As we've mentioned in our earlier article, How we approach fundraising, we treat Saturn Network as a new kind of software company - internet native, incorporated on the blockchain as a DAO, and with bank accounts in Bank of Ethereum and Bank of Ethereum Classic.
Invest in Growth
At its core Saturn Network is a software company that develops the permissionless, user focused decentralized financial protocol - the Saturn Protocol. Unlike businesses of the past that attempt to capture created value in centralized company stock, Saturn Network sees global adoption of Saturn Protocol a lucrative enough goal that we do not have company stock at all - only Saturn Protocol tokens.
Despite pioneering a new and revolutionary way of running a business, Saturn Network is still a software startup that cannot exist without external funding in its early days, but when it's operational at 100% capacity it will change the world. And just like with Microsoft, Facebook and Ethereum, early investors have a chance to participate and significantly increase their net worth.
The way startups get funding is by selling equity in the fast growing company, or in our case a fast growing product. In our case, the product is the DAO, equity is tokenized with SATURN and STRN tokens, and we are raising funds to deliver on the Saturn Roadmap. And there has never been a better time to invest in Saturn Protocol than today - these numbers speak for themselves.
Today we are raising money to improve utility of Saturn token and its market price. During HODL 2020 investment round, we will sell 15% of token supply on Ethereum Classic chain (STRN token), and 20% of token supply on Ethereum chain (SATURN token), which is very typical for a "Series A" funding round in the life of a software startup.
When we hit next maturity milestones, we will need to raise funds once more in order to get to the next level. Thus we will be selling another 15-20% of SATURN at new market price to partners and investors, while for STRN this will likely be the last tranche of tokens that we are selling in a funding round.
STRN (Ethereum Classic)
Ethereum Classic community has benefited from our work the most so far, as we were the first team to dedicate serious resources to building on ETC, as opposed to using it for mining only and as a faster but less secure Bitcoin. At the end of the day, Ethereum Classic is a smart contract chain that only has value if there are useful smart contracts on it, and ETC community gets it.
As such, we've seen strong demand for STRN tokens over the course of their existence, with token price going up even throughout the long bear market.
At the end of this funding round the dev team will end up with roughly 40% of total supply, and we believe that ETC community will use our Dev Kit and Services to build and promote more dApps, more tokens, which will lead to increased utility of Saturn DEX, higher trading volumes, and thus higher utility for STRN token. At this stage the next big priority will be launching the on-chain DAO smart contract and transitioning protocol governance to the STRN community. Check Prometheus stage of our roadmap for more information.
Compared to Ethereum Classic blockchain, on Ethereum our product lacked exclusivity. When we launched our exchange there has already been EtherDelta, and 0x relayers started to appear. Our approach, however, is to win long term and to not sacrifice decentralization and uncensorability when there is no need for it, and we've designed superior infrastructure and token economics that will propel the usage of the protocol and the price of SATURN token going forward.
Saturn Network has
- Superior decentralization and uncensorability
- Best new dapp user onboarding in the industry
- Instant free listing for any token
- Fast and easy to understand user interface
- Best ergonomics - all trades done in one transaction
- Integrations with major crypto exchange trackers
The only thing that was missing before Saturn Network can really take off is liquidity. We have a solid plan to leverage liquidity of all competing DEXs to bring liquidity to Saturn Protocol via Atomic Arbitrage within the next three to six months. We have already tested prototypes internally and confirmed that it works. Once fully operational, this technology will ensure that Saturn Network has the largest liquidity pool of all DEXs on Ethereum blockchain.
By the end of Fenrir period of our roadmap we expect to hit $100,000 daily trading volume milestone. We are well positioned to achieve this goal, having focused this whole year on providing integrations into the larger cryptocurrency ecosystem and ensuring that our exchange model works and is loved by users. After our recent update, we've increased our daily volume 100x, and we've attracted more users, putting us consistently in top-10 DEX rank. We believe that if we stay our course, provide the easiest low fee trading experience, and launch Atomic Arbitrage, we will reach top-6 rank, which will put us right around $100k daily volume mark. In order to incentivize adoption we also plan to allocate a larger portion of SATURN tokens towards trade mining and partnerships compared to STRN.
At that point the exchange will start collecting meaningful amount of fees that will need to be distributed to SATURN token holders. Once we reach that milestone and pay out the first batch of dividends our financial model projects that, conservatively, SATURN market cap will be between $4M and $10M USD (compared to current of $1M), which will yield a profit of 4x to 10x compared to base price of SATURN tokens in this funding round, before bonuses. We will publish a follow up article explaining our financial model and token valuation based on dividend payouts.
As such, the next priority will be launching the on-chain DAO smart contract and conducting quarterly dividend payouts. While the dev team will still hold the majority of tokens, and thus governance control, we will be able to demonstrate the payouts and provide a valuation benchmark. At that point we will be considering doing another funding round to raise money to develop the next milestones: cross-chain atomic swap DEX, DAO toolkit that will allow entrepreneurs to create and manage their own DAOs on Saturn Network with easy integration into the DEX, and aggressive marketing. Our goal is to take all of Forkdelta's market share by end of 2020 which will firmly put us in top-5 Ethereum DEX position.
Learn More about Saturn Network:
Be sure to follow Team Saturn on Twitter for our latest announcements and updates, join our HODL 2020 Investment Program to support development of our roadmap, and share your unique referral link to get extra rewards!