When you open the official website of Spacemesh, the first thing that comes into view is a resounding slogan—On a quest to become the people’s coin! Tomer Afek, co-founder of Spacemesh, once said that “Spacemesh’s low barrier to entry and incentive compatibility inspired the original vision of true decentralization that began with the birth of Bitcoin.”
SMH is the native token of Spacemesh. It has experienced several huge surges, from US$0.1 at the opening of trading to as high as US$11, with the highest increase exceeding 100 times. Now, due to the bear market, the currency price is trading sideways at around 3 US dollars, with a stable increase of 20 times, and daily transaction volume of several million US dollars. Therefore, there is reason to believe that Spacemesh will take off in the future as the currency price continues to rise. The wealth-making effect of blockchain has made traditional finance ready to take action. Friends who want to participate in the Spacemesh&Aleo mining industry, please add WeChat at the end of the article.
01
Spacemesh
Project name: Spacemesh
Project Category: Mining
Established: 2017, Israel
Project introduction:
Spacemesh is a decentralized cryptocurrency and smart contract platform designed to achieve a highly decentralized, high-throughput and high-security blockchain network. To achieve this goal, SpaceMesh uses Proof of Space-Time (PoST) as its consensus protocol because the team believes it is more resource-efficient, easier to achieve decentralization, and more secure than Proof of Work and Proof of Stake. Also uses a block lattice structure to order transactions, rather than a single blockchain, to eliminate negative incentives present in other protocols, such as malicious attacks. The project hopes to build a decentralized, secure and scalable cryptocurrency and smart contract platform that anyone can utilize the spare space on their hard drive and idle graphics card computing power.
The project currency is called Spacemesh Coin (SMH), and the SpaceMesh team believes that by prioritizing the “fairness” of the protocol and developing a product with low barriers to entry, sustainable transaction fees, and strong decentralization features, they can offer the greatest the value of.
Future Vision:
Fair mining: The project team is committed to achieving fair layer-1 mining, and there are rewards for participation. The goal of the project team is to make Spacemesh profitable and sustainable for mining on a variety of different devices, even running on smartphones. While this will take some time to achieve, there are no fundamental obstacles.
SVM virtual machine: The project team is pursuing a comprehensive virtual machine for Spacemesh, which is not limited to limited virtual machines like Bitcoin, nor is it limited to EVM. The project team plans to start with a small number of hard-coded "precompiled" smart contracts in the initial version and gradually expand to achieve first-class smart contract virtual machine functions.
Competitive Advantage:
1) Highly decentralized: Spacemesh is designed to be a highly decentralized system. Each independent miner is rewarded frequently, eliminating the need for collective mining. At the same time, home users can provide space resources, increasing the possibility of many individual miners participating in the system.
2) Competition-free protocol: Spacemesh is designed as a competition-free protocol, which means that honestly generated blocks are always recognized as valid. This prevents powerful miners from receiving disproportionately high rewards, making the protocol more incentivized.
3) Self-healing: Spacemesh can self-heal, even in the face of any attack that violates security assumptions. Even if the system is constantly attacked by a constant portion of the space resources controlled by the attacker, honest parties will reach a consensus when the security assumptions are satisfied again.
4) Security guarantee: As long as the space resources controlled by the opponent do not exceed a certain part of the system, the Spacemesh protocol is safe. At the same time, the protocol is also capable of self-healing when network synchronization assumptions are temporarily violated.
5) Permissionless consensus: Spacemesh is a permissionless consensus mechanism that allows new participants to join the network without the approval of current currency holders. This increases accessibility and lowers the barrier to participation.
6) Environmentally friendly and efficient: Spacemesh uses Proof of Space-Time (PoST) as its underlying consensus mechanism, which is more energy-saving and efficient than the traditional Proof of Work (PoW) protocol. At the same time, it takes advantage of existing and often inefficiently utilized storage devices, making it easier for home users to participate in mining.
02
team introduction
Spacemesh is an Israel-based company that aims to build a blockchain mesh operating system that improves blockchain technology with a new consensus protocol - Proof of Space and Time POST. PoST can run on any desktop computer and aims to resist expensive ASIC mining. machine. The Spacemesh team is composed of professionals from many different backgrounds. There are currently 27 members listed on LinkedIn, covering fields such as computer scientists, cryptographers, mathematicians, engineers, and designers.
Founder
Aviv Eyal Co-Founder
Focused on building free, open source blockchain operating systems and fair cryptocurrencies. As an entrepreneur and technologist, he is committed to developing consumer-grade digital products and services that are innovative, easy-to-use, and have a great user experience. He has extensive experience building high-quality full-stack systems and launching consumer media startups.
Tomer Afek Co-Founder and CEO
Previously co-founder and chief marketing officer of SHOWBOX, he successfully transformed brands and publishers into digital video giants. In addition, he has extensive experience in online advertising and investment, serving as CEO of ConvertMedia.
Core member
Raphael Ouzan Board Member & Advisor
Raphael Ouzan is the founder and CEO of A.Team, a team building platform. He also co-founded BlockNation, a company dedicated to investing in web3, with Apollo CEO Mark Rowan. In addition, Raphael Ouzan is an honorary officer in the S-Technical Division of the Israel Defense Forces and was named an outstanding talent under 30 by Forbes.
Yaron Wittenstein Chief Development Engineer
He holds a bachelor's degree in computer science from the Technion-Israel Institute of Technology where he was responsible for building a decentralized programmable cryptocurrency based on proof of space and time, and held the position of software architect and backend lead in his past work experience. Additionally, he served as a software developer in the Israeli Intelligence Forces.
03
Financing situation
Spacemesh has completed over 3 rounds of funding, raising a total of $18.2 million from leading cryptocurrency investors, including Metastable, Coinbase, Dekrypt, Slow Ventures, Polychain, Paradigm, Dragonfly, Electric Capital, Greenfield, Arrington XRP Capital , BRM Capital, gumi Cryptos Capital (gcc) and 1KX and other institutions. The latest funding raise took place on December 27, 2021, with Leland Ventures and Kosmos Ventures becoming the latest investors.
04
economic model
Token abbreviation: SMH
Total number of tokens: 2.4 billion
Token distribution:
l 93.75% (2.25 billion pieces) are gradually generated as block rewards. Block rewards are distributed according to the reward distribution plan in each block and will be directly distributed to Smeshers (Spacemesh miners) without pre-mining.
l 6.25% (150 million pieces) are reserved as team rewards. There is no initial release. They are gradually released according to the unlocking plan and will be released one year after the creation.
In other words, in the first year, only the tokens in the hands of miners were in circulation in the market, but by the fourth year, the tokens in the hands of the team and investors will account for nearly 40% of the circulation at that time, and then the miners will gradually be narrative. In the 10th year, the team and investors held 25% of the tokens in circulation at that time.
Unlike Bitcoin, which halves every four years, Spacemesh’s halving cycle is about 29 years, which is about 7.3 times slower than Bitcoin. The last complete Bitcoin will be issued around 2140, but the last Spacemesh coin will be released in approximately Issued in 2899.
From a broader perspective, reward distribution follows an exponential decay function spanning nearly 2,000 years. Team rewards will begin to unlock one year after creation and will be unlocked within three years. In year 277 after creation, the tier reward dropped to less than 1 SMH, so the total circulating supply changed little after the time period shown in the chart, although this process continued until year 1893 before completely stopping. Year.
Reward distribution:
Smeshers who participate in block generation will receive block rewards. These rewards come from two sources: newly minted coins (called block rewards) and fees collected from transactions included in the blocks.
The number of new coins generated in each block gradually decreases according to an exponential decay function until it eventually reaches zero. After this, smeshers will only receive as reward the fees collected in each block.
The cumulative total reward amount for each tier is controlled by the following formula:
To calculate the number of new coins in a given tier, the project calculates the cumulative rewards of the current tier and the previous tier, then subtracts the latter from the former.
Reward unlocking plan:
At genesis, rewards allocated to members of the development team, Spacemesh companies, and investors in the development and implementation of the protocol will be minted and distributed into a special type of vault account, but cannot be transferred until unlocked.
In the first year after creation, there are no reward funds available yet. Only after a year will 25% of the bonus coins be unlocked from the vault and available for withdrawal. Thereafter, rewards will be unlocked layer by layer in a linearly increasing manner until they are fully unlocked in the fourth year after creation.
This scheme is designed to ensure that the total amount of team rewards unlocked at any given moment remains below the cumulative block reward.
Token value capture:
1) Block rewards and miner incentives: The $SMH token is the basis for block rewards in the Spacemesh network. This reward mechanism encourages miners to participate in block generation and ensures the security and reliability of the network. Each block will generate new $SMH tokens as a reward for the miners' contributions, and are also the source of motivation for the operation of the Spacemesh network.
2) Team Reward Unlock: 6.25% of $SMH tokens are reserved as team rewards. These rewards are gradually released according to an unlocking schedule over a specific period of time. Development team members, Spacemesh companies, and investors who support the development of the protocol will gradually be rewarded for their successful development in the ecosystem, thus providing motivation for the long-term healthy development of the project.
3) Token scarcity and supply gradually decrease: The total number of $SMH tokens is 2.4 billion, and the generation of new tokens will gradually decrease over time. This is achieved through an exponential decay function to ensure the scarcity of the token. This scarcity has the potential to create more demand in the market and therefore the supply of the token gradually decreases, possibly creating investor interest in the token.
4) Network usage and transaction fees: In the Spacemesh network, tokens may be used to pay transaction fees and service fees. Users are required to use $SMH tokens to participate in various activities on the network, thus promoting usage and demand for the tokens.
Core demand side of tokens:
1) Miners and validators: Block rewards and miner incentive mechanisms attract miners and validators to actively participate in the Spacemesh network. By contributing computing power and validating transactions, they can earn newly generated $SMH tokens.
2) Development team and investors: The team reward unlocking plan provides long-term incentives for development team members, Spacemesh companies and investors. The gradual release mechanism of these rewards encourages them to maintain a long-term cooperative relationship with the project, ensuring the continued development and optimization of the protocol.
05
Investment logic
The original intention of blockchain is to establish a decentralized currency system. Although Ethereum has successfully transitioned from Proof of Work (PoW) to Proof of Stake (PoS), turning PoS into a mainstream consensus mechanism is considered a more environmentally friendly way to prove equity. However, mining under the PoS mechanism requires miners to invest a large amount of capital to provide economic incentives to become honest network participants who abide by the rules of the protocol, but this effectively excludes home users as potential miners. Instead, this drives the network to become more reliant on a handful of “whale” nodes that slowly but steadily control the network, leading to a hash power monopoly. This also means that there is only one type of miner in the network - wealthy miners. On the other hand, the previous mainstream PoW mining method required a lot of computing power, resulting in mining becoming more and more concentrated in a few mines with the necessary computing power, and at the same time wasting a lot of energy.
Against this background, the Spacemesh team launched a sustainable and environmentally friendly alternative - PoST. At the same time, Spacemesh combines the protocol with the physical scarce resource of the real world - storage space. This feature allows Spacemesh to overcome new problems that arise when using PoS. By using Storage Spaces, anyone can participate at any time without the need to accumulate large amounts of capital from other protocol participants, as Storage Spaces is widely available to anyone with a home PC. This ability to join at any time greatly reduces the chance of collusion and censorship, and also makes the economy fairer, with the distribution of tokens not limited to large mining farms, but covering all participants.
Therefore, Spacemesh is a leading blockchain operating system designed to solve the centralization trend and scalability bottleneck issues in the current blockchain, providing support for smart contract global computers and permissionless cryptocurrencies. Technically, it uses Proof of Time and Space (PoST) to replace the traditional Proof of Work (PoW), achieving efficient energy utilization and environmental protection, and at the same time, it adopts an incentive-compatible protocol through the chain of mesh topology and the hierarchical directed acyclic graph (DAG). , ensuring decentralized security and a highly scalable network. In addition, the Spacemesh protocol also lowers the threshold for user participation, allows the use of unused hard disk storage space to contribute to the security of the network, and promotes widespread participation in the community.
To sum up, the rise of Spacemesh represents a challenge to the traditional blockchain structure, bringing an innovative solution to the blockchain field and promoting the entire industry in a more sustainable and environmentally friendly direction. .
