AERUM LITE PAPER. updated: November 15th 2018

Transcription

1 AERUM LITE PAPER updated: November 15th 2018

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3 Table of Contents TABLE OF CONTENTS DISCLAIMERS LIMITATION OF LIABILITY INDEMNIFICATION WHAT IS AERUM? MISSION LANDSCAPE EXPECTATIONS AERUM SOLUTION AERUM ECONOMY GOVERNANCE AND CONSENSUS AERUM PRODUCT PORTFOLIO TOKENOMICS TOKEN ALLOCATIONS TOKEN SALE STRUCTURE USE OF PROCEEDS SOFT CAP HARD CAP TOKEN VESTING PROJECT ROADMAP

4 Disclamers 1. Buyer expressly acknowledges, understands and agrees that Buyer is using the XRM Token and purchasing XRM Tokens at the Buyer s sole risk and that the XRM Tokens are each provided, used and acquired on an AS IS and on an AS AVAILABLE basis without representations, warranties, promises or guarantees whatsoever of any kind by Company and Buyer shall rely on its own examination and investigation thereof. 2. No Representation or Warranty. (A) COMPANY DOES NOT MAKE AND EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED OR STATUTORY; AND (B) WITH RESPECT TO THE XRM TOKENS, COMPANY SPECIFICALLY DOES NOT REPRESENT AND WARRANT AND EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION, ANY REPRESENTATIONS OR WARRANTIES OF TITLE, NONINFRINGEMENT, MERCHANTABILITY, USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, OR AS TO THE WORKMANSHIP OR TECHNICAL CODING THEREOF, OR THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT. Limitation of Liability 1. Limitation of Liability. To the fullest extent permitted by applicable law, Buyer disclaims any right or cause of action against the Company of any kind in any jurisdiction that would give rise to any Damages whatsoever, on the part of any Company. The Company shall not be liable to Buyer for any type of Damages, even if and notwithstanding the extent a Company has been advised of the possibility of such Damages. Buyer agrees not to seek any refund, compensation or reimbursement from a Company, regardless of the reason, and regardless of whether the reason is identified in this Agreement. 2. Damages. In no circumstances will the aggregate joint liability of the Company, whether in contract, warrant, tort or other theory, for Damages to Buyer under this Agreement exceed the amount received by Company from Buyer. 4

5 4. Force Majeure. Buyer understands and agrees that Company shall not be liable and disclaims all liability to Buyer in connection with any force majeure event, including acts of God, labour disputes or other industrial disturbances, electrical, telecommunications, hardware, software or other utility failures, software or smart contract bugs or weaknesses, earthquakes, storms, or other naturerelated events, blockages, embargoes, riots, acts or orders of government, acts of terrorism or war, technological change, changes in interest rates or other monetary conditions, and, for the avoidance of doubt, changes to any blockchainrelated protocol. 5. Release. To the fullest extent permitted by applicable law, Buyer releases the Company from responsibility, liability, claims, demands, and/or Damages (actual and consequential) of every kind and nature, known and unknown (including, but not limited to, claims of negligence), arising out of or related to disputes between Buyer and the acts or omissions of third parties. Indemnification To the fullest extent permitted by applicable law, Buyer will indemnify, defend and hold harmless and reimburse the Company from and against any and all actions, proceedings, claims, Damages, demands and actions (including without limitation fees and expenses of counsel), incurred by a Company arising from or relating to: (i) Buyer s purchase or use of XRM Tokens; (ii) Buyer s responsibilities or obligations under this Agreement; (iii) Buyer s breach of or violation of this Agreement; (iv) any inaccuracy in any representation or warranty of Buyer; (v) Buyer s violation of any rights of any other person or entity; and/or (vi) any act or omission of Buyer that is negligent, unlawful or constitutes willful misconduct. Company reserves the right to exercise sole control over the defense, at Buyer s expense, of any claim subject to indemnification under this Section 8.5. This indemnity is in addition to, and not in lieu of, any other indemnities set forth in a written agreement between Buyer and Company. 5

6 What is AERUM? AERUM is an infrastructure project developing a next generation Blockchain for programmable P2P finance - a real-time, scalable, permission-less protocol optimized for tokenization and decentralized finance 6

7 Our Mission Provide with a best infrastructure solution for disrupting FinTech industry with permission-less P2P platforms. AERUM s mission is to provide a complete and ready-to-use practical infrastructure for building and using dapps, while having fast and free transactions for end-users, high scalability and throughput, decentralized on-chain governance, built-in atomic swap mechanisms for transferring and exchanging assets with other blockchains (currently Ethereum-later others will be added), a full suite of software tools for end users (feature-rich web and mobile wallets), dapps operators (middleware) and liquidity providers. Aerum aims to provide a fullservice solution to launch financial marketplaces, gaming ecosystems and prediction markets through its unique offering. Aerum plans to become a number one platform based on Ethereum where virtually unlimited scalability can be achieved through building decentralized multiple chains by its participants, all due to the high performance of Aerum and the very low costs of chain linkage and asset transfer as compared to Ethereum. Aerum s goal is not competing with Ethereum but supplementing it as a high performance smart contract protocol with decentralized governance, as opposed to a single-operator Plasma sidechain, while still enjoying the high security provided by Ethereum and its hash rate to secure Aerum s consensus and staking mechanisms. 7

8 Landscape We believe that blockchain adoption is changing the way we do things on a global scale. While bitcoin was designed as a purely financial solution, Ethereum became proving grounds for a number of concepts. However, new technologies never come without a challenge. As the number of projects and transaction on the network grows it faces a number of issues typical for any blockchain system arises, namely scalability and accessibility. By scalability we understand the ability of blockchain to maintain fast and reliable transactions with low fees as the network grows larger through adding additional nodes. By accessibility we understand the entry barrier a developer has to get over before entering the space. Entering the crypto space right now requires a certain amount of development expertise and developer time available to get familiar with the architecture of the chains, infrastructure solutions and simply put, code. There s a lack of complete plug and play solutions that let s anyone join without investing heavily into research. 8

9 3a1076bf45ab877cb3b f7fadd9a537d8fe266 3a1076bf45ab877cb3b f7fadd9a537d8fe266 3a1076bf45ab877cb3b f7fadd9a537d8fe266 23a1076bf4f7faacbf 23a1076bf4f7faacbf 23a1076bf4f7faacbf Currently there are 3 main generations of blockchains in existence: b7d8fe266 B a3a1076bf45 87d9a537d8fe266 Blockchain 1.0 Providing services for cryptocurrency transfers and very basic computational facility (such as Bitcoin and its descendants) secured by Proof of Work. b7d8fe266 B a3a1076bf45 87d9a537d8fe266 Blockchain 2.0 Providing flexible decentralized computations and data immutability alongside cryptocurrency services (such as Ethereum and its forks) secured by Proof of Work. b7d8fe266 B a3a1076bf45 87d9a537d8fe266 Blockchain 3.0 Aims to improve on generation 2.0 by offering higher transaction speed and throughput. Unfortunately many of, these solutions sacrifice decentralization, leading to the formation of cartels and other forms of possible abuse. These solutions are mostly untested and have yet to prove their viability. 9

10 Ethereum sets the gold standard for a general-purpose, Turingcomplete Virtual Machine-based blockchain with the overwhelming majority of developed tools and apps, as well as educated and experienced developers involved in the ecosystem. It offers a whole new universe for a wide variety of applications not only in the financial sphere but also in practically every aspect of life, where transparency, trustless data retention, and cryptographic proofs can help combat traditional gatekeepers, improve equality, and battle corruption both corporations and in government. However it is not without several flaws that critically hinder further blockchain adoption and its viability as a platform to build mainstream applications. Ethereum remains the industry leader in terms of solutions deployed. Being live for 3 years it already gathered approximately 250,000 developers working on Ethereum and dapps according to GitHub. There are thousands of dapps being developed with over transactions been produced via them every day. ETH network can manage about tps and has a flexible approach to dapp deployment. However, gas transaction costs are currently critically high for an enterprise application. There is no feasible way to replace Ethereum without going through at least three years of adoption and spending millions on marketing. 10

11 In order for a blockchain to provide viable alternatives to existing centralized systems, the following problems must be solved: Long transaction execution time Very low general throughput Prohibitive and highly volatile cost of trivial transaction Wasteful and un-scalable Proof of Work mining Unsatisfactory user experience 11

12 Expectations To provide a tangible value to participants a blockchain platform should satisfy the following characteristics, similar to those tried and tested by world wide payment card systems: Transactions free to end-users and inexpensive to business participants 99.9% 99.9% network availability and transaction speed guaranty 5-10 seconds to complete a transaction Robust and stable decentralized network management High potential throughput and scalability Practical governance model optimal for the business requirement Easy and practical ways to transfer value to and from major cryptocurrencies 12

13 Aerum Solution Aerum aims to solve the above mentioned issues with the following technological breakthroughs: Fully 100% Ethereum/Solidity/dApp compatible platform with free transactions Very high throughput (500+ tps) in the initial phase with just one blockchain Mammoth 100,000+ tps with a fully-rolled out network based on PetalChain scaling solution Large powerful blocks capable of working with complex contracts 2sec High performance with a very low 2 second block time < 5s Real-time transaction execution in under 5 seconds Powerful cross chain atomic swaps allowing easy, intuitive token transfer between Aerum and Ethereum right in the wallet 13

14 Cross-chain governance using Ethereum mainnet as a beacon chain Unique consensus algorithm ATMOS creates very high levels of decentralization using delegated Proof of Stake system capable of servicing whole network of blockchains Petalchain scaling solution allowing Aerum Delegates to launch purpose-built sidechains served by the same consensus and governance protocol ATMOS powered by Ethereum-based contracts Multi-function, customizable wallet app supporting atomic swaps, tokens, delegate staking, token issuance and many more Dapp Middleware dapp - oriented application allowing business participants to perform core transactions and cross chain operations without any blockchain programming Fully-integrated Decentralized Aerum Token Exchange Multi-Token payment engine allowing automatic exchange of assets in order to accept any liquid token by any participating decentralized application or contract. Fully open sourced solution available for free use under MIT license 14

15 PLATFORM USERS REGISTER TRANSACT SWAP STAKE AER WALLET Vault Keys Named Accounts Atomic Swaps Cross-Chain Swaps Ethereum Support Paper Wallets SERVICE PROVIDERS PAYMENTS TOKENS LIQUIDITY ISSUE TOKENS MOBILE WEB DESKTOP CONTRACTS ETH/ERC20 escrow XRM Token Governance CONTRACTS Account Name System Atomic Swaps Cross-Chain Swaps Reward Distribution ICO CRMS SOCIAL NETS KYC MARKETPLACES SUPPLY CHAINS INTEGRATIONS 15

16 Aerum Economy Blockchains and crypto economics are still in early adoption phase. Mostly, it is used by enthusiasts for concept proof. More mature blockchain with bulk of blockchain user base such as Bitcoin and Ethereum are operating at maximum capacity resulting in large delays in transaction execution. Sometimes it requires increase in transaction costs up to 10 times of long-term average or more to get executed in a reasonable time Speed of transactions - many use cases require much more transactions per second barring any nearrealtime use cases (example Visa with transactions per second). This all leads to low levels of practical adoption for any blockchain. Aerum will steer a positive momentum in the blockchain world by providing technology, tools and practically available solutions today. 16

17 With a single network without rolling out horizontal scaling plan, Aerum is capable to deliver about 500 tps, which translates to roughly 16 Billion transactions per year. At intrinsic cost of processing a transfer transaction assumed by a service provider to be 0.05 USD (similarly to a small-ticket payment card transaction) it translates to roughly 750 Million of USD per year in intrinsic transaction fees. transaction fees that would be paid by customers or services providers should they operate on blockchain at rate of 500 tps throughout the year. It is safe to assume that bar relatively minor costs of hardware and server hosting Aerum blockchain has a potential of generating large amounts of value in magnitudes of hundreds of millions of dollars per annum. That sum amounts to savings in 17

18 Governance & Consensus Aerum introduces a two-tiered hierarchy model for governance and consensus formation based on principles of liquid delegated democracy: STAKER DELEGATE an anonymous participant able to execute permissionless transactions on Aerum blockchain, use, create and publish dapps, conduct any business activity, can acquire XRM tokens and stake with any Delegate of his choice to participate in delegated liquid democracy governance model and earn aero coin to pay transaction fees on Aerum. an authenticated and publicly recognized participant, has undergone peer review and identification by other Delegates; should provide a stake in XRM token to list his candidacy which will be voted upon for approval by other Delegates. The Aerum consensus mechanism ATMOS will dynamically select block Delegates Committee(current block miners) from the current list of Delegates. Other participants such as application and marketplace operators, merchants, power users, developers, liquidity providers and market makers fall within these two general categories. Ecosystem governance is executed through on-chain voting by Delegates reaching for simple majority (50%+1) vote to get a decision passed through the vote. 18

19 Blocks are created by the Delegates Committee, a group of Delegates selected by the Governance smart contract on Ethereum mainnet and consisting of 10 Delegates, who will be signing blocks on Aerum during the current Epoch - period of 1000 blocks, or about 33 minutes. There are several protection mechanisms built in to avoid multiple attack vectors, network stalls and minimize possible reorgs while reducing transaction finality to just 6 blocks. Ethereum Blockchain Aerum Blockchain Delegate Staker «DELEGATE» Contract BLOCK 1000 DEPOSIT TOKENS INTO DELEGATES STAKE EPOCH 1 WITHDRAW TOKENS FROM DELEGATES STAKE REGISTER AS DELEGATE AND SUPPLY INITIAL DEPOSIT vote on upgrades, changes manifests, delegate approval, blacklisting surrender delegate position, withdraw initial deposit, distribute stake`s deposit «GOVERNANCE» Contract «CONSENSUS» Contract CREATE DELEGATE CONTRACT get delegate balance and stake at time get list of eligible Composer candidates BLOCK 2000 EPOCH 2 BLOCK X EPOCH X... STORE COMPOSERS SNAPSHOT, DELEGATE LIST HASH request Commitee snapshot, delegates list hash for epoch # Composer Node 19

20 Aerum Product Portfolio AERUM delivers a complex multifaceted functional prototype solution as its Functional Product which includes: core network capable of delivering outstanding performance multi-function web and mobile wallets cross-chain decentralized atomic swaps instantaneous on-chain atomic swaps human-friendly account name system intuitive in-wallet staking mechanism middleware blockchain integration toolkit blockchain explorer blockchain diagnostic dashboard As of August, 2018, a working prototype solution version 0.5 has been delivered. It is powering Aerum TestNet 0.5 test network. After commencing planned load and security testing on the testnet, software version 0.5 will be used to launch a first production beta version of the mainnet ecosystem, codename Troposphere. Troposphere mainnet v0.5 production self-launch is planned for December Token holders will be able to start participating in network governance and stake their tokens to participate in native gas cryptocurrency distribution as soon as Troposphere network launches. 20

21 Core components of Aerum product portfolio are developed in following technologies: Aerum Wallet Angular 5, TypeScript AerBIT Node.JS/Nest/ MongoDB AerumGO Go 1.10 Aerum Wallet is available as web and mobile application for Android and ios platforms. AerBIT and AerumGO are cross-platform application and will be provided packaged as docker containers or available on GitHub. 21

22 Tokenomics Aerum ecosystem is powered by the EIP(ERC) 20 token XRM. Being a utility token operating on Ethereum mainnet it provides indispensable functions, allowing Aerum delegated cross-chain consensus mechanism (ATMOS) to operate: Secures ATMOS consensus on Ethereum mainnet Powers Aerum liquid delegated democracy model Provides holders with voting power proportional to the stake Serves as a security deposit for Delegates in Governance contract Gives right to claim a proportional part of Aerum block reward Each staked 100 XRM tokens gives you enough gas to perform one free value transfer transaction per day Powers token buybacks once a secondary market for gas develops Aerum token has following characteristics: Token standard: EIP/ERC-20 compatible Blockchain: Ethereum-based Symbol: XRM Total supply: 1,000,000,000 Decimals: 18 Mintable: no (no more tokens can be created) Burnable: no (no tokens to be burned) Pausable: yes (transfers are paused until the Token Sale ends) Token pausability: Appropriate measures will be taken by Aerum to maintain XRM token in paused state for duration of the Public sale round, except short periods when token needs to be credited to specific campaign participants. After the Crowdsale finalized XRM token will be unpaused and Aerum will recede ownership rights in XRM token contract by setting them to 0x0 address. 22

23 AERUM Technologies XRM TOKEN TOKEN SALE PRIVATE PUBLIC WHITELIST LIQUID DEMOCRACY XRM TOKEN XRM TOKEN XRM TOKEN Stake Delegate BLOCK Reward (Coin Mining) VOTING COMMITTEE SELECTION GOVERNANCE Contract IDENTITY CHECK PEER REVIEW SLASHING XRM TOKEN XRM TOKEN XRM TOKEN BOND DELEGATE CANDIDATES G Delegates BLOCK COMPOSING AERUM Blocks 23

24 Token Allocations Out of 100% of tokens created following allocations will be made: 10% 10% 20% 5% 40% 15% Founders: restricted for 2 years Team and advisors: restricted for 6 months Initial Token Offering: no restrictions Marketing and legal:no restrictions Secondary Offering: restricted for 12 months Will be reserved for operations and grants 24

25 Token Sale Structure Token sale will be structured in two rounds: Initial Token Offering Initial Token Offering aims to accomplish the initial distribution of utility token XRM to seed Aerum consensus protocol and enable a production network launch. ITO is available to public with exception of USA citizens and residents. Secondary Offering Secondary offering will target accredited investors and institutions and will include a combination of utility tokens and equity in the commercial services company. Aerum will file this offering under Regulation D to be exempt from the registering with SEC. Overall 60% of all issued tokens will be offered via Initial Token Offering and Secondary Offering. Tokens will be allocated as follows: 20% (200,000,000 tokens) will be allocated to the Initial Token Offering and offered to the public and private investors 40% (400,000,000 tokens) will be allocated to the Secondary Offering, including capitalizing a newly established services company 25

26 Use of proceeds Collected funds will be used for following purposes: *Protocol development includes contracted blockchain software development and Intellectual Rights Acquisition by Aerum Technology Ltd. for all protocol level developments source codes from ASR Cryptotechnology s.r.o. Public sale exchange rates Aerum needs to record amount of funds collected in USD instead of Ether as per legal requirements of doing KYC/AML for purchases above the certain threshold values. That reason and Ether price volatility do not permit setting a fixed token price at the beginning of the sale. Aerum will implement measures to ensure that fair pricing information will be fed into the Crowdsale contract that would be beneficial and transparent for buyers. 26

27 Soft Cap A soft cap is the amount of funds collected to guarantee project continuity and signifies a token sale to be successful. If the a soft cap is not reached by the end of all token sale rounds, collected funds will be returned to participants. Aerum ITO soft cap is set to an equivalent of 3 Million USD. Aerum permits a reasonable use of proceeds of Initial Token Offering for the benefit of Campaign before the soft cap is reached. If the soft cap is not reached by the end of the Crowdsale, the remained funds will be returned back to contributors in respective proportions to the total amount of funds collected during the ITO. Aerum will also ensure, that a maximum amount of tokens sold during the ITO will not exceed 200,000,000 XRM. Hard Cap A hard cap is the maximum amount of funds to be collected and is derived from the projected project funding needs for the indicated road map. Once a hard cap is reached no further contributions will be accepted and a token sale will be closed and deemed completed. Aerum ITO hard cap is set to an equivalent of 6 million USD. Aerum will provide campaign participants with regular updates about the state of private sales and will update campaign progress via Token Sale dashboard at the Aerum landing page, combining contributions from public and private sales to determine whether Soft or Hard caps have been reached. The Crowdsale contract will be called to update the status of the Initial Token Offering once either cap has been reached. Aerum intends to maintain utmost transparency of the process. 27

28 Token Vesting Token vesting is a process that locks up tokens of large stakeholders in the project s economy for a certain period of time until the period when tokens start to vest, i.e. to unlock. Unlocking is gradual and takes a certain period of time, aka vesting duration. It helps ensure large stakeholders interests are aligned with the rest of community and they are not able to exert strong pressure on token pricing as tokens are being released with a delay and slowly over a period, i.e. not all at once. Aerum sets up following token vesting schedule: Founders (10%) starts after 12 months past ITO, vesting over next 12 months Team and Advisors (10%) starts after 3 months past ITO, vesting over 3 next months Secondary offering (40%) starts after 6 months after the sale and vests over next 6 months Tokens will be distributed at the end of ITO. Locked up tokens will be placed into vesting contracts that will limit transferability to another address. Tokens can be used for staking even during the freeze and lockup periods. All token transfers will be frozen until the end of the ITO. Token vesting starts from the moment ITO ends and transfers are unfrozen or from the moment a Secondary offering purchase is made, whatever comes at later date. Vesting will be implemented using Vesting Wallets smart contracts. 28

29 Project Roadmap Project inception November 2017 Project idea formulated The developer company had been created Team had been assembled Development started Beta Release August 2018 Aerum Web Wallet Aerum Mobile Wallet Aerum Intergration Toolkit Consensus protocol Token Staking protocol 29

30 ITO starts 17th September 2018 Sep 2018 Start of campaign Oct 2018 Whitelisted round Jan 2019 Crowdsale round Public Sale ends 31st January 2019 Exchange listing February 2019 Masternet launch February 2019 Secondary Offering March 2019 (tentatively) 30

31 After the token sale and distribution takes place Aerum team will commit to further develop the project in following phases: 1.0 Production v1.0 Release July 2019 Decentralized governance (e.g. Aragon) Collateral gateway Stable token integration/emission Production v2.0 planned for December 2019 Decentralized Aerum Token Exchange (DATEX) Multi-Token payment engine (MultiToken) Production 3.0 planned for July 2020 PetalChains - unique scaling turn-key solution for Aerum allowing Delegates to launch purpose-built chains to further scale their applications throughput up and beyond of 100,000 tps Maintenance releases - every month and feature releases - every 3 months. 31