Meet ICO Tokens 2.0!
The White Paper
(a brief outline of ShareHolder platform and simple ICO 2.0 use cases)
24.11.2017 Halifax, Canada
Steve Brown, Project Manager firstname.lastname@example.org
J. Halley, CEO
K. Yoch, Sr. Developer
S.L. Lockley, Developer
Open source, ERC-20 compatible!
Table of Contents
|Problem and Solution: Meet ICO 2.0!||4|
|Sample Use Case||4|
|Sample Service: ICO 2.0 Factory||5|
|ShareHolder's Platform Unique Features||7|
|Meet the team||9|
|Initial Coin Offering and why we don't need one.||10|
Leaving aside common hypes and misconceptions, smart contract is nothing but an LLC: a Limited Liability Company. It works "in and out of itself", according to set of statutory documents (coded into a contract itself), it earns profit and it pays for expences, including paying dividends to shareholders of the company.
As such, a smart contract mimics, to a limited degree, the "real world" companies, providing faster, more secure and less expensive way of achieving the same results. It is distributed, robust and network-centric. Multiple solutions are awailable in that area with much more to arrive in the nearest future.
There is a strong and growing demand for such solutions, implemented in the block chain, scalable, easy-to-use, secure and transparent enough for non-technical users being able to participate in the cryptocurrency business. One should expect having a range of such tools covering different possible areas of application, in order to be comfortable in a growing blockchain based market. Yet at the moment available solutions are scarse.
As an example of the revolutionary technology "replacing" (note the quotes) the common stocks, one can name ICOs. Indeed, Initial Coin Offerings allow the companies to rise funds the same way it is done in an off-chain old-fashioned stock market. However, there is a difference.
Stock market in developed countries is highly regulated, most of these regulations serving as a means of protection, shielding the stock holders from accidental losses, incompetence of the management or unethical behaviour of the issuing company. ICO, on the other hand, is not (should we say "is not YET"?) bound with such regulations. Generally speaking, nothing prevents the company to misrepresent its business, or even to disappear in the thin air with all the money collected.
The reason is obvious: ICO is just a crowd funding event, and should be treated as such; it is not directly connected to future profits of a company. In other words, there is a point in ICO's structure, when money leave the block chain, which creates a security problem.
Should we regulate the area same way it was done to the stock market? We believe that in a generic case the answer is "no". First of all, it is difficult due to an international and semi-anonimous nature of the blockchain; second, it will increase the cost of operations dramatically. Still, as we mentioned above, the moment money leave the blockchain, a contract loses ability to control it, so in a generic case, we can not enforce "rules and regulations" using just the smart contracts alone. Fortunately, some business cases are far from being "generic".
There is a rather large group of contracts that can provide block-chain based guarantee of "honest" behaviour of the business they represent. For this approach to work, an underlying business should satisfy a single condition: it has to take place in the block chain entirely. If this condition is met, a contract can take finances of such a business under control, making sure share holders receive what they were promised to. If not, the approach will still work, but it will have to rely on the business reputation of a company or to the above mentioned and not yet present government regulations.
ShareHolder Platform brings up a revolutionary decentralized block chain based network, unifying the way financial flow of a contract (or group of contracts) is controlled, providing a breakthrough way for share holders to be connected to the source of their wealth. Our priorities are simplicity, security, cost-effectiveness, and provable fairness of the business.
Problem and Solution: Meet ICO 2.0!
Proposed in this White Paper ICO 2.0 is a standard contract interface (and its implementation: a ShareHolder contract) that can be used as part of a fund rising strategy as well as after the fund rising is complete. As it is a contract, a person can read its code before investing, and be sure that rules are not going to change as soon as fund rising is over.
In the same time, a token ShareHolder uses is not exactly a "share" in its traditional sence, but more of a combination of a share (participation in profit) and a bank account: as an account, it keeps the running sum of profits of a company so that its price can only go up; as a share, it can be bought and sold at a price that is at least as high as price of a purchase (minus trade comission).
Sample Use Case
As a simple example of a contract, let's take a look at a twist of a well known "King of Ethereum" game: we have called it Duke of Ether and brought the contract online as a proof of a concept. The game is a simple auction, allowing bidders to take the virtual "throne". As the next "Duke" rises, he/she pays 50% more and whatever the payment is, it goes to the previous Duke as some kind of a "golden parashute". Of course, the owner of a contract gets certain comission.
Now let's say the game was developed not by a single person, but by a group. As profit runs, we need to provide them with reward that is proportional to their rights (which is same as number of shares). Also, any share holder should be able to sell her/his shares, and any other person should be able to purchase them.
ShareHolder contract does all that - and more. "Shares" it operates are directly connected to profit made by "attached" contract(s), and profit is distributed according to number of shares a person holds, and a limited version of a "secondary market" is created by ShareHolder contract, allowing people to buy/sell shares.
Same approach works well when we need to run a viral ad campaign: as soon as the person becomes a Share Holder, he/she becomes interested in a contract being profitable. As the result, a share holder spreads the word, creates posts in social media sources and brings new clients to the contract. A small fraction of an "attached" contract's profits works as "promotion agent salary" of a kind.
The last, but ultimately the most important example is using ShareHolder contract with ERC-20 enabled tokens. ERC-20 works well as a crowd funding engine, while ShareHolder guarantees that if the company makes any profits, the money will be distributed among share holders, as promiced. It increases the trust required for the fund raising effort to succeed.
Our Service: ICO 2.0 Factory
ShareHolder Factory is a smart contract provided by us as a service. Use it to create (deploy) your own ShareHolder contract that your own commercial contracts can use as Profit Management System.
All the Factory does is creating a clone of ShareHolder with your address instead of ours. Then you (your address) becomes the contract's owner, and from that point on you have all the control over the profits flow.
On the following image a ShareHolder Factory create out ShareHolder contract that manages profits from our demo contract "Duke of Ether". As ShareHolder can manage more than one contract, a "3rd Party" contract is attached to it as well.
"ShareHolder 1", "ShareHolder 2" and "ShareHolder 3" contracts on the picture are someone elses' ShareHolder contracts.
With block chain technology gaining increasing public interest, we see an exponential growth of businesses that are potential users of the technology.
This, plus projections for future growth of the blockchain acceptance worldwise, gives us nearly unlimited potential for attracting new users interested in this cutting-edge technology, both individual and corporate clients. What makes ShareHolder technology so attractive?
Simplicity. "Shares" are available for co-owners of a block chain based to participate in "attached" business, hands-free, with no extra efforts required.
Security. Both an "attached" contract and ShareHolder contract are available for review in the block chain. Human factor is completely out of the equation.
Transparency. Users of the ShareHolder Platform will enjoy a wide range of statistical data, designed to help monitoring both "attached" businesses and the ShareHolder's own money flow. As a demo, we brought online (should bwe use the "on-chain term?) a simple Duke of Ether contract accompanied with the Web Interface, charts and tables. Watching your money grow is made as simple as possible: you do not have to run your own Web site for that as we handle it for you.
Predictability. As ShareHolder takes control over "attached" contract's payments, the only restriction to its use is that the contract whould work in block chain, entirely. A simple Dice game. A complex Currency Exchange. It doesn't mater, as soon as the PROFIT of a contract arrives to the contract itself (and not, for example, to the bank account) - it will work. The ShareHolder Platform was designed with this concept in mind - and this single restriction allows your company to GUARANTEE the share holder, that she/he'll get exactly what signed for.
Additionally, as some one purchases the "share" on a "secondary" market (which means buying it on a fair price and not during the fund rising), there is an additional guarantee that the price of a "share" will never go down. The contract itself becomes the warrant of the price stability, ensuring security to both service providers and users.
ShareHolder's Platform Unique Features
ShareHolder contract is fully compatible with ERC-20 and other crowd funding interfaces; it is designed to smoothly address its user’s needs - rewarding them for participating in crowd funding campaign.
The contract implements "shares in exchange for participation" business template and later, as (hopefully) the "attached" contract becomes profitable, distributes the profit according to rules that were initially written in the contract.
As an "attached" contract earns money, price of a "share" goes up. At some point a share holder may choose to sell it. Also, some one else can buy these shares from the ShareHolder contract, creating a simple "secondary market". As profit keeps running, shares will gain price, it is guaranteed that the price will not go down.
ShareHolder contract is up and running in the block chain; it is fully operational and it even manages its own ICO. The later statement means that parties participating in ICO will receive "shares" (tokens, really); and as the contract begins yeilding profit, the price of those shares will increase accordingly.
All the developments have been completed except for minor Web site development; the Web site is going to evolve further as more contracts join us and more features become available. Note that even now the Web site is 100% functional.
As the ICO ends, more contracts will be brought online and "attached" to ShareHolder, increasing the profit for share holders. All the developments have been completed from the team’s own financial resources, therefore the money raised will be allocated for developing new contracts or bringing in the 3rd party contracts by advertizing campaigns.
By Jan 2018, all development of the ShareHolder will be completed and all programming efforts will be focused on adding extra "attached" contracts.
Meet the team
The ShareHolder contract was created by the SnowCron Foundation, a small organization working on a cutting edge of Internet-based business. The company is around since 1996.
Alongside with the spirit of crypto community, we do not believe the transparency is a good thing - and we respect our developers' privacy. All but the first people in the following list chose not to provide their contact info; this choice is respected by SnowCron Foundation. If you disagree with approach, ask yourself a simple question: would YOUR senior management protect your privacy at a cost of loosing potential clients?
Key members of the team include:
Steve Brown email@example.com
Shurf L. Lockley
Initial Coin Offering (ICO) and why we don't need one
ICOs are used by new (and sometimes established) blockchain startups to raise money by issuing crypto tokens that represent an underlying asset. Being a revolutionary fundrising technology, ICOs can be made more secure by attaching them to ShareHolder contract, something we considered doing for ShareHolder ICO itself - and chose not to. See, being the ICO 2.0 based, ShareHolder contract can perform fund rising as is, even without ERC20. It will work in a fund rising mode for a specified time, and then switch to the production mode, managing profit of attached contracts and running "stock" trading on a "secondary" market. No human intervantion at any point, and no way to break a contract.
The ISO itself is done by rewarding fund rising participants with ShareHolder shares at a discount price and is manages by ShareHolder contract itself.
ShareHolder is an Ethereum cryptocurrency platform with the goal of managing the "attached" contracts' profit flow. It creates an oversimplified model of the stock market, making it possible to buy and sell "shares" on a secondary market. It also makes it possible to issue a reward to people participating in fund rising events, in an automatic and safe way.
ShareHolder is based on "ICO 2.0" approach, distributing profit of a company that uses its services in a more robust and secure way.