Will SPK Network Be The Next 50x Crypto Gem?

When the SPK Network team announced the airdrop in October last year, it caused great excitement in the Hive community. Since then, I have been following the developments regarding SPK Network closely. It is difficult for people other than developers to understand/interpret what the system promises. Every few months, I reread the SPK Network Light Paper. As the project takes on flesh and bones, what is described in the Light Paper becomes more understandable. We can also use SPK Network Funding Proposal to get an idea about SPK Network.

What Is SPK Network?

SPK Network defines itself as follows. I left out the second part of the definition for easier understanding.

The SPK Network is a decentralized Web 3.0 protocol that rewards value creators and infrastructure providers appropriately and autonomously.

The following definition more clearly expresses the function that SPK Network will assume.

The SPK Network is a decentralized solution that incorporates video content, storage, and delivery into the hive blockchain ecosystem.

In the crypto ecosystem, projects such as Filecoin and Arweave focus on storage apart from the SPK. The experience gained in the Arweave project was also utilized in the design of the SPK Network. Such infrastructures bring together those who have storage resources and those who need storage. Thus, the dependency on centralized structures such as Amazon decreases, and the storage service becomes decentralized.

The censorship-resistant video platform 3Speak, which is still operating on Hive, is also a stakeholder in the SPK project. I predict that 3speak videos will start to be stored on SPK Network in the future.

@spknetwork is represented to the Hive community by @theycallmedan and @starkerz.

Brief History Of SPK Network

We can summarize the main developments in the SPK Network as follows.

May 1, 2021 - Light Paper is published.
September 6, 2021 - Funding Proposal submitted to the Hive community for approval.
September 10, 2021 - Funding Proposal Accepted by the Hive community.
October 8, 2021 - Airdrop announced.
January 6, 2022 - Airdrop snapshot was taken.
March 10, 2022 - The first claim drop of LARYNX tokens to be used for SPK mining has been realized.
August 3, 2022 - LARYNX holders have been allowed to delegate, and those who do not undertake the node function can also earn SPK.

In the CTT podcast held last week, it was stated that the first version of the system would be activated within three months. And a stable version of the system would be deployed within six months.

Free Thoughts on SPK Network

Hive is a blockchain that excels at processing and storing text data. With the activation of SPK Network, it will also have video and image storage capability.

There are some problems that SPK-style Web3 projects face. The main ones are the high initial valuations accompanied by VC participation and the limited use of these systems not supporting these valuations.

Since SPK Network is a community project, no ninja mined coins, or VC participation exists. Community support provides an advantage in accessing node operators and funding the project. SPK network is still operational with the involvement of more than 30 nodes. The SPK network also benefits from the security provided by Hive.

One of the things I like about the SPK network is the trading on the mainnet made possible by ceramic accounts. Unlike other side chains, we can operate on the SPK infrastructure without the need to transfer Hive and HBD. Dlux, Larnyx, and Duat can still be traded on this infrastructure. It would also be nice to swap on the mainnet via liquidity pools.

SPK infrastructure is designed to include DEFI features. The system's revenues will be collected in a pool, and additional income will be generated through DEFI mechanisms.

Speak Network Token Economy

The SPK ecosystem has three basic tokens.

LARYNX is distributed to Hive owners 1:1 in equal amounts every month via airdrop. The airdrop will continue until the end of the year. The price of LARNYX, a token used to mine the SPK, quickly dropped to 0.01 Hive. This shows that distributing SPK tokens via a miner token is a wise choice. Because investors often do not appreciate the value of the tokens they receive as airdrops. At the beginning of this month, the infrastructure that enables LARYNX tokens to be powered up and delegated to earn SPK was activated.

SPK is the governance token of the Speak Network. SPK can be compared to Hive in a sense. Just as Resource Credit is earned when Hive is powered up, Broca, the system's gas token, will be earned when SPK power up is performed. SPK will be a capped coin in a deflationary structure supporting long-term holding.

Gas token BROCA can also be traded and transferred to other accounts. Users will pay via BROCA when uploading content to the system. A higher Broca payout will allow faster reloads.

LARYNX tokens, traded below 0.01 Hive until recently, have recently gained some value and are changed at 0.025 Hive. LARYNX was distributed to Hive owners in a one-to-one ratio. Assuming that all LARYNX are claimed, we can conclude that SPK Network is still worth 2.5 percent of Hive.

However, SPK Network statistics reveal a different picture.

By the end of 2021, there was 384 million Hive. Therefore, theoretically, 256 million claims could be made in the first eight months. However, only 34.7 million LARYNX have been claimed. Only 11.8 million of them have been powered up, so they can earn SPK. Unclaimed LARYNX tokens will be transferred to the SPK DAO. Those who did not sell their LARYNX token will have a say on the network far beyond their shares.

Conclusion

If things go as planned, SPK will enable Hive to evolve into a Web 3.0 media network supporting video and image formats.

Due to the broad scope of the project, it is not easy to envision what it promises. For this reason, there is not much talk about the SPK, except for the project owners.

The data on the token economy that I have explained above show that the perceived value of the system today is relatively low. Assuming that the claim rate will increase in the coming months, the airdrop may end with a LARYNX number of 60 million. LARYNX prices have tripled in the last two weeks. Hence, it is possible to buy one-thousandth of all LARNYX for 1,500 Hive at current prices.

If the system comes into play and the market conditions help, LARYNX and SPK can reach valuations far above what is perceived today. Of course, this will have a positive impact on the Hive price.

Having invested in LARYNX may have biased my views. Therefore, you better do your own research.

Project website: https://spk.network/

Thank you for reading.

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