can participate, and we’ll decide how much we will reduce the еmission.
The bridge to the mainnet
Scheme for using the bridge:
You download our native Cellframe Dashboard wallet app. Then you create a wallet in that app, go to the site, enter your wallet address, connect Metamask, send your tokens, and get them on the Dashboard. For now, it will be one-way immigration. However, when we polish everything up within a month and pass the Phase 2 audit, we’ll have a bi-directional bridge. The fee on this bridge will be low, 10 CELLs plus 0.1% from the number of assets you are transferring through a bridge.
We announced the upcoming launch of auctions on native protocols. We worked a lot with the current code base and decided to get it working with Ethereum of BSC. It’s a lot of work; we’re combining their protocols and our native protocols, so native auctions will be launched on the bridge engine; a couple of weeks after the bridge is launched.
It is a nervous time, and this liquidity shock should also accumulate a lot of sales, much more than will we meet.
WASM-based smart contracts
We are planning to make a WASM-based smart contract. We promised it before summer, but now we need to hurry up a little. Because WASM-based smart contracts need to have a bidirectional bridge. So, we have a CF20 token that will work for a bidirectional bridge, and we need to implement some code to get it to work. And we are planning to make it during this month.
The BSC network tax will be repealed. You don’t like it, and I would like to reduce it soon. So there will be some reduction during May. So there may be several phases, but we will repeal it completely.
Most of the code has been audited, but the auditing is still ongoing. And there are quite a few things that still haven’t been audited; they are related to the bridge. That’s why the bridge will be one-directional in the beginning. Also, the TON consensus is still unaudited; it’s also necessary for the bridge to be bi-directional. After finishing the audit, we prepare smart contracts, put them together, and we will have the bi-directional bridge.
The rest code is audited well. There were some issues. We paid a lot of bug bounty prizes, but now all of them are fixed, and it looks safe. Anyway, if it is not, please, help us. Our bounty program is continuing, and you could send us your findings, and we will reward you.