SCIFI AMA with Wolf Crypto
We held an AMA with SCIFI in our public Telegram channel on December 14th.
The $SCIFI mission assembles veteran engineers, seasoned experts and the most daring citizens of crypto space to discover and grow the most valuable gems in the vast reaches of the universe and to harvest the spoils of the adventure in the form of a governance token, $SPICE.
$SCIFI represents a hand-curated basket of gems, automatically rebalanced on a monthly basis. $SCIFI is 100% collateralised and tradable on any ERC20-enabled DEX.
$SCIFI and any potential future missions are governed by the community. Supporting the $SCIFI mission by holding $SCIFI, providing liquidity, promoting it or providing essential infrastructure is rewarded with a governance token called $SPICE.
$SCIFI combines the best of curated investment strategies, expert curation and decentralised ledger technology:
- DAO governance: $SCIFI’s lift-off is guided by Mission Control and the Galactic Council, but will be community-governed after the first 6 months.
- Experts: The ‘Galactic Council’ is the representative body that joins Mission Control in the creation of SCIFI.
- Diversified investing: A single token provides exposure to a basket of vetted tokens, automatically rebalanced.
- Zero fees: No fees will be charged. $SCIFI is free and always will be.
- Secure: SCIFI is 100% collateralised, audited and open-source.
A comprehensive TLDR on the SCIFI project can be found here —
SCIFI will be launched via their Mission Control team to the public via a TGE called the “Big Bang”. You can find out more details on the Big Bang and how to participate here —
You can also visit the SCIFI Telegram Group or the SCIFI Website for further details.
Here’s what SCIFI’s Prince Valium and Rick Mortensen had to say in the AMA.*
*This AMA has been edited for clarity.
WC (Wolf Crypto Telegram Member)
INTRODUCTION
WC
Welcome to yet another edition of Wolf Crypto AMA…today we’re getting all another dimension, new galaxy, intergalactic platanary with the guys from SCIFI.
Joining us today from the SCIFI team are Rick Mortensen, BD and partnerships lead and Prince Valium, Communications lead.
TEAM & TEAM GOALS
WC
Guy’s it’s a pleasure to have you in the channel today, and thank you for sparing the time on what I hear along the crypto grapevine is going to be a very big week indeed for you!
Before we get too far into things, I’d love to hear some background from you both as to your history in the crypto space and any other relevant industry experience you might have along the way?
RM
Hi everyone!
First of all, thank you so much for having us here, we appreciate the opportunity to tell you and your community more about the project. I am leading the business development and partnership topics at SCIFI and SPICE.
I’ve been working in the broader crypto ecosystem full time since 2017. With my background in finance, I’m a big believer in index products as a gateway for investors. This is what excites me about SCIFI and is the main reason why I came aboard.
PV
Hi all really great to be here!
Like Rick, I’ve been working in crypto full time since 2017. Before that I was building and founding a series of ventures in tech and software. Most recently, I built an online marketing agency, where I had the first touchpoints with projects to support with marketing.
WC
2017 crypto veterans…I assume you feel as old as I do these days…It feels like we’ve broken through the space time continuum and got stuck somewhere along the way…
A black hole perhaps…
Now this is a slightly interesting one, as I’ve been told along the way your real names aren’t actually Prince Valium and Rick Mortensen….funnily enough…
Can I ask, why have you guys chosen to operate as an anon team…and what advantages and disadvantages do you feel this gives you as a result?
RM
We wish they were!
Jokes aside, as I’m sure we will have the chance to elaborate in more detail later on, the SCIFI project is built to be a DAO. We do not want to place any focus on individuals, as we believe this would influence the dynamic of the DAO negatively.
SCIFI is a decentralised project and should be seen as such from the start.
WC
So speaking of the team, I know you’re not the only two anon’s involved in SCIFI…
Who else makes up the Mission Control team, what’s their role on the project and most importantly, what’s the reference’s behind their anon names?
PV
There are a good two handfuls of individuals who dedicate a meaningful amount of time to this project. Most notably: Lucky Picard is the ship’s captain and finance lead, HAL2020 is the tech lead, Ender Wiggin the product wizard and Dark Helmet is the community lead.
We chose to create a brand on the backdrop of a space narrative. We thought it is a fun way to build a foundation on which to expand the narrative of the project.
The names are just the logical extensions
WC
Let’s talk design before we get too far into things as that’s something that really caught my eye when checking out the project…
I’d love to know who your favourite science fiction authors are, what your favourite science fiction movies are and how we might see these influences bleed through into future design for the project?
PV
Nice question! To be honest, I’m a sucker for all things sci-fi. From Dune to Star Wars, to Star Trek. If it has space ships — count me in :)
What we created with SCIFI was a backdrop — we don’t want to take it too seriously but provide an open canvas for the team and the community to paint on. Anything goes. We will surely incorporate more references and keep developing the brand and definitely want to actively involve the community in this.
WC
Another project with a similar drug induced design spec is CHADS…
I heard along the crypto grapevine that you’ve been speaking to the DMT inspired art director behind CHADS….Is this true and can we expect some sort of DMT/LSD fusion that takes SCIFI even further into outta space?
PV
Best of crypto rumors!
While it was certainly somewhat inspiring, the team that worked on the SCIFI design has no relation to CHADS. A DMT/LSD fusion taking us into outer space definitely sounds like something we should look into!
Jokes aside — The website will continue to be developed and will certainly see some more attention to usability in the coming months.
THE SCIFI UNIVERSE
WC
Alright, this is the section where I usually ask for your elevator pitch on the project…but in your case, let’s be thematic and call it a space elevator pitch…
What is SCIFI Finance and what are you trying to achieve with the project?
PV
SCIFI Finance is essentially a curated, DAO governed crypto index. As with traditional finance and ETFs, we see a similar movement in the digital asset space. Even for us who are working in the industry full time, selecting the right assets to invest in can be a daunting task. This is why we believe that curating an index for the community adds a lot of value. Investors can do a diversified investment by buying just one token.
SCIFI is governed by a governance token called $SPICE. The SPICE DAO will have governance powers with regards to the steering of the SCIFI index, creating new indices and controlling the usage of the project treasury.
WC
So let’s get some terminology out of the way before we get too far into this one…
As you’ve just described, you have a dual token economy, with SCIFI as the index token and SPICE as the governance token…
Firstly I have to ask…why SPICE…what is the reference there?
PV
Here comes the Dune reference.
In Dune, Spice is a drug that can only be farmed on one planet and it enables space travel. There are many very fitting quotes around SPICE that worked well with our brand narrative, like “He who controls the SPICE, controls the universe.” or “Spice is the most precious substance in the universe.”
The analogy between the two was simply too good to ignore.
WC
I alluded to Mission Control earlier, that’s obviously the core team on the project, but you also have a Galactic Council made up of what you’ve called Senators…
If I recall my Star Wars history correctly…not all Senators are good Senators…
So who are yours, what makes them good Senators and what is their role on the project?
PV
The Senators are a group of experts and community leaders that have a deep understanding of the space and a significant thought leadership and reach. Their role is to support mission control with their knowledge, educate their communities and amplify the message of SPICE and SCIFI.
We’re super excited that we got such a good group of folks together, including the likes of the Crypto Dog, The Wolf of all Streets, GAINS Associates and 5 more.
Here is an overview for those who are interested —
WC
Do you have any particular reasoning for the Senators you’ve already selected…and what’s your opinion on some of the Senators being a little different…a little more shilly…a little more shiity perhaps, than some of the others?
While we’re on the subject too, what’s the qualifying criteria for being one and how many others will you add in over time?
PV
All of the Senators have been selected for their expertise and reach. We aim to get a good coverage of audiences, channels, reach and expertise. There are not yet hard criteria, but this is something that could be developed in the DAO.
The choice of the Senators for the second term will be subject to influence by the DAO too.
WC
So let’s revert back to the index aspect of things for a second.
For those who might not be aware of what an index is in finance, can you give us a quick TLDR on how these work in traditional finance and how you’ve applied this concept to crypto?
PV
An index is basically a basket of financial products, wrapped into one package and thereby tracking the combined performance of all these assets in just one product.
A comparison in traditional finance could be the NASDAQ or the S&P500. Indices come in many shapes and sizes, some track the top mcap assets, others track assets that belong to a certain theme, like for instance “Sustainability” or “Emerging Markets”.
In the case of SCIFI, we apply this logic to an active curation. The constituents of SCIFI will be hand selected by experts and thus give exposure to well researched and vetted digital assets in the space.
WC
You’re not the only crypto index out there right? I know there’s a few indexes out there that track major currencies that “retail” investors can invest into…
So why SCIFI instead of one of those indexes…what’s your USP’s compared to those?
PV
Yes, there are some really great products out there already and we believe that many more will come, each with its own strategy and approach regarding which assets to combine.
What makes SCIFI special is the combination of A) DAO governance, B) expert curation and C) full collateralisation. Collateralisation means that with the funds invested, the assets are actually bought and locked into the smart contract.
WC
So when you say full collateralisation, dumb it down for me, what does this actually mean?
PV
That means that all the investment that is put into SCIFI is directly used to buy the assets and lock them into the contract. There are other ways to do this also, where the index is synthesised, that means that other instruments are used to replicate the value of it.
But let’s not get too deep into that. With SCIFI, all the assets are really bought.
WC
Just so I understand this correctly, all percentage balances of the index are based on the dollar value of the index right…it’s not the percentage of tokens held as part of the overall index but the dollar value a certain percentage of tokens represents of the overall dollar value?
RM
Yes, that is right. It is most important to denominate the assets in a common denominator to make them comparable and allow the determination of their relative weighting to each other.
WC
When you say “small and mid cap projects”, what’s the actual qualifying criteria there…do you have any set parameters for each?
RM
That is a good question.
There is no definitive rule for what qualifies as low and mid cap. What we are aiming for is a collection of assets that has solid fundamentals and a good prospect for growth. The latter is probably not so much the case with Ethereum and Bitcoin, although the recent rally’s might suggest otherwise.
WC
I’ll give you a list of lowcap shitcoins to buy…it’s my specialty!
Speaking of which…you give me a prospective breakdown of what the first index bucket will consist of…and how do I get my shitcoins added into it?
PV
We have to disappoint!
We can not share the list of the coins until we do the actual minting. The reason is that the announcement may impact the price of these assets and thus could change the attractiveness for the index.
What we can say is that there will likely be around 10 assets added. Also, obviously we won’t let shitcoins board the ship.
WC
So if I have this correct, Mission Control…i.e the team, picks the first basket barring one of the tokens, which is voted in by the community…using the proceeds of the SPICE token sold as part of the TGE.
I know you can’t give me an exact example of a perspective Index basket above, but did you want to give me any clues as to what might actually be in the first one…and what’s the maximum amount of any one token the index can hold?
RM
Unfortunately all we can say at the moment is that they will be carefully selected ;) Regarding the max amount — we are capping the maximum that any one token can take up in the index to 30%.
This is a safety net and would actually already be quite a lot. We will make sure that the basket is well diversified and the exposure to any single token is kept in bounds.
WC
Will this be the structure moving forward also? Mission Control picks a majority of the tokens and the community has its say in one of them…or will this change over time?
PV
We envision a much more DAO-driven process in the future. The whole idea of the projects is to leverage the knowledge and capabilities of the crowd and community leaders to drive the project, and we plan to involve the DAO in the picking process, in part directly, and in part indirectly through its influence on Mission Control, the project treasury and the Council.
Also important to note is that SCIFI is just the first index that the SPICE DAO puts out. There will be many more and these may look completely different. We are really looking forward to seeing what comes out of the DAO community on this matter.
WC
Interesting, I did not know that. How will new indexes function within the existing token structure? They’ll all be part of the SCIFI token?
PV
No, these will be new tokens that stand on their own feet, as the assets need to be accessible via a single token purchase. So each new basket will have its own smart contract.
WC
So talking of changes to the index, at what point are rebalances made to it?
Is it continually rebalancing or is it done on a fixed timeframe?
RM
There will definitely be one fixed rebalancing per month, however things in crypto can move very fast. This is why we need to be able to act swiftly in the interest of the community.
The most extreme situation here would be if a project is compromised or a rug pull happens. In cases like that Mission Control will be able to rebalance more quickly through a multisig process.
WC
Regarding rebalances, let’s say Mission Control and SPICE token holders have made a bunch of great picks and the overall dollar value of the index is continuing to rise.
I know you said earlier that you’ll rebalance assets as they accrue in value and exceed the 30% maximum for a single asset, but what happens to excess profits…they’re used to purchase more assets as part of the next rebalancing cycle?
RM
All the value that SCIFI generates is in terms of value appreciation of the underlying assets. So if the value increases and an investor wants to take profits, he can either simply sell the SCIFI token on a DEX or he can redeem SCIFI for its underlying assets through a smart contract interaction. In terms of rebalancing:
Yes, the returns from overperforming assets are used in the rebalancing purchases.
WC
Let’s just cover this one off, just so the newbies don’t get confused. Rebalances doesn’t equal rebasing now does it?
I.e rebalances of the index doesn’t affect the underlying percentage of tokens a user holds?
RM
Yes, those are not necessarily the same things. Rebasing can actually refer to different things. While sometimes people use it interchangeably with rebalancing, it can also refer to changing the reference period for the prices or for the index.
In our case, we refer to it as the realignment of weightings of the constituents in the basket to reflect the desired allocation of assets in the index.
WC
In a similar vein, what’s the difference between a rebalance and a reconstitution?
RM
When reconstituting an index, the constitutes are re-evaluated with respect to which ones should be in the index altogether (strategy), and how much of each should be in the index, with respect to their market caps.
WC
Speaking of index weightings, from my understanding the index will always consist of 2.5% of SPICE right?
How is this 2.5% of SPICE weighted and purchased? Is it just a flat percentage of the overall index, meaning it can just be bought and sat on, or is it 2.5% of the overall value of the index, meaning it will need to be adjusted over time, both from a buy and sell perspective…
If you’re happy to go into it, I’d love to know your opinion on how this will affect the, let’s call it, token velocity of the SPICE token, past the normal market movements?
PV
Yes that is right. SCIFI will always include 2,5% SPICE. We chose to maximise access to the product and part of that is to ensure that Mission Control does not take any management fees. Instead, we chose to include the governance token in the basket.
That way, the more that SCIFI’s Assets Under Management (AUM) grows, the more demand there will be for SPICE and this should translate into value appreciation. The allocation is fixed at 2,5% flat, so as the AUM grows this level will need to be maintained.
WC
What measures have been taken in regards to severe market movements, black swan events and the like?
Will the index be stuck or locked in the case of such an event or do you have the ability to liquidate the index or part of it as a way to maintain more stability and starve off significant losses to the index as a result of such events?
RM
Yes, this is possible, as black swan events are not that uncommon in crypto. We have set up a mutli-sig process to counteract such events.
What action will be required depends of course on the specific event.
WC
If Mission Control…or the SPICE token holders are voting in a small cap token, I assume they’ll need to be purchased from the open market.
Being a low cap token and with the possibility of a significant purchase, depending on the index weighting of course, have you made any considerations for purchasing strategies?
Isn’t there a possibility you go out and buy a small cap token, push the price up as a result of doing so, have people sell into the price rise and devalue the index right away by doing so?
PV
Of course, on the one hand we of course are weighting the constituents according to their market caps, so there will be some normalisation in terms of how much percentually purchases would impact that token.
However we still need to be careful about the purchase strategy so as not to impact the market too significantly. Market buys will need to be done in a way that the price does not lead to a sell off. This also goes the other direction. If an asset is underperforming, we must be careful not to dump it and cause adverse movements.
WC
I’m assuming you’ll have some publication of the assets within the index on your website at any one point in time, so any random can come along and see what’s currently in the index before deciding to purchase the SCIFI token?
PV
Yes of course.
Currently we are displaying some empty charts and tables on our website, but as soon as the index launches, these will be fully transparent with regard to which tokens, their weightings, their price developments and we will also be introducing each asset in the basket to give investors a bit of background.
WC
So explain to me how all the actual tech works on this. We won’t worry about the chain stuff, as you’re ETH based and 99% of the functionality you have as part of the SCIFI universe is battle tested, but I did want to ask about the index component of things…
Is the weighting/math etc aspect of the index baked into a smart contract…or is there someone pushing buttons at your end?
RM
We are starting this off by using manual balancing, as we need to maintain some level of control in the beginning. The automation of the rebalancing is already coded and tested and will likely be implemented in Q1 2021.
WC
Before we move onto more of the token stuff, TLDR for me the various smart contracts that power the SCIFI universe?
RM
There are two smart contracts:
One for $SCIFI, the index token. This smart contract defines the SCIFI ERC20 token, holds the collateral and enables investors to mint SCIFI and redeem it for its constituents at any time.
The second one is for $SPICE. This smart contract will enable the governance interactions with the SPICE community.
WC
“Redeem it for its constituents at any time”…
Does this mean I can redeem the SCIFI tokens for the tokens contained within the basket of equivalent value?
RM
Yes, costs some gas. But this is critical for a truly decentralised infrastructure. No need to trust the fund guy.
$SCIFI & $SPICE TOKEN UTILITY
WC
So with that background on the index itself out of the way, let’s get into how your two tokens relate to the index and overall universe.
We’ll do SCIFI first as SPICE is a little more in depth…and a little more DAO…and I have some strong opinions on those haha!
From my understanding SCIFI is a token that is representative of the value of the index…kind of the point of the index itself, a way to invest in a bucket of tokens without having to DYOR or individually buy them…
However SCIFI isn’t the token you’ve done your raise on…so the first question would be, how does one acquire SCIFI?
PV
There are two ways to get SCIFI: SCIFI will be minted after the public sale and be available on DEX, starting with Uniswap.
Anyone who holds all of the constituents that are in the index (to be announced post sale) can actually mint SCIFI himself, by interacting with the SCIFI smart contract.
WC
Will the SCIFI token launch after the initial index bucket has been created? I.e. is there any idea of what the starting value of this token will be?
PV
Exactly right. With the proceeds from the public sale, the constituents of SCIFI will be purchased and once that is done, the token can be minted and bought via Uniswap.
The value itself is just a question of the denomination. It represents the underlying values. As luckily you can divide tokens by 10¹⁸ we will start with a well rounded number but it has no impact on the investment itself.
WC
Maybe I’m just a little dumb, but can you explain to me the dynamics of having the SCIFI token openly traded on a market like Uniswap and how this will affect the actual value of the token, considering its technically supposed to be a 1:1 representation of the assets with the index itself?
I.e won’t market forces of the token mean that this 1:1 peg of value of assets in the index ends up moving the token price above or below this peg?
PV
This is a really great question. As there are two ways to get SCIFI — by buying it from the open market or by minting it yourself — we are essentially decentralising the role of the market maker.
If at any time, the market price of the token is above the Net Asset Value of its constituents, there will be an incentive to mint SCIFI by posting the constituents to the smart contract and then selling the newly minted SCIFI on the open market, until an equilibrium is reached again.
WC
Let’s get spicy…SPICE is the token you’ve done your raise on, as we discussed above, it obviously also has a role to play in the assets included in the index, as SPICE token holders can vote on assets to be included in the index, but I believe there’s a couple of other roles to it as well…
You have both liquidity farming and the much feared “airdrop” terms in your darkpaper…
Firstly, liquidity farming, from the looks of things, users can earn more SPICE tokens by supplying liquidity in the form of SCIFI/USDT and SCIFI/ETH to your Uniswap LP’s…
What’s the strategic reason for allocating SPICE supply to SCIFI liquidity incentivisation and how does this play into the overall market dynamics of both tokens, in your opinion?
RM
This is again a decision for decentralisation. As especially the initial phase of the project is crucial to build a community and get traction, we decided to incentivise A) the provision of a key service in the project: providing liquidity and B) incentivise those who hold the token and show long term commitment. Both activities not only support the SCIFI index, but also further the decentralisation of SPICE, by distributing the token.
The term airdrop has a pretty bad reputation, and we are no fans of the classic style. In our case it just refers to the distribution mechanic. We will take regular snapshots and on the basis of those distribute SPICE to anyone who is eligible. In the end they are just rewards for liquidity farming and staking.
I originally wanted to call it spacedrop, but nobody understood :)
WC
Spacedrop is WAY better…Put it up for DAO vote sir!
Just on the subject of liquidity farming, I see it runs for a period of a year and is heavily weighted towards the initial period…smart choice by the way…
Do you have any idea of the expected APY in these initial periods, rough math/ballpark is more than fine?
RM
Hard to tell this as it depends on different variables. Let’s assume there will be 5M $SCIFI minted in the first 15 days. We are looking at providing 25% of the liquidity farming during this period. So you would receive roughly 10% yield on your holdings, which would be a >250% APY (all without taking the price movement of the token itself into account). That’s a lot. And you would get another 125% for just holding it. Check out the dark paper as it gives more details on the exact numbers.
We want to boost this in the beginning to create liquidity and AUM growth, We will become more conservative over time.
WC
I assume your APY is based on the starting price of the token there?
RM
Yes, just return of SPICE on SCIFI.
WC
How does one actually liquidity farm on SCIFI…how does it work in practice?
Is there a frontend to it, or is it a simple matter of just adding it into the LP’s and you snapshot it or something?
PV
To keep it short and to the point: That is exactly what it will look like. We think that leveraging Uniswap LPs is something that most people who are into farming are familiar with and just provides a really good UX.
By taking snapshots and then airdropping to the LP community, we ensure a smooth and frictionless process.
WC
Now I’d love to question you a bit on the DAO aspect of things, as I’ve had many DAO based projects come through the channel over the last six months, and we’ve always debated the same thing…Do DAO’s actually work?
I’m especially interested in your case, as your DAO is one that is tasked with making serious financial decisions for the index and isn’t some bullshit excuse for “muh governance token” and instead will actually govern the assets that get added to the basket…
So what’s your strategic approach for implementing a version of DAO based governance that actually might work and what other DAO based decisions will be up for vote in the SCIFI universe?
PV
Looking at some of the DAO implementations in the space, some are more successful than others. We believe that a DAO implementation is something that can not be rushed. There are basic processes that work for some typos of decisions while others work for other types of decisions.
The threat of malicious actors that try to take advantage of attack vectors in DAO infrastructure and design is not to be underestimated. This is why we will follow a gradual process to implementation and will also leverage the opinions and input of the community as well as DAO experts into the design of the infrastructure.
I believe that especially initially there will need to be some bounds as to what types of proposals and decisions are eligible and to ensure a framework around which the DAO can take decisions in the interest of the SPICE community.
WC
So explain to me what full community governance actually means, once you reach the six month mark…It’s free for all of decision making or will there still be some guidance from Mission Control?
RM
For context — the six months mark will be the point at which the first DAO vote will take place. I believe that for the DAO to fully mature it will take some more time, especially as we will only see what other types of indices will be put out then.
Generally, the community will need to agree on a framework or manifesto for DAO governance, which will enable it to A) make swift decisions with high participation, B) take decisions in the interest of the community and C) mitigate any malicious attack vectors. Surely all stakeholders including Mission Control will be guiding the DAO for some time, but as part of the DAO.
WC
I’m actually a big fan of that kind of scaled rollout for a DAO, you can’t let the lunatics run the asylum too early…
RM
Yes, needs to be gradually scaled out. Just doesn’t work to say, hey this is a DAO. The one guy who’s interested we don’t know is running the show now.
WC
Take me through the actual process of DAO voting on SCIFI? Is this something that’s baked into your website or are you using an external service for it?
RM
First off — I am certain that the process that will be initially used will change over time based on the input of the DAO and the learnings made along the way and in other projects.
The initial process will follow a simple path: After a general discussion on Discord, topics will be distilled into a dedicated forum post. This post is then discussed and iteration upon until it can be formalised into an actionable proposal.
The actual vote will then initially take place via Snapshot.io, a DeFi favorite tool for DAO voting. While it works well, I do see the possibility that the DAO will require some more dedicated features. It remains to be seen.
$SPICE TOKEN SALE & SUPPLY
WC
Now I’m super keen to ask you about your TGE…the “Big Bang”, but before I do, can you please drop your full token metrics on me for reference?
RM
Of course!
Starting from the top, there will be a total of 42 million SPICE.
15.5% are allocated to the public via three mechanisms:
8% in the public sale AKA Big Bang,
5% to liquidity farmers and 2.5% to hodlers (self-staking).
3.5% have been allocated in a private sale.
15% are allocated to Mission Control (team)
17,5% are allocated to the Galactic Council.
And finally 48,5% are in the project treasury.
WC
I have to say, that’s quite a large percentage of tokens designated for KOL’s via the Galactic Council…
What protections have been put in place to ensure these KOL’s stick with the project and don’t simply get bored, continue to receive tokens and dump them along the way?
Forgive me for saying so, but in my experience KOL’s in crypto don’t seem to have the greatest attention span when it comes to sticking with projects…
RM
Haha, I won’t tell them you said that!
Yes, I agree that this is a large percentage. We consciously decided for that, as the Senators will bring core value to the project in terms of their expertise and reach.
There are several mechanisms in place that will ensure long term commitment. Foremost, the Council is active for an initial 6 month term. After that, existing Senators may be extended or new Senators may be chosen, so there is an incentive to stay actively involved. In addition, there will be a vesting schedule for the Senators — actually the same as for the team: 3 years.
WC
In a similar vein, you have almost half the supply locked up in the Galactic Treasury.
While this will probably work to get effect in the initial take off phase, explain to me just what these tokens will be used for and how and when they’ll be released to the market?
PV
While we have some ideas about what it can be sensibly employed for and will make those proposals, the DAO will surely have its own ideas.
To touch on those briefly: We see a use for the treasury in the context of future indices beyond $SCIFI. Each one will create a value add for the SPICE DAO and will benefit from allocation of $SPICE for core value driving activity like providing reach, infrastructure services, liquidity farming and more. But as mentioned, that does not mean it will happen.
The DAO might also decide to burn it all. We shall see.
WC
Speaking of the DAO, can all these tokens be used for DAO based decisions?
PV
The treasury won’t be leveraged to participate in DAO voting. That would effectively be a centralised scheme!
No, all the tokens that are locked in the treasury will not be eligible to vote. Only once they enter the market.
WC
Last one of the token tranches, I note you have a Community allocation there and it’s partly designated for “selected partner tokens”.
Explain to me what selected partner tokens means in the SCIFI universe…do you have an example of any and what the context of the partnership would be?
PV
Yes, we included that as we wanted to open the doorway for potential partners of SCIFI that provide core infrastructure services.
The thought here is to provide a benefit to the communities of those potential partners and rewarding them for holding the projects’ tokens. its an indirect incentive for the communities of those projects, not for the teams and another way to decentralise the project, by giving SPICE to those that contribute directly and indirectly.
As of this moment, SCIFI and SPICE are standing on their own feet and this allocation may or may not happen as partners are onboarded.
WC
So let’s get the lowbrow stuff out of the way…wen Big Bang?
PV
Big Bang soon, sir!
As we do not want to pave the way for a sophisticated bot army to prepare for it, we will not give exact times for the sale.
We did just announce however, that the launch is happening veeeery soon! We are constantly monitoring the weather forecast and skies are clear in a window from 1300–1600 tomorrow, Tuesday December 15.
Gotta stay glued to our channels to get the scoop.
WC
How Big Bang? Where will the TGE take place?
PV
We have designed what I think is a pretty cool mechanism. We will leverage Uniswap liquidity pools for the Big Bang. We just think that it offers a really nice and simple and to many people familiar user experience.
It also enables a dynamic price discovery mechanism to find a market driven price during the offering.
WC
What’s the main point of difference between the Big Bang as opposed to any other TGE…past the cool name?
PV
The way it works is by providing a pool with a certain ratio of USDC to SPICE (700k / 500k), we fix the price at an initial 1,40 USDC. As more SPICE is bought, the price rises, because SPICE leaves the pool and USDC enters it, changing the ratio.
In addition, we added in something we call liquidity boosts. At various price levels, we will provide limit sell orders which will effectively create price floors below which a sell off in disincentivised.
You can dig into the details on our Medium post about the Big Bang —
WC
I’m just a dumb words guy here, so help me out a little…how many of the 42m SPICE tokens will be unlocked on day one?
PV
On day one after the sale, a maximum of 6.15M SPICE will be unlocked. The full token release schedule can be viewed in our Dark Paper —
https://docs.google.com/document/d/1FZ8PGEIvUcr9KnyTowOv-KFBHevoNADee_fhkPTorsA/
WC
Based on that, and I know it’s a bit of a moving target as per the dynamics of the Big Bang TGE, but do you have some napkin math for me as to ballpark figures on a day one starting market cap?
PV
I would probably prefer not to indulge in speculation, but if we take the starting price of $1,40 and the maximum 6,15M SPICE on the market and multiply the numbers with each other, then the result is 8,61M.
But as you said, there are many moving parts in this, so it could be higher or lower.
WC
Again, a little bit of napkin based math, as the Big Bang hasn’t happened yet, but roughly how much in USD will you have raised once the TGE has been completed?
PV
If we take the starting price of $1,40 and assume high demand, we are sold out, then that would amount to roughly 4,7M. However if demand is strong, obviously the price rises during the sale, so it will likely be higher.
But we should also not forget the distinct possibility that not all the tokens are sold, seeing that the price gradually rises. In that case, the remaining tokens will be burned. So I really don’t know what the outcome will be and am really excited to see the results in two days.
WC
How much of this capital is being deployed to support the SCIFI index?
PV
The entire proceeds of the sale minus the tokens from the liquidity pool, which is fixed at 500K $SPICE.
WC
Talk to me about some of the mission sponsors you’ve had bankroll the SCIFI launch…any names that may be of note of interest to the community?
PV
Unfortunately we can’t tell any names, but we have a solid group of very talented and well connected folks on board. From founders to investors, traders, influencers. We are happy to have this group assembled.
WC
Back to a couple of lowbrow questions to finish this section off…Obviously you’re launching both tokens on Uniswap…what liquidity support are you providing from the team side of things?
PV
For the sale we are using liquidity pools on Uniswap. In this pool we will provide USDC 700.000 for initial liquidity for $SPICE. The proceeds from the $SPICE sale will be used to mint $SCIFI, i.e. provide liquidity.
WC
I see in the darkpaper you’ve made a commitment to “listings at top tier exchanges” post Big Bang…
Wen CEX?
PV
Save it for the traders group! Just kidding, CEXs usually become relevant and accessible once a certain amount of traction and interest is generated. It would not be wise to speculate around this, but the goal is to do it as fast as sensible and possible.
DUE DILIGENCE CHECKS
WC
Does SCIFI have a Github?
PV
Of course we do —
The development took place in stealth and it was just committed. In the future, this will remain transparent and accessible.
WC
Where in the universe are you guys based?
PV
All over the world, actually: Latin America, USA, Europe, South East Asia, Australia.
WC
Do you have a legal opinion that your tokens aren’t considered a security…or is that one of the benefits of being anon…fuck the SEC…am I right?
RM
I would rather say it’s a benefit of a decentralised project ;) If the SEC comes knocking no one is anon. If we would create a credit card payment for a fund product, this might be considered a security.
What we provide is an infrastructure that lets people lock different tokens together in a basket. None of the tokens will be securities. This basket can be acquired through Uniswap and potentially other gateways.
WC
Not that they seem to count for much these days, but wen audit?
PV
I actually think audits are super important. Not only a second pair of eyes, but also a third party. This is why we’ve already done one.
Read up on the details here —
SCIFI Resources
Website: https://scifi.finance
Telegram: https://t.me/sci_finance
Twitter: https://twitter.com/sci_finance
Medium: https://scifinance.medium.com/
Dark Paper: https://docs.google.com/document/d/1FZ8PGEIvUcr9KnyTowOv-KFBHevoNADee_fhkPTorsA/
Wolf Crypto Resources
Public Group: https://t.me/WolfCryptoPub
News Channel: https://t.me/WolfCryptoAnnounce
Twitter: https://twitter.com/WolfCryptoGroup
