VERSION 1.06
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ContentsTHE IDEA
DOWNSIDES
MARKET OVERVIEW
BOOMSTARTER SOLUTION
WHY DOES BOOMSTARTER NEED BLOCKCHAIN?HOW
BOOMSTARTER SMART CROWDFUNDING WORKS
BOOMSTARTER NETWORK ECOSYSTEM MEMBERS
TOP MINER REWARD
THE GENERAL ECOSYSTEM PLAN
THE CRYPTOCURRENCY VOLATILITY
USER CASES
TOKEN
TOKEN USAGEFACTORS GENERATING DEMAND FOR THE TOKEN
SIMPLIFIED MODEL
FOUNDERS, ADVISORS AND TEAM
ROADMAP
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THE IDEABoomstarter.network— a blockchain-based crowdfunding platform with
smart-contracts and crowdmining technology.
INTRODUCTION
Crowdfunding has been actively developing as investment attraction
tool on the internet since 2009, when Kickstarter, the most popular
crowdfunding website in the world, was launched. Since that time many
similar websites have appeared not only in the US, but also throughout
the world.
Inspired by Kickstarter, Boomstarter team launched its own
crowdfunding project in 2012 and got to the top of the market from its
first days. Thousands of successful projects, tens of thousands of backers,
millions of dollars have been gathered during 6 years of Boomstarter and
Russian crowdfunding development.
1797 Successfulprojects
7,3 Million US dollars raised
196 Thousand backershave supported the projects
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Boomstarter worked hard to create a useful tool for business and
creative teams, which will support their goal of getting ideas funded and
sharing products of their creativity with the whole world.
But do the classic crowdfunding platforms use a full set of available
opportunities and methods nowadays? Does everyone get to use this
classic format?
We watch cryptocurrencies step into our lives. Thousands of people
gained new possibilities of international low-commission payments for
goods and services. Some of them even use the computing power of
their PCs to take part in cryptocurrencies mining and to profit from it.
The world has changed — it’s time for crowdfunding to change too.
DOWNSIDES Classic crowdfunding has plenty of problems that haven’t been yet
solved in the standard fundraising model used by the majority of
platforms.
Creator Issues.
International restrictions.
Citizens of only 22 countries can place their project on Kickstarter
without a representative. The population of these countries is a bit over
1 bln people. But there are 6 bln of potential inventors, creators and
businessmen who can’t participate in international crowdfunding.
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For example, if you hail from Kazakhstan and you want to launch your
project on the world’s largest crowdfunding platform Kickstarter or
on the local platform Boomstarter, you are going to face the legal
and financial regulations and restrictions. To launch your project on
Kickstarter, you need to be a resident of one of the available countries
(USA, Great Britain, Australia and some others). Similar rules are applied,
if you launch your project on Boomstarter. In practice, it leads you to
search for a representative or an intermediary in one of these countries,
and that means new expenses for intermediary commission and for
negotiation time. The intermediaries themselve add to the project risks
- there is always a possibility that they will disappear with the creator’s
money, and it’s the creator’s reputation that will suffer.
High commissions.
Every crowdfunding platform charges a commission for its services. It is
their one and sometimes the only source of income. Commission rate
varies from 5% to 15% (sometimes even higher). It makes a large part
of investments, that otherwise could have been invested in the project
development. Add inevitable taxes (that can reach 20% of investments)
and intermediary commissions, if you’re from Kazakhstan, like the
project from the previous example.
Limited ways to help projects.
Cryptocurrencies become an increasingly important part of our society,
internet culture. New coins appear as the alternative to the most popular
Bitcoin and Ethereum, while the blockchain technology is continually
adapting to more complicated tasks — from documents fraud
prevention to utility bills distribution. Meanwhile, there’s still no tool for
traditional startups to raise funds in cryptocurrency.
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Backers issues
Money allocation by a creator is untraceable.
Time and again we hear stories from Kickstarter projects, that gathered
millions of dollars and never completed the stated goals in time. Or they
have achieved a different result from the one that has been initially
declared . One of the best examples — the Pebble Watch.
Why do such situations happen?
The team rarely communicates with the purchasers, and when the
communication finally occurs, the team cannot give the answers
needed. The product is still absent, and the unrest among backers
comes close to the boiling point. The lack of transparency in allocation of
project money often drive the team to spend a lion’s share of the budget
on ineffective campaigns during the first days of success, while the
backers are still in the dark about what’s happening.
Platforms are lacking full and
timely funds withdrawal mechanisms, which restrics the creators.
Centralized crowdfunding services set their own rules. It’s not just about
international regulatory law constraints. Money transfer time may vary,
but usually, it ranges from several days to several weeks or sometimes
more in some special cases. Sending the original documents, personal
visit to crowdfunding company office and different banks transactions
(sometimes between foreign banks) steal the precious time from the
creators - the time, that could have been spent much more effectively.
Money must work.
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International regulatory constraints
on payment transactions
Limited ways of supporting fundraising projects
In the developing world of technologies there are different monetary
tools, among them are fiat money (classic money) and cryptocurrencies.
On classic crowdfunding platforms, investments in cryptocurrency are
still unavailable.
Inability to contribute intangibly to the project
Many users have are not able to support the project with money,
but they still like the idea and are ready to participate in projects
development by other means.
Backing up a project doesn’t yield
any financial outcomes for contributors
Currently, you can buy the project’s product or receive an intangible
gratitude from the creator. But these options do not always satisfy the
backers, who see crowdfunding projects as investment opportunities
Almost everyone nowadays has cards issued by centralized banks that act
in accordance with financial legislation of their country of origin. Even
now there are issues with transaction processing, if you’ve got a German
card, but live in London and want to purchase something with this card.
Many payment aggregators and card issuers can simply block the
payment in such cases without looking into the details. Just because you
are not where you are expected to be by the payment operator or the
bank of issue.
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MARKETOVERVIEWDespite the fact that the crowdfunding market on the internet has been
now actively developing for a decade, it remains limited even today.
After the crowdfunding market began to form, some projects started
using this type of financing technology for narrow areas. If initially the
crowdfunding platform accepted any projects seeking investment,
by 2015 many platforms had a narrow profile, specializing in creative,
business, public or other specific types of projects. The use of the narrow
profiles helped platforms to cover more specific areas, including, for
example, FinTech, but somewhat slowed the development of the market
as a whole.
Most of the active fundraising platforms are concentrated in several
key regions: the largest and most popular ones focus on the audiences
in the US and Western Europe. These regions account for about 70%
of the total crowdfunding market value. The REMAINING 30% ARE DISTRIBUTED PROPORTIONALLY throughout other geographies.
It should be taken into account that the number of fundraising platforms
is rather limited even for 2018, despite the potential of the sphere: the
number of large American and European sites runs in the dozens,
but in Russia there are relatively few large ones. The growth of this
sphere in Russia is hampered by a number of «childhood» problems of
crowdfunding. First of all, it is limited awareness and popularity of such a
method of collective investment in general and its limited transparency
in particular.
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The reasons for the former are quite apparent: the Russian Federation
has «stepped» into the new type of financial system relatively recently,
with potential consumers of such services having limited financial
literacy.. The emergence of new investment methods - including
crowdfunding - may seem not completely transparent and «reliable».
However, as practice shows, for the Western world this phenomenon is
much more characteristic, as the potential of investments grows from
year to year.
The amount of traffic driven by such platforms is noteworthy: it varies
depending on the degree of fame and relevance. IN SOME CASES, the
average monthly audience of crowdfunding platforms can amount to
about 20-60 million unique views with a fairly stable average percentage
of bounce rate (about 60). This indicator can be considered a record
for a sphere that is just gaining momentum and is directly connected
with the format of collective investment, which is little-known for
most countries. At the same time, the level of people’s interest in
crowdfunding is easily determined by the allocation of organic traffic
from the total volume. The figures in this case are also impressive: for
Western European and American platforms, organic traffic accounts for
about 93% (kickstarter, Indiegogo). For Russian platforms this figure is
up to 99%, however, with a smaller amount of traffic in comparison with
Western projects.
Despite this, crowdfunding platforms in Russia attract quite large
amounts of funds: for example, in 2016, the three largest Russian
sites were able to attract about $17 million in collective investments.
Boomstarter.ru accounts for over a third of this amount. .
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In 2017, the total amount of funds crowdfunding globally INCREASED
BY AT LEAST 40%, while it is expected that in 2018 a qualitative leap
may occur due to the use of new solutions , including the use of crypto
currency and blockchain as the most promising technologies and
means of payment.
The bottomline is: the market development for crowdfunding is directly
related to the market growth of crypto-currencies and its active
expansion.
BOOMSTARTER SOLUTION
GLOBAL CROWDFUNDING 2.0
Now crowdfunding becomes predictable, transparent and independent
from centralized platforms, that means decentralized. Boomstarter
Network uses Ethereum platform, which executes decentralized
application for crypto-crowdfunding. This brings crowdfunding up to the
whole new level.
There are less international restrictions than before — anyone could
launch their dream project from any place the world with a stable
Internet connection. Crowdfunding as accessible and convenient as ever.
Authors can now be sure that they will conveniently receive the funds
after completion of crowdfunding. The funds become available for them
in a few minutes (average transaction time in Ethereum network ranges
from 30 seconds to 5 minutes). Boomstarter Network utilizes smart-
contracts that are built on formal logic, and they follow it independently
of all centralized organisations.
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With Boomstarter Network, authors can call on their supporters to help
with not only money, but also by investing their computing power to
mine cryptocurrency for the author’s project pool and help to make the
world a better place.
Backers/Sponsors can track transactions from the author’s wallet. We
understand that blockchain does not guarantee perfect transparency,
but it is still a significant step forward compared to modern bank
accounts. After identification on platform backers gain an ability to
support projects in cryptocurrencies, which removes most of the
international restrictions and inconveniencies.
The backers/sponsors will choose their way of providing support: with
money (cryptocurrency) or with the power of their PC (if they cannot
support with money). Such backers become miners.
Miners profit from supporting the authors with the computing power of
their PCs, making it easier for authors to attract investments, while
actually getting revenue for themselves. The best miners have an
opportunity to claim a sufficient part of the whole cryptocurrency pool
raised for the project.
All the funds that projects collect will be nominated in Boomstarter
Coins (BC), with a convenient option of exchanging fiat money and
cryptocurrencies into BC and back. The exchange procedure can be
done through an integrated service provided by partner cryptocurrency
exchanges approved by the relevant authorities of Singapore.
Boomstarter Network also offers low commissions for everyone — now
projects don’t have to share their gathered finances with anyone,
authors can retain all the funds.
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Internationalrestrictions
MANY A FEW
Authors’ expenses transparency
Guarantees to authorsin obtaining funds
RELATIVE RELATIVE FULL
Funds transferspeed
14 DAYS 21 DAYS 5 MIN
Cryptocurrencies support
WHY DO WENEED BLOCKCHAIN?
Centralized crowdfunding platforms proved as not safe and convenient
enough to guarantee that the author will receive the funds on time.
Opportunity to gain profit for Backers
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The Ethereum blockchain platform and decentralized applications on its
basis are extremely convenient, because it is a ready-made infrastructure
that provides trust between nodes in a trustless environment, necessary
for the transfer of crypto assets between the addresses (wallets) in the
network. The Ethereum smart contract will guarantee the invariability of
the contribution conditions in the project.
Ethereum-based smart contracts also allow almost instantaneous
collection of funds to all participants in the transaction chain. In the
Boomstarter Network ecosystem, it is not only the authors, but also the
miners, who also help them in the implementation of projects with their
computing power.
Backers are also able to add their computing power, converting it to the
chosen cryptocurrency. The type of the cryptocurrency mined could be
defined within the backer’s web-based user interface .
Bureaucratic and legal international barriers are also easily eliminated
through the use of the blockchain technology and smart contracts.
There are no more obstacles, and now every person on the planet with
access to the Internet will be able to participate in crowdfunding.
Last but not least, it is the openness and transparency of the data that is
brought about by the blockchain technology. All transactions are publicly
available, and now no-one can distort the real data, even if they want to.
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HOW SMART CROWDFUNDINGWORKSCrowdmining technology
One of the main ideas implemented in the framework of Boomstarter
Network smart crowdfunding solutions is the introduction of
crowdmining technology, which allows a lot of people to support
projects with the computing power of their equipment. It is enough to
have an ordinary home computer, and a substantial result is achieved by
mass participation.
Boomstarter Network Mining Pool is going to be used to control users’
mining activities with the following pool of tasks:
Decentralization. The computing power belongs
to the miners pool and no one possesses more than a half of it.
Improving the probability of mining blocks: a large number of donating
miners will join the pool of Boomstarter.Network to bring its hashrate
high enough to increase the odds of generating blocks, boosting the
median earnings for each donating miner.
Risk mitigation. Boomstarter Network Mining Pool is presented as one
huge miner for the chosen blockchain, which guarantees the most
efficient mining.
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User story
The user defines the project they want to support.
The creator gets the cryptocurrency mined in addition to the general
fund of their project and implements the project, making the world a
better place.
Instant transactions
Thanks to the architecture of smart-contracts, the creators will be able to
receive the collected funds almost instantly. The average processing time
for transactions in the Ethereum network is a few minutes.
The creators will be able to manage the collected funds right after the
end of their crowdfunding campaign and to start creating new ideas and
products that change the world.
The user downloads a desktop application and follows the instructions to configure it to mine in favor of their chosen project on Boomstarter.Netwrok.
The community of such users helps authors to raise funds in
cryptocurrency, adding their important contribution to project
realization.
The user defined as miner in the given context, receives a part of the
cryptocurrency mined with his contribution.
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Guaranteed funds for all parties
Transparency of creators’ expenses
Ethereum network stores all transaction data from the first block
and provides public access to any part of the data chain, creating the
transparency of the Ethereum address (wallet). If you receive 10 ETH to
your wallet (the address in the Ethereum blockchain), information about
this transaction would also be available publicly to everyone who knows
your wallet address, e.g using ETHERSCAN.IO.
In the same manner everyone will be able to find out that you have
recently spent this amount somewhere else or that you are still holding
it at your address. In the ecosystem of Boomstarter Network smart
crowdfunding, the creators’ expenses will be transparent and everyone
will be able to track the flow of funds or question why the funds have not
been used if the project should already have been implemented.
However, it should be noted that the technology of blockchain does
not yet guarantee an ideal transparency of spending, but it is still
a significant progress in terms of transparency and openness in
comparison with the system of bank accounts.
Ethereum-based smart contracts depend on only one thing — strict
logic with clearly defined conditions. Once a predetermined amount
is collected within a predetermined timeframe, the smart contract
transfers the money to the creator. This process does not depend on any
third parties or forces, only on the logic laid down in the smart contract.
The same process is true for the percentage received by the miners and
top miners.
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Boomstarter.Network Ecosystem
Project Creator (Author)
Sponsor (Backer)
Miner
Miner contributes the computing power of their equipment (for
example, an ordinary personal computer) into a common project support
pool. Miner receives a part of cryptocurrency that they mined and
contributed to the project.
Within the framework of the created ecosystem we can identify
the following participants that influence the result of the system
operation.
Creates a project to raise funds to implement their idea. It can be any
idea that does not contradict the norms of morality and basic law, as
well as in classic crowdfunding, as laid out in the Terms of service. Authors
can implement public projects, design technological equipment, create
new products, or embody their creative talent in creating songs, books
or paintings. Anyone with access to the Internet can now quickly and
easily become a creator of the project.
The sponsor can support projects just like in the classic crowdfunding
model, but now it can be done with cryptocurrency. People from all over
the world will be able to support new ideas and receive unique rewards
from authors.
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Miner Pro
Author
Miner Pro can transfer part of their contribution to the total
cryptocurrency mining pool, within the limits allowed by the creator of
the project (at least 10% and not more than 50%). Miner Pro can also
claim 5% of the project’s total cryptocurrency mining pool, if they make
the largest contribution to the pool. This feature will be added after full platform launch.
The author of the project creates specifies their Ethereum account
address. A smart contract transfers funds to this account, if financing is
successful. If financing has failed (the target amount is not collected
within the period determined by the creator), the creator will not receive
anything, and the funds collected will be returned to sponsors (backers).
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Author
User scenario for project author:
• Creates a project on Boomstarter.Network,
• Passes the verification stage and launches the project.• A special smart contract is created for the project containing the
criteria of success and failure for the project (the amount of the
collected funds and the timeframe defined by the author).
To start the project, the creator needs to pay for one of the placement
formats. Payment is made with BC platform tokens (BoomstarterCoin).
• Submits content for the project.
• Indicates the target amount for the project and the duration of the project.
• Indicates their Ethereum wallet address to be used to receive the
collected cryptocurrency and to pay for placement on the platform
(creates the address first, if has not created it earlier).
• If necessary, converts available fiat funds into cryptocurrency or BC tokens in order to pay for the placement on the platform
• Pays for the project placement (prices depend on the services package chosen).
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• The author attracts Sponsors and Miners to support their project with
the help of cryptocurrencies and mining.
Sponsors/Backers
The sponsor (backer) uses cryptocurrencies available to them to support
the project. Other cryptocurrencies are converted to BC tokens and are
transferred to the smart contract of the sponsor’s chosen project.
If sponsoring takes place using Ethereum or ERC-20 tokens tied to an
Ethereum account, the Ethereum account address is registered in the
smart contract system so that, if the project fails, the smart contract will
return the money to this address. This will happen automatically if the
project’s amount determined by the creator is not collected within a
certain period of time.
• Completion of the project
• Project success:
• The smart contract transfers the collected funds to the
ethereum address specified by the author
• The author implements the project
• The author provides the rewards bought by the sponsors
• Project failure:
• The author does not receive the collected funds,
• Sponsors receive funds corresponding to 100% of theircryptocurrency amount they have spent to support the author’s project.
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User scenario for Project Sponsor (Backer):
• Chooses a project to support.
• Indicates their Ethereum address to be used to support the project and to receive a refund in the
event of the project failure.
• Transfers the necessary amount to the project’s smart contract.
• Project success:
• Expects to receive the selected remuneration,
If the sponsorship is made using other cryptocurrencies, then with
the help of a converter the cryptocurrency is transferred to the project’s
smart contract, and the sponsor (backer) will get the account address in
the Ethereum network with an offer to generate a private key to it. This
key is accessible only by the sponsor (backer). Alternatively, the sponsor
will be offered to provide the address of their personal wallet. To ensure
security, private key will not be kept by the Boomstarter Network
platform. In case of unsuccessful completion of the project, the funds
will be returned to the named address, and the sponsor (backer) will be
able to use them at their own discretion.
If the project succeeds, regardless of the cryptocurrency chosen for
sponsoring, the sponsor (backer) will receive the reward they pre-ordered from the creator.
• If necessary, converts available fiat funds into cryptocurrency or BC tokens
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• Can view transactions from the author’s address and ask the relevant questions
• Can spend their BC tokens to support other projects
• Can spend their BC tokens to upgrade their account to Miner Pro or to pay for the placement of their
own project
Miners
Miner:
Can mine only a fixed amount for himself (10%)
Cannot attempt to claim the top-miner reward
(5% from the project’s mined pool)
M - the whole amount of cryptocurrency
the miner has mined for the project
If the project is successful, the Ethereum account defined by the miner
will receive 10% of cryptocurrency mined by this miner.
• Receives a refund
• Project failure:
Miners can use their computing power to contribute to the common
cryptocurrency pool for the project. The mined cryptocurrency
(for example, Ethereum) is distributed correspondingly across the pool,
is transferred to the address of the Ethereum account of the project.
The funds are transferred to the project smart contract from this
address.
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User scenario for Miner:
• Chooses a project to support with mining.
• Indicates the address to use for receiving a share of mining proceeds
in BC tokens.
• Selects the method of mining:
• Begins the process of mining, suitable for their equipment.
• The project is completed:
• Successfully:
can spend their BC tokens to pay for upgrading their account to Miner Pro or for placing their
project on the platform
By installing an application for Windows / MacOS / Linux. The
user will receive an accurate indication of the free capacity
of their equipment available for mining.
receives 10% of the total volume of their mined cryptocurrency
can convert it into another cryptocurrency or fiat money
can spend their BC tokens on supporting other projects
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Miner PROThe logic of Miner PRO participation in the
ecosystem is the same as that of Miner,
but several key points are different.
N - cryptocurrency percent the miner mines for himself inside the frame allowed
by project’s creator, but no less than 10%
M - the whole amount of cryptocurrency the miner has mined for the project
To obtain the Miner Pro status, the miner must start a monthly subscription. Miner Pro has the ability to change the mining cryptocurrenсy percentage
for themselves, within the limits allowed by the creator (from 10% to 50%).
Miner Pro can claim the Top Miner award, which is 5% of total volume of the
cryptocurrency mined for this project. This feature will be added after full platform launch.
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User scenario for Miner Pro:
Chooses a project to support with mining.
• Begins the process of mining, suitable for their equipment.
• The project is completed:
• Successfully:
amount of cryptocurrency mined ofr this project,
can spend their BC tokens on supporting other projects
can spend their BC tokens to upgrade to Miner Pro account or for placement of their project on
the platform
• Pays for the Pro account: monthly subscription • Indicates the address to receive their share of mining.
• Selects the method of mining:
installs the mining application for Windows / MacOS / Linux. The user will be
able to receive an accurate determination of the free capacity available for
mining.
receives 10-50% of the volume of their mined cryptocurrency,
the percentage depends on the author’s set limits and the choice of Miner Pro,
if their hashrate for a given project was the greatest, they receive 5% from the entire
can convert them into another cryptocurrency or fiat money
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Top Miner Reward
The smart crowdfunding system of Boomstarter Network is analogous to
the reward mechanics used in blockchain systems.
The funds contributed to the project by the sponsors (backers) are
transferred to the project creator in full (with the exception of the
Ethereum blockchain transaction commissions).
Commissions and transfers scheme within the Boomstarter.Network
smart crowdfunding ecosystem. Commissions are held by Boomstarter.Network, as well as funds
are received by the project creator, only if the project is successfully
completed.
One of the ecosystem key solutions is the opportunity for Miner Pro
to receive 5% of the total volume of the cryptocurrency mined by the
project pool. This reward is received only by one Miner Pro out of all
miners for a given project - the one that made the largest hashrate
contribution to the overall output of the project pool. The award is
very attractive for many members of the crypto community who have
the opportunity to mine cryptocurrency with their equipment. This
awarding system is similar to the consensus system Proof of Work, which
is common in many blockchain systems. It proposes a coin reward to a
miner who picks up the necessary hash for the extraction of a new block.
This can only be done by miners with the ability to generate a large
enough hash rate. This feature will be added after full platform launch.
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N - cryptocurrency percent the miner mines for himself inside the frame
allowed by project’s creator, but no less than 10%
BC - Boomstarter Coin
BC
BACKERS FUND
MINING FUND
PROJECT STORAGE
AUTHORBOOMSTARTER
PROFIT
BOOMSTARTERFEE
20-600 BC monthly
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The funds contributed to the project from mining by miners and
miners Pro are transferred to the project creator in the amount of 80%
of their total volume (minus the N amount). N means the amount of
cryptocurrency that the miner mined for themselves within the limits set
by the project creator with a minimum of 10% and a maximum of 50%.
25% of the Boomstarter.Network commission (or 5% of the total volume
of the project’s mined cryptocurrency) is transferred to Top Miner (Miner
Pro with the maximum hashrate contribution to the total project mining
pool).
All transactions and amounts of the received commission are ensured
by the blockchain technology and formal logic of the Ethereum-based
smart contracts.
The general ecosystem plan
The diagram demonstrates all the mechanics of the smart crowdfunding
ecosystem, the interaction of all participants, the commissions and
transactions between them.
Ecosystem participants can exchange cryptocurrency and fiat funds for
BC tokens and back using the built-in cryptocurrency exchange
functionality to be provided by partner crypto-exchanges.
Now that we have presented all the participants of the ecosystem
separately, it’s time to demonstrate the entire ecosystem.
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The cryptocurrencyvolatility
BACKER
MINER
MINER PRO
TOP MINER
BACKERS FUND
MINING FUND
PROJECT STORAGE
AUTHOR
BOOMSTARTERPROFIT
BOOMSTARTERFEE 20%
BC FUND 100%
80% – N
75%
20-600 BC
PER MONTH
BC
BC
BC
A lot of factors influence the developing cryptocurrencies market what
often leads to dramatic increases in their prices. During a few months
many cryptocurrencies may lose much of its value, or grow significantly.
When the creator launches their project, they must be sure that the
amount collected will be enough for them to implement the project. A
solution that will avoid the risks of market volatility is needed.
A solution within the Boomstarter.Network smart crowdfunding
ecosystem will be converting on a daily basis the funds being raised by the project into a stable coin, so as to provide a sustainable crowdfunding process.
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USECASESBusiness creating a new product
Businessmen from any country can now get support to create their
products not only in their own country, but also in countries that they
could not even have dreamt about earlier. Now, while in Canada, you can
offer to pre-order your product with zero commissions for a Hong Kong
resident, thousands of miles away.
Charity organizations that receive support from around the world
A striking example of UNICEF, a world-wide charity organization for
helping children under the auspices of the United Nations, has proved
that it is possible to receive support from around the world using
cryptocurrency. Now the whole world will be able to make donations
for any charity organization participating in the ecosystem of smart
crowdfunding without international barriers and other restrictions.
And not only can the donations be made with direct cryptocurrencies
transfers, but also through the production of cryptocurrency by
hundreds and thousands of people in favor of specific charity projects.
Creative people receiving support from fans
Musicians, writers, artists and other creative people can now receive
cryptocurrency support for their ideas and projects without restrictions
and international barriers and create new products faster and more
efficiently.
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Backers who can support projects by mining instead of money
Interesting projects often are not supported because the backer does
not have the opportunity to spend the available money. Now it can be
done with the help of mining in favor of projects on any home PC.
People who can earn money by supporting new ideas
Everyone who has access to the Internet and a computer can now
receive income by providing support to others and helping to create new
things that change the world. Owners of powerful computers will be able
to receive significant revenues simply by supporting interesting projects.
Top Miners in the ecosystem of Boomstarter smart crowdfunding can
receive 5% of the total amount of crypto currency generated for the
project. This is a considerable reward for those who want to help projects
substantially.
People who want to support projects with
cryptocurrency and receive rewards
Classic crowdfunding means receiving a bonuses from the project
in exchange for money. But now projects can be also supported in
cryptocurrency.
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TOKEN
Token usage
The projects creators.
Several placement options are possible.
Standard placement: using standard platform functionality.
For calculations between the Boomstarter.Network platform and the
members of the smart crowdfunding ecosystem, we introduce the BC
- BoomstarterCoin token. Token is intended for use by Creators to pay
for project placement and value-added services, and by Miners to update
their accounts to Miner Pro.
Any creator from anywhere in the world can place the project on
the platform by paying for it with BC. Actual prices are to be determined by the platform and subject to change. It is the payment for
making the project available to be supported by other people.
Premium placement: packages of value-added services aimed at promotion of the project (additional project views, access to
advanced analytical tools on the platform, project support by the marketing resources).
33BOOMSTARTER.NETWORK
Miners.
A unified currency for fundraising
Professional placement: in addition to services available in Premium
placement, this option provides a unique opportunity of personal
support by professional Boomstarter.Network employees.
For a significant number of people it’s not enough to have a simple Miner
account, so they will inevitably want more. Therefore, we introduce
additional features in the Miner Pro account, which provides users with a
different level of income (this includes the adjustment of the percentage
of mining for themselves, and the chance to receive the Top Miner
reward of the project). Access to the Miner Pro account is available with
payments in BC tokens. For a monthly fee, such users will receive additional
opportunities to increase their income on the platform.
It should be noted that for the convenience of Creators and Miners, the
possibility of paying with fiat currencies will be introduced, while the
automatic algorithm will convert them into cryptocurrencies.
All projects’ fundraising, as well as payments to authors, miners and
refunds to sponsors in the event of a project failure can be made with BoomstarterCoin (BC). At the same time, platform users will always have
the opportunity to exchange BC for other cryptocurrencies or fiat money
via partnering crypto-exchanges.
34BOOMSTARTER.NETWORK
Factors GeneratingDemand for the Token
3. Hundreds of thousands of people around the world are in search
of financing to create new products and realize their ideas: these
are potential project authors of Boomstarter.Network, ready to take
advantage of the new opportunities for crowdfunding.
1. Settlements within the platform are made with BoomstarterCoin
tokens (BC).
2. Boomstarter Coin (BC) will be the only way to access premium crowdfunding packagaes on Boomstarter.Network and the new
opportunitiesfor financing ideas that the service provides. Authors and
Miner Pro canaccess the platform’s functionality with the help of
BoomstarterCoin(BC).
4. Millions of owners of powerful computers will be able to support the
authors’ projects with the processing power of their equipment: they
are potential users of the Miner Pro account, which makes it possible to
receive 5% of a project’s total cryptocurrency mining pool.
5. Burning of the tokens: each year, 1,000,000 BC tokens will be burned
out of those received by the platform as payment for services. The tokens
will be burned in this way until the total number of tokens in
circulation reaches 30,000,000 BC tokens.
35BOOMSTARTER.NETWORK
SIMPLIFIED MODELAssumptions
Boomstarter Expense Growth
Optimistic 20,00%
Base 30,00%
Pessimistic 40,00%
Assumption on top of doubling of headcount anticipated by the management
Crowdfunding Market GrowthCurrent Value 7500 in MM
USD
2H2019 2020 YE 2021 YE 2022 YE 2023 YE 2024 YE Avg. CAGR
Optimistic 30,00% 26,00% 22,00% 18,00% 14,00% 10,00% 20,00%
Base 20,00% 17,60% 15,20% 12,80% 10,40% 8,00% 14,00%
Pessimistic 15,00% 13,20% 11,40% 9,60% 7,80% 6,00% 11,00%
2H2019 growth rate shows annualized Y-o-Y growth on 2018
Boomstarter Revenue Conversion
Optimistic 20,00%
Base 15,00%
Pessimistic 10,00%
Conversion numbers based on the real percentages shown in the past
36BOOMSTARTER.NETWORK
Market Share
2H2019 2020 YE 2021 YE 2022 YE 2023 YE 2024 YE Avg. CAGR
Optimistic 0,50% 1,50% 2,50% 3,50% 4,50% 5,50% 1,00%
Base 0,35% 1,18% 2,01% 2,84% 3,67% 4,50% 0,83%
Pessimistic 0,15% 0,82% 1,49% 2,16% 2,83% 3,50% 0,67%
Funds Raised in MM USD
Optimistic - Optimistic 48,75 141,75 228,75 309,75 384,75 453,75
Base - Base 31,50 104,08 173,66 240,26 303,88 364,50
Pessimistic - Pessimistic 12,94 69,62 124,49 177,55 228,81 278,25
Headcount & G&A expensesCurrent Value 0,30 in MM
USD
2H2019 2020 YE 2021 YE 2022 YE 2023 YE 2024 YE Avg. CAGR
As (%) of revenue initial 30% 32,50% 35,00% 37,50% 40,00% 35%
Management anticipates doubling of headcount and relative expenses by the
end of 2019
37BOOMSTARTER.NETWORK
Summary
Pessimistic scenarioCrowdfunding
Market GrowthBoomstarter
Network Market
Share
Boomstarter Revenue
Conversion
Boomstarter Expense Growth
Boomstarter Tax Rate
Boomstarter Interest
Rate
Avg. CAGR
11%
Avg. CAGR
0,00%
Value
10,0%
Value
40,0%
% of ebit
20,00%
% of rev
7,00%
2H2019 2020 YE 2021 YE 2022 YE 2023 YE 2024 YE
Revenue $905,6 $5 917,5 $12 449,0 $17 755,2 $22 880,6 $27 825,0
Expenses -1 245,6 -2 190,0 -6 349,7 -9 591,2 -13 170,7 -17 088,0
EBIT($) -340,0 3 727,6 6 099,2 8 164,0 9 709,8 10 737,0
EBIT(%) -37,5% 63,0% 49,0% 46,0% 42,4% 38,6%
Taxes 68,0 -745,5 -1 219,8 -1 632,8 -1 942,0 -2 147,4
Int. Exp. -63,4 -414,2 -871,4 -1 242,9 -1 601,6 -1 947,8
Net Income($) -335,37 2 567,83 4 007,94 5 288,38 6 166,22 6 641,88
NI Margin -37,03% 43,39% 32,20% 29,78% 26,95% -1 947,36
38BOOMSTARTER.NETWORK
Base scenario Crowdfunding
Market GrowthBoomstarter
Network Market
Share
Boomstarter Revenue
Conversion
Boomstarter Expense Growth
Boomstarter Tax Rate
Boomstarter Interest
Rate
Avg. CAGR
14%
Avg. CAGR
0,83%
Value
15,0%
Value
30,0%
% of ebit
20,00%
% of rev
7,00%
2H2019 2020 YE 2021 YE 2022 YE 2023 YE 2024 YE
Revenue $3 307,5 $13 269,7 $26 049,6 $36 039,6 $45 581,4 $54 675,0
Expenses -1 168,7 -3 482,9 -11 662,9 -17 252,0 -23 331,1 -44 940,5
EBIT($) 2 138,8 9 786,8 14 386,7 18 787,6 22 250,3 24 800,8
EBIT(%) 64,7% 73,8% 55,2% 52,1% 48,8% 45,4%
Taxes -427,8 -1 957,4 -2 877,3 -3 757,5 -4 450,1 -4 960,2
Int. Exp. -231,5 -928,9 -1 823,5 -2 522,8 -3 190,7 -3 827,3
Net Income($) 1 479,52 6 900,55 9 685,92 12 507,31 14 609,54 16 013,38
NI Margin 44,73% 52,00% 37,18% 34,70% 32,05% -3 826,80
39BOOMSTARTER.NETWORK
Optimistic scenarioCrowdfunding
Market GrowthBoomstarter
Network Market
Share
Boomstarter Revenue
Conversion
Boomstarter Expense Growth
Boomstarter Tax Rate
Boomstarter Interest
Rate
Avg. CAGR
20%
Avg. CAGR
1,00%
Value
20,0%
Value
20,0%
% of ebit
20,00%
% of rev
7,00%
2H2019 2020 YE 2021 YE 2022 YE 2023 YE 2024 YE
Revenue $6 825,0 $24 097,5 $45 750,0 $61 950,0 $76 950,0 $90 750,0
Expenses -1 091,8 -5 180,9 -18 470,8 -26 835,8 -35 689,4 -44 940,5
EBIT($) 5 733,2 18 916,6 27 279,2 35 114,2 41 260,6 45 809,5
EBIT(%) 84,0% 78,5% 59,6% 56,7% 53,6% 50,5%
Taxes -1 146,6 -3 783,3 -5 455,8 -7 022,8 -8 252,1 -9 161,9
Int. Exp. -477,8 -1 686,8 -3 202,5 -4 336,5 -5 386,5 -6 352,5
Net Income($) 4 108,81 13 446,46 18 620,83 23 754,82 27 621,98 30 295,13
NI Margin 60,20% 55,80% 40,70% 38,35% 35,90% 30 295,13
40BOOMSTARTER.NETWORK
FOUNDERSAND ADVISORSThe founders of Boomstarter Network platform have been developing crowd-funding not only in Russia, but also throughout the world since 2012. A pro-ductive alliance with advisers multiplies the capabilities of the team.
ADVISOR
Founder at InterVentures Asia. Paddy is the ’go to guy’ with a no-nonsense approach for tech startups and ventures. He is armed with vast experience in identifying startups from an idea to mentoring, funding, acquisition stage.
PADDY TAN
SHELBY TEEADVISOR
Head of Operations at InterVentures Asia, Shelby spear-heads a team of Business Analysts, providing manage-ment consulting and fundraising services both for boot-strapped startups and publicly listed companies. Shelby brings her expertise in business strategy, as well as in-depth knowledge of ICOs and ICO marketing.
ex-Vice President, Goldman Sachs. Over 7 years of experience in combining Wall Street finance and latest technology. Participated in the launch of several FinTech products, including Marcus & GS Select, as well as in the deal flow of the Asset-Backed Securities.
VLAS LEZINADVISOR
41BOOMSTARTER.NETWORK
John Mark Fitzpatrick is a cofounder and currently responsible for the Business development function at SLAVA Group advertising agency, a company founded in 2010. SLAVA Group creates TV and Digital campaigns for Google, Ferrero, PepsiCo, Renault and Lego.
JOHN FITZPATRICKMARKETING ADVISOR
Managing Consultant at Adelphi Executive Search & Recruitment
WILLIAM CHILCOTT
ANALYTICAL ADVISOR
Cryptoenthusiast since 2014. 9+ years in digital marketing.
MIKE BLACKWOODMARKETING ADVISOR
Angel Investor. Blockchain Advisor. Tech Events Curator.
SIVALEE ANANTACHART ADVISOR
42BOOMSTARTER.NETWORK
Blockhain enthusiast, security analyst and expert in crypto economy. 4+ years of experience in blockchain research and crypto trading. Specializes in advising and managing the ICO token-sales and providing efficient Marketing & PR support. Out of the work I dedicate my time to support the blockchain community by sharing the knowledge and experience I have acquired over the years.
PAVAN BHATAMBASSADOR
The member of Board of Directors of «Otkrytiye» bank, Nadiya was recognized one of the top-35 world’s successful women in 2007 by World Business Magazine
NADIA CHERKASOVAEARLY INVESTOR
Passionate in the belief that Blockchain, Cryptocurrency are essential and are the next generation technologies where very less population are aware off, Manages India’s biggest start up ideas channel, Worked as a primary crew member for International Blockchain Congress the masters of all blockchain event where it is co-hosted by the government.
NITHIN REDDYMARKETING ADVISOR
A passionate professional who has worked for both public listed and private sectors for over 18 years, spe-cialized in technology, finance and investment in-dustries. Focused mainly on strategic development, sales and marketing, operations management, built a track record of creating high growth for companies. Held influential leadership positions as regional head at the APAC management team to drive top line of the business, experienced in handling and achieving multi-million dollars size of transactions, setting direc-tion & strategy execution at the region.
AMY KRISTEN YUEN ADVISOR
43BOOMSTARTER.NETWORK
IVAN GOLENKOMARKETING CONSULTANT
EVGENY POPOVCONSULTANT
TEAM
The core team is made up of professionals who started working with crowdfund-ing back in 2012. Each of them understands the mechanics of crowdfunding deeply and knows what to do to bring the industry to a new level.
More than 15 years of marketing and international sales experience
EVGENY GAVRILINCO-FOUNDER, EARLY INVESTOR
RUSLAN TUGUSHEVCO-FOUNDER, EARLY INVESTOR
44BOOMSTARTER.NETWORK
Launched more than 1000 crowdfunding projects for more than 250 mil rub
MIKHAIL SVINUKHOVPROJECT MANAGER
Over 10 years of international experience in media and communications for projects in finance, technology and blockchain space.
COMMUNICATION DIRECTOR
Lead expert in crowdfunding technologies in Russia, more than 6 years of international fund raising experience
MARIA DOKSHINACHIEF EXECUTIVE OFFICER (СЕО)
Engaged in the development of international projects for more than 4 years.
NIKITA SHILENKOCBDO
For several years now, she has been handcrafting the design of blockchain projects and she is not getting tired.
LEYA KUZNETSOVAUX/UI DESIGNER
KIRILL MAKAEV
45BOOMSTARTER.NETWORK
Founded an international translators team at 14, and loves people and writing for 21 years.
EKATERINA PESHKINACONTENT MANAGER
46BOOMSTARTER.NETWORK
ROADMAP
2012
AugustBoomstarter technological
crowdfunding platform launch in Russia
2015
SeptemberNumber of successful fundraising
projects reaches 1000
2016
AprilNumber of registered
platforms users exceeds 500,000
2017
November Market and solutions research for smart crowdfundin
2018
JanuaryDefinition of the concept
and technology of smart crowdfunding
February Start of WhitePaper creation
April Community formation around the project
47BOOMSTARTER.NETWORK
2019
January
March
December
February Architecture of smart contracts for token implementation on platform
Development of platform prototype; creation of design concepts.
Finalization of platform design and code development for MVP.
Platform features testing preapring to launch MVPApril
May Launch of MVP with core features. Development of advanced smart contracts.
Q2 2019 Development and launch of full-featured platform.
- Platform marketing. Promotion at events in Asia. Partnership program.- New ways to purchase Boomstarter Coin.
Q3 2019
Q4 2019
Finalization of interfaces and smart contracts development.
- Development of platform modules. Billing system in several cryptocurrencies.
48BOOMSTARTER.NETWORK
Legal NoticeThe purpose of this Whitepaper is to provide an information about
Boomstarter project to potential holders of BC tokens. The information
given herein is not exhaustive and it does not imply any contractual
obligations and may be considered only as the marketing information
about the project. This Whitepaper is intended to provide basic data
on the project to the potential token holders based on which it will be
possible to decide upon purchasing BC tokens.
Nothing herein may be interpreted as an investment quotation of any
kind. This quotation of BC tokens is not an offer to sell or buy securities in
any jurisdiction. This document does not offer purchasing BC tokens to
individuals and companies that do not possess sufficient legal capability
for participating in tokensale.
If you are not sure that you are entitled to participate in tokensale of BC
tokens, you need to apply to a professional legal, financial, tax or other
consultant.
Participation in tokensale is entirely voluntary. One shall review carefully
and accept the terms of the token sale agreement on the Boomstarter
tokensale project website. If you disagree with the terms partly or fully,
you should not participate in tokensale, and in case of your participation
with further disagreement Boomstarter will have to decline participation
in tokensale and in purchasing BC tokens.