The future development prospects of Somnia have certain uncertainties, facing both opportunities and challenges, as detailed below:
Opportunities and Advantages
• Technological Innovation: Somnia's MultiStream technology achieves sub-second transaction finality by separating the execution layer, data layer, and consensus layer, and its EVM compatibility lowers the barrier for developers. Additionally, compiling EVM to x86 machine code realizes hardware-level parallelism, improving transaction processing speed. If these technologies can operate stably on the mainnet in the long term, they will become its core competitive advantage.
• Strong Financial and Collaborative Support: The project has secured over $270 million in committed investments, demonstrating robust financial strength. At the same time, it has established infrastructure partnerships with Google Cloud, LayerZero, Thirdweb, etc., with Google Cloud also serving as a network validator, which helps enhance the project's credibility and technical strength.
• Deflationary Model: Somnia adopts a deflationary token economics model, where 50% of network transaction fees will be burned. As the network usage increases, the burned SOMI will also increase, potentially supporting the long-term value of the token.
• Rich Ecosystem: At the time of the mainnet launch, the ecosystem already included over 70 active projects, covering various fields such as gaming, DeFi, AI, and SocialFi. This indicates a high level of interest from the developer community, which is conducive to promoting network effects and the demand for SOMI.
Challenges and Risks
• Intense Market Competition: The blockchain infrastructure field already has many strong players, such as Ethereum, and Somnia needs to compete for users, developers, and funding against these competitors, facing significant competitive pressure.
• Technical Validation Issues: Despite the impressive testnet data, it remains to be seen whether the mainnet can withstand the pressure of large-scale real-time applications under complete decentralization and security for an extended period. If technical problems arise, it may affect the development of the project.
• Token Unlocking Selling Pressure: The token economic model includes a linear unlocking plan, and the tokens of the team, investors, and advisors may bring market selling pressure after unlocking, affecting token prices.
• Regulatory Uncertainty: Global regulatory policies regarding cryptocurrencies and public chains are still evolving, and changes in regulatory policies may adversely affect Somnia's development.
