Embed Size (px)
Citation preview
` 0
BLOCKCHAIN PROTOCOL
W12.io | Blockchain Protocol
Reduces risks, protects against fraud, eliminates the need for intermediaries, increases
transparency in the non-commercial sector including charity, social projects, projects for
sustainable development, the crowdfunding market, the real estate market the public sale
of utility & security tokens and e-commerce.
Awards and recognition
● The best blockchain project and first place at the World Blockchain Forum in New
York.
● Finalist of the ICO Race in Switzerland.
` 1
Table of contents
Summary............................................................................................................................................................................3
Introduction......................................................................................................................................................................6
ThekeyfunctionsoftheW12Protocol..........................................................................................................................................6
Thefundsfromthesmartcontractaretransferredtotheprojectonlyuponfulfillmentofcertain
conditions...................................................................................................................................................................................................7
Advantagesofthetechnologicalsolution....................................................................................................................................8
Majormarkets,problemsandsolutions........................................................................................................................................9
CrowdsourceMarketProblemsandW12Solution...............................................................................................................13
MarketProblems..................................................................................................................................................................................13
TheW12ProtocolSolution..............................................................................................................................................................15
PlatformsbasedonW12Technology..........................................................................................................................................16
SystemAlgorithms.......................................................................................................................................................17
TypesofProjectFunds.......................................................................................................................................................................18
TheTokenSaleAlgorithm................................................................................................................................................................22
ThekeyadvantagesofTokenSaleviaW12.............................................................................................................................23
TheW12OracleNetwork..........................................................................................................................................25
W12BusinessModel...........................................................................................................................................................................27
CharityMarket......................................................................................................................................................................................27
Volunteeringtimevsdonatingmoney........................................................................................................................................28
Lackoftransparency..........................................................................................................................................................................29AnewapproachtoCharity...................................................................................................................................................29AdoptionoftheprotocolsystemanddecentralizedoraclenetworkinCharitymarkets.........................31OperationScenario..................................................................................................................................................................32DAOCompanycreationandgovernance.......................................................................................................................33PartnershipsandCharityTokenUse...............................................................................................................................34
W12Token..............................................................................................................................................................................................34W12TokenAccumulation....................................................................................................................................................35
2
W12TokenSale............................................................................................................................................................39
Tokendistribution.......................................................................................................................................................39
TimingTokenValueandTokenSale...........................................................................................................................................40
W12SmartContracts..................................................................................................................................................43
W12Roadmap...............................................................................................................................................................44
BusinessDevelopment........................................................................................................................................................................47
LegalFrameworkforActivities.....................................................................................................................................................47
TermsandConditions.................................................................................................................................................48
References......................................................................................................................................................................50
3
Summary
4
W12 BLOCKCHAIN PROTOCOL Reduces risks, protects against fraud, eliminates the need for intermediaries, increases
transparency in the non-profit sector (including charity, social projects, projects for
sustainable development), crowdfunding, the real estate market, public sale of utility &
security tokens, and e-commerce.
Awards and recognition
● The best blockchain project and first place at the World Blockchain
Forum - New York.
● Finalist of the ICO Race in Switzerland.
What is W12?
W12 is creating a decentralized infrastructure in which trust between the parties is not
required, since all the processes are controlled by algorithms, are fully automated and
completely transparent.
The W12 protocol uses
● Blockchain technology for tokenizing objects, increasing liquidity, ensuring
transparency and targeting of transactions;
● Smart contracts for automating the fundraising process and reducing costs;
● Oracles for verifying and digitizing information from the real world, monitoring the
fulfillment of the terms of the contract, and monitoring the implementation of the
main stages of the project roadmap;
● A platform for automating fundraising for projects without initial costs and special
technical knowledge.
5
Introduction
6
Introduction
Vision. We plan to become a leading solution for attracting funding for projects of any type.
We will ensure the sustainable development of humankind as a species. We mean to save
the ecology of our planet and facilitate the invention and introduction of new technologies.
Implementation. We are going to achieve our goals by creating a platform for effective
cooperation of large groups of people and pooling their combined resources to address the
most serious challenges that humankind faces today. The platform will create and attract
financing projects using the W12 protocol and token aimed at solving the problems of
sustainable development, preserving the environment, solving problems of aging,
prolonging lifespans, increasing human happiness and many others.
The key functions of the W12 Protocol
a) Creation of smart contracts based on templates (the user interface does not require
programming skills);
b) Creation and management of decentralized autonomous organizations (DAO);
c) Functioning of decentralized networks of oracles;
d) Issuance of tokens for each project;
e) Monitoring of the implementation of the stages of project roadmaps;
f) Decentralized escrow service.
7
The funds from the smart contract are transferred to the project only upon fulfillment of certain conditions.
8
Advantages of the technological solution
1) Reducing costs in the non-profit sector from 50% to 5% due to automation, direct
targeted financing and optimization of marketing costs;
2) Increasing the amount of funds raised by the project due to gamification of
fundraising and the embedded social mechanics;
3) Pay when done. The possibility of launching collective projects on a tender basis, with
using the “pay only when done” service, in which the funds from the smart contract are
transferred to the performer only upon the achievement of the established goals. The
fulfillment of the goals and contract terms is controlled by a decentralized network of
oracles;
4) Full transparency of payments, recording of all movements of funds in a public
distributed registry (blockchain);
5) Quick and easy. Instant sending / withdrawal without commission. In any city, in any
country;
6) Easily accessible. It is not required to open a bank account for the transfer and
attraction of funds.
9
Major markets, problems and solutions
1. Charity market size: 733 billion USD | TAM: USD 50 billion.
Problem: high administrative and marketing costs for the collection and distribution of
funds.
Even in developed countries, such as the UK and the USA, more than 50% of the funds
raised often do not reach the addressees. In some countries, costs reach more than 80%.
The W12 solution reduces marketing and administrative costs from 50% to 5% by using
direct targeted financing of projects carried out through the w12.io platform
Full transparency of transactions is provided by the W12 blockchain protocol. The integrated
social mechanics on the platform and the gamification of the process allow for greater
fundraising with less effort.
The use of plastic cards with the recording of all transactions on the blockchain ensures full
transparency in the expenditure of funds allocated to the final recipient.
The funds are transferred to the cards upon fulfillment by the volunteer of the objectives
specified in the contract and are converted from cryptocurrency into fiat.
2. Projects for sustainable development market size: 112 billion USD | TAM: 30 billion USD
10
Problem: Lack of a convenient, secure and transparent infrastructure for bringing together
large groups of people in order to solve the most significant problems that humanity faces
today.
Solution: Creating a W12 Launchpad platform based on the W12 blockchain protocol for
launching fundraising for sustainable development projects.
Using the W12 blockchain protocol allows you to implement services:
• “Pay only when done” (funds are transferred to the project only when the conditions of
the contract are fulfilled, which guarantees maximum efficiency of spending);
• “Phased funding” (funds are transferred to the project after completing separate phases
of the roadmap).
The collected funds are stored on a smart contract, and the fulfillment of the terms of the
contract is determined by independent oracles from the decentralized W12 network. Thus,
the collected funds are spent as efficiently as possible, since the donors only pay when there
is a result.
3. Petitions and social initiatives market size: 450 billion USD | TAM: 34 billion USD
Problem: Collecting signatures in an offline environment is very time consuming, expensive
and inefficient. Online signing of petitions at other sites has no legal force, which leads to a
lack of reactions from the authorized state regulators. Also, many organizers’ petitions
require funds for the implementation of the initiative.
11
Solution:
● Automation of the process of collecting signatures online on the w12.io platform;
● Digital identification using blockchain technology will ensure legal effect for the
signatures;
● Social mechanics will help easily disseminate information about the petition;
● The ability to raise funds for the implementation of the initiative will enable people
to combine resources to solve their problems.
4. Shared construction market size: 40 trillion USD | TAM: 2 trillion USD
Problem: The high cost of finished housing, high risks when buying at the construction
stage, rise in the cost of real estate due to the large number of intermediaries.
Solution:
● Creating a platform for shared construction based on the W12 blockchain protocol.
● Property costs are reduced due to the automation and full transparency in the
distribution of funds among contractors;
● Reduced risk of loss of funds due to full transparency, as well as the possibility of
changing the contractor or returning part of the remaining funds.
12
5. Tokenization of real estate market size: 40 trillion USD | TAM: 2 trillion USD
Problem: Low liquidity of real estate investments, high entry threshold, complexity and high
costs of the procedure of registration and transfer of ownership.
Solution: Creating a platform for the tokenization of real estate with the possibility of
investing and making a portfolio of parts of objects from 1 cm square in any country, in any
city without leaving home.
6. Collective purchases of goods and services supplied in the
future with a discount. market size: 50 billion USD | TAM: 50 billion USD
Problem: High risks for manufacturers when starting to sell new products and services, and
the need for the attraction of additional financing for production. Lack of liquidity for goods
and services supplied in the future.
13
Solution: Create a platform for the tokenization of goods and services through the release
of product tokens using which users can:
● Exchange them for a product or service with a discount of up to 70% (after the goods
are produced);
● Sell them on the exchange or exchange them for other tokens (without physically
moving the goods).
Example:
● A manufacturer of sneakers needs funds to produce a consignment or testing the
demand for new models, so it releases product tokens and sells them to clients on
the platform.
● The cost of the token is 50% lower than the price of the sneakers at which the sale of
the new collection of sneakers will begin in stores. The token can be exchanged for
sneakers (after their production), and also sold on the exchange to other customers
or traders.
● The buyer of the token is interested in the purchase, as it is guaranteed that they can
get the sneakers from the new collection with a big discount, get money by selling
the token on the exchange, or exchange the token of the sneakers for the tokens of
another product.
Crowdsource Market Problems and W12 Solution
Market Problems
SCAM
1. The level of fraud in ICO is extremely high and goes up to 81%
(https://news.bitcoin.com/80-of-icos-are-scams-only-8-reach-an-exchange/)
14
2. Low survivability rate of startups at early investment stages
a. The average survivability rate in the VC market and ICO’s is less than 30%
b. https://www.entrepreneur.com/article/288769
3. Absence of trust between fundraisers and fund givers
a. Without trusting one another, in order to settle disputes and make payments,
the parties involved are compelled to trust traditional institutes on behalf of
the state, and frequently do not have access to alternative solutions.
4. Utility and Security model imperfections
a. Both Utility and Security tokens lie on a set of rules that define them.
- It is extremely hard (or impossible) to adequately define the price curve of a
utility token. In order to produce a price forecast, one should consider the
expectations of the token holders, miners, the users of the system and other
groups, that interact with the system. As building such a model is usually an
impossible task, token buyers rely on the project developing team to work in
according to the roadmap.
b. Security tokens are legal only with formal registry with the Security
Commissionin the USA and alternative national commissions. Once the legal
standards are introduced we will provide a neat infrastructure for security
tokens deployment and DAO administration
5. Centralized control over fund use and distribution
a. 2017 has shown, that ICO can not survive in its current state. High level of
scam and failure brought the” wisest blockchain” people to an idea of a crowd
controlled ICO process. Vitalik Buterin proposed the idea of a DAICO. Although
at the moment of release it was full of flaws, the general idea of gradual release
of funds and decentralized control over them has found support in the crypto
community.
15
The W12 Protocol Solution
● W12 allows anyone to build (no programing required) smart contracts with necessary
logic
o Any type of crowd sale can be carried out through the W12 protocol and
platform
o Any type of decentralized control over funds can be used
● A decentralized oracle network developed to confirm the execution of project
milestones
o Trust between counterparties and those who control the project development
process is not needed.
o The decentralized oracles system allows for an unbiased control over the
project development.
● Secure and transparent transfer of funds to the other party
o A decentralized and autonomous way of organizing crowd funding campaigns.
o Funds will be released gradually after oracle milestone confirmation.
o Gradual release of funds and refund (if projects fails to deliver on its claims) will
increase the survivability rate in the industry, provide more control over scam
and decrease the risk of losing funds for fund providers.
The oracles in the decentralized W12 network transmit verified information from the external
world to the blockchain and confirm the execution of the scenarios programmed in smart
contracts.
W12 creates a system in which the parties do not need to trust each other, the settlement
of disputes occurs quicker, more transparent and at a lower cost, providing a wide range of
users with easy access to the benefits of blockchain technology.
16
At W12 we are creating a bridge between the crypto industry and the traditional economy
by integrating our solution into real businesses.
The W12 solution allows to reconsider the role of the state as an arbiter in relations
between parties and to relieve part of this burden from state institutions, shifting it to smart
contracts and self-regulated decentralized organizations.
The implementation of the W12 solution creates the basis for a new decentralized digital
economy and is likely to affect many traditional financial and civil-law institutions in the
immediate future.
Platforms based on W12 Technology
1. W12 Launchpad - a place for launching sustainable development projects.
2. Petitions on the blockchain
3. Real Estate Tokenization
4. Shared construction
5. ICO / STO Platform
6. Platform for the tokenization of goods and services. Collective purchases of goods
and services supplied in the future at a discount.
17
System Algorithms
` 18
Types of Project Funds The Projects fund Type 1 is already developed. For the token purchase, the refund unspent
amount of funds and several other platform functions the token buyer can use a MetaMask
wallet.
Example of the algorithm used for smart contract execution based on milestones:
We developed 3 basic types of the Project fund for startups token sales. The project chooses
the type of Project fund it will use before the start of the token sale.
Type 1
In this type of Project fund the execution of the milestones in digital contracts is confirmed
by token buyers. Each token buyer acts separately and makes an independent decision
about the execution of project milestones.
At the time of each project milestone, each token buyer decides whether to continue
funding the project or to make a refund. If the token buyer believes that the milestone has
not been executed, he can return the unspent amount of funds.
19
Type 2
In this type of Project fund the execution of the milestones in digital contracts is confirmed
by token buyers. Each token buyer acts separately and makes an independent decision
about the execution of project milestones. At the time of each project milestone, each
token buyer decides whether to continue funding the project or to make a refund. If the
token buyer believes that the milestone has not been executed, he can return the unspent
amount of funds.
This type of financing is ideal for implementing sustainable development projects.
20
Type 3
In this type of Project fund the execution of the milestones in digital contract is confirmed
by 51% of token buyers. The weight of the voice is proportional to the number of purchased
tokens. The majority (51%) is determined by the number of participants who voted. To
decide on the suspension of project financing, at least 20% of tokens buyers must take part
in the voting.
21
In case of refunds:
The token buyer gets back his funds after deducting the part that has already been
transferred to, and spent by the project (plus the part that is spent for Oracles and auditor
services);
The project has 3 options:
● The tokens will be returned to the project;
● The tokens will be returned to W12 smart contract for sale to new token buyers;
● The tokens will be burned forever.
22
The Token Sale Algorithm Original Token = the ERC20 project tokenW-token = the ERC20-W project token (issued by
the W12 smart contract and backed by the funds of token buyers)
Example:
Project name: ABC
Original token: ABC
Secured W-token: ABC-W
23
The key advantages of Token Sale via W12
The main advantages of the technical implementation of the W12 solution is the flexibility,
trust and transparency it offers to projects and token buyers:
● The project can issue tokens independently and sell only part of its tokens via the W12
solution using our smart contracts based on milestones (for example the project can
allocate 1%, 2%, 5%, 20% or 100% of its tokens for sale on W12).
● The project can implement almost any logic for its token sale (by setting any interval
for its sale rounds, discounts and bonuses, lock-up periods for early token buyers and
many others). No programming required.
● The project can issue tokens via the W12 smart contracts and sell part of its tokens
independently (for example, through private or via its website for the crowd)
● Creation of the ecosystem where token buyers do not need to trust the project team.
When token buyers use W12 smart contracts for purchasing projects tokens, the team
will execute its road map to receive token buyer’s funds.
● Allows token buyers to receive up to 99.9% of their funds back if the project does not
deliver or turns out to be a scam.
● Significantly increases returns in the early stages of ICO participation. Provides the
possibility of limiting the sale of tokens by early-stage token buyers on exchanges
immediately after the ICO ends, preventing a token price crash (project must activate
the Token Hold function.)
24
The W12 Oracle Network
25
The W12 Oracle Network
Oracles – reputable persons from different areas (lawyers, notaries, financial advisors and
others) who transmits verified information from the external world to the blockchain and
act to confirm the execution of scenarios programmed in to smart contracts.
When creating a smart contract, the parties are entitled to establish the number of oracles
used to confirm smart contract scenarios and their qualifications.
● When creating a smart contract, the parties are entitled to establish the number of oracles
used to confirm smart contract scenarios and their qualifications.
● All oracles undergo confirmation of identity and complete a KYC procedure.
● Each oracle independently assigns its rate in W12 tokens, which he receives for deciding
(confirmation of an operation).
● The more oracles that take part in the confirmation of an operation, the higher their rates,
the higher the W12 fuel consumption.
● When creating a smart contract, oracles are randomly selected from the decentralized
W12 network according to the specified conditions.
● In the basic type of the project fund, 12 oracles are randomly selected. The decision not
to perform the stage requires 7 or more votes. If one of the oracles cannot vote, then it is
replaced by a reserve one. When creating an organization, the initiator can specify a
different number of oracles in the system, as well as the number and % of the oracular
votes of the total number, needed to make a positive decision.
26
● With the help of voting, the oracles elect the chairman.
● In projects where parties required the audit of milestones execution, the Chairman selects
the categories of required auditors and launches the tender. The winner of the tender of
the auditors is determined by the vote of all oracles. The amount of funds allocated for
the audit is set by each project before it starts. The oracles decide based on the data
provided by the auditors and the project roadmap.
● In a scenario where the oracle has decided that the project did not complete the stage,
the token buyers have the opportunity to return their funds within a given time interval.
If the token buyer did not return their funds, the project receives a portion of the project
funds to finance the next stage.
● W12 fuel is used to pay for the function and maintenance of the oracle network. The
project independently determines the amount of fuel it intends to use on the oracle
network. The higher the fuel consumption - the higher the probability of attracting the
most professional oracles for the project.
● Auditors auditing the stages of the road map receive payment from the project fund
(established by the project before the start of its token sale).
● In order to make the most accurate decisions, the decentralized network of oracles is
constantly self-learning and self-improving, based on the principles of analysis of large
data, machine learning, neural networks and artificial intelligence. Oracles accepting
inaccurate/incorrect decisions are permanently excluded from the system. Oracles that
take the maximum number of accurate/correct decisions are given the opportunity to
participate in more operations at the maximum possible rates.
● To maintain the system, it’s self-development and self-learning features, 20% of the W12
fuel consumed by the oracles is pawned when performing operations in a smart contract.
27
● Each oracle’s personal area and the W12 blockchain will display his/her rating and the
quantity and quality of their decisions.
W12 Business Model
W12 is commission-based service. While projects acquire funds via our platform W12
charges from 0% to 10% of total collected funds. Depending o the amount of funds stored
via W12 smart contracts commission is raised/lowered, more fund stored with W12 less
commission charged. Also, there is 0.5% charge for the use of the protocol.
Justification: if there is a reliable infrastructure in which there is no need to trust the other
party in the transaction, fewer and fewer token buyers will transfer funds to projects to
develop their solution without signing a corresponding digital contract. As of now, W12 is
the only infrastructure solution in this area, allowing users to sign a reliable digital contract
with the project to develop a solution with the minimum possible risks.
Charity Market
“Blockchain will be one of the most
important revolutions of international relief efforts, without
any question.” Larry Lieberman, the chief operating officer of Charity Navigator
28
The Charity industry has faced many challenges in its history and has shown an alluring
upward trend in 2017. According to the CAF (Charities Aid Foundation) research, in 2017
charity donations account for approximately $733 billion (around 1% of global GDP) [16].
Of which around 60% originate from the USA.
(City A.M.'s World Charity Index 2015)
Volunteering time vs donating money
A large proportion of charity expenditure falls on administrative costs and staff training.
W12 provides the infrastructure for a decentralized campaign consensus. Social contributors
will be able to synchronize their donated time with the project roadmap and milestones.
Such decentralized approach would decrease the management costs of any campaign and
increase contributor participation, which is penultimate for a high level of charity activity
29
Lack of transparency
According to research, the younger generations (≤48 yr.) are sensitive to donation
transparency. The younger actively use social networks to follow, repost, message and
comment on posts of the Charity organizations they support. [20]
The younger generation requires a two-way communication with charity organizations,
where the fund recipients show, how their life improved due to fund contributor activity. At
the moment, every charity has to set up their own channels of communication and only
large-scale charities are able to maintain a constant two-way information flow.
W12 proposes the charity roadmap and oracle system as a template for transparent and
fraud resistant communication between the fundraisers and charities. Charities will always
be in tight connection with their contributors, and the donators will always be able to see
the impact of their fund contribution. The oracle system will provide constant audit of the
charity roadmap and milestone accomplishment; hence the donors will be able to receive
adequate and transparent information of the charity campaign.
A new approach to Charity
The charity patterns vary between generations. Whilst the elderly and baby boomers (49+
years) are used to the traditional way of charity advertising and fund collection, the young
generations prefer to donate through mobile phones and websites.
Furthermore, the younger generations find traditional ways of charity advertising (direct
mail solicitation and personal contact) highly intrusive and repulsive. [20]
30
The future of charity lies in technological solutions and hence in the modern ways of
communication with the public.
W12 - allows charity organizations and individual social entrepreneurs to propose charity
missions to the public through modern and high-tech PR channels. On the other hand, social
contributors are able to enforce decentralized milestone control and 2-way communications
on the charity fundraise team.
31
W12 ensures that social entrepreneurs will always be able to raise donations and will
always reach their audience, whilst the fund contributors will be able to receive proof of
impact and if not, will be able to securely return their funds.
Adoption of the protocol system and decentralized oracle
network in Charity markets.
The W12 solution is planned for integration in the Charity market with the world yearly
volume of $700 billion.
Potential partners:
Watsi https://watsi.org/
The Water Project https://thewaterproject.org/
BitGive https://www.bitgivefoundation.org/
EFF https://www.eff.org/
MAPS http://www.maps.org/
OpenBSD http://www.openbsdfoundation.org/
Sens research foundation http://www.sens.org/
Charity Water https://www.charitywater.org/
Mona https://www.monafoundation.org/
New Story https://newstorycharity.org/
The Internet archive https://archive.org/
Pencils of promise https://pencilsofpromise.org/
Green steps https://www.greenstepschatt.com/
32
Sogal http://www.iamsogal.com/
Nuzzles and Co https://nuzzlesandco.org/
Alter http://alter.global/
Wemakechange https://www.wemakechange.org/
Operation Scenario
Any Charity campaign can be built through on the W12 protocol. A charity presents a
detailed road map and choses the token sale scenario (12 Oracles, 51% voting or every
individual decision making).
After than W12 campaign tokens are created and assigned to a smart contract. The society
donates cryptocurrency that is stored within the W12 system and operated through a smart
contract. The campaign receives the first tranche and starts operating in according to its
roadmap. The society confirms that the campaign is not fraudulent and continues to release
funds.
Benefits:
● Integration of a turnkey payment solution
● Full transparency of fund movement, distribution and community feedback
● If the fundraiser is able to pay counterparties with crypto currency, then the system
will be able to provide maximum level of transparency, as any action will be registered
on the Blockchain
● Ease of fund aggregation
33
Outside blockchain
The difference from the full blockchain scenario appears only after the W12 campaigns
tokens are issued, prior to that, all procedures are similar.
Once the W12 campaign tokens are created, W12 will start accumulating fiat currency on its
bank account.
The charity campaign will receive funds in exchange for the remaining tokens as soon as the
W12 oracle network confirms milestone accomplishment and roadmap conformity.
Benefits:
● Transparent control over charity campaign
● Constant two-way communication
● Proof of impact through milestone accomplishment
● Ease of fund aggregation
DAO Company creation and governance
Decentralized operations
● Social entrepreneur creates a company that collects funds and distributes them
according to the proposed roadmap.
o The governance is carried out in accordance to the chosen strategy. Type 1-3
● A fund giver proposes a DAO company, donates funds and decides how the company
will be governed. A social entrepreneur can pick up the proposed company, forge a
roadmap and deliver the charity
34
● People or organizations, that will be the final receivers of the charity money can start
a decentralized charity campaign, where oracles will confirm the credibility of fund
use and provided information.
● Charity organizations can use DAO structured campaigns to raise funds and provide
feedback to fund contributors.
● Charity funds can raise capital through W12 and distribute the funds among charity
organizations in a decentralized and crowd governed way.
Partnerships and Charity Token Use
W12 - Charity tokens that are received in exchange for donating to charity are used as:
● Verification of charity participation
● Can be exchanged for W12 Charity tokens in a proportion agreed prior to the
campaign
● The loyalty tokens can be used as a payment for goods and services from the partner
network. The goods and services can be then transferred to charity organizations.
● The charity token will be listed on the W12 Charity exchange, where the Charity token
could be exchanged for any currency.
W12 Token
The W12 Token is a digital asset used in the blockchain protocol for the creation and
execution of smart contracts, DAO management and the operation of a decentralized
network of oracles.
The W12 Token provides instant deposit / withdrawal of funds and cross-border transfers
between users without commissions.
35
W12 Token Accumulation
With the massive implementation of the W12 solution, the catalyst for capitalization growth
will be the accumulative model and accumulation of the token in digital contracts during the
life cycle of the project.
W12 is a backup token for the W12 digital contracts, and it is used to store the funds raised
by projects.
Projects independently choose in which cryptocurrency raised funds will be stored. The
more W12 tokens used to store funds the lower the platform commission the project pays.
By offering a high proportion via W12 digital contracts, projects have a better chance of
raising their required funds due to the security they offer to the token buyers.
W12 tokens allow users to buy the tokens of any ICO project listed on the W12 platform.
The token will be used in protocol for creation and execution peer-to-peer digital contracts.
The token will be used as fuel in decentralized oracle network. Customers will need W12
token to reward oracles. Oracles will need to stack W12 tokens to confirm execution of
digital contracts and receive rewards from the network.
Our solution has undeniable advantages over existing centralized systems in price, reliability
and quality. The more integration the W12 solution gets, the greater the demand for, and
usage of W12 tokens there will be.
Mathematical calculation of the projected accumulation and capitalization of W12 token
via adoption the solution:
VPLT - The amount of funds stored in W12 and waiting for project stage completion (for all
funds on the W12 platform).
36
S - The average number of months between stages.
F - The average number of months for all stages of financing.
X - The amount of funds raised by ICO projects on the platform during a year.
If does not change from year to year, then the maximum amount of funds stored and
waiting for the stage completion will be equal to:
𝐹 𝑋 𝐹 ∑𝑆 1
VPLTmax= * ( 𝑖=1 12/𝑆 �−(𝐹))
Example:
S= 6 months, F = 36 months (3 years)
Then for 6-month projects on the platform, there will be raised (X/2) funds.
After the end of the first half of the year, the amount kept will be: (X/2)
After the end of the second half of the year, there will be kept:
𝑋1
2 ∗(1−6)+𝑥/2
After the end of the third half of the year, there will be kept:
𝑋1𝑥1𝑥 2 ∗ (1 − 6) + 2 ∗ (1 − 6) + 2
And so on, that means after the end of the sixth half of the year there will be kept:
37
V = 𝑥 + 𝑥 ∗ (1 − 1) + 𝑥 ∗ (1 − 2) + 𝑥 ∗ (1 − 3) + 𝑥 ∗ (1 − 4) + 𝑥 ∗ (1 − 5) + 𝑥 ∗ (1 − 6)= PLTmax 2 2 6 𝑥 2 6 2 6
2 6 2 6 2 6 =𝑥 ∗ (6 − 1+2+3+4+5) = ∗ 3.33 = 𝑥 ∗ 1.66 262
This means, after the end of the sixth half of the year, 166% of the funds raised by all
projects on the platform for the year will be kept by the platform.
However, due to the growth of both the market and the market share of the W12 platform,
an annual growth of funds raised through the platform is projected.
After the end of 2019:
V =𝑋2019⁄2∗(1−1)+𝑋2019⁄2=0.92*X
In the end of 2020:
V2020= 𝑋2019⁄2 ∗ (1 − 3) + 𝑋2019⁄2 ∗ (1 − 2 ) + 𝑋2020⁄2 ∗ (1 − 1 ) + 𝑋2020⁄2 = 666
=0.92 * X2020 + 0.58*X
After the end of 2021:
V2021=𝑋2019⁄2 ∗ (1 − 5 ) + 𝑋2019⁄2 ∗ (1 − 4 ) + 𝑋2020⁄2 ∗ (1 − 3 ) + 𝑋2020⁄2 ∗ (1 − 2 ) + 𝑋2021⁄2 ∗ 6666
(1 − 1) + 𝑋2021⁄2 = 0.25* X 2019+0.58*X 2020+0.92 * X 2021 6
38
W12
Token Sale
39
W12 Token Sale
General information
Token name: W12 Token
Token symbol: W12
Token owner: W12 Pte. Ltd.
Token type: Ethereum ERC20
Token transfer: In the case of payment through a smart contract, W12 tokens will be
transferred to customers immediately after receiving a confirmation of payment. If the
payment is not made through a smart contract, the tokens will be distributed after the pre-
sale and crowd sale stages.
Token issue: limited to 400 million tokens. Neither mining, nor any other method can be
used to increase the token supply.
Hard Cap: the number of tokens per token sale round is limited.
Token distribution
40
Number of tokens
Percentage of emission
Comments
W12 Token Sale 240 million 60%
Team, advisors 60 million 15% Frozen by the smart contract for 2 years, with possible issue not exceeding 5% a year
Reserve Fund 60 million 15% Frozen by the smart contract for 2 years, with possible issue not exceeding 5% a year
Long Term investors 20 million 5% Frozen by the smart contract for 2 years, with possible issue not exceeding 1,666% a year
Partners Integration 8 million 2%
Bounty and maintenance of ecosystem
8 million 2%
Airdrop 4 million 1%
Total 400 million 100%
Timing Token Value and Token Sale
All rounds for the sale of tokens start at 12:00 UTC+0.
Total Hard Cap: 22,500 ETH
Token lockup period: Tokens frozen by a smart contract for 2 years, with the possibility of
issuing no more than 1/3 of this per year to:
41
- Team, advisers, founders
- Reserve fund
- Early long-term investors
Prospects of exchange listing:
In Q1-29 2019, the buyers of tokens will be able to transfer their W12 Tokens to other
wallets and exchanges. By the 2nd quarter of 2019, the token will be listed on exchanges.
Longsale 12 August, 2019:
Every day a smart contract will produce and sell 140,000 tokens (0.035% of the total issue)
for 1,000 days.
Token value during the Token Sale will be determined using the formula Price = K / 140,000,
where K = the amount of funds transferred to the smart contract per day.
The Token Sale is conducted to ensure that the W12 platform and the W12 blockchain
protocol function correctly, so as to exclude a situation where there are no W12 token
sellers, or a token’s value rises to infinity.
After the end of token sale stages (including Longsale) all unsold allocated tokens will be
burned forever.
W12 reserves the right to offer a reduced price for W12 tokens to long-term institutional
and strategic token buyers. All changes in the W12 token price are set individually subject to
an agreement entered into between W12 Pte. Ltd. and the token buyer.
42
W12 Smart Contracts
43
W12 Smart Contracts A smart contract guarantees:
1. Property: Only Ethereum users and holders of a smart contract can be owners of the
token.
Each token belongs to a particular user/owner. The token cannot be in joint possession. A
token can be transferred to another user by direct command from its owner or by the
recipient's command, which must be directly authorized by the owner of the token. No
other token transfers can be initiated by other users.
2. Token delivery: Tokens are issued only once during the initial placement and will be
delivered to the token buyer after the end of the crowd sale. Each user has the right to
destroy (burn) any number of his token(s), which are then excluded from the general chain
of circulation.
3. Transparency: Information about the number of tokens that are in the possession of each
user is made public. All information about the transfer of tokens is also made public and can
be tracked.
4. Rights of the owner of the contract: A contract owner can assign ownership of token(s)
to any other Ethereum user.
5. Cancellation and refunds. All orders for W12 tokens are definite, final, non-refundable
and cannot be cancelled. The client acknowledges that they are fully aware of the fact that
they will not be able to claim full or partial compensation under any circumstances. Since
the sale and supply of W12 Tokens are intended exclusively for a professional and
experienced customer group, the customer will never under any circumstances request a
refund from W12.
44
W12 Roadmap
2018 (done) ● Development of the platform architecture
● Development of the W12 protocol blockchain architecture
● Development of the legal structure
● Development of the first version of the platform for ICO / STO
● Development of a prototype of the W12 blockchain protocol
● Development of the first version of the blockchain protocol W12 on
Ethereum
● UI development for the first version of the W12 blockchain protocol
● Integration of the blockchain protocol and platform
● Security audit of the first version of the blockchain protocol
● Platform security audit of w12.io
● Sales of tokens from 12 blockchain projects on the platform using the W12
blockchain protocol
● Attendance and presentation at thematic conferences
● Conclusion of partnerships
● Advertising campaign (YouTube, ppc, media)
● Conducting a crowdfunding campaign for the blockchain protocol and the
w12 platform
Q1 2019 ● Development of the section of the W12.io platform for individuals
● Development of the section of the W12.io platform for non-profit
organizations (NPO)
● Update of the W12 blockchain protocol to version 2.0 (payment in W12
Tokens)
● Development of the Accounting on the blockchain service
● Signing of 20 agreements with non-profit organizations (NPO)
● Advertising campaigns to attract non-profit organizations (NPO)
Q2 2019 Release of v.1 of the section of the W12.io platform for individuals
• Creation of a campaign
• Management of the campaign
• Campaign page
• Gamification and social mechanics
45
• Uploading of campaigns in the directory
• Acceptance of payments from cards and payment in fiat funds to individuals
with a minimum commission
Release of v.2 of the section of the W12.io platform for non-profit organizations
(NPO)
• Creation of an NPO page
• Management of the NPO page
• NPO page on the platform
• NPO page on the NPO subdomain
• Uploading of NPO pages in the directory
• Acceptance of payments from cards and transfers in fiat funds to NPOs with
a minimum commission
• Advertising campaigns to attract projects (individuals), non-profit
organizations (NPO), donors
Q3 2019 Release of v.2 of the section of the W12.io platform for individuals
● Payment solutions for accepting payments from cards and payment of fees
in W12 Tokens
● Integration with the accounting on the blockchain service (entering
transactions into the EOS blockchain)
Release v.2 of the section of the W12.io platform for non-profit organizations (NPO)
● Integration with the accounting on the blockchain service (entering
transactions into the EOS blockchain)
● Addition of the ability of creating individual projects (targeted collection,
events)
● Release of v.1 of the Petitions on the blockchain platform (social initiatives
requiring government support and fundraising for the implementation of the
initiative).
● Creation of the petition
● Petition page
● Management of the petition
● Uploading of petitions in the directory
● Fundraising for the implementation of the initiative
● Development of the blockchain tender service (for the transparent selection
of contractors for the implementation of the initiative)
46
● Update of the blockchain of the W12 protocol to v.3 (support for fiat
payments)
● Audit of the W12 blockchain protocol
● Development of the W12 Launchpad (pay only when done)
● Advertising campaigns to attract projects (individuals), non-profit
organizations (NPOs), donors
Q4 2019 Release of v.3 of the section of the W12.io platform for individuals
● W12 card service (the recipient of funds receives a plastic card by mail with a
balance in W12 Tokens and can pay for expenses using it. Each transaction is
automatically entered into the blockchain and is visible to the donors)
Release of v.2 of the Petitions on the blockchain platform
● Integration with the blockchain petition service (entering information about
signatures into the EOS blockchain)
● Integration with the blockchain tender service (transparent selection of
contractors for the implementation of the initiative)
● Verification of the identity of the signing person (in order for the petitions to
have legal force)
● Authorization on the platform through state portals (in order for the
petitions to have legal force)
Release of v.1 of the W12 Launchpad (pay only when done)
● Creation of the project page
● Management of the project page
● Project page
● Uploading of projects in the directory
● Accounting on the blockchain service (entering transactions into the EOS
blockchain)
● Payment solution for accepting payments from cards and the service of
sending W12 Tokens to the smart contract of the W12 blockchain protocol
● Integration with the W12 blockchain protocol
● Advertising campaigns to attract projects (individuals), non-profit
organizations (NPO), donors, petition initiators
2020 ● Platform for crowdbuilding
● Platform for STO
● Platform for selling tokenized real estate
47
Business Development
The W12 goal is to become the biggest solution integrated in real businesses. Our solution
has undeniable advantages over existing centralized systems in price, reliability and quality.
To implement the solution, W12 strategy is to establish the maximum number of
partnerships in the market, launch an affiliate program, and launch strong business
development units in the main markets.
To develop blockchain infrastructure and digital contracts templates we are going to attract
as many token buyers and start-ups to the platform as possible in order to hold the
maximum market share. In addition, business development will be built through the
following channels:
● Internet marketing of the W12.io solution and other affiliated projects
● Organization of conferences and key incentive industry events
● Participation in key conferences and events
● Collaboration with partners (incubators, accelerators, venture funds, crowdfunding
and GIG marketplaces, investment funds, dedicated communities and many others)
● Building own community and pools of token buyers
● Adoption of the solution.
Legal Framework for Activities
W12 Pte. Ltd. was incorporated in the jurisdiction of Singapore.
The public nature of the relationship between W12 Pte. Ltd. and the buyers of tokens will be regulated by the company's obligations (public offer) within the scope of the issued tokens.
Tokens do not grant the company management rights or any right for profit shares. Tokens are not equity.
48
Terms and Conditions This document is intended for information purposes only and is neither an offer, nor a call to
sell shares or securities on the W12 platform, or from any other related or associated
company.
W12 tokens are not securities
The user acknowledges, understands, and agrees that the W12 tokens are neither securities
or registered as security with any government agency, nor should they be treated as such.
The user acknowledges, understands, and agrees that W12 ownership rights do not entitle
the user to receive profit, income, other payments or revenues related to the acquisition,
storage, management or disposal, exercise, redemption or expiration of any right, interest,
ownership rights or privileges on the W12 platform, or any other W12 assets, in whole or in
part.
Absence of guarantees of income or profit
There is no guarantee that the W12 token will increase in price. If this happens, then there
are no guarantees that due to some unforeseen circumstances or events beyond the
developers’ control, or due to force majeure circumstances, the W12 rate will not be
reduced, including a significant reduction thereof.
Risks associated with Ethereum
W12 tokens are released on the Ethereum blockchain. In this regard, any Ethereum protocol
error or malfunction may cause the W12 token trading network to start working in an
unforeseen manner.
Regulatory uncertainty
Technologies related to the blockchain are subject to oversight and control by various
regulatory bodies around the world. They can regulate W12 tokens, including imposing
restrictions on the use or possession of digital tokens, such as W12, which can slow or limit
functionality of, or redemption of W12 tokens in future.
49
W12 tokens do not constitute an investment
W12 tokens are not some formal or legally binding investment. Due to unforeseen
circumstances, the objectives outlined in this document may be amended. Despite the fact
that we intend to implement all the items outlined in this document, all persons and parties
involved in purchasing W12 tokens do so at their own risk.
Quantum computers
Technical innovations such as quantum computers can be dangerous for cryptocurrencies,
including W12 tokens.
Risk of loss of funds
Funds are not insured from fundraising in any way. If they are lost or lose their value, there
is no private or state insurance representative that buyers can contact.
The risks of using new technologies
W12 tokens are a new and relatively untested technology. In addition to the risks
mentioned in this document, there are additional risks that the W12 platform team cannot
foresee. These risks can materialize in risk types other than those specified here.
Integration
The agreement constitutes the entire agreement between the parties with respect to the
subject matter hereof. All previous agreements, discussions, presentations, warranties and
conditions are integrated into this document. There are no warranties, representations,
conditions, or agreements, expressed or implied, between the parties, except as expressly
provided herein. The agreement may be amended only by a written document duly
executed by the parties.
50
References
[1] Increase in the ETH rate [Electronic medium] // URL:
https://coinmarketcap.com/currencies/ethereum (Accessed on December 08, 2017).
[2] How Bitcoin Does Versus Gold, Fiat and All World's Money [Electronic medium] // URL: https://
cointelegraph.com/news/how-bitcoin-does-versus-gold-fiat-and-all- worlds-money (Accessed on
December 08, 2017).
[3] Increase in the ETH rate [Electronic medium] // URL: https://
coinmarketcap.com/currencies/Ethereum (Accessed on December 08, 2017).
[4] Top-8ICO with the maximum increase in the token value[Electronic medium]//URL: https://
icostats.com/roe-since-ico (Accessed on December 16, 2017).
[5] Coindesk Research [Electronic medium] // URL: https://www.coindesk.com/state- blockchain-q3-
2017-pdf (Accessed on December16, 2017).
[6] Most ICOs Fail: Tale of Two Worlds [Electronic medium] // URL: https://hackernoon.com/most-
icos-fail-tale-of-two-worlds-d1ab7625ff66 (Accessed on December 16, 2017).
[7] China Bans Digital Coin Offers as Celebrities Like Paris Hilton out Them[Electronic medium] //
URL: https://www.wsj.com/articles/some-digital-coins-are-up-2-800-what- could-go-wrong-150
4522801 (Accessed on December 16, 2017).
[8] Vitalik Buterin: 90% of ICOs Will Fail [Electronic medium] // URL: https://coinjournal.net/vitalik-
buterin-90-icos-will-fail (Accessed on December 16, 2017).
[9] Why startups fail, according to their founders [Electronic medium] // URL:
http://fortune.com/2014/09/25/why-startups-fail-according-to-their-founders
(Accessed on December 16, 2017).
51
[10] China Bans Digital Coin Offers as Celebrities Like Paris Hilton Tout Them [Electronic medium] //
URL: https://www.wsj.com/articles/some-digital-coins-are-up-2-800-what- could-go-wrong-150
4522801 (Accessed on December 16, 2017).
[11]What is the Global market-size (TAM) for the Gig - Freelancer Economy industry? [Electronic
medium] // URL: https://advancedconsult.files.wordpress.com/2017/05/example-3.pdf (Accessed
on June 2, 2018).
[12] The Enterprise Guide to Global Ecommerce [Electronic medium] // URL:
https://www.shopify.com/plus/guides/global-ecommerce?itcat=plusblog&itterm=global- e
commerce-statistics (Accessed on June 2, 2018).
[13] Nielsen Global Connected Commerce Report [Electronic medium] // URL:
https://www.nielsen.com/content/dam/nielsenglobal/jp/docs/report/2016/Nielsen- Global-
Connected-Commerce-Report-January-2016 (Accessed on June 2, 2018).
[14] Why The Influencer Marketing Industry Will Be A $5-$10 Billion Dollar Market In The
Next 5 Years Electronic medium] // URL: http://mediakix.com/2018/03/influencer- marketing-
industry-ad-spend-chart/#gs.EP4Dys8
(Accessed on June 2, 2018).
[15] Bank for International Settlement [Electronic medium] // URL:
https://www.bis.org/statistics/d5_1.pdf (Accessed on June 2, 2018).
[16] CAF World Giving Index 2017 [Electronic medium] URL:https://www.cafonline.org/about-
us/publications/2017-publications/caf-world-giving-index-2017 (Accessed on June 2, 2018).
[17] Crowdfunding’s Potential for the Developing World [Electronic medium]
URL:https://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf (Accessed on
June 2, 2018).
52
[18] Mckinsey Global Institute: MGI Reinventing Construction [Electronic medium]//URL:
https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%
20Infrastructure/Our%20Insights/Reinventing%20construction%20through%20a%20pro
ductivity%20revolution/MGI-Reinventing-Construction-In-Brief.ashx (Accessed on June 2, 2018).
[19] Understanding Alternative Finance: The UK Alternative Finance Industry Report 2014. (2014).
[20] Blackbaud.com.(2018).New report! The Next Generation of American Giving- Blackbaud.
[online] Available at: https://www.blackbaud.com/nonprofit- resources/generational-giving-report-
infographic
[21] Accessed 16 Aug. 2018].
Brown, J. (2014). Selling Equity Through Crowdfunding: A Comment. SSRN Electronic Journal.
[22] Hope,C.(2018).One in five of Britain's biggest charities spend less than 50 percent of total
income on good works, new report claims.[online] Telegraph.co.uk. Available at:
https://www.telegraph.co.uk/news/uknews/12046438/true-and-fair-foundation- hornets-ne st-
charity-report.html [Accessed 16 Aug. 2018].
[23] Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business
Venturing, 29(1), pp.1-16.
[24] Oxera (2015). Crowdfunding from an investor perspective.[online] Available at:
https://ec.europa.eu/info/sites/info/files/file_import/160503-study-crowdfunding- investor -
perspective_en_0.pdf [Accessed 10 Aug. 2018].
[25] Research into the Commission-based Charity Fundraising Industry in Australia. (2017). [ebook]
Available at: http://www.accc.gov.au/system/files/Research%20into%20the%20Commission-
based%2 0Charity%20Fundraising%20Industry%20in%20Australia.pdf [Accessed 13 Aug. 2 0 18 ] .
[26] Ey.com. (2018). [online] Available at:
http://www.ey.com/Publication/vwLUAssets/ey-research-initial-coin-offerings- icos/%24File/ey-
research-initial-coin-offerings-icos.pdf [Accessed 27 Aug. 2018].
