07 May 2018

Phantasma ICO Review

Summary

  • Project Name: Phantasma
  • Token Symbol: SOUL
  • Website: https://phantasma.io/
  • Whitepaper: https://phantasma.io/phantasma_whitepaper.pdf
  • Hard Cap: 10,000,000 USD
  • Conversion rate: 0.20$ per token
  • Bonus Structure Public Sale: No bonus, no lockup, 40% of hard cap. Individual caps will exist, but the amounts are TBA.
  • Bonus Structure Pvt Sale: Bonus up to 30%, lockup of one month only for the bonus tokens, no lockup for the rest. Up to 60% of hardcap available for private sales
  • White list: Whitelist is closed now. A 2nd wave to be reopened on 10th May, 2018
  • NEP-5 Token: Yes
  • Crowdsale: Starts 22 May 00:01 UTC
  • Total token supply: 100,000,000 SOUL
  • Tokens available for sale: 65,000,000 SOUL
  • Countries which are not eligible to participate in tokensale:USA, China, North Korea, Syria, Seychelles.

Project Overview

What does the company/project do?

​Phantasma is a decentralized content sharing platform.

Phantasma is basically an autonomous and decentralized network running as a smart-contract on the neo blockchain and the code executing the platform is public and immutable.

Phantasma saves us from relying on the third-party services for something as critical and personal as email, it also gives the content creators like those who create videos, games, music and other monetized content their own platforms so that they don’t have to pay the platform holders and they have an absolute control over the content they create.

Also, the safety and privacy in widely used systems like 'cloud' (cloud computing, storage, services etc.) is now being seriously challenged. So, decentralized systems like Phantasma are becoming increasingly in demand by giving two main advantages:

  • Ability to aggregate an immense set of disparate small economic resources (thus gaining economies of scale), and
  • The increased transparency and freedom from not being dependent on a trusted third party (i.e. Amazon’s AWS or Microsoft’s Azure).

The Phantasma project will have two separate teams, one working in the core tech and the other building working product which will be open-source.

Problem it is aiming to solve

  • From the 2000s, a new system of remote centralized services has emerged, the so-called cloud platforms, and anything-as-a-service. Now, this trend towards centralization brought substantial cost reductions and improved economies-of-scale.
  • But, currently seeing the limitations of such solutions, and its inherent disadvantages, like increased risks from having a single point-of-failure and being locked in proprietary closed systems.
  • For example, in 2013, Lavabit the email provider used by Edward Snowden was shut down due to a gag order and all users of the service lost access to their emails. Also, in 2014 iCloud was hacked, leading to massive leaks of private photos of celebrities even though apple maintains a centralized system with high-end security. As long as user content is owned by a third party, this will continue to happen.
  • The widespread availability of devices, and their under-utilization, presents a unique opportunity to leverage an enormous amount of computing resources (CPU cycles, storage, bandwidth). Recent blockchain projects have been launched to explore this niche market, also a market is developing for decentralized applications (dApps) running on smart-contract platforms (Ethereum, NEO etc) but there is a demand for even more reliable and available resources.
  • One more problem arising for decentralized applications designers, is how to manage data - how to store it, access it and manage it. Storing real world data on the blockchain is prohibitively expensive. And managing it becomes impossible to do, considering how little infrastructural support there are to do it.

Roadmap

  • Q3 2017
    Proposal and design of Phantasma. Development of initial Proof of Concept.
  • Q4 2017
    Submission of Proof of Concept to City of Zion dApp contest, where it was one of the top 5 winners. Website launch and team formation.
  • Q1 2018
    Initial draft of the white paper. Presentation of Phantasma at NEO devcon in SF. Continued development of the core protocol.
  • Q2 2018
    Phantasma public token sale. Prototype of the first Phantasma dApp: secure email
  • Q3 2018
    Release of Phantasma SDK, which will let any third-party developers start building their own Phantasma based products, along with release of Oracle Nodes, as an example of SDK usage.
  • Q4 2018
    Phantasma relay nodes will finished and released, allowing Phantasma apps to break free from the transaction speed limits of blockchain. The SDK will be upgraded to support the new feature and Phantasma Chat will be developed to showcase the Relay nodes.
    A development competition will be held at this point. Start of split of Phantasma from NEO network into its own blockchain, using the NEOX protocol for cross-chain interoperability. Testnet will be released.
  • Q1 2019
    Release of Phantasma Storage, as expansion of the Relay system. The SDK will be updated to support Storage.
    Release of main net, native tokens to be issued according to NEP5 ownership. Porting of the SDK to support native blockchain. Storage nodes will start being rolled out to public, so that anyone can take part of the Phantasma network.
  • Q2 2019
    Phantasma Digital Commerce will be released to showcase how to do more complex logic

How are the tokens supplied, its usage and how can token value appreciate?

Fig1: Projected use of contributions

Fig 2: Token distribution

Use of tokens
  • SOUL tokens are the fuel that powers the Phantasma network. Access to data via Phantasma gates and allocating storage space will have a cost in SOUL. 
  • Phantasma encourages a smart economy model, where access to data can be optionally paid with SOUL, from which a percentage is sent to the platform pool.
  • The SOUL from this pool is later redistributed to participants of the Phantasma network, replacing the common mining system which is prone to pseudo-centralization. This allows companies and individuals to run their own businesses using the network.
How tokens value will increase

Phantasma encourages the natural flow of tokens between users: consumers need tokens to pay for data, these tokens go to producers and developers, who need them to pay for storage and network services. From there, the Node rewards are redistributed to all node operators, which should expectedly include many simple users / consumers. Thus, the ecosystem is designed to foster the increasing use of SOULs among all participants in the network, with an appreciating outlook for the token value.

Important Details
  • There will be a single funding round, with a private and public token sale.
  • While the majority of the tokens will be available to the public during the public sale, SOUL will be reserved to reward third-parties who contribute to development and improvement of the Phantasma ecosystem.
  • The tokens will be distributed in a sale done with a NEO smart contract.
  • If the hard cap is not reached during the crowdsale, the total token supply will also be lower, as the remaining tokens will not be minted.
Lock-up Period

The smart contract will have a lock-up period (also known as vesting period) for each type of address tier. Any party with vested tokens can unlock their tokens after the vesting period was reached, by calling UnlockTokens via smart contract.

Team tokens will be locked with a tiered vesting period as following:

  • Cliff of 6 months
  • Vesting of 3 years, with 10% unlocked every 3 months, for a total of 30 months

Advisor tokens will be locked with a tiered vesting period as following:

  • Cliff of 2 months
  • Vesting of 12 months, with 10% unlocked every month, for a total of 10 months

For the addresses belonging to strategic partnership the following rules apply:

  • 100% of base (non-bonus) tokens will be available immediately after the token sale
  • Bonus tokens will have a vesting period of 30 days

For the addresses belonging to bounty participants, their token share will be split into two single parts, and lock-up period will be the following:

  • 50% of tokens, available 1 month after the token sale
  • 50% of tokens, available 2 months after the token sale

For the addresses belonging to public sale contributors, their token share will be split into a single part, and lock-up period will be the following:

  • 100% of tokens, available immediately after the token sale

Team

The team is mainly composed of Portuguese developers with experience in blockchain, smart contracts, mobile and web development. company is based in Lisbon, Portugal.

  • Sérgio Flores (Co-Founder of Phantasma, City of Zion developer and blockchain consultant.)
    Sérgio is a senior experienced developer with 20 years of business and customer facing software development, and a track record of tackling complex structural systems (filesystems, drivers, compilers, debuggers - which was the case for his recent development, a NEO debugger).
  • Miguel Ferreira (Co-founder, senior ‘bigdata’ and compiler developer and blockchain expert.)
    Miguel is a senior experienced developer, with years of entreprises systems engineering and academic research on distributed systems. Crypto investor and Ethereum developer.
  • Alexandre Paixão (Marketing expert and tech enthusiast.)
    With a background in management and business development, Alexandre complements the team on the non-technical side of business growth and brings important skills like Marketing and Public Relations to the table, which are key to the increasing awareness and development of the Phantasma platform.
  • Sérgio Pereira da Silva (Business developer, Fiscal and Legal lead)
    Economist by trade, crypto lover, Sérgio Pereira is responsible for building valuable partnerships with the larger NEO ecosystem, and evangelizing for Phantasma real world use cases among companies worldwide.

  • Bruno Freitas (Software developer)
    Graduated in Computer Engineering, he entered the crypto space as a hobby in early 2017. Found ”AntShares” (NEO now) project and immediately got interested, which resulted on being accepted as a City of Zion developer for his work. Experienced with C# and .Net stack technologies. Specialized in cross platforms applications, Bruno is in charge of the mobile development of Phantasma.
  • Bernardo Pinho (Software developer, QA/Tester)
    The most recent and youngest member of the team, Bernardo is a crypto enthusiast and passionate developer. A recent graduate from a top engineering university, he is completely devoted to blockchain development, with previous experience on the Ethereum ecosystem.
  • Rafael Barbosa (Graphic Designer)
    Rafael from an early age began to work as a graphic designer attending to ESAD Matosinhos, one of the best schools in Europe, and developed projects for international companies such as NOS Primavera Sound Porto and others. One of his major interests in the design world is helping business promote themselves effectively.
Advisor

Advantages of using neo blockchain over Ethereum blockchain

  • Transaction Throughput – Ethereum is still bound by Proof-of-Work, which limits the transactions to 10-30 per second. On the other hand, NEO does have fast transaction speeds, very cheap (current 0) gas costs, and high throughput, mainly derived from the use of Proof-of-Stake (PoS).
  • Second Layer Scalability – Both options do propose future solutions, with Ethereum having Raiden and others, but NEO has its own advance proposals for future advances in scalability with the coming of sharding and state-channels (Trinity).
  • Ecosystem – Talking about the maturity and time-tested reliability of the system, both of the platforms are strong but NEO has an extensive development environment and a large and growing community of developers, partner support staff, and a healthy number of applications being integrated with it.
  • NEOX – NEOX as cross-chain interoperability agreement is a really important feature since it gives warranty that in the future, the project can be moved into a separate blockchain while still keeping interoperability with NEO.

Opportunities

  • The platform de-intermediation allows for trustless confidence in the system, subject to the timely review and analysis by community experts, isolating the health of the ecosystem from any particular localized shocks.
  • Once the full set of proposed software that powers the Phantasma protocol is production ready, the network would be self-sustaining and completely detached from the original developers and deployed as its own blockchain.
  • By providing a uniform, standard interface (API) with all the fundamental data access semantics that applications require, Phantasma will boost the productivity of dApp developers, broaden its potential and energize the NEO ecosystem.
  • The targeted focus on access control with any desired granularity, supports a vast array of use cases, customizable by every user according to their unique needs.
  • The token distribution plan is adequate. It is planning to invest 40% reserved for Marketing and Growth ,30% for Development , 20% for Operations and 10% for Legal and Contingency which is a fair distribution.
  • Transparency: Ongoing reports on the progress and development of the network will be provided regularly to the public, along with public access to the Phantasma GitHub, which will allow developers and investors alike to be up-to-date with the network’s development.
  • Decentralised email: With Phantasma, we can easily create a full-fledged email-like centralized system. A Phantasma-based email application has the advantage of being more secure, configurable by the Phantasma VM script, and with the data being completely in control of the inbox owners.
  • Oracle: Phantasma makes it very easy to provide oracle-like services on NEO. There’s 3 methods available to do an oracle, depending on the actual data volumes and requirements: Fully Onchain, with Backend Storage and Endpoint only with Phantasma Relays.
  • Digital Commerce is also a good fit for the Phantasma platform, allowing sales of digital products, be it videos, videogames or other files.
  • If you are a content creator that usually releases videos for free, you can host your videos in the network, allowing you to decide who will see those videos. Your followers don’t have to see unwanted ads, also with phantasma you can host the videos for minimal costs and then have full control of how to monetize your content.

Concerns

  • Compared to traditional databases one major disadvantage is the throughput speed, which is several orders of magnitude slower than traditional databases.
  • The concept is not new. Many blockchain projects are coming up with the same idea so the competition is tough.

Conclusion

  • All-star team: they participated in the City of Zion’s NEO dApp challenge and were among the top 5 winners.
  • Advisors like Neeraj Murarka from Bluzelle add experience and bring large Bluzelle community support .
  • The Token metrics looks really lucrative and since 65% is allocated to crowd it looks fair.
  • MVP will be launched by Q2 of 2018
  • The Token has good utility value.
  • Total hard cap: 10,000,000 USD (low for project of this caliber)

Final Verdict

For Long term: Good
For Flipping: Good

For more information about the ICO, please visit the following links:

Website: https://phantasma.io/
Whitepaper: https://phantasma.io/phantasma_whitepaper.pdf
Telegram: https://web.telegram.org/#/im?p=@phantasma_io
Twitter:  https://twitter.com/phantasma_io