Synereo Burns its Premined Cryptocurrency Valued at $140m

The Tel-Aviv based blockchain startup is putting its money where its mouth is with regard to decentralization.

Synereo, a Tel-Aviv based blockchain startup developing a decentralized, open-source social network, has destroyed an aggregated amount of 731,108,937 AMPs – the company’s native cryptocurrency – essentially eliminating half of all AMPs in existence in response to the community’s request.

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The destroyed AMPs have been held in various cryptographic wallets, controlled by Synereo, and were originally intended to be part of Synereo’s long term budgeting strategy. They were worth close to $146,221,787 on the market according to the company’s estimates.

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Announcing the move, Dor Konforty, Synereo CEO, explained that since Synereo’s platform will utilize a Proof-of-Stake Blockchain, “it would not make sense” for Synereo to control more than 50% of its Blockchain’s native currency (a Proof-of-Stake Blockchain can be manipulated by the majority holder of its native currency).

“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,” he added.

Synereo further 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. Additionally, 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.

Synereo’s announcement came just before the official start of its second fundraising campaign, on Sept 19th, during which a limited amount of the company’s AMP holdings will be offered for public purchase at a fixed price.

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