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Market

What is Market?

Market is smartcontract on SONM blockchain, responsible for keeping order book of buy/sell orders. Functions:

  • Place and cancel Orders
  • Create Deals
  • Create Deal Change Requests
  • Bill Deals
  • Close Deals
  • Manage Master-Worker relation

How Market works

SONM resources distribution is based on market mechanics. Hardware suppliers can offer their resources for rent. Consumers can rent the resources on market.

Market is similar to exchange:

  • Bid/ask orders. Suppliers place ask order. Consumers place bid order.
  • Offers from both sides can be matched by parameters.

Market is different from exchange:

  • Best match and FIFO principe (first order in must be matched first) are not guaramteed because of distributed nature. Cliend nodes and Workers search for matching orders and match them in parallel and independently. Such design leads to races, but doesn't require a centralized matching engine, thus enabling true peer-to-peer market. SONM uses smartconract to enable atomicity of transaction for deal settlement, so races cannot break core logic. For example, there cannot be a Deal with two BID orders, with wrong benchmarks, etc.

How payments are processed

Each deal has a price in USD, but payments are all performed in SONM blockchain token using current SONM token exchange rates on major cryptocurrency exchanges (Binance, Okex, ...) . Deal price first appears on the market as price attribute of an order. Then, when deal is settled price is set as an attribute of deal. Both Consumer and Supplier can suggest changing of deal price by creating Change Request. Other side shall confirm Change Request for changing to be applied to the Deal.

When Consumer creates an order, it immediately provides a deposit for Deal that is transferred to the Market smartcontract. In case of spot Deal the deposit is 1 hour Deal price equivalent. For ordinar Deal the deposit is 1 day or full Deal price equivalent, the lower value.

DAO

DAO is not implemented at this moment. Such functionality will be considered at later stages of system development.

Network fees

No network fees, dividends or other kinds of passive income are implemented at this moment.

Such functionality will be considered at later stages of system development. Such functionality must not threaten or put under question the "utility token" status of SNM token. Current vision is a network fee, collected by trusted hubs for performing special tasks, related to maintaining the SONM network. The exact implementation way is still under research.