Synereo, the start-up behind its namesake decentralized Blockchain-based social network, destroyed an aggregated amount of 731,108,937 AMPs worth close to $146,221,787 on the market which it had controlled.
The Tel-Aviv based company which develops a decentralized tech stack, allowing web applications to exist without centralized servers, says it is poised to ensure that Synereo does not maintain a centralized position. The full stack it’s been building will allow apps such as email to be built in a more secure and decentralized format, to prevent such events as a recent hack of Yahoo’s central server.
Relinquishing control to users
Relinquishing control to users has been the core proposition presented by most decentralized platforms. From the next-gen social media network Akasha powered by Ethereum to privacy-aware decentralized platform, Diaspora, putting users in control of their data has been their promise.
Though these new set of decentralized platforms are yet to capture the social media market when compared to their already-established centralized counterparts like Facebook and Twitter to ascertain the widespread level of their acceptability based on this key feature, Synereo has joined their list as it essentially eliminated half of all its native Cryptocurrency in existence to give up more control over its platform.
Fundraising campaign
The announcement came two days before Synereo launched its second fundraising campaign on Monday September 19. Its CEO, Dor Konforty, noted in a blog that it would not make sense for Synereo to control more than 50% of its native currency since the platform will utilize a Proof-of-Stake Blockchain which can be manipulated by the majority holder of the currency.
He maintained that it was never their intention to be the central bank for the platform’s information flow currency as such centralization will go against the very principles Synereo stands for.
Konforty stated: “We guarantee that by the time we will have released our next-gen, scalable, PoS-based Blockchain, Synereo will hold fewer than 50% of all available AMPs throughout the different wallets the company controls. We will achieve this by distributing the AMPs for their intended purpose, and by burning whatever is left at the time of release.”