Crypto assets trading platform

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1 Crypto assets trading platform SUMMARY: This document introduces Kompler to the market; a trading platform for crypto assets that focus on emerging cryptocurrencies and already consolidated projects. Kompler aims to fulfill the community requirements and brings to the market as it s main competitive advantage, a fixed trading fee. A fee that is not calculated based on a percentual of the trading volume, as widely applied on crypto markets. Besides the Kompler trading platform; the KOMP token will be made available as a fundamental part of the project Initial Coin Offering (ICO). By acquiring the token, our supporters will be able to minimize the trading fee costs and also will be able to collect a monthly bonus based on the total KOMP token volume on the trading platform.

2 1. INTRODUCTION Nakamoto (2008) presented an innovative solution to the global financial market in his work "Bitcoin: A Peer-to-Peer Electronic Cash System": a decentralized, distributed and electronic payment system. According to its creator, A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution (NAKAMOTO, 2008) [1]. The proposed name for that system would be Bitcoin, with capital B, thus creating a homonymous coin, but with an initial capital letter. According to Ulrich (2017) [2]: Bitcoin is a form of money, just like the real, dollar or euro, with the difference being purely digital and not being issued by any government. Its value is determined freely by the individuals in the market. For online transactions, it is the ideal form of payment as it is fast, cheap and secure. It is widely known that Nakamoto (2008) proposal has created a revolution in the global financial market and the possibility of peer-to-peer (P2P) assets/value distribution, setting free both natural and legal persons from the globally consolidated banking system and its regulations. Since the Bitcoin launch, cryptocurrencies universe is continuously expanding, cryptographic concepts and decentralization have been the basis for that expansion. The amount of digital assets is steadily and quickly increasing and new market niches being created. Thus it is implicitly that an innovative trading platform emerges from this global scenario; constant innovation and operational costs reduction is what Kompler strives for. The world major trading platforms, or exchanges, all implement a fee collection that is based on the trading volume. Even if the fees are apparently very low, they will increase according to the traded volume, resulting in a disadvantage for the final user. Kompler s objective is to go against this model, by introducing a fixed fee schema along with the KOMP utility token. The latter that will be used as a form of fees collections within the trading platform. This document is organized as: section 02 presents Kompler and its operational model. Section 03 elaborates about the token ICO and section 04 details its supply and distribution. In section 05, technical details can be located and in section 06 the platform roadmap is presented. Finally, section 07 contains the conclusion. 1

3 2. ABOUT KOMPLER Kompler s objective is to develop cryptocurrencies market-trading products along with an intuitive and user-friendly interface; aiming to satisfy the needs of a diversity of clients and partners by providing means of operational cost-reduction, making use of fixed transaction fees and a platform-exclusive token. Kompler aims to consolidate its brand and become a reference on the cryptocurrencies market, by focusing on well-established crypto solutions and by providing a clean customer experience that can satisfy different customer profiles. Composed by a technical team with more than 20 years of software development experience. Added to the team s market vision and by bringing together different communities, the Kompler trading experience wants to fulfill the end-user needs. 2.1 TRADING MODEL Kompler will perform as a trading platform for a variety of markets and trading pairs. The possibility of selling and buying will be offered. A market consists of a trading pair group, therefore defining the main coin to be used. For instance, the Bitcoin market could be traded for the Ethereum (ETH) and Niobio Cash (NBR), thus generating the ETH/BTC and NBR/BTC trading pairs. Within those trading pairs, the buy and sell orders will be based on Bitcoin. Kompler will start operating with the following markets: 1 Bitcoin (BTC) 2 Ethereum (ETH) 3 Niobio Cash (NBR) 4 TrueUSD (TUSD) Kompler Token (KOMP) A buy offer is defined by a user action that agrees to negotiate a certain amount of coins for a set price. For instance, in the BTC market and NBR/BTC trading pair, a user can place a buy offer of 1000 NBR. Thus accepting to pay the unit amount of BTC, totalizing BTC. 1 Bitcoin Ethereum Niobio Cash TrueUSD - 2

4 On the other hand, a sales offer is defined as a user action that agrees to negotiate a certain amount of coins for a set price. For instance, in the BTC market and NBR/BTC trading pair, a user can place a sell offer of 1000 NBR. Thus accepting to receive the unit amount of BTC, totalizing BTC. 3. ABOUT THE ICO An Initial Coin Offering (ICO) can be considered as an alternative for the crowdfunding, or collective project financing. Usually, ICO participants expect financial growth, while crowdfunding participants support the project due to other reasons. According to Security and Exchanges Commission - SEC [6], "Developers, businesses, and individuals increasingly are using initial coin offerings, also called ICOs or token sales, to raise capital. These activities may provide fair and lawful investment opportunities." Kompler s ICO goal is to support its quick growth, evolution plan and development presented in section 06. The community collaboration is expected concerning ecosystem evolution, for a product that is already functional. The KOMP initial coin offer, the platform utility token, will be split into 05 (five) phases, with an initial supply of KOMP in each step. The ICO process will have the differentiation of the trading value as a means to subsidize the early buyers. The duration of each phase will be of 01 (one) week or while the supply lasts. If a week goes by, the unsold amount is automatically sent to the next phase. At the end of all stages, all unsold tokens will be destroyed, decreasing the total supply. The cost for each KOMP is defined in TUSD, BTC, LTC, ETH, ETC and NBR and set at the time of publication of this document (07/26/2018), ensuring security to supporters. Week Supply Trading value Week KOMP 1 KOMP = 0.1 TUSD 1 KOMP = BTC 1 KOMP = LTC 1 KOMP = ETH 1 KOMP = ETC 1 KOMP = 45 NBR Week KOMP 1 KOMP = 0.15 TUSD 1 KOMP = BTC 1 KOMP = LTC 1 KOMP = ETH 1 KOMP = ETC 3

5 1 KOMP = 90 NBR Week KOMP 1 KOMP = 0.20 TUSD 1 KOMP = BTC 1 KOMP = LTC 1 KOMP = ETH 1 KOMP = ETC 1 KOMP = 115 NBR Week KOMP 1 KOMP = 0.25 TUSD 1 KOMP = BTC 1 KOMP = LTC 1 KOMP = ETH 1 KOMP = ETC 1 KOMP = 140 NBR Week KOMP 1 KOMP = 0.30 TUSD 1 KOMP = BTC 1 KOMP = LTC 1 KOMP = ETH 1 KOMP = ETC 1 KOMP = 170 NBR TABLE 1 - ICO offer details. 4. TOTAL SUPPLY The total emission will be KOMP, distribute via the following manner: 38% allocated during the initial coin offer (buy orders and bonuses). 12% spread over 03 years as a bonus for the Kompler users (approximately KOMP per month after the end of the ICO). 15% available for market trading during the 03 years period, starting after the first 12 months of operation (approximately KOMP per month). 35% dedicated to the back-office ( KOMP), with trading permission after the second cycle of service (24 months). 4

6 Picture 1 - Total KOMP supply distribution As presented, the total supply will be staggered to guarantee the token price increase, thus avoiding that large quantity are dumped, and market value slumps. 5. TECHNICAL TOKEN DETAILS 5 KOMP was published on the Ethereum Classic blockchain, and its technical specifications are presented in Table 02. Name Symbol Specification Supply Kompler Token KOMP ERC20 [3] ( Pausable and Burnable ) KOMP Decimal cases 18 Supply type Defined in the pubished contract TABLE 02 -Technical specifications. KOMP is based on the ERC20 standard proposed by Vogelsteller (2015) [3], that defines a common set of rules for tokens, thus enabling developers to predict with accuracy the tokens [4] [5] interaction. This pattern will allow KOMP to be rapidly integrated with any system that follows the same specification, make the platform easily coupled and highly scalable. 5 Ethereum Classic - 5

7 Every transaction within the Ethereum Classic blockchain must pay a fee to be confirmed by miners. Those fees are calculated in Gas, which is an execution fee for each Ethereum Classic transaction. The Gas value is expressed in ETC and decided by the miners, which can refuse transactions with low fees. When a withdraw is executed, the supporter will require ETC positive balance to execute a transaction to the destination wallet. 5. TRADING FEES KOMP holders will pay a fixed negotiation fee defined as 0,1 KOMP as long as there is a positive balance in the wallet if that is not the case, 0,1% will be charged over the total traded volume. The user will be able to decide if the KOMP token will be used as a trading fee; the user is not obliged to make use of it. The amount of 0,1 KOMP will be periodically re-adjusted to reflect the Kompler operational cost, which is approximately 0,03 USD per transaction. Considering a scenario in which the token value is below the operational cost per transaction, the fees will be updated. This procedure will guarantee that even if the token reaches high prices, the trading fee will continue to be low, and in the opposite case, in case of loss of value, the operation will not be compromised SUPPORTERS DISTRIBUTION RATES At the end of each month, the total amount of KOMP fees collected will be count and ten percent (10%) of that amount will be put aside for the supporters (starting from the second month after the end of the ICO phase). The supporter will receive an amount that is proportional to the total amount of KOMP that the supporter s wallet holds. With this schema, KOMP aims to maintain a continuous platform usage. At any determined moment, the KOMP balance can be transferred to another wallet address within the Ethereum Classic platform; withdraw fees apply according to the current fees table. The evaluated period will always be the previous month and the distribution will take place on the 10th day of the current month. The collected fees will remain under Kompler ownership until the distribution moment. The total quantity can be verified at the address labeled as Kompler 6 Fees Portal. Only supporters that hold a positive KOMP balance will receive a bonus, meaning that the staggered related amounts will be not taken into consideration. The addresses that hold the future distributed amounts will be detailed at the Kompler Fees Portal address, thus guaranteeing the process transparency. The Kompler Fees Portal will display the following info: Total amount of collect KOMP for the selected period. 6 Kompler Fees Portal (available after ICO) - 6

8 Estimated bonus amount per KOMP. Estimated bonus amount for the logged user. Balance of the staggered wallets KOMP MARKET TRADING To promote and provide an immediate benefit for the KOMP token supporters. For the first 06 (six) months: all trades performed on the KOMP market will be exempt from trading fees (the market will be opened after ICO). The trading fee is set to 0 (zero) for the first six months. 6. KOMPLER EVOLUTION AND DEVELOPMENT PLAN With Kompler s launch, a series of initiatives that aim to expand the platform will take place. Also seeking to increase the KOMP token usage by providing high quality and high availability tools, for a fair cost. Initiative Planned for Analytics tools for market and price variations analysis. Q Portfolio Analysis Dashboard Q Mobile Android and ios application aiming to expand the user base Q Payment Gateway supporting third-party integrations Q Plugins for the major e-commerce platforms and payment gateways for crypto payments Q Pre-paid card attached to user crypto balance Q TABLE 03 - Kompler development plan.. 7. CONCLUSION The present work presented the operating model of Kompler, which is a digital currency exchange system based on the blockchain architecture. An evolution and development plan guarantees a series of products that will support an ecosystem in which the KOMP will exist and will have relevance, and finally, the offer of tokens KOMP presents to the market a form of payment of rates in a fixed amount, decreasing and making the cost of negotiations predictable. 7

9 However, if you choose, you can continue using the traditional percentage model of the traded volume. Of the amount collected with KOMP fees, 10% will go to project sponsors. The unit value of the KOMP will be defined in the initial stages of supply and subsequently dictated by the market. Kompler is not a proposal but a project in operation. You can at any time acquire KOMP tokens and conduct negotiations at a reduced cost. You can follow the evolution through and understand the current point of the project. 8

10 REFERENCES [1] Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. [2] Ulrich, F. (2017). Bitcoin: a moeda na era digital. LVM Editora. [3] Vogelsteller, F. (2015, November 19). ERC: Token standard Issue #20 ethereum/eips. Acessado em 02/06/2018, disponível em [4] ERC20 (2018, May 30). Visited on 02/06/2018, available at [5] ERC20 Token Standard. (2017, February 16). Visited on 02/06/2018, available at [13] Investor Bulletin: Initial Coin Offerings. (2017, July 25). Visited on 02/06/2018, available at [7] U.S. Securities and Exchange Commission. (2018, May 30). Visited on 02/06/2018, available at 9