WULET Get Your Cryptoback From Everyday Purchases Your personal cryptocashback from payments that you can use however you like! WHITEPAPER 1
Content About WULET Project goal and tasks Market review Problems of most loyalty programmes Why do we need blockchain? Development of a safe ecosystem based on blockchain WULET description Value proposition WULET monetization Strategy for entering the market Model of a unified WU-token Model of an internal loyalty exchange WULET ecosystem WULET expansion Token sale parameters Roadmap Team Contacts 3 4 6 8 9 10 11 12 13 14 15 17 18 19 20 22 23 23 2
About WULET How can we make the use of crypto an easy, safe, and everyday process? How can we unite loyalty programmes with different conditions for the ease of their members? How can we turn loyalty programmes into something that brings real value to their users? WULET is a platform that will provide its users with the opportunity to receive cashback from everyday purchases in the form of cryptocurrency. This platform will make possible the management and exchange of bonus points between loyalty programmes of various companies. This will allow the client to always have at hand the points they most need. Our Mission To popularise the everyday use of cryptocurrency by creating a blockchain platform that will allow clients to monetise all available bonus programmes, and contractors to save resources and attract new clients. Every day, making a purchase at a store or having lunch at a restaurant, people receive yet another loyalty card. When certain conditions are met, the clients are supposed to receive a bonus for their use. Most people today participate in at least 15-20 loyalty programmes, even though it is very time-consuming to fulfill the conditions of each. The WULET platform is being developed specifically to resolve these issues. Our team s main goal is to maximize the convenience of loyalty programmes and business income. We aspire to create a unified decentralized system that will incorporate the use of cryptocurrency into everyday life. The idea of WULET is much broader than simply gathering all loyalty cards in one application. The project will unite all loyalty programmes within one platform, creating a unified system. WULET will help businesses cut costs on creating and implementing new programmes that are now not even yielding the results that were expected. The platform will simplify the process of choosing a source of information for the client: the data on all bonuses, special offers, and discounts of partner companies will be shown in the application, saving time. Thus, the clients will receive their discounts and bonuses, and business will optimize their expenses while also increasing client loyalty. 3
Project goal and tasks WULET aims to incorporate the use of cryptocurrency into everyday life and to create a single personal account to unite and conveniently manage all loyalty programmes. Tasks to help clients get rid of a huge number of loyalty cards by uniting all programmes into one easy-to-use application to create a platform that will allow its users to receive cashback in the form of cryptocurrency to unite a wide network of clients and register the highest number of contractors possible to widen the range of products offered on the internal online store +5% Thus, the main payment instrument on the platform will be WU-tokens, which will be issued at the end of the main stage of the token sale. Clients will receive cashback in WU-tokens that can later be used in three different ways: To exchange the tokens for fiat currency on an external exchange For purchases at the WULET partner establishments To exchange the WU-tokens for bonus points of various loyalty programmes on the WU internal exchange It s important to note that the user will not only be able to exchange tokens for bonus points, but also vice versa, in case there is a demand for these on the WU internal exchange. Today: you participate in multiple loyalty programmes, where each has their own internal points structure and privileges you cannot use, or exchange points received on different programmes as you see fit the transportation of all your existing bonus cards is inconvenient With WULET: payment information is uploaded onto WULET using a QR-code the bonuses from all networks are accumulated in your unified crypto-balance you can spend your bonuses in partner marketplaces, save in the form of cryptocurrency, or sell them on an exchange all discounts and promotions are located in one app, WULET, and you don t need to go through each programme individually you get benefits, and the store gets a loyal client 4
Who is the platform created for? The Platform is oriented at once toward the members of the b2c market, and also toward the average user, who wants to monetise their bonus points from loyalty programmes in everyday life. Contractors will get the opportunity: to use a simple instrument to create loyalty programmes on the foundation of WULET to save resources on development, integration, and management of personal programmes to avoid participating in unwanted and risky joint loyalty programmes to grow their client base, to keep the current clientele, and to attract new clients through the growth in popularity of blockchain technologies Clients will get the opportunity: to use an easy-to-use instrument to manage all their loyalty programmes in one WULET application to unite all available bonuses in WU tokens, and either use them within the system, exchange for fiat money, or trade them on exchanges to monitor the process of the receipt of crypto-cashback (through smart contracts) to use cryptocurrency for everyday needs, thus popularising the technology 5
Market review WULET can be employed in all spheres that involve loyalty programmes in their activity, from restaurant chains to gas stations. We decided to choose the foodservice industry as a starting point for WULET, since in our opinion this sphere has the highest potential for growth. The European foodservice market is highly developed - it makes up 50% of travel and tourism industry, or $806bn. According to recent research conducted by MarketLine, consumers consider attending of foodservice establishments as a leisure experience that can be avoided in times of financial difficulty. Since price affects demand, many cafes and restaurants are ready to offer discounts at off-peak times to attract those customers who would not necessarily be their clients at full price. Travel & Tourism Industry. European region Other tactics that are often employed include limited-time menu items and loyalty plans. Large players in the foodservice industry invest heavily in brand-building, particularly in the low and medium-price segments. Such branding helps drive customer loyalty, since the brand can speak for itself and attract many more clients. Other popular tactics to attract clients include participating in already existing loyalty programmes or creating one s own. There are many establishments around the world that face various issues that prevent them from launching their own cashback service. 6
WULET aspires to simplify the process of launching of loyalty programmes as well as their use. The platform will provide establishments with the opportunity to easily launch a cashback service without any complicated integration mechanisms. The advantages of using WULET will not only include all the benefits of traditional cashback services, but also the opportunity to multiply the number of accumulated bonus points due to the growth of the token exchange rate. $ Billion 1950 1900 1850 CAGR* + 3,7% 1800 1750 1700 Travel & Tourism value forecast (2017-2022). European region 1650 1600 0 2017 2018 2019 2020 2021 2022 Cumulated annual growth rate (CAGR) in the Travel Tourism industry is expected to be 3.7% until 2022. Its forecasted value for 2022 is $1933.8 bn. 7
Problems of most loyalty programmes 1 Companies launch loyalty programmes not only to keep their current clients, but also to attract new clientele with favourable conditions. However, many of these programmes are not successful. Recent research by Bond, in partnership with Visa, has shown that only 22% of respondents had noticed some benefits from participating in loyalty programmes, and only 36% of respondents are satisfied with them. 2 Most clients (57%) don t even know the number of points on their loyalty card balance. Just in North America, bonus points worth $100bn have been left unredeemed. This is hardly surprising, since about 20% of participants never use their bonuses at all. We believe that the main problem behind loyalty programmes is that in most cases clients receive bonuses that can only be spent in that particular establishment. According to the latest study done by CardLinx, 46% of clients prefer to receive cashback in the form of a fixed percent of the purchase amount. What type of reward do consumers prefer? 8
Why do we need blockchain? Blockchain will allow to quickly and safely create, trade, and exchange bonus points by using cryptographic smart-contracts instead of involving other organizations and administrators. We are working on developing the most convenient solutions: a platform for loyalty programmes, a mobile application, and tokens. Chart delineating the functionality of loyalty programmes involving blockchain technology i Blockchain allows to complete and record transactions in real time. Recent research conducted by Bond and CardLinx has shown that clients would like to use received bonuses as soon as possible. That is why the organizations that cannot provide this service run the risk of losing their clients, as they can simply forget about their bonuses. 9
Development of a safe ecosystem based on blockchain Blockchain records the operations into a block, making them both permanent and trackable by noting the time when that transaction was completed. This prevents the double spending of loyalty points and other kinds of fraud. In other words, blockchain-based loyalty programmes are not only more resistant to hacking, but also have additional levels of protection that had previously been unavailable. Firstly, all loyalty points will be converted to tokens and given identification codes that are extremely difficult to falsify Secondly, to access and alter the records on the blockchain, one would need to hack over 51% of that blockchain, which is next to impossible Advantages of blockchain implementation Design Implementation Customer engagement Programme management Organizations Tokenization of bonus points makes them trackable and unique Clear understanding of current, unused loyalty points and where they reside in the loyalty ecosystem Opportunity to choose will attract more clients Transparency of the system will allow to understand client preferences Customers Single wallet including all loyalty programmes high speed of transaction processing will allow for nearinstantuse of loyalty points Opportunity to choose any loyalty programme Transparency of the system prevents fraud 10
WULET description The WULET team provides a solution that will unite all loyalty programmes and allow users to exchange bonus points of various companies. To do this, the company will create its own internal exchange, where clients will be able to purchase bonus points of any loyalty programme in exchange for WU-tokens. Every loyalty programme will have its own exchange rate of bonus points depending on their demand. Thus, the users will be able to choose the bonus points that are more valuable to them: airline miles, retailer bonus points or additional litres of fuel. It will be possible to convert accumulated points to WU-tokens, and then exchange them for fiat money. Here are the key points of the WULET launch: 1 2 All the bonus points of loyalty companies that implement the service in their activity will be transferred to blockchain When a new partner company joins WULET, its clients will be automatically awarded the bonuses they ve accumulated by participating in its loyalty programmes. The blockchain stores the client s hashed phone number. After the client has been registered and authorized with this phone number in the WULET system, their bonus points from all WULET partner companies they have ever registered in will be automatically accrued to their personal balance. This is possible due to the hash match. 3 Any user will be able to exchange the bonus points of one loyalty programme for the bonuses of another at the WULET exchange rate 4 The user will be able to buy WU-tokens to purchase bonus point of loyalty programmes of WULET partner companies 5 WULET will benefit from the commission earned on the purchase of bonus points on the internal exchange 6 The growth of the WU-token exchange rate will be ensured by the user demand for them to make purchases on the WULET exchange 7 The emission of loyalty bonus points of WULET partner companies is unlimited. The bonus points disappear after being used 8 WULET will help partners understand their target audience and estimate the effectiveness of their advertising campaigns 9 Partnership with WULET will allow companies to: Continue using their current loyalty programmes Advertise those loyalty programmes, increasing brand popularity 10 The exchange rate of bonus points on the WULET exchange will match up with discounts that are offered for fiat money. This will allow to resolve the problem of the volatility of the bonuses while also making it impossible for big investors to speculate 11
Value proposition The WULET platform characteristics: We offer a transparent system of receiving cashback in WU tokens There are many different opportunities to use these WU tokens There is a pure profit without additional effort in everyday life WULET includes a wide variety of everyday activites (offline and online purchases, attending restaurants and bars, ordering takeout), which reward the user in WU tokens The WULET platform will allow: to popularise the use of cryptocurrency to use quick, easy, and multifunctional cryptocashback to quickly create and administer personal loyalty programmes to use new marketing instruments due to the ability to analyse coin movements. Business: Target audience: Companies Goals: To create reliable channels of communication with clients and provide the opportunity to estimate the effectiveness of loyalty programmes Proposition: WULET will create an exchange to trade bonus points of loyalty programmes. Their exchange rate will show its liquidity and the effectiveness of the loyalty programme s policy. The software needed for the platform use will be distributed for free. At the early stages of project activity, all WULET partners will be offered a limited number of WU-tokens that will later have to be purchased under market conditions. Customers: Target audience: Clients Goals: To provide clients with a convenient way to use their loyalty bonus points and get rid of unnecessary loyalty cards. Proposition: WULET will create an exchange to trade bonus points of loyalty programmes. It will allow clients to trade between loyalty programmes of various companies and choose the ones that they need most. After registering in the WULET system, the client will be able to easily purchase the bonus points of any loyalty programme launched by WULET partnering companies. Every client will be able to install the app and register in it for free. 12
WULET monetization The platform will receive commission on transactions and make profit on additional services: Banners on the system s applications Showing establishments or events at the top of searches, which will be allocated using an auction (analogous to contextual advertising) Push-notifications to users that have the application installed All additional services will be purchased by the contractors in WU tokens. $ + + $ + + + + The main currency on the WULET platform will be the WU-token. The bonus points of every loyalty programme will be traded together with WU-tokens. The commission for order execution will also be charged in WU-tokens. The base rate will be 1%, though this will vary for every user depending on their monthly trading volume on the platform. All these aspects will positively impact the liquidity of WU-tokens as well as the growth of their exchange rate. The ratio of the commission to trading volume per month (plan): 13
Strategy for entering the market WULET supports two models of activity: one with a unified WU-token and another with an internal loyalty exchange. They target two main types of partners: Partners who don t currently have any prominent loyalty programmes Partners whose loyalty programmes are popular among their clients In the first case, it s more profitable for partners to reward their clients with WU-tokens and accept them as payment. To help partners develop their programmes, WULET will provide them with additional advertising instruments. The partners of the second type will benefit from keeping their current loyalty programmes and using the model with an internal exchange. In this case, before using the loyalty points clients will have to buy them from the other participants for WU-tokens. The launch of WULET will be done in two stages. First, our team is going to launch a platform with a unified WU-token We will then incorporate an internal loyalty exchange, and big investors will be given the opportunity to join WULET 14
Model of a unified WU-token After the launch, the companies that joined the service will purchase WU-tokens and decide on the number of tokens that will be awarded to clients as crypto-cashback. When a client receives tokens, they will decide on whether to use them at a WULET partner establishment and exchange them for fiat money, or, alternatively, to save tokens and use them later when the exchange rate is higher. $ SERVICES WU-TOKEN + SERVICES WU-TOKEN WULET PARTNER CLIENT WULET PARTNER WU-TOKEN With the partner s agreement, WULET can become an intermediary that exchanges WU-tokens for fiat money. In this case, WULET will receive tokens from clients, and partners, in turn, will receive fiat money. CLIENT WULET SERVICES +0,1% The companies will be able to purchase WU-tokens under market conditions. One of the main advantages of this model is that there will be no need to create new loyalty programmes, as partner bonuses will be accrued in WU-tokens. Companies will not have to spend vast resources on advertising campaigns, since it will be enough to simply note that they are the partners of WULET, and the client has the opportunity to get WU-tokens as a reward. All partner companies will be displayed in the application, serving as an additional way to attract new customers. Partners will be able to choose the way they will employ WULET. There will be two options available: 1 To award clients with WU-tokens without the opportunity to use them at the partner s establishment. This program would only be aimed at encouraging the users to visit the establishment. 2 To award clients with WU-tokens and accept them as payment. In this case, the partners would attract new customers those that have WU-tokens. 1 2 3 Client purchase information will be transferred from the contractor to the system via a QR-code. in the event of an offline purchase it will be printed on the receipt in the event of an online purchase it will be shown on the payment confirmation page/browser plugin/in the app The client will scan the QR code received from the contractor, and the system notes the payment for goods or services. The system also receives the contractor ID and the purchase amount The system awards the client cashback from the purchase amount according to the pre-agreed conditions for that particular contractor 4 WULET notes the purchase 15
Contractors are subdivided into two types: Award bonus points Sell goods/services in exchange for bonus points TYPE 1 + + TYPE 2 + - Tasks solved: Purchases leads and sells goods, increasing revenue Purchases leads from WULET Mechanics of the platform functioning Clients will be able to spend WU tokens: by trading them on an exchange by purchasing items from contractors of the first type by purchasing products from the WuShop Issues related to selling goods in exchange for tokens The contractor products are located on the balance of a legal entity. In order to realise a good or a service, the contractor needs to receive profit in fiat money. Token purchase by contractors At the beginning stages of platform activity, contractors will receive a fixed number of free WU tokens. In time, when the popularity of and trust in the platform grows, сontractors will be able to purchase coins in fiat money via their personal profile, or individually on an exchange. Purchase via the personal profile will be possible from the balance of the legal entity according to a pre-agreed outline Purchase on an exchange avoids legal issues, connected to transferring fiat into cryptocurrency Contractors can use tokens in the following ways: To purchase banners in the system applications To participate in the auction for impressions of their event at the top of related searches (same as contextual advertising) To purchase push notifications to be sent to users of the app To receive cashback for purchases in fiat money 16
Model of an internal loyalty exchange WULET will also support another model that is centred around an internal exchange, where one could trade points of already existing loyalty programmes. AIRLINE COMPANY BONUS POINTS CAFÉ DISCOUNT VOUCHER WU-TOKEN WU-TOKEN CLIENT MARKET WULET CLIENT This will allow customers to decide what bonuses they need, and companies to keep those loyalty programmes that are already well-known and loved At the same time, businesses will be able to advertise their bonus programmes, increasing brand awareness Moreover, establishing an internal exchange will attract major players WULET will charge a commission from customers for purchasing the bonus points on the exchange 17
Ecosystem participants The Platform A unified complex of services that offers instruments for cooperation between Clients and Contractors and fixes the terms of that cooperation. Contractors Users that realise their goods and services using the Platform, and award bonuses to Clients, as well as those realising their goods and services directly in exchange for Bonus points. Clients Users that purchase goods and services from the Contractors of the Platform. Bonus points A motivating reward for the use of the Platform by the Clients for the purchase of goods and services from Contractors. 18
WULET expansion WULET is an international project. Its main goal is to popularize the use of cryptocurrency in everyday life, and also make participation in loyalty programs more convenient. The speed of expansion may vary depending on the funds raised during the entire campaign. The WULET team forecasts 3 scenarios of project development: conservative, realistic and aggressive. CONSERVATIVE SCENARIO: Funds raised: 7 million US dollars. Geographic expansion: In the event that the softcap is reached, the WULET team will concentrate on developing and perfecting the project in the European Union, Russia and the CIS countries, aiming at further geographic expansion funded by operational profit. REALISTIC SCENARIO: Funds raised: 20 million US dollars. Geographic expansion: As for the realistic scenario, WULET will have the opportunity to not only develop the product and test it in a selected region, but also to expand to the countries of the European Union, the CIS, Russia and Asia immediately after successful testing of the service. AGGRESSIVE SCENARIO: Funds raised: 40 million US dollars. Geographic expansion: In the event that the hardcap is reached, WULET will be able to enter developed markets, such as the US, China, the United Kingdom, and take up reputable positions because of the emerging marketing opportunities. Intensive expansion will reach a wider audience, significantly increasing the level of supply and demand on the exchange 19
Token sale parameters Why do a token sale? Despite the existence of functioning loyalty services, the attracted funds will help create a platform with an open source code, which can then be used by any b2b services. Presale stage The presale is private and intended for early participants. To support the project, please sign up at wulet.io. Funds attracted during the presale will be taken into account in the total campaign acquisitions. It will not be possible to withdraw tokens until the end of all the stages of the campaign. Timeline: Presale start date: Main stage period: Time of stage change (including the change of bonus periods): May 07, 2018 3Q 2018 14:00 UTC Token sale parameters: We accept: ETH, BTC, LTC Token exchange rate is fixed throughout the entire campaign at: 0,001 ETH for 1 WU Softcap: 8 000 ETH Hardcap: 49 000 ETH Total supply (including all manner of bonuses): 91 000 000 WU There will not be an additional issue. WU token crediting ERC20 standard tokens will be issued during the token sale Token export is possible onto any ERC20-compatible wallet Participant contribution will be displayed as the balance in their personal profile After the end of the campaign, the necessary number of native tokens will be emitted and distributed among the participants according to their contributions and accrued bonuses Limits Minimum purchase amount: 1 ETH Unlimited Maximum purchase amount: It will not be possible to withdraw tokens before the end of the entire campaign. Bonuses May 07 11 May 12 31 June 01 03 June 04 07 June 08 12 June 13 17 30% 25% 20% 15% 10% 5% 20
4% Bounty 10% Strategic Partners 16% Team 70% Token sale Token distribution Attracted funds distribution From the total amount of WU tokens issued, 16% are reserved for the team, 4% will be directed towards the bounty campaign,10% for strategic partners and 70% will be distributed during the crowdsale. Unsold tokens will not be issued. In the case softcap is not reached, the campaign will be considered unsuccessful and all funds will be refunded in full In the event that the softcap is reached, but the hardcap is not, the token sale will be considered successful, but the project development will be limited in regard to location The token sale will be successfully completed when the goal of 49 000 ETH is reached Personal profile participant s dashboard To participate in the campaign, it is necessary to register a token sale participant profile. Each participant will create a personal profile, where it will be possible to monitor relevant information about the crowdsale, see their personal contribution in the campaign and the bonuses they have received, download a referral link, and find the addresses of deposit wallets in each of the accepted currencies. Each participant need to pass the KYC/AML procedure. 21
Roadmap May 7 Pre-sale starts 2017 WuChat app inspirabon of WULET Nov 2018 WULET private alpha 3Q 2018 Main stage of the crowdsale Dec 2018 Plug-in for R-Keeper & iiko Payments in WU tokens 2Q 2019 Web interface & partners dashboard Jan 2019 TesBng by private partners 4Q 2019 AddiBonal tests and revisions 1Q 2020 Architecture opbmizabon; WuShop release 3Q 2020 WULET public release 1Q 2020 WULET public beta within one city 4Q 2020 AddiBonal market expansion 22
Team The WULET team are like-minded professionals with extensive experience in IT, development, design, and logistics Alexander Tkachev CEO Graduate of Saint-Petersburg State University. Former Business Development Director of TeachMePlease. Co-creator of TargeAd advertising agency. Delivering WULET blockchain ecosystem as a «blue ocean» of possibilities for loyalty programs worldwide. German Domanskii CОO Graduate of the Hague State University, creator of the Foodism app that was launched in mid-2017. Idea inspiration, concept, functionality. Alexey Popov C T O Owner of Aveas Media IT studio. Over 13 years in experience in website, mobile app, and video game development. Technical support, development. Leonid Strimovsky C F O Owner of several international logistics companies. Financing. Contacts wulet.io E-mail: hello@wulet.io WULET OÜ, Tallinn, Estonia wulet_io wulet.io wulet.io wulet_io 23