simple token - v5.7 (older version) -- follow link below for version 7.0 for ico

https://simpletoken.org

Version 5.7 Last updated 24 September, 2017Disclaimer: Not an offer for investment or securities.

T H E T O K E N T O P OW E R YO U R B U S I N E S S

1

This document is a confidential overview (“Overview”) of the Simple Token Project. It is prepared by OpenST Ltd. “Foundation” in collaboration with The Simple Token Company. It may be amended or replaced at any time. There is no obligation to update the Overview or to provide the recipient with access to any additional information.

Recipients are notified as follows:

• No offer of securities: The Simple Token (as described in this Overview) is not intended to constitute securities in any jurisdiction. This Overview does not constitute a prospectus nor offer document of any sort and is not intended to constitute an offer or solicitation of securities or any other investment or other product in any jurisdiction.

• No advice: This Simple Token Project Deck / Whitepaper does not constitute advice to purchase any Simple Tokens nor should it be relied upon in connection with, any contract or purchasing decision.

• No representations: No representations or warranties have been made to the recipient or it advisers as to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this Overview or any omission from this document or of any other written or oral information or opinions provided now or in the future to any interested party or their advisers. No representation or warranty is given as to the achievement or reasonableness of any plans, future projections or prospects and nothing in this document is or should be relied upon as a promise or representation as to the future. To the fullest extent, all liability for any loss or damage of whatsoever kind (whether foreseeable or not) which may arise from any person acting on any information and opinions contained in this Overview or any information which is made available in connection with any further enquiries, notwithstanding any negligence, default or lack of care, is disclaimed.

• Risk warning: Potential purchasers should assess their own appetite for such risks independently and consult their advisors before making a decision to purchase any Tokens.

• Translations: This Overview and related materials are issued in English. Any translation is for reference purposes only and is not certified by any person. If there is any inconsistency between a translation and the English version of this Overview, the English version prevails. Unless otherwise stated, all references to “$” and “dollars” in this Overview pertain to United States dollars.

• This Overview has not been reviewed by any regulatory authority in any jurisdiction.

• References in this Overview to specific companies and platforms are for illustrative purposes only.

• Other than The Simple Token Company Limited (“Simple Token Company”) and the Foundation, the use of any company and/ or platform names and trademarks does not imply any affiliation with, or endorsement by, any of those parties.

Disclaimer

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1. Executive Summary 2. Market & Customer Needs 3. The Simple Token Platform 4. Governance 5. Token Sale & Use of Proceeds 6. Project Roadmap 7. Appendix

Contents

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Any app can launch branded tokens on open scalable side-chains, powered by Simple Token, a protocol for consumer-app tokenization and an ERC-20 utility token.

4

We are launching Simple Token to empower an ecosystem and to finance further development.

Executive Summary A protocol for consumer-app tokenization powered by a blockchain and a utility token.

• What. A suite of technologies that developers can easily integrate into their apps to design, launch, and manage their own branded tokens powered by Simple Token, a protocol and an ERC-20 utility token.

• Why. Blockchain technologies hold tremendous promise for a new generation of consumer Internet services, but blockchain is currently too complex for most consumer apps, too daunting for consumer-facing developers, and not currently scalable to millions of end-user micro-transactions without public-private chain innovations.

• Features. Token design; identity management; user-friendly wallets; support for in-app transactions such as incentives & rewards, P2P, B2C, API’s, B2B; rights management; public ledgers; administration tools for monitoring, fraud prevention, analytics and reporting; interoperability with other Ethereum-based technologies.

• Solutions. We are exploring price stability smart-contract mechanisms and pay-as-you-go programs designed to make it easy for consumer marketplaces to use Simple Token. Preliminary work on these topics is presented in this deck.

• Developers. We aim to foster an ecosystem that will take the lead and develop Simple Token protocols on behalf of the community. Developers will be encouraged to contribute to the Simple Token project and can earn Simple Tokens for their contributions.

• Team. From the consumer-Internet technology team behind Pepo, Hem, Fab, and Social Median; the lead developer of Hyperledger Burrow (Monax); and the Blockchain technology team Enuma (prior work on EOS & OpenANX).

• Roadmap. Developers will be able to implement the Simple Token protocol in November 2017. Consumer-facing deployments will begin in Q1 2018, followed by productization and on-boarding of selected Early-Adopter Companies, and then continued development to support thousands of Companies.

• Token Sale #1: Total token supply: 800,000,000. 30% of token supply will be offered for$40M (hard cap). 20% of token supply reserved for future sales. 27% of tokens reserved for a Network Accelerator Program to seed promising projects built on Simple Token. 10% advisors, 10% team, 2.8% early backers (all on longterm vesting schedules). Pre-sale underway as of 5 September, 2017, $200K minimum for pre-sale, accredited purchasers only.

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Jason Goldberg Director & CEO Simple Token.

CEO Pepo Prior: Hem, Fab, Social Median

Nishith Shah Director & COO Simple Token Prior: Hem, Fab, Social Median

Benjamin Bollen Chief Technology Strategist, Simple Token

Prior: Monax, Hyperledger Burrow, Maidsafe

Sunil Khedar Founder & CTO Pepo

Prior: Hem, Fab, Social Median

Smith & Crown • Kenetic • KWM • Perkins Coie • Enuma • SparkChain • Duoh • Pepo

Lionello Lunesu Engineering Lead, Simple Token

Enuma

Extended Team

Antoine Cote Engineering Lead, Simple Token

Enuma

An Experienced Founding Team of Consumer Internet & Blockchain Leaders

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1. Executive Summary

2. Market & Customer Needs 3. The Simple Token Platform 4. Governance & Membership 5. Token Sale & Use of Proceeds 6. Project Roadmap 7. Appendix

Contents

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Ethereum Market Cap $ 28B

Bitcoin Market Cap $ 67B

0

10

20

30

40

50

60

70

USD

$ BI

LLIO

NS

Billio

nsHistorical MarketCap Bitcoin & Ethereum

• Market capitalization of the two major cryptocurrencies exceeded~$80B in August 2017, ~$100B for the top 10 crypto currencies.

• Growth fueled by increase in B2B deep-tech protocols driven by crypto-companies, early-adopters, heated ICO market, and forward-thinking investors.

All this growth driven by early crypto adopters

Cryptocurrency Landscape For Those Following Crypto, Recent Gains Appear Enormous

Source: coinmarketcap.com August 20178

• 100% y/y growth of crypto wallets 2016 to 2017 to 16M wallets in August 2017. • But 16M active crypto wallets still pales in comparison to mass consumer services. • Still very early for crypto, reaching only the very early adopters.

Estimated Number of Active Users August 2017, in Millions

Cryptocurrency Landscape But in Reality, It’s Still Early Days: Less Than 0.5% of Internet Users Have A Crypto Wallet

Crypto Wallets

Twitter Users

Instagram Users

WeChat Payments Users

WhatsApp Users

Facebook Users

Global Smartphone Users

Globel Internet Users

16

310

700

800

1,300

2,000

2,700

3,300

Source: blockchain.info August 2017 & public reports from the named companies.9

Cryptocurrency Landscape No Wonder. How Many of Your Friends Are Going to Use This?

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Cryptocurrency Landscape Public Ethereum Is Not Yet Capable of Supporting Consumer Micro-Transactions

• A new app like Pepo would account for nearly 1% of the maximum number of daily Ethereum transactions. • One medium-sized app like Unsplash (330M monthly API calls) would overwhelm Ethereum entirely. • The median Ethereum transaction cost is $0.12 per transaction — not viable for consumer micro-transactions.

Source: numerous public reports on public-chain Ethereum scalability challenges, such as: https://medium.com/@FEhrsam/scaling-ethereum-to-billions-of-users-f37d9f487db1

B L O C K C H A I N

D I G I T A LC U R R E N C Y

S M A R TC O N T R A C T S

S E C U R I T I E S R E C O R DK E E P I N G

Rewards

Incentives

Vouchers

Coupons

E-Commerce

Global Payments

P2P

Remittance

Messaging

Anti-Spam

X-Border

Micro-transactions

Pay-for-Exact-Use Royalties

Shared Economy

API

Equity

Private Markets

Debt

Crowd-FundingDerivatives

Trading Records

Certificates (Birth, Wedding)

Audit Trail

Metadata

Licenses

Proof of Prior Art

IP

Voting

Ownership

Title

Notary

Identity

ArbitrationWills

Royalties

Escrow

Wagers

Digital Rights

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Cryptocurrency Landscape There Are Enormous Potential Uses for Blockchains. We Are Just Beginning to Scratch The Surface.

Content App• Reward and incentivize content contributions, empower users, spread-the-wealth • Create economics behind up-votes, likes, thanks and “warm-up” transactions • Peer-to-peer micro-transactions • Bounties for answering questions or authoring in-demand content • Person-to-person messaging • Sidestep Facebook & Google for distribution by empowering users to monetize their

social connections and contributions

Photography App• Digital rights management • In-app purchases • API management, monetization and transparency • Create economics behind up-votes, likes, thanks • Peer-to-peer micro-transactions • Bounties for contributing in-demand content • Creating a public record of all uses of a photo

DJ Mixes Music Sharing App• Digital rights management • Bounties for creating in-demand mixes and DJ sets • Peer-to-peer payments, purchasing music, up-votes, pay-per-play • Crowdsourcing and voting for best original mixes • In-app purchases • Removing advertisements within DJ sets • Creating a public record of all uses of a DJ set • Creating a decentralized user-to-artist network

Travel App• Transparency on hotel and airline seat inventory • Transparency on reward seat availability • Removing intermediaries for booking local tours • Identify management, traveller profiles • Instant settlement • Interoperability of loyalty programs • Booking on behalf of someone else • Commissions payout according to smart contracts

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Cryptocurrency Landscape Some Real-Life Consumer Use Cases for Tokenization & Blockchain Technology

Consumer Business

An Ethereum Tokencould help solve this!

• Disrupt incumbents• Reduce value leakage to Facebook, Google, Apple

WANTS

• Engagement• Growth • Monetization

NEEDS

CAUTION!BUT

AHA!

Tokenization is Hard,and not Consumer App

Plug-n-Play

• Incentivize users• Reward value creation• Monetize micro-transactions• Decentralize• Link value realization to value creation• Interoperability to other services

• High costs: >$500K to ICO (legal, tax, advisory)

• High effort & complexity: not core com-petency

• High risk: legal, regulatory, tax, security, fraud

• High technology constraints: No existing consumer protocols, Ethereum is not ready for high volume, high transaction costs, challenging user experiences

Consumer Apps Need A Bridge To Crypto

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Simple Token Will Help Fuel The App Phase of Blockchain

20-25,000developers involved inEthereum community

c. 13,000people involved inHyperledger community

c. 1,000headcounts only forblockchain powered-IoT

TechnologyDevelopment

2014

2016

2017

2018

F I R S T D A P P sSimple TokenTowards Web 3.0

Serenity

Metropolis

Frontier

Olympic

Homestead

E X P E C T E D :2 0 1 8

ET

HE

RE

UM

DE

VE

LO

PM

EN

TR

OA

DM

AP

1950’s

1990’s

2000’sWeb 2.0Social Media P2PSharing

Web 1.0First Applications

Internet40 years of Core Infrastructure Building

97%2 0 0 9

Telecom infocarried on the

internet

1%

We envision a path to Web 3.0 consisting of both partially decentralized and fully decentralized apps.15

1. Executive Summary 2. Market & Customer Needs

3. The Simple Token Platform 4. Governance 5. Token Sale & Use of Proceeds 6. Project Roadmap 7. Appendix

Contents

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A robust technology suite that consumer marketplaces can utilize to power their own branded tokens.

The Simple Token Platform Stack Overview

Simple Token

• Branding• Staking• Exchange Rate• Token types and restrictions

• Consumer Friendly• History• Buy Tokens• Cash Out & Exchange

• Analytics• Alerts• Monitoring• Fraud Prevention• Security• Supply & Economy Management• Purchase more Simple Token

• Across the Simple Token network• Across Ethereum services

• Peer to Peer• B2C• Subscriptions• Optional Transaction Fees• Incentives & Rewards (e.g. tips, up-votes)• B2B & API

• Unique User• KYC checks

Token Design ModuleToken Design Module

Identity Module

Wallet ModuleTransaction Module(support for various types)

Administration Module

Interoperability ModuleInteroperability Module

• Public Transaction History• Transaction Auditing

Ledger Module

S I M P L E T O K E N C O M P A N YF O U N D A T I O N

• Digital Rights Management• Royalties• Commissions

Rights Module

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• Simple Token is on the public Ethereum blockchain while the Member Companies are all within a highly scalable open Side-chain.

• ST is a freely floated ERC-20 token, while the Member Companies’ branded tokens are not floated.

• In Phase 1 all Member Company in-app transactions happen within their own communities.

• Notably, the Simple Token solution enables companies to obtain Blockchain benefits without requiring their entire business to be on a blockchain.

• As Simple Token evolves and as Ethereum evolves and improves: • Interoperability across the Simple Token network with a common Simple Token

wallet and interoperable services. • Interoperability with the broader Ethereum universe.

• Successful Member Companies with proven market liquidity could spin out of the Simple Token Side-chain and float their own token in ICO events.

The Simple Token Network Network Evolution

Phase I Future Evolution

MC 1

MC 2

MC 3

ST

MC 5

MC 4

MC 5

ST Ether.

Ether.

Ether.

Ether.

Ether.

MC 1

MC 2

MC 3

MC 4

The Simple Token Platform How It Works

A Person or Entity

AcquireSimple Tokens

Buy

Pay-For-Usepay as you go

Earnvia proof of contribution

Founding Member Grants

STOwners

RedeemMembership

Simple TokenFoundation

GrantsMembership

SmartContract

Exchanges

Stake ST and othercrypto-assets against branded

token.

Buy/Sell ST

MemberCommunity’s Users

Permissioned-chaintransactions: Earn,spend, branded

tokens

Buy morebranded tokens

Cash out/ convert

Side-chain transactions: Earn & spend

branded tokens

Requests rights to create

Branded Tokens based on Simple

Tokens

Grants rights for Branded Tokens based on Simple

Tokens

Stake ST (and potentially other

crypto-assets) against Branded

Token)

As a network of networks, the more Member Companies deploying Branded Tokens based on Simple Token and the more Member Company end-consumers buying Branded Tokens, the more demand pressure it creates on Simple Token.

The Simple Token Platform How It Works: Drill Down

Member companyacquires Simple Tokens

Buys(cash up front)

Rents(pays over time)

Earnsfrom contributing

to the project

OR

OR

1

Member Companyconverts Simple Token

to their own Branded Token

Creates their ownbranded token i.e.

Applies a conversionrate of ST to their

own Token(e.g. 100 ST to 10,000 BT)

Stakes the requiredamount of ST

(Locks it in a smart contract)

Launchestheir own Token

2

Member Companysupports desired transactions

in their community.

Open Side-Chain Transactions

Peer to peer Up-votes

B2C Subscriptions

Unlockingfeatures

3

Member Companysupports cash-out

by their users

4

MemberCompany

Branded Token

$ $

ConvertSimple Token

Exchange

20

Pay-For-Use Pay-as-you-go program

As a network of networks, the more Member Companies deploying Branded Tokens based on Simple Token and the more Member Company end-consumers buying Branded Tokens, the more demand pressure it creates on Simple Token.

The Simple Token Platform How It Works: Use Case of Consumers Holding Simple Token (purchased on their own)

Simple TokenWallet

User can send/receive and buy/sell ST

User is also able to depositand withdraw fiat

1

User connects her relevant member company accounts

with her Simple Token Wallet account

2

BT is converted into STin real time

and ST is debited from user’s

Simple Token Wallet

Smart Contract onpermissioned blockchain

4

User is logged in member company app and pays in BT

3

MC 1

MC 2

MC 3

Consumers who acquire Simple Token via a public Simple Token token sale or on a public exchange, would be able to use their Simple Tokens seamlessly across all Simple Token Member Companies’ platforms.

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Smart Contract on Ethereum

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Public Ethereum Blockchain

The Simple Token Platform Current Hypotheses Around Public & Open Side-chain Interactions for V1

Simple Token Protocol

• Member companies' branded tokens live on a scalable open Side-chain.

• Branded tokens are “mined” by staking ST and/or collateralized crypto-assets.

• All branded token transactions live on the open Side-chain.

Performant Ethereum

Ledger

TBD: Parity, Ethermint,

Hyperledger Burrow

The Simple Token Open Side-chain is validated by OpenST Foundation, Simple Token Company, and member companies. Anyone can send transactions to the Side-chain, and anyone can verify it. To ensure immutability of the Side-chain, the state root is regularly anchored in a Simple Token smart contract on public Ethereum.

Freely Tradable ERC-20 Token

Simple Token

• Simple Token Protocol allows staking of crypto-assets on public Ethereum to mint Branded Token on Sidechain

• Simple Token Protocol uses merkle proofs and signed receipts to ensure atomic and cryptographically secured transfer of usable value between Ethereum and the SImple Token Sidechain

• Simple Token Protocol keeps all valuable crypto-assets on Ethereum, and they can be recovered in case of proven Byzantine behaviour on the Simple Token Sidechain

Simple Token Open Side-chain

Both chains track each other through respective lightclient smart contracts

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The Simple Token Protocol Transferring crypto-assets from one chain to another in a cryptographically auditable manner

P U B L I C E T H E R E U MB L O C K C H A I N

S I M P L E T O K E NO P E N S I D E C H A I N

1

4

StakingSmart Contract

EscrowEscrow

Move ST intoescrow

Receipt moves STinto staking contract

Member Company

2

3

MintingSmart Contract

EscrowEscrow

Mint BT into escrowbased on cryptographicproof

MC signs receiptto release BT

Member Company

4

1

MintingSmart Contract

EscrowEscrow

Receipt moves BTinto minting contract

Moves BT into escrow

Member Company

3

2

StakingSmart Contract

EscrowEscrow

MC signs receiptto release ST

Release stake intoescrow based on

cryptographic proof

Member Company

P R O C E S S # 1Staking Simple Token (ST) to

Mint Branded Token (BT)

P R O C E S S # 2Converting Branded Token (BT)

back in Simple Token (ST)

For further details please consult the Simple Token Technology White Paper.24

• We define Simple Token Side-chain to be open because anyone can formulate a transaction and a transaction is valid or invalid in its own right. The Side-chain is validated not just by the Foundation and the Simple Token Company, but also by the member companies.

• To ensure that no-one can attempt to rewrite the block history of the Simple Token Side-chain, the Foundation will submit the hash of the latest block height to a contract on public Ethereum.

• Smart contracts for the member companies’ branded tokens and all their transactions will be executed on the open Side-chain. This makes privacy of the users, security, scalability, and performance important considerations when evaluating the right blockchain technology for Simple Token’s needs.

• To protect the privacy of the users of the services of the member companies on inherently public networks, we will work closely with member companies to ensure that no personally identifiable information is stored on the Side-chain. We do this out of respect for our users, conviction for what is right, and to comply with data protection regulations.

• For the initial test phase, we will also test on a private version of native Ethereum (Proof-of-Authority) to separate the core competency of Simple Token from the evaluation of and contributions to the most suited platform to execute Simple Token on.

The Simple Token Platform Open Side-chain Technology Considerations

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The Simple Token Platform Potential Phase I Technology Implementation

E T H E R E U MM A I N N E T

O F F -C H A I NT O O L S

P E R M I S S I O N E DE T H E R E U M

(Proof of Authority)

B I G D ATA

TokenDesignModule

TransactionsQueuing Service

Analytics

MemberCompany

WalletModule

IdentityModule

AdminModule

KEYS

SIMPLE TOKEN OPEN SIDE-CHAIN

TARGET SIMPLE TOKEN EARLY-ADOPTER COMPANY PROFILE

• Consumer-facing marketplace business. • Desires to utilize a token to decentralize and/or democratize vs. powerful incumbents. • Desires to utilize a token not just as means to transfer value but more-so to empower users as stakeholders, associate

value realization to value creation. • Able to contribute to the ongoing development of the Simple Token protocols and participate in evolution of the

Foundation.

The Simple Token Platform Simple Token Use Case #1: Pepo

• The first confirmed Member Company for Simple Token is Pepo.

• Pepo aims to democratize the market for local and travel expertise.

• There are currently 200,000 Pepo app users. Pepo desires to deploy a token, Pepo Coin, to grow to 5M+ high-engaged users.

• Pepo desires to utilize Simple Token to power its Pepo Coin, and incentivize and reward valued content creation, enable peer-to-peer transactions, and to build a user-first alternative to large advertising-supported businesses like TripAdvisor & Yelp.

• Working with Pepo enables Simple Token to develop its protocols in response to real-life customer needs rather than developing in a vacuum.

• The following slides present mock-ups of how Simple Token could be used by Pepo.

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27

The Simple Token Platform Simple Token Use Case #1: Pepo Coin Token Design

Assumes a grant of 12M ST at $.25/ST price, of which 2/3 utilized for Pepo user incentives.

8M ST 800M PC

Directional Diagram Only. Note: No fiat currency is stored in the platform or in Simple Token or Member Company wallets. “Buy more” and “cash out” transactions involve the transfer of Simple Token for fiat currency through a 3rd party exchange.

Stake

2M ST

Simple Token

Exchange

Converts

100 Pepo Cointo 1 ST

Initial PCIncentive Program

200M

Incentives User Transactions Top-up

Provide 1st 5M Pepousers avg. of $.40 PCfor free to warm up.

Peer to peer

Buy more

Up-vote

Cashout

• Thank good content• Enable content creators to earn PC

• Pay to ask questions• Pay to message or call• Buy services• Join channel• Unlock premium content

User to Pepo• Pay to feature content

Advertisers• Pay to promote

1

2

3

Pepo’s Goals for Pepo Coin EconomyReward valuable user contributions

Enable users to earn money

Enable Pepo to earn money• transaction fees• ads

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The Simple Token Platform Use Case: Pepo Internal Admin Dashboard

SIMPLE TOKENS STAKED

Directional Design Mock Only. Note: No fiat currency is stored in the platform or in Simple Token or Member Company wallets. “Buy more” and “cash out” transactions involve the transfer of Simple Token for fiat currency through a 3rd party exchange.

• A simple wallet designed to require no consumer-facing crypto keys to support Member Company in-app open Side-chain transactions.

• Member Companies can easily rebrand, re-skin, re-design. Here we show the proposed “Pepo Coin” token wallet for Pepo.

• The user could quickly view conversion of current Pepo Coin to her local currency, or change to another fiat or crypto real-time conversion.

• The user can easily buy more Pepo Coin, or cash out.

• The user has access to her complete transaction history.

The Simple Token Platform Use Case: Pepo Wallet Module

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• Simple Token plans to develop easy-to-use modules to support a number of consumer marketplace use cases.

• Here we show Pepo’s planned implementation of “Up-Votes.”

• Pepo Users will be encouraged to spend their Pepo Coin to up-vote valuable content.

• Users could up-vote with any amount of Pepo Coin.

• The amount of Pepo Coin spent to up-vote drives the virality and visibility of a post.

• Payouts from up votes are splits transparently amongst users.

The Simple Token Platform Use Case: Pepo Transaction Modules

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• Another use case for Pepo Coin is for channel members to charge a specified amount of Pepo Coin to join their private channel.


31


• Pepo members could also create content (e.g. insider tips) that is hidden behind a Pepo Coin pay wall.

• Pepo users shall be able to establish any price on a per post basis or for a collection of posts in a subscription model.


32


• Another use case Pepo has developed is for Pepo members to establish a price in Pepo Coin for other members to message them.


33


• This example shows a Pepo user charging a set amount of Pepo Coin to create a 3-day itinerary for gay travelers to Southern Spain.


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35

0.20

0.18

0.16

0.14

0.12

0.10

0.08

0.06

0.04

0.02

0.001

Unadjusted BT price, based on value of collateralized cryptoassets (USD) Adjusted BT price (USD)

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4

USD

• One concern of consumer-facing companies considering tokenization is exposing their users to wild price fluctuations as currently experienced with crypto currencies.

• Negative fluctuations could hamper users’ faith in the economy and create challenging user experiences (i.e. if a user earns $100 worth of a token for selling a real-world service only to have that drop to $20).

• Positive appreciation could drive consumers to cash out and / or hoard the currency. • To mitigate this, Simple Token is exploring providing price stabilization-as-a-service of Branded Tokens to Member Companies. To achieve this,

rather than staking Simple Tokens against Branded Tokens, a basket of non-correlated and less volatile assets would be staked against the Member Company’s Branded Tokens. The roadmap also includes this service being provided in a decentralized fashion by other holders of Simple Token

• Any appreciation in the basket of crypto-assets would be captured as profit (sell off excess crypto-assets), while depreciation would need to be addressed by loading more crypto-assets into the collateral address.

The Simple Token Platform Price Stabilization

In this example, the project selects a maximum of 10% price appreciation and minimum of 10% price depreciation, creating a band between $1.1 and $.09 within which the BT fiat price is allowed to fluctuate

When the effective price drops below 10%, the company must put new cryptoassets into the collateral address—or the smart contract makes a capital call on a designated reserve address.

When the effective price drops below 10%, the company must put new crypto-assets into the collateral address—or the smart contract makes a capital call on a designated reserve address.

When the effective price rises above 10%, the company has the option of selling their excess collateral, because they aren’t needed to guarantee the price.

At the end of a designated cycle, the company has the option of adjusting the base price.

S TABIL IZING THE PRICE OF BRANDED TOKEN

36

The Simple Token Platform Price Stabilization Collateral Mechanics

The collateral address backs the flat value of Branded Tokens

The reserve address provides provable reserves for price protection

Funds can be withdrawn from the collateral address when it goes above allowable ranges

The collateral address makes a capital call on the reserve address if it fall below allowable ranges.

BRANDED

TOKEN

COLLATERAL

ADDRESS

RESERVE

ADDRESS

BT

BTC

ETH

USD

OTHERASSETS

BT

BT

BT

BT

BTC

ETH

USD

OTHERASSETS

0.20

0.18

0.16

0.14

0.12

0.10

0.08

0.06

0.04

0.02

0.001

Unadjusted BT price, based on value of collateralized cryptoassets (USD) Adjusted BT price (USD)

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4

USD

S TABIL IZING THE PRICE OF BRANDED TOKEN

ETH

37

• Early on, companies will be able to attain Simple Tokens by:

• Buying them outright from the issuers or others.

• Earning them through valued contributions to the Simple Token mission. Bounties will be established for desired projects and offers and submissions will be evaluated by the Foundation.

• Receiving grants for specific projects.

• Scaling to hundreds and thousands of Member Companies via Pay-Go Programs .

• We are exploring various methods for enabling Simple Token Participating Companies to pay monthly subscriptions for the amount of tokens being utilized in their networks rather than incurring large upfront fees, similar to the popular AWS pay-for-use programs.

• Such programs could be combined with price stability services and other value added services.

• In the future other 3rd party companies could also offer such products to Simple Token Participating Companies.

The Simple Token Platform Scaling to 10,000+ Companies

38

The Simple Token Platform Summary of Customer Benefits

Your Own Consumer App ICO Simple Token

User Experience

Technical Implementation

Legal, Regulatory Risk

Transaction Scalability

Network Effects & Interoperability

Price Stability

Developer Ecosystem

Costs

Complex

Complex

Complex

Low

TBD

Unknown

High Upfront Fees

Simple

Simple

Simple

High

Supported by Simple Token

Ready from From Day 1

Scales With You

TBD High

1. Executive Summary 2. Market & Customer Needs 3. The Simple Token Platform

4. Governance 5. Token Sale & Use of Proceeds 6. Project Roadmap 7. Appendix

Contents

39

40

• The Foundation's purpose is to promote the real world application of the OpenST protocols and its implementations, collectively referred to as “the OpenST Platform” or “the Platform.” It will have its own robust governance model.

• The Foundation also aims to initially develop the OpenST Platform and advocate governance and transparency for the Platform.

• ST Token holders, Developers, and Member Companies will be empowered to determine the direction of functionality and improvement to the Platform and associated ecosystem.

• The Foundation shall be separate from any for-profit ventures, including the separate for profit Simple Token Company. The Foundation shall have an independent Board of Directors of 5 members, with oversight over token supply, token distribution, and allocation of Foundation resources.

• The Foundation shall own the IP for the Platform which enables Simple Tokens to be staked against deploying Branded Tokens on side-chains and associated API’s which enable Simple Token-based applications and services.

• The Foundation shall provide the Platform on an “open source” basis for anyone with a license to study, change, distribute, to anyone, for any purpose. However, the Foundation reserves the right to approve Memberships to the Platform which are required in order to stake ST against Branded Tokens on the Platform.

• It is initially conceived that The Foundation shall conduct the following activities: • Manage the ST token supply. • Manage the Platform development and intellectual property. • Allocate Foundation resources. • Evaluate and approve memberships. • Evaluate and approve ST token grants under the ST Network Accelerator Program. • Approve the deployment of branded tokens based on Simple Tokens.

• The Foundation may take on other activities in the future.

The OpenST Foundation Governance

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• OpenST Platform, is the open-source implementation of the OpenST protocol. Any developer can utilize the OpenST Platform to build a software suite of modules, dashboards and applications that enables Member Companies to easily integrate with the sidechain and allow their end-consumers to carry out different types of transactions using branded tokens on the sidechain.

• For example, while OpenST publishes the specifications and implements the REST APIs for value transfers between two addresses, developers can provide admin dashboards with transaction modules where Member Companies can easily configure the types of value transfer transactions that Pepo’s users can perform, like Up Votes etc.

• Developers can then further offer value added services build on top of the OpenST Platform, for example, end-consumer’s transaction history, analytics, pay-per-go, price stabilization mechanisms, price oracles etc.

• In future, we envision the protocol to develop in a way that allows the end-consumers to use Simple Tokens for transactions across various Member Companies in a seamless manner. Developers can build wallet services for end-consumers using such protocol methods.

• OpenST will also work towards advancing the requirements beneficial to the OpenST Platform, particularly related to scalability and privacy. This includes work that contributes to (application-specific) sidechain and payment channel technology.

The OpenST Foundation An Open Platform for Development

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Any Token HolderInput on features and development of the Simple Token protocols.

Utilize Simple Tokens within any Simple Token-powered app. Purchase a Membership Level in the Simple Token Platform.

Members of the Platform

All the rights as Token Holders, plus can apply for and be granted the rights to create Branded Tokens based on staked Simple Tokens and deploy Branded

Tokens within their apps. Members will pay regular membership fees based on the size and/or transaction volumes of their networks. Member Companies

will also be required to maintain a small staked balance in order to guarantee good behavior within their economy.

Contributing Member

All the rights as normal Members plus can also suggest topics for discussion and vote regarding the future direction of the

platform.

Network Accelerator Companies(Early Adopter program)

All the rights as Contributing Members, plus Network Accelerator Companies

may receive seed token grants.

Uses of Simple Tokens ST Tokens can be used to input on the Simple Token protocols,

purchase types of memberships, and to deploy Branded Tokens powered by Simple Tokens.

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• After the Token Sale 27% of Simple Tokens shall be reserved in the Network Accelerator Program.

• Early on, one of the primary uses of the Network Accelerator Program shall be to provide Simple Tokens as grants to Early Adopter Companies to help them kickstart their Simple Token implementations and growth of their networks. Early Adopter Companies will help define requirements for the protocol, software, and related services, and shall help contribute to the Simple Token open-source protocol.

• Up to 30% of each Network Accelerator grant may be provided to the project team of the Early Adopter Company, under a long-term vesting schedule, to further incentivize the team to create value utilizing Simple Token.

• The Foundation shall review and approve Network Accelerator grant requests and determine the terms and conditions of grants.

• In addition to Pepo who is helping define and develop the Simple Token platform, we are currently evaluating several interested Network Accelerator Companies.

Network Accelerator Program

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• The relationship between The Simple Token Company and the Foundation is on a as-mutually-beneficial basis only and non-exclusive. The two companies are distinct and all services that may be provided would be on an at arms-length basis.

• The Foundation may contract with the Company to develop technology on behalf of the Foundation. Any and all technology developed by the company for The Platform shall be provided as open-sourced technology with IP owned and managed by the Foundation.

• Any value-added-services or unique user experiences or presentation layers developed by The Company, at its own expense, that extend the value of the Platform may be retained as proprietary IP by the Company. The Company shall be entitled to earn profits from such activities.

• The Company may provide deployment services and technology to help onboard Member Companies onto the Platform and to help Member Companies manage their usage of the Platform. The Company shall be entitled to earn profits from such activities.

• The Company may provide additional value added services to Member Companies beyond those contemplated herein. The Company shall be entitled to earn profits from such activities.

• The Company, (and specifically not the Foundation), may engage in risk-taking activities such as KYC checks (for cash-in and cash-out by end-consumers), price stabilization, insurance policies, and financing programs to enable further adoption of Simple Token by Member Companies. The Company shall be entitled to earn profits from such activities.

• The Foundation may provide financial resources to the Company (as it may to other companies and organizations) to compensate for its efforts in marketing, sales, business development, technology, and other areas that further the mission of the Foundation, development of the Platform, and growth of the ecosystem.

The Simple Token Company

1. Executive Summary 2. Market & Customer Needs 3. The Simple Token Platform 4. Governance

5. Token Sale & Use of Proceeds 6. Project Roadmap 7. Appendix

Contents

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46

800,000,000 ST Tokens generated for development of the Simple Token project.

• A finite amount of Simple Tokens created (no inflation).

• Token Sale #1 conducted to fund the development of the protocol, prototypes and proof-of-concepts, marketing, strategic partnership developments, operations, legal, security and administrative expenses. $30M target raise. $40M absolute hard cap. 30% represents the hard cap.

• Future Token Sales envisioned once milestones achieved, to fund ongoing development of the protocol.

• Network Accelerator Program to be used for seeding promising projects built on Simple Token, and supporting overall ecosystem development.

• Core Team, Early Backers & Advisors’ tokens subject to long term vesting schedules.

Token Sale #1

Future Token Sales20.00%

Accelerator Program27.20%

Token Sale #130.00%

Founders10.00%

Advisors10%Investors

2.8%Early Backers

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• $30M target sale. $40M hard cap. A maximum of 30% of token supply available for sale in Token Sale #1.

• 50% of Token Sale #1 may take place via private pre-sales beginning 5 September, 2017. Minimum buy-in for the pre-sale shall be $200,000 USD. Accredited purchasers only. Participants in the pre-sale shall receive 20% bonus tokens, which shall be dilutive against the Foundation’s reserves for the Network Accelerator Program and future token sales.

• Future token sales will be considered on an as-needs basis in due course.

Token Sale #1 Mechanics

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• The purpose of the first Simple Token sale is to empower an ecosystem and to help finance further development of the Simple Token protocol.

• We plan that the vast majority of proceeds from token sale #1 shall go towards protocol and associated software development.

• Other expenses shall include security, legal, and regulatory matters to maintain the integrity of the Simple Token network.

Token Sale #1 Use of Proceeds

Sales & Mktg 10%

Legal 10%

Security 10%

Accounting 5%

Overhead 10% Admin

5%

Technology 50%

1. Executive Summary 2. Market & Customer Needs 3. The Simple Token Platform 4. Governance 5. Token Sale & Use of Proceeds

6. Project Roadmap 7. Appendix

Contents

49

50

Project Roadmap

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

C O N C E P T D E V E L O P M E N T

DESIGN PROTOTYPES PEPO LAUNCH

GENERALPROTOCOL

AVAILABILITY

TOKEN DESIGN 10 FOUNDINGMEMBERS

ICO #1

TOKEN SALE #1

PROTOCOL ARCHITECTURE

TOKEN SALE #2 TBD

Widespread deployments

Utility of protocol established (any token

holder can deploy branded tokens on side-

chains)

Contents

1. Executive Summary 2. Market & Customer Needs 3. The Simple Token Platform 4. Governance & Membership 5. Token Sale & Use of Proceeds 6. Project Roadmap

7. Appendix

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Jason Goldberg Director & CEO Simple Token.

CEO Pepo

Nishith Shah Director & COO Simple Token

Early Backers

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“We began exploring tokenizing the consumer marketplace Pepo in 2016. Beyond the enormous costs and regulatory cautions involved with launching a blockchain-based token, we quickly discovered a huge gap between the promise of blockchain technologies and the ability to currently deploy tokens within consumer apps. An entire set of B2C-friendly protocols needs to be developed in order to bridge the gap between crypto and consumer. Rather than wait for others to develop it, Simple Token is building that bridge.

Our team has worked on many high profile and high scaling projects. Simple Token is far and away the most technologically challenging and greatest impact project we’ve ever taken on. ”

Jason Goldberg Director, Simple Token

Project Background

T H E T O K E N T O P OW E R YO U R B U S I N E S S53

“We’ve been building large scale Internet technologies for more than a decade, reaching tens of millions of consumers. When it comes to blockchain, there’s so much potential for a new wave of disruptive applications that enable consumers to realize economic value. Much as Stripe has built enabling technology for any internet company to easily accept payments, Simple Token is developing enabling technology for any internet company to simply and safely tokenize.”

Project Background

Nishith Shah Director, Simple Token


“As the lead developer for Hyperledger Burrow, I last worked at Monax to enable enterprise-grade applications on a permissioned blockchain node following the Ethereum smart contract code specification. I am delighted to work with the team at Simple Token as it presents a unique opportunity to work on a protocol that has the potential to propel Ethereum and Blockchain technologies to mainstream apps and mass-consumer adoption.”

Project Background

Ben Bollen Chief Technology Strategist,

Simple Token


“Our team prides itself on consumerizing technology. A great recent example is our work with AWS SES. We were the first company to create a robust and highly scalable way for any company to harness the power of AWS SES without writing any code of their own.

Simple Token presents a similar and exciting challenge: To enable any Internet company to easily and safely deploy blockchain technology and tokens to their end-users.

Pepo is excited to be the first customer of Simple Token and to contribute to its development.”

Project Background


Sunil Khedar Founder & CTO, Pepo

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“We’ve been implementing Blockchain technologies for some of the most exciting projects in the industry, including programming the smart contracts for two of the largest ICO’s, and working on KYC solutions, payment platforms, security auditing, and wallets.

Rarely have we seen a project with as big of a vision and possible impact on the Blockchain community as Simple Token. We’re thrilled to be part of the Simple Token founding team.”

Project Background

Lionello Lunesu Engineering Lead, Simple Token

Founder, Enuma


Antoine Cote Engineering Lead, Simple Token

Founder, Enuma

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“The first wave of blockchain has unleashed tremendous value, largely driven by organizations creating protocols for deep crypto technology. The next wave of exponential growth will be driven by organizations like Simple Token that enable real-world use cases that put tokens into the hands of tens of millions of consumers.”


Project Background

Jehan Chu Advisor, Simple Token

Managing Director, Kenetic

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