Coinyspace White Paper

Transcription

1 Coinyspace White Paper Draft 0.1 Our mission is to become the go-to platform for all existing cryptocurrency users and the main gateway for the new adopters. We believe that cryptocurrencies will eventually become mainstream currencies, and Coinyspace will be at the centre of the action! P a g e 1

2 Contents Coinyspace Platform... 3 Platform s features and benefits... 3 Tokens... 6 Overview... 6 Token Economics... 6 Use of Funds... 7 User Acquisition and Marketing... 8 Appendix 1 - Our Vision Fiat money system Crypto System P a g e 2

3 Coinyspace Platform Enhancing the Technology vs. Expanding Community There is no doubt that blockchain is the technology that can transform the world. It can be as revolutionary as farming technologies which made gathering and hunting redundant and led us to the dawn of the human civilization. Blockchain can lead us to its heyday. First time in history, we have a real chance to forget about drudgery and survival and move to the world of prosperity and economic freedom. However, despite having the powerful technology behind it, the success of cryptocurrencies has been limited by their lack of adoption and acceptance. Coinyspace is the first platform that is focusing on the community building, as we believe this is the foundation that will elevate the universal acceptance of bitcoin and other digital currencies. Coinyspace s mission is enhancing acceptance, adoption, and use of digital currencies. The platform is designed to be a place where ideas can be shared, developers, merchants, and individuals can collaborate with one another, and lasting and productive connections can be forged. Our ultimate aim is to make cryptocurrencies universally accepted across the world. Platform s features and benefits We launched the prototype of our platform in 2016 (named mobuinet) and have been collecting user feedback to improve various aspects of the platform s framework since then. We are going to use funds raised through the token sale to implement the user suggestions by removing redundant features while enhancing and expanding the requested functionality. The platform offers a unique functionality that is specifically designed to facilitate further adoption and usage of cryptocurrencies. In particular, Coinyspace users will be able to: Utilize Basic Networking Functionality within the Cryptocurrency Community: Create individual profiles, Create pages for their projects, businesses and other organizations, Publish updates and articles and send direct messages, Connect to each other, manage subscriptions and newsfeeds. P a g e 3

4 Use Specific Cryptocurrency Features, for example: Indicate in the user profiles/pages which cryptocurrencies a person/business uses/accepts, Showcase goods and services merchants sell for accepted cryptocurrencies, announce offers and discounts. Search across different types of contents and pages for a relevant cryptocurrency (e.g. all x-coin users in a location Y, or restaurants accepting x-coin in a location Z); Publish community requests to find developers, merchants and other partners (for instance a request to find a freelancer who will do a specific work in exchange for cryptocurrencies or tokens). Partner requests are published like regular posts and can be seen and shared by the community; Initiate product or service requests, i.e. express willingness to buy goods or services using a specific cryptocurrency; Create and promote ICO campaigns, including running airdrop and bounty campaigns, building and managing the community and expanding the ICO outreach; etc. Benefits of Coinyspace for different types of users are summarized in the following table: Users Founders and developers of cryptocurrency projects Benefits of Coinyspace Will be able to showcase their projects, by creating an authentic Coinyspace profile that highlights project s strength, describes its competitive advantage, and builds trust in the team and their company; Can launch and manage ICO campaigns, airdrops, bounties, publish updates and engage with the community using userfriendly functionality of the Platform; Will be able to build and engage their online network to attract more: developers and contributors, airdrop and bounty campaign participants, token purchasers, adopters and users, partners and service providers, miners, merchants, - and so on. P a g e 4

5 Users Merchants who already accept cryptocurrencies or are willing to start accepting them Cryptocurrency users Benefits of Coinyspace Can increase their turnover and reach by showcasing and promoting their goods/services to the cryptocurrency consumer base on Coinyspace Can streamline their supply chain and reduce costs by finding more suppliers, contractors, freelancers and employees accepting cryptocurrencies, Can expand their operations by utilizing the networking functionality, which will enable them to expand their operations by strategically connecting and partnering with other businesses Can financially benefit by becoming early adopters, miners or investors of new promising crypto projects, Can earn cryptocurrencies by showcasing or promoting their freelance practices, businesses, ideas or campaigns, Will be able to find ways to spend digital currencies to buy goods and services they need, New users will be able to learn quickly how digital currencies work and seamlessly immerse into the crypto world. P a g e 5

6 Tokens Overview Coinyspace Token ( CNC ) is a voucher, that can be exchanged for advertising or other services rendered by the Coinyspace Platform. Token holders can use CNC to bid on keywords or ad rank and get higher positions for more competitive bids. CNC is a utility token; it does not entitle its holder to any financial return, voting rights, discounts or any other privilege. The sole use case of CNC is being exchanged for the Platform s services. Used tokens will be destroyed. Token Economics Coinyspace is to issue 1bn tokens, which will be allocated in the following way: If the total number of coins sold during the Token Sale is less than 0.6bn, unsold tokens will be burned and the number of tokens reserved for User Acquisition and Marketing as well as for the Team and Advisors will be proportionately reduced. Tokens reserved for the Team and Advisors will be locked for at least 1 year. Token Sale Parameters: Soft Cap: 50m tokens, Hard Cap: 600m tokens, Token Price: ETH per a token P a g e 6

7 Use of Funds Funds raised during the Token Sale will be used as following P a g e 7

8 User Acquisition and Marketing As noted above, 30% of Tokens and a considerable part of the project s budget is allocated for User Acquisition and Marketing. Our marketing plan includes the following activities: Initial Airdrop Campaign: 25m Tokens will be airdropped to attract the first token holders and users of the Coinyspace Platform. This will help to increase awareness about the project and gain initial market traction. All the user profiles created during the airdrop will be activated into the earliest alpha release of the platform, creating the initial set of users; Initial Bounty Program: 25m Tokens will be used to provide compensation for a number of tasks spread across marketing, content creation, bug reporting, and improving aspects of the platform s framework; Sign Up Bonus Campaign: Once the functional platform is launched, we will incentivize new sign-ups by offering new users a certain amount of tokens from the pool reserved for user acquisition and marketing. Unlike Initial Airdrop, Sign Up Bonus Campaign will require performing specific tasks on the Platform; Referral Program: Early users of the Platform may receive an opportunity to earn referral fees by inviting new users to Coinyspace; Ongoing Bounty Program: A portion of tokens allocated for User Acquisition and Marketing will be used to offer compensation for some marketing tasks on an ongoing basis; Social Media Campaign: A dedicated social media manager will be hired to create quality content and engage with followers across all the popular social networks and Coinyspace itself; Cryptocurrency Partner Program: We will target high-quality crypto projects to present all the benefits of Coinyspace to their founders and make them use the Platform as their main community management tool; Merchant Attraction Program: We will hire an account manager responsible for bringing businesses, which adopt cryptocurrencies to Coinyspace. At an earlier stage, we will create well-designed pages for the merchants, to show them benefits of Coinyspace and facilitate their on-boarding on the Platform. Merchant Crypto Awareness Program: We will target new businesses which do not accept cryptocurrencies yet. We are aiming to partner with crypto merchant service providers and offer turnkey solutions which will enhance cryptocurrency adoption across the board. P a g e 8

9 Content Production Program: We are going to produce in-house engaging pages and articles, covering different facets of the crypto ecosystem. These pages/content will be used to generate traffic and increase awareness about cryptocurrencies as well as showcase the powerful functionality of Coinyspace, Join the Crypto Revolution Campaign: We will develop a comprehensive onboarding guide for people who are just joining the crypto world and will use different marketing and advertising channels to attract these people to Coinyspace. Platform s Growth & Scalability Our mission is to become the go-to platform for all existing cryptocurrency users and the main gateway for the new adopters. We believe that cryptocurrencies will eventually become mainstream currencies, and Coinyspace will be at the centre of the action! P a g e 9

10 Appendix 1 - Our Vision We believe that community is not just an add-on to a cryptocurrency, but rather it is an inherent part of what makes the cryptocurrency money at first place. This paper outlines why community building is the most important part of the crypto ecosystem. Any modern currency is based upon three pillars: 1) Ledger, 2) Transaction system, 3) Community support. These three pillars underpin the money system where ledgers are used to record transactions initiated by the community and to display a confirmed output of these transactions at a given point of time. Up to this point, the crypto ecosystem has mainly focused on the ways in which the ledgers are designed and transactions are processed. Our project aims to focus on the community building and cryptocurrency adoption to prop up the revolutionary technology behind the crypto ledgers and transactions. In order to understand that the community of adopters is an inherent part of the money system, we need to consider how the fiat system is designed and how bitcoin and other cryptocurrencies differ. Fiat money system Fiat currencies are predominantly maintained by banks ledgers, which are digital databases in the banks IT systems. These databases are double-entry accounting systems, that record transactions on currency accounts against equal and opposite transactions on different accounts. At any given point in time, the ledger consists of the banks liabilities (i.e. records of currency balances held in the bank) and the banks assets (i.e. by records of the property, which back the currency). This looks like this: P a g e 10

11 Bank s Ledger Currency notes 50 Currency Account A Reserves in Central Bank 250 Currency Account B Total 300 Total 300 Bank s liabilities is just another term for the fiat currency. When you make any transaction with your bank account with a check, debit card or a payment order, your bank makes a record in its IT database decreasing your bank account balance against a corresponding increase on a different bank account or against a transfer of its assets to a different bank. This looks like the following: Bank s transaction when the recipient has a currency account in the same bank: Currency notes 50 Currency Account A 100 (-20) = 80 Reserves in Central Bank 250 Currency Account B 200 (+20) = 220 Total 300 Total 300 Bank s transaction when the recipient has a currency account in another bank: Currency notes 50 Currency Account A 100 (-20) = 80 Reserves in Central Bank 250 (-20) = 230 Currency Account B 200 Total 280 Total 280 Digital records as above are predominantly what the modern money system is about. Like cryptocurrencies, fiat money is just numbers on computers like cryptocurrencies. The fundamental difference lies in an institutional framework of how these numbers are backed, i.e. what makes them legitimate and widely accepted as money. This is where the community support kicks in as an inherent part of the money system. In the case of fiat currencies, the community is the entire population of a nation (for a national currency) or a group of nations (for currencies like EURO). Institutions backed by these P a g e 11

12 communities legitimize currencies and make them valuable. Let s consider how it works for the fiat currencies. As you can see above, customer accounts in banks are backed by the Central Bank issued currency notes and reserves. Essentially, what banks call an asset is nothing but a liability recorded in a ledger of another entity - the Central Bank. This is known as the two-tier banking system, where the Central Bank acts as an ultimate Bank for banks. The Central Bank runs banks accounts in the same way that banks run their customers accounts in the banks own ledgers. So let s see how the Central Bank s ledger looks like. Central Bank s Ledger: Treasury Notes Reserves of Bank A Reserves of Bank B - 10 Currency Notes - 40 Total 200 Total 200 Banks transactions are recorded in the Central Bank s ledger similar to how it is processed in banks ledgers. When Bank A transfers money from its customer to a customer of Bank B, using a settlement system utilized by the Central Bank, it looks like this: Treasury Notes Reserves of Bank A 150 (-20) = 130 Reserves of Bank B 10 (+20) = 30 Currency Notes - 40 Total 200 Total 200 The Central Bank s ledger is an accounting system that allows eligible institutions to hold reserves balances at the Bank and settle obligations to each other. Even currency notes, which have physical form, have to be recorded in the Central Bank s ledger as its liabilities. Paper bills are essentially a technology used to run payments with Central Bank s money without banks acting as intermediaries. P a g e 12

13 The Central Bank s money (primarily the money held in reserves accounts at the Bank) is usually perceived as the ultimate secure and liquid asset; however, as you can see above, the Central Banks liabilities have to be backed too. In this case, liabilities are backed by Treasury Notes. So our next question will naturally be how are these Treasury notes are backed in turn? Let s have a look at the Treasury s ledger: Treasury s Ledger: Due From General Funds Treasury Notes 1000 Total 1000 Total 1000 Treasury Notes are backed by a vague asset, called Due From General Funds. The US Treasury explains what this stands for in the following way: General Fund liabilities, primarily federal debt, are obligations of the U.S. Government that have accumulated since the U.S. Government s inception. These Department-managed liabilities are separately reported on the Consolidated Balance Sheets, with a corresponding amount reported as Due from the General Fund. Due from the General Fund represents a receivable, or future funds required of the General Fund to repay borrowings from the public and other federal agencies. In other words, Due from The General Fund is nothing but a word used to describe that the money system is backed by the people, by the community of people that accept the money. It is not a financial asset in the normal meaning of that word, because there is no debt or equity instrument called the receivable, or future funds required of the General Fund. It is not definitely not a commodity either. It is just an accounting representation of the community support. This is the only source of backing for a currency. Now, if you aggregate all the components of the money system into a consolidated ledger, eliminating all the interim steps, it looks much simpler: 1) Banks back their customers currency accounts with the Central Bank s money Reserves in Central Bank Currency Accounts P a g e 13

14 2) The Central Bank, in turn, backs its money with Treasury Notes (which means that the Central Bank s reserves are just an intermediary and the Currency Accounts are indeed backed by the Treasury Notes, once the interim step is eliminated). Treasury Notes Reserves in Central Bank 3) And finally, Treasury Notes are backed by the community of the people. Due From General Funds Treasury Notes Once you take all the interim steps out, you can clearly see that the currency accounts maintained by banks are eventually backed by us, the people. Our acceptance of the system turns the numbers on the computers into money. Due From General Funds Currency Accounts Banks, the Central Bank or governments are just intermediaries that exist to run the system. Blockchain is the very technology that was created to make these intermediaries redundant. Crypto System One of the fundamental reasons why we have intermediaries running our money system is the necessity to rely on the institutions to maintain the ledgers and process transactions. Only someone reliable and trusted can be responsible for keeping the ledger in the right order to prevent mismanagement and fraud. However, while trusting these institutions to run the system, we also give them the privilege to create money in a way which is not always the most transparent and beneficial for the community. The technological dependence, a necessity to have a trusted third party, entails a socio-economic dependence. Satoshi Nakamoto described this issue in the following way: The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is P a g e 14

15 full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible. and offered his solution: I've developed a new open source P2P e-cash system called Bitcoin. It's completely decentralized, with no central server or trusted parties, because everything is based on crypto proof instead of trust. The revolutionary idea offered by Satoshi Nakamoto was to create a ledger capable of keeping records and processing transactions without a reliance on a trusted third party. The blockchain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the blockchain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to ensure bitcoins that are being spent are actually owned by the spender. The integrity and the chronological order of the blockchain are enforced with cryptography. As we demonstrated above, the fiat system s ledger without intermediaries would look like this: Due From General Funds Currency Accounts Where Due from General Funds means nothing but a community support for a given currency. Bitcoin ledger does not involve double entry accounting because it does not require recording claims between different intermediaries like banks. The community support is simply implied if people use bitcoin, it means they accept its legitimacy. Bank of England honestly and clearly described this phenomenon in their research paper: Digital currencies have meaning only to the extent that participants agree that they have meaning. That agreement takes the form of a public ledger and a process for how changes to it are made, including the creation of new currency. Not being an IOU or liability of the central bank (or the state) does not prevent digital currencies from being used as money In theory, digital currencies could serve as money for anybody with an internet-enabled computer or device. At present, however, digital currencies fulfil the roles of money only to some P a g e 15

16 extent and only for a small number of people. They are likely at present to regularly serve all three purposes [i.e. story of value, medium of exchange and unit of account] for perhaps only a few thousand people worldwide, and even then only in parallel with users traditional currencies. In summary, the only way to make Bitcoin (or other cryptocurrencies) serve as real money is to make the community of adopters as big as possible and have merchants accepting crypto in all corners of the world. Coinyspace is created to make this happen. P a g e 16