VTK Security Token White Paper

Transcription

1 VTK Security Token White Paper Nov

2 Table of Contents 1. Abstract Project Significance Project Benefits Vanuatu national digital stock exchange and Digital Stock Exchange Alliance National background of Vanuatu Introduction of Vanuatu National Digital Stock Exchange Vanuatu National Digital Stock Exchange and Market Positioning of Exchange Alliance Exchange Alliance The Regulated System The Union Platform Currency -Volcano Token (VTK) Security Token model of VTK Global ecological value Value of the world's top digital currency exchange Alliance Blockchainization of classical securities-security Token Application scenarios Issuance and management of Volcano Token Fundraising Program of Volcano Token Distribution Plan Use of Funds

3 Development plan of Volcano Token Risk Alert and Disclaimer Disclaimer Risk Alert

4 1. Abstract 1.1. Project significance The Volcano token VTK is not only the platform token of the Vanuatu National Digital Stock Exchange, but also the security token of Digital stock exchange alliance (exchange alliance), which made up by world s several top exchanges. It is the world's first compliant digital stock Union platform token. In the World's Top Exchange Union, with the approval of Vanuatu regulatory authorities, Vanuatu National Digital Stock Exchange to grant the agent license of Vanuatu digital security token to members of the exchange alliance, provide compliance guidance for security token, and provide a complete set of compliance supervision system Project Benefits Digital securities investor which qualified can invest exchange alliance by purchase Volcano Token. The profit of investors comes from the value created by the operation and management of exchange managers. The profits investors are expected to make include dividends and a rise in the value of VTK itself. Digital Stock Union Platform Token-Volcano Token(VTK) is scheduled to launch jointly in several of the world's top 50 digital currency exchanges, Investors and investment institutions will be given the following opportunities: VTK assumes the relevant privileges of exchange union platform token, which includes: Privilege of share out bonus, Drop privilege, Buyback privilege, decision making privilege, fee reduction privilege, project recommendation privilege, online voting privilege, listing fee 3

5 discount privilege, margin reduction privilege, etc. VTK as the exchange union platform token, which including Vanuatu National Digital Stock Exchange, can be used to pay the coinage fee, transaction fee, network service fee and so on. VTK investors receive annual dividends on the profits of exchange associations including the Vanuatu National Digital Stock Exchange. Other commercial applications of VTK in Vanuatu, including but not limited to Vanuatu local company registration application, immigration application, research report of digital currency research institute, consulting service, talent training and other application scenarios. In the future, the application of special financial zones and digital citizens will be further carried out with approval. 4

6 2. Vanuatu national digital stock exchange and Digital Stock Exchange Alliance 2.1. National Background of Vanuatu Vanuatu is a Pacific island country located in the South Pacific Ocean. The archipelago of 83 volcanic islands, which is of volcanic origin, is 1,750 kilometers east of northern Australia, and 800 kilometers west of Fiji. Due to its neighborhood to Australia and New Zealand, it is known as the "Pearl of the south Pacific" and "Australian and New Zealander's Back Garden". Each season there seemed like summer: subtropical and tropical Marine climate, with annual average temperature 25.3 ; Beautiful environment: known as the world's only pure land ; Political stability: "the happiest nation in the world" assessed by the OECD; Good financial environment: the world's top tax havens without global tax. The Republic of Vanuatu is also actively participating in international affairs and has established diplomatic relations with 74 countries. It is the member of the United Nations, the Non-aligned Group, the British Commonwealth, the Communauté française, the Pacific Islands Forum Secretariat, the MSG, the WTO, the IMF, the World Bank and the Asian Development Bank. It has maintained its role in the Asia-Pacific region and aims to seek a peaceful, harmonious, nuclear-free and cooperative environment for development. Vanuatu officially became a member of the AIIB in March,

7 The IMF data showed that Vanuatu's national GDP was 863 million USD in 2017, with a 4.5 percent year-on-year growth. The IMF estimated that Vanuatu's GDP will grow by about 6 percent with about billion USD by Vanuatu's geographical location has created a good environment for the development of the Offshore Financial Centre (OFC) and contributed significantly to the development of the local small-scale economy. A Vanuatu passport brings great visa convenience to the passport holders. As of January 1, 2018, there are 129 countries and regions are visa-free or only with landing visas to Vanuatu, ranking 43rd globally Introduction of Vanuatu National Digital Stock Exchange In February 2018, the Vanuatu government officially approved the preparatory team to use the name Vanuatu National Digital Stock Exchange" and granted the license. In August, the main license and manager qualification of Vanuatu National Digital Stock Exchange was officially approved. The Vanuatu National Digital Stock Exchange thus became the first digital stock exchange in the southern hemisphere to be approved by the relevant government with a legal license. As the first exchange in Vanuatu, the Vanuatu National Digital Stock Exchange provides investors with a unified digital securities trading channel. The exchange allows qualified local and multinational companies to raise funds globally. The listing qualifications and trading rules will be formulated and issued by the Vanuatu National Digital Stock Exchange Congress. The exchange uses blockchain underlying 6

8 technology to provide investors with efficient, low-cost instant trading services, improving the availability of securities and enhance the security of trading. Since the Vanuatu National Digital Stock Exchange is an online market supported by the government of Vanuatu, it is able to match buyers with sellers. Once the company meets the listing conditions of the exchange, the company's securities can be bought and sold on the exchange. In order to meet the development opportunities of blockchain and cryptocurrency, the Vanuatu National Digital Stock Exchange also provides financing platform for derivative securities based on cryptocurrency. In addition, the Vanuatu National Digital Stock Exchange can issue multiple sub-licenses under the legal authorization. Managers with experience in financial asset management can apply for agency licenses from institutions holding master licenses by submitting information for examination and approval, and jointly expand the distribution and trading channels of digital securities. Figure 1: licence plate display 7

9 2.3. Vanuatu National Digital Stock Exchange and Market Positioning of Exchange Alliance Internationalization Though the Vanuatu National Digital Stock Exchange is headquartered in Vanuatu, it will provide financial services to both local and multinational companies and investors. Access Non-residents who trade on the national digital stock exchange must first register for E-Citizen (digital citizenship), while non-vanuatu companies financing on the Vanuatu National Digital Stock Exchange must first register as E-Entrepreneurs (digital entrepreneurs). Technology The Blockchain technology will replace the centralized trading and clearing of traditional exchanges. Innovative and digitalized, the Vanuatu National Digital Stock Exchange can provide trading services for cryptocurrencies. Settlement Fees related to the Vanuatu National Digital Stock Exchange, such as listing fees, transaction fees and network service fees, will be paid in Volcano token (VTK) Exchange Alliance Initiated by the Vanuatu National Digital Stock Exchange,The world's top exchanges join the co-founded Digital Stock Exchange Alliance 8

10 (Exchange Alliance). Exchange Alliance establishes industry self-regulatory mechanism, establishes the digital securities issuance, evaluation, monitoring standards and management mechanisms under the guidance of industry authoritative organizations and independent experts. It is effectively prevent systemic risks and protect the rights and interests of investors The Regulated System The Exchange Alliance is under the supervision, guidance and daily supervision of the Vanuatu Financial Bureau, the International Digital Economy League (IDEL) and the Vanuatu National Digital Stock Exchange. The issuance and trading of all digital securities are subject to independent evaluation and daily supervision by the Digital Securities Review Board. The Exchange Alliance and the International Digital Economy League (IDEL) and other industry leading associations and experts set up the Digital Securities Review Committee, the Digital Securities Arbitration Committee, and the Digital Securities Trusteeship Committee to establish an effective self-discipline management mechanism to promote a virtuous development circle of industry. 9

11 Figure 2: The Regulated System 3. The Union Platform Token -Volcano Token (VTK) Vanuatu is a typical Pacific island, with numerous volcanic islands boosted its high-end tourism industry. Among them Tanna Island has the world's most active volcano, Mount Yasur (also known as Volcano Jesus). When the volcano erupts with hot magma sizzles and flaps the sky, it is described as a firework from god. In order to inject Vanuatu's local customs and national business into this project, we name the common currency in this project as the Volcano token (VTK). Figure 3: icon of VTK 10

12 The Volcano token VTK is not only the platform token of the Vanuatu National Digital Stock Exchange, but also the security token of Digital stock exchange alliance (exchange alliance), which made up by world s several top exchanges. It is the world's first compliant digital stock Union platform token. VTK assumes the platform currency function of the Vanuatu Digital Stock Exchange and it is used to pay for the relevant currency fee, transaction fee, network service fee, etc. In the World's Top Exchange Union, VTK is also used for security token clearing. With the approval of Vanuatu regulatory authorities, Vanuatu National Digital Stock Exchange to grant the agent license of Vanuatu digital security token to members of the exchange alliance, provide compliance guidance for security token, and provide a complete set of compliance supervision system. Figure 4: The World s Top Exchange Union 11

13 3.1. Security Token model of VTK Global ecological value Value of the world's top digital currency exchange alliance On the basis of the license and regulatory system of the Vanuatu National Digital Stock Exchange, the value of the VTK is equivalent to the combined value of the world's top digital currency exchanges union and the blockchainized classical securities. Let's look at a set of data: In the first quarter of 2018, Huobi s revenue was 120 million USD; In 2017, the profit of South Korea's biggest Bitcoin exchange Bithumb was 400 million USD; OKCoin reported an annual profit of million USD in According to the Binance, its profits in the first quarter in 2018 was about 150 million USD, which equaled to the second A-share listed companies, more than 99% of the A-share listed companies. 12

14 Figure 5: VTK enjoy the world's best trading liquidity and depth Blockchainization of classical securities-security Token The blockchainization of classical securities makes the trading objects of Vanuatu digital stock exchange no longer only be digital currencies, but also include huge capital markets such as equity, bonds, foreign exchange, futures, real estate, stocks, commodities and so on. In 2007, the global digital capital was worth 600 billion USD the global equity capital was worth 80 trillion USD the global debt was worth 182 trillion USD the global foreign exchange market trades was at 5.1 trillion USD per day Data from: Figure 6: Blockchainization of Classical Securities 13

15 Application scenarios The VTK can be acquired through investment, community incentives (resource docking, dissemination, community operations, etc.) and secondary market. Its application mainly in the following scenarios: 1. The Exchange Alliance which including Vanuatu National Digital Stock Exchange As the platform token of exchange alliance, VTK is mainly used to pay digital stock exchange fees: listing fee, transaction fee, network service fee, margin, etc. 2. Vanuatu National Institute of Digital Currency Research and other commercial application The project team has cooperated with several commercial service institutions in Vanuatu. And they will provide application scenarios of local company registration, immigration application and research institute. In the future, the application of special financial zones and digital citizens will be further carried out under approval. Within the Vanuatu National Institute of Digital Currency Research, VTK is mainly used to pay for related services: research reports, advisory services, and personnel training. In addition, VTK will be used for some profit repurchase destruction, as well as secondary market sales. 14

16 3.2. Issuance and management of Volcano Token VTK is based on the Ethereum public chain and complies with the ERC20 standard, allowing Ethereum wallets, VNET payment systems, various exchanges and Vanuatu business applications to be integrated with the entire ecosystem of smart contracts. VTK assumes the relevant privileges of exchange union platform token, which includes: Privilege of share out bonus, Drop privilege, Buyback privilege, decision making privilege, fee reduction privilege, project recommendation privilege, online voting privilege, listing fee discount privilege, margin reduction privilege, etc Fundraising Program of Volcano Token Distribution plan A total of 10 billion VTK will be issued. The allocation plan is as follows: 5% for cornerstone round, 4% for STO round, 34 % for foundation, 20 % for founding team, 20 % for community incentive, 15 % for ecological construction, and 2 % for consultant team. Figure 7: The Distribution Plan of VTK 15

17 Use of Funds 15% of the fund raised is planned to donate to the Vanuatu National Construction and Development Fund for Vanuatu's infrastructure construction. 10% for the establishment of the Digital Asset Investment Fund to invest in VTK related blockchain projects and digital assets; 10% is for the Equity Investment Fund to invest in the equity of enterprises related to VTK ecology; 30% for technology development; 35% for marketing and project operation. Figure 8: The Use Plan of Raising Funds for VTK Development Plan of VTK ü Expand exchange alliances and apply them to compliance exchanges in more countries or regions ü Continue to work with more government regulators, industry leading associations and experts to formulate standards for the evaluation, issuance, management, supervision and reporting of digital securities to establish an effective self-discipline management mechanism to promote a virtuous development circle of industry. ü Improve the application scenarios of VTK in Vanuatu, and implement 16

18 the application of special financial zones, digital citizens and even digital countries with the approval of government agencies. 4. Risk Alert and Disclaimer 4.1. Disclaimer This document is intended only to convey the purpose of educating the reader and does not constitute any investment advice. It is neither a form contract or promise, any decisions made by you are your own investment behavior and have no relation to this White Paper. In order to enable you to better understand the risk of the blockchain world, some risks are listed below Risk Alert 1. Risk of policy Blockchain technology has become the main target of the regulation in the major countries in the world. If the regulatory body intervenes or operate, this project may be affected by this. We have professional team of lawyers in blockchain field who can make our project compliant under current policy, but we cannot cover and respond to all possible situations. 17

19 2. Risk of price fluctuation We have a professional team with plenty of resources and experience in the blockchain field. Part of the fund will be used to do marketing, but we won't interfere with normal market price. Therefore, please fully understand the blockchain prices fluctuation before making independent decisions, and undertake the corresponding results. 18