DFINITY Foundation

Synapse.vote (original)

ICDevs.org

CryptoIsGood

Anvil

ICPL.app

ysyms

The Accumulators’ Neuron

RawTech Venture

Paul Young

ICPMANUAL

8yeargangDAO

Isaac Valadez

Krzysztof Żelazko

Nicolas.ic

Smaug’s Neuron for Retail Investors

ICLight.io

Synapse.vote (NEW)

Taggr Network

CodeGov.org

Sonic AMM

Internet Computer Association

Arthur’s Neuron (used to be cycle_dao)

Inactive (Request Removal) - The Fools' Court

Always Rejects

John Wiegley

### Summary

This is the proposal for the NNS to create an SNS DAO to govern the EMC Network.

### Purpose

Establishing and governing through DAO to make EMC truly decentralized. It is an AI + Web3 ecosystem co-built by and for the community. 

[EMC is a project](https://edgematrix.pro/) that combines Web3 and AI that runs on the IC blockchain, with a decentralized GPU computing network, computing power marketplace, AI model marketplace, and computing power Real World Assets (RWA for short) and protocols as its core offerings.

Web3 + AI will be one of the main themes driving technology and business transformations in the foreseeable future. The goal of the EMC network is to enable more people to enter the AI era and share the dividends of this era under the governance of EMC's DAO, eliminating digital divides. 

It is [open source](https://github.com/EMCProtocol-dev) and the code running on any canister smart contract verifiably links back a particular version of the code, and by establishing and governing through a DAO, EMC achieves true decentralization. 

EMC's innovative business model surpasses billion-dollar valued platforms like Coreweave, Hugging Face, and the App Store. It has boldly constructed a decentralized GPU computing network, which currently has over 12000 registered nodes, [1600 GPU compute verified nodes](https://dashboard.edgematrix.pro/#/), and is rapidly expanding. Built on this foundation, [EMC Hub](https://emchub.ai/) is an innovative platform that integrates a GPU computing power marketplace, AI model aggregation marketplace, and AI app store. Its goal is to become the world's largest and most comprehensive one-stop hub for AI computing power and model aggregation, discovery, and trading.

Also built on the EMC computing network and EMC Hub is the innovative introduction of new on-chain tokenized assets such as AI Compute [RWA-NFTs](https://yumi.io/market/collection-nft-list?id=aak4r-6aaaa-aaaah-adlhq-cai) and [AI Model NFTs](https://yumi.io/market/collection-nft-list?id=hc3r6-6yaaa-aaaah-admkq-cai). The generation, display, invocation, and trading of these equity NFTs significantly shortens the path to value monetization and capitalization for computing nodes and AI developers. All of these will create real value assets for the next bull market.

The SNS DAO includes a treasury holding EMC and ICP which can be utilized to fund ongoing platform development and reward positive usage and growth. The EMC DAO exists to steer the direction of the EMC project, and is owned by the community without any central controller. EMC token holders can stake their tokens as neurons, enabling them to propose and vote on changes to EMC. For more information about EMC's SNS, please refer to the [whitepaper here](https://whitepaper.edgematrix.pro/en).

### Proposed Token Distribution

52%: Reserved for Ecosystem Rewards, under control of the EMC DAO

10%: To be distributed by the NNS run decentralization sale which includes the Community Fund

6%: To be reserved for subsequent decentralized sale, exclude Community Fund

15%: Allocated to the EMC Developer Team

2%: Allocated to the advisors, early supporters of EMC and Airdrops

15%: Reserved for the EMC Foundation

Ledger transaction fee: 0.001 EMC tokens

For more information on the initial token allocation, please [read here](https://whitepaper.edgematrix.pro/en/tokenology-of-usdemc/distrubution-and-voting-of-tokens).

### Governance

Each decentralization sale participant (including the Community Fund) will receive their tokens in a basket of 5 equal value EMC neurons with dissolve delays of 0, 3, 6, 9 and 12 months respectively.

The EMC Foundation will receive its tokens in a basket of 8 neurons, each with a 1 month dissolve delay, but with vesting periods of 3, 6, 9, 12, 15, 18, 21, 24 months.

The founding developer team will receive their tokens in a basket of 8 neurons, each with a 1 month dissolve delay, but with vesting periods of 3, 6, 9, 12, 15, 18, 21, 24 months.

Seed & VC investors will receive tokens in the form of a basket of 4 neurons with a dissolve delay of 1 month but with vesting periods of 3, 6, 9 and 12 months respectively. 

Each airdrop, advisors and early supporters will receive tokens in the form of a basket of 24 equal-value neurons. Each neuron will have a dissolve delay of 3 months. These neurons will be vested over a period of 24 months from the SNS Sale in equal proportions every month.

The governance parameters for EMC are proposed to be initially set as:

Min stake: 5 EMC tokens

Min staking period for voting: 1 month

Max staking period: 1 year

Voting Rewards: The reward rate will start from 2% annually. This rate would decline over time and settle at total 5% over 10 years.

Max staking bonus (for 1 year): 2x

Max age for age bonus: 6 months

Max age bonus: 1.25x

### Decentralization Sale

10% of the total supply of tokens are proposed to be distributed via an SNS decentralization sale. If the proposal is adopted, the sale will start after the specified delay and is scheduled to conclude at the end of 14 days from the start of the sale. If the maximum number of ICP configured below is raised before that date the sale will conclude earlier.

Sale participation parameters:

Min participation: 1 ICP

Max participation: 150,000 ICP

Max to be raised: 1,250,000 ICP

Min to be raised: 625,000 ICP

From Community Fund: 408,000 ICP

Min participants: 100

Sale due: 2 weeks

The sale is open to anyone. Participation is either via the launchpad in the NNS front end: https://nns.ic0.app/ or on the command line using quill.

A couple quick notes regarding how we did valuation:

EMC GPU Network: Coreweave currently has 100k-120k GPUs and is valued at approximately 2 billion USD. Comparatively, the EMC GPU network is expected to have 10k GPUs within 6 months of the MainNet launch (we currently have 1930 RTX3090's/V100 (~AWS P3.2xl) worth of GPUs on the TestNet alone - rewards for the MainNet are 14 times that of the TestNet, so we're expecting ~10x growth in the following 6 months), which will put its valuation at 150-200 million USD in 6 months. Taking references to AWS P3.2xl's spot pricing of $1.3/hr and On Demand pricing of $3/hr, the network's annualized value is around 22-50 million USD.

EMC AI Hub: HuggingFace currently has a valuation of approximately 4 billion USD, with [9M monthly unique visitors](https://www.similarweb.com/website/huggingface.co/#geography), 120k models uploaded and 10 million USD in annual revenue. EMCHub is forecasted to have 30k models, 1 million monthly unique visitors, and 1 million USD annual revenue from NFTs and model commercialization in 6 months, which will also put the comparative valuation at 150-200 million USD in 6 months.

Usage of the SNS funds raised will be focused on expanding the development team, global ecosystem expansion, promoting developer adoption, building a usage model for $EMC, as well as end user acquisition. Operation plans and OKR will be aligned with the goal to drive an increase of $EMC usage and circulation and increase its valuation.

### The dapp

The EMC network consists of 3 dapp canisters, 2 SDK canisters and 3 asset canisters.

- Official Website: `3bjmw-kqaaa-aaaap-qbhrq-cai`
- EMC Node dashboard: `hsujw-ciaaa-aaaap-qbj6a-cai`
- EMC Hub: `qu4qo-oaaaa-aaaap-qbkdq-cai`
- EMC Requester of Computing Nodes: `57hlm-riaaa-aaaap-qbhfa-cai`
- EMC Stable Diffusion: `6tq33-2iaaa-aaaap-qbhpa-cai`
- DIP20 Token: `aeex5-aqaaa-aaaam-abm3q-cai`
- EMC PreSale: `bvojc-yyaaa-aaaam-abm6a-cai`
- EMC Node Reward: `nk6pr-3qaaa-aaaam-abnrq-cai`

### Verification

All the details above can be verified by examining the initialized EMC SNS canisters. [More detailed instructions here.](https://wiki.internetcomputer.org/wiki/How-to:_Verify_SNS_decentralization_swap_proposal)

Proposal to create an SNS-DAO for EMC