Israeli Blockchain start-up Synereo, which is developing a decentralized tech stack to allow web applications to exist without centralized servers, announced recently that it has destroyed 731,108,937 AMPs – its native cryptocurrency, which was worth around $146,221,787 effectively removing half of all AMPs in existence. These AMPs were held in cryptographic wallets, controlled by Synereo, and were originally intended to be part of Synereo’s long term budgeting strategy.
Synero has also started its second fundraising campaign, providing a limited amount of the company’s AMP holdings for public purchase at a fixed price. Both of these moves distribute the wealth in the system. As Synereo’s platform will utilize a Proof-of-Stake blockchain, it would undermine the decentralised nature and many of the benefits if Synereo were to control more than 50% of the its currency.
Dor Konforty, CEO of Synereo, explained: “This project will not help anyone if Synereo maintains an entrenched, centralized position. That is why we want to distribute AMPs as soon as we can, to begin establishing a truly decentralized economy. It was never our intention to be the central bank for our currency. Such centralization goes against the very principles Synereo stands for, but merely standing for principles is not enough.”
Additionally, it was announced that AMPs remaining under the company’s control will be used to compensate developers as an incentive to build decentralized applications that run on top of Synereo’s platform. A large part of Synereo’s AMP holdings will be distributed among new users joining the network, musicians and other content creators in order to incentivize them to use Synereo’s system as a content distribution platform.