An Owners Manual To XCHNG Token Holders

My name is Charles Manning, and I’m the founder and CEO of Kochava Inc., the leading attribution and measurement company for digital advertising.

Kochava is not a conventional company, and we do not intend to become one.

Inspired by the Google Shareholders Owners Manual published on the eve of their IPO, the following is a summary which gives a brief history of Kochava, our philosophy of innovation and investment, the pattern that we have demonstrated in understanding who we serve and listening to those we serve, the founding of XCHNG, and finally, the core principles behind the vision of XCHNG. The goal of sharing this Owners Manual is to provide useful context on whether it makes sense for you to join this project by owning stake in the network via the XCHNG Token.

If you haven’t already, I encourage you to read the XCHNG white paper for more context about this project.

In 2011, Kochava was founded on the back of consulting services performed by a small team and myself. As I have shared publicly in the past, the agencies who had hired us to build their apps asked for a feature in the apps we built which was in their words, “DoubleClick for mobile apps,” so that they could measure the effectiveness of the advertisements promoting on those apps. After hearing this a few times, we designated resources to build the first version of Kochava. Within six months, our Kochava revenue had eclipsed our consulting revenue, and within a year, we shut down consulting altogether in favor of investing and selling Kochava measurement across existing and new customers. We did this while not raising any money, funding the growth of the company via the revenue from our products.

This transition was not easy, and the subsequent three years of repeatedly growing the business 300% annually was also not easy. But our team did it.

Instead of aligning our priorities with the direction of early-stage funding partners, we appropriately aligned priorities with our customers. We listened, we responded to their needs in real time, and in the end, we built the leading measurement platform because we cared more about our customer than we cared about how we would raise our next round of funding.

Through the Kochava platform, we have built the premier solution for attribution and measurement for connected devices. While we started Kochava by delivering measurement for mobile apps (“DoubleClick for mobile apps”), we quickly discovered that our next-generation technology platform served advertisers well on mobile apps, websites, Oculus devices, Xbox devices — anything connected to a network. In short, if a device is connected to the internet, we can measure it in real time, and we can help advertisers target and measure their advertising budgets against those devices.

In addition to measurement and attribution, the Kochava platform — the Unified Audience Platform (UAP) provides:

1.) Analytics Tools that are second to none

2.) Fraud Monitoring and Abatement Tools that are setting the standard in how to detect and stop media and attribution fraud

3.) Engagement and Push Notification Tools to re-engage audiences

4.) Targeting Tools with the largest independent mobile data marketplace via the Kochava Collective

Our company often talks about how advertisers who use Kochava hold an unfair advantage over their competitors — simply because of the flexibility and capabilities of the tools we make available to them. In contrast, our competitors in the measurement business claim that all measurement is equal — and that they are cheaper. They are cheaper — but their offerings are most assuredly not equal. Doing the hard work of having a differentiated and superior platform that delivers over-and-above value AND being able to articulate that value are two attributes that are core to our team ethos.

Fast forward to 2015. At that time, I was extremely intrigued by cryptocurrencies and blockchain technology. As CEO of a measurement company for connected devices, everything comes back to measurement and how it can improve the industry we serve. The outcome of this intrigue gave birth to (among other things) XCHNG.

Although we believe XCHNG (as a protocol and project) has a phenomenal opportunity to transform the digital advertising ecosystem, Kochava (as a parent company) remains focused on building a leading platform for measurement, engagement, fraud abatement, and targeting. Kochava will be a first moving participant that uses XCHNG as a decentralized system for advertising buying and selling. This is an important fact that shows our support for the project and our mission to continue to serve customers who use Kochava (as they do today, or as they might in the future when they transact via the XCHNG protocol).

XCHNG is a game-changing blockchain project to equip the digital advertising ecosystem with an open and unified protocol-based marketplace and ledger framework for buying and selling media. The genesis of XCHNG was based on my personal intrigue in blockchain combined with the leadership of Kochava in digital measurement. Kochava is at the nexus of buying and selling media because we are considered the system-of-record that indicates what happened within an advertisement campaign and who should get credit (attribution) for the results of those campaigns. Our thesis was that the system-of-record should be on the blockchain; but in making that statement, we knew an entire technology ecosystem around that thesis would need to be built (one that didn’t yet exist).

Our team recognized that if blockchain technology was adopted in the digital advertising ecosystem, it would likely end up being deployed in a splintered fashion with various vendors building blockchains for their own inventory or their own demand. Indeed, the hype of blockchain has prompted a few companies already to do that. Further, I recognized that our vantage point in the industry (that of an independent 3rd party measurement platform) uniquely qualified us to be the champions of the most fair and balanced system which served all parties in the equation and ensured a unified approach on a common blockchain (what we characterize as an ‘Open, Permissioned’ blockchain as it’s an open network, but the contents of the data is permissioned to the actors involved in the smart contracts).

As a company so focused on the success of our customers, it became clear that we had to be the agent of disruption and the initiators of a unified blockchain solution for digital ads. We knew it would benefit our customers, it would benefit the industry, and it would enable Kochava (as a company) to continue to demonstrate meaningful value delivery to those who work with us.

My personal perspective (and that of our team) was that if the industry is going to be disrupted, we should work to lead the change and demonstrate how we all fit into the new framework with the same services we have become experts in.

In the same spirit of listening to our customers that helped us build Kochava into a leading platform, XCHNG is being built as a result of listening to the macro ecosystem. Our conclusion was that the need exists for a unified, decentralized platform that:

1. Is open (no participant should have to license XCHNG from Kochava)
2. Incorporates key marketplace protocols for buying, selling, and settling contracts related to media (including site-directed buys or open auctions)
3. Incorporates a unified ledger architecture that supports record-level persistence of events (impressions, clicks, etc.) and is capable of consensus at a Transaction Per Second (TPS) rate in the millions — a prerequisite for digital advertising
4. Is void of any extra transaction fees outside of operating costs for the blockchain network as an incentive for decentralized nodes on the network
5. Incorporates key actors as first-class participants on the platform as roles to enable digital advertising at scale (measurement, ratings, payment, data enrichment).

To enable this transition, Kochava had to be quiet about our efforts (our competitors often use us as the basis for their own product roadmap), and we had to prove to ourselves that we could accomplish the above goals in prototype form. Finally, it was important to us to separate the efforts of Kochava and those of an open blockchain implementation that the industry could leverage.

For these reasons, we formed a research and development subsidiary company named Kochava Labs SEZC (“Kochava Labs”) to hold XCHNG-related intellectual property, start building the network, and to facilitate a token sale to incentivize the marketplace to consider making the transition to this blockchain platform.

To support an impending token sale, Kochava and Kochava Labs started talking publicly about XCHNG in late 2017 after confirming the architecture’s ability to deliver at scale.

Unlike most token projects, the technology, partnerships, and facilitating infrastructure of XCHNG have been built prior to selling the token. Further, we have focused on “balance” and “governance” as we’ve thought through the allocation of tokens that are to be sold. These are attributes that we believe maximize the potential for success for all parties involved. I encourage you to consider this as you think about participating in this project.

We are focused on a successful deployment of the network, we are engaging an ecosystem that we believe has incentive to adopt the technology, and we are targeting an industry that is huge ($224B globally). Finally, XCHNG targets an industry where we (as a company) are a key catalyst to the success of the project. We believe that the thoughtfulness and pragmatic approach we’ve taken should be the litmus test for any tokenizing project.

A Facilitated Evolution

XCHNG is a framework for all current parties within the digital advertising ecosystem (we aren’t ruling anyone out — even traditional measurement competitors), and there will be a role for everyone to transition into while continuing to operate their business using current technology approaches for media transactions. We think of XCHNG as enabling today’s transactions running on tomorrow’s rails, with the benefits of increased transparency, security, and efficiency.

In addition, the vision behind XCHNG is to create the protocols for a myriad of providers who build demand-side tools, supply-side tools, arbitrage tools, or industry benchmark tools. Having open and available tools that work on common protocols that are consistently adhered to is unheard of in today’s digital advertising ecosystem.

The XCHNG platform is designed to support the high-speed demands of the digital advertising ecosystem with five key advantages:

1. Direct transactions via an encrypted smart contract insertion order (IO) for ad deliverables
2. Related matching and activation of audiences
3. Streamlined efficiency and security
4. Next-generation system of transaction record for all ecosystem participants
5. Token framework to give digital ads the status and security of a true asset class that can be traded

The goal for XCHNG is for advertisers to think about three main places to buy media:

• Google
• Facebook
• XCHNG (which is comprised of the independent industry marketplace)

While not all of the referenced companies are signed up as supply partners on the OnXCHNG program to date (many of them are), the illustration highlights where we philosophically position XCHNG in the larger scope of how advertisers will think about their buying options. This philosophical approach communicates our vision — that an open protocol and ledger can be used for ‘the rest of the industry’ outside of the walled gardens of Google and Facebook.

Insertion Orders as Smart Contracts

At the core of XCHNG is the smart contract IO, designed to replace the paper-based contract currently in use between advertisers (buyers) and publishers (sellers). The smart contract includes all the elements of a well-formed IO in a fully traceable format, codified into a smart contract that is an immutable, secure, and verifiable record that persists (carries over). Further, the smart contract is respected by the corresponding ad servers which serve the ads themselves.

In the XCHNG distributed environment, the smart contract automates the execution of the contract terms between parties directly, instead of requiring trust in various private and insecure central parties (or trust that what you agree to buy is what will actually get trafficked and delivered). The addition of the XCHNG token, a utility token created for advertising transactions within the system, offers further efficiency as a common currency, enabling payments to be executed upon completed/cleared transactions. For example, an ad is successfully served according to the agreed-upon time to a set of devices with a specified operating system on a certain property, triggering the release of the corresponding token (or fractional token) as a form of payment to the publisher upon verified completion according to the selected measurement partner. Using the XCHNG token, the payment is executed securely, seamlessly, and instantly, as the token is built directly into the framework of XCHNG. If payment terms are set to net-90, then that too would be found in the smart contract and the token release would correspond to that agreed timeline.

This level of thoughtful integration is unique to XCHNG and highlights a system that accounts for the nuanced nature of the digital advertising ecosystem — catering to the various failure points that exist in the current technology landscape.

Built To Scale

After releasing more information about XCHNG in late 2017, our first objective was to document and articulate the system’s capabilities for scale. In early 2018, most who had heard about blockchain and advertising discounted any claims that the two could coexist.

We sought to disprove that publicly and in Q1 of 2018, our team unveiled a benchmark demo of the XCHNG framework at our Kochava Mobile Summit (https://www.kochava.com/mobile-summit/) to an audience of advertising industry insiders. The scale of XCHNG is a function of the combination of its consensus engine approach and side chain architecture which is sharded (distributed), dimensionalized by IO/smart contract. The live demo of XCHNG showed speeds of 180,000 transactions per second per IO. Because customers can have unlimited IOs, and XCHNG offers unlimited side chains as needed, the team demonstrated that XCHNG can handle millions of transactions per second globally. This is well beyond today’s transaction volume requirements within digital advertising and has been received well by leading advertisers and suppliers alike.

Rolling out our Message

We have been very deliberate in our public discussions about XCHNG. For some time now, we’ve been keeping specifics associated to the platform gated or unavailable, until the Kochava Labs team felt ready to roll out the platform. This is a sign of “doing what we say and saying what we do.” As an example, the team had hoped to execute a token sale before the new year, but it was more important to address all of the outstanding regulatory, process, and technical items in order to remain faithful to the “holistic success” approach Kochava has always taken.

One of the benefits of a Owners Manual for Token Holders is that I can discuss these historical issues, highlight how they were handled, and use them as a reference to illustrate the ethos by which future decisions will be made. No doubt there will be challenges in the future — but we’re confident that the approach that has served our customers well in the past will continue to serve them well in the future. We will continue to sequence the rollout of our message in a pragmatic and thoughtful way — focusing on the success of the project as a whole.

White Paper

As you all know, Kochava is a six-year-old profitable company that made large bets on mobile, which continues to demonstrate success. We are a leader within the measurement space, measuring over $6B worth of media spend annually. Just as we bet on mobile six years ago, we’re betting on the XCHNG blockchain implementation today as we have envisioned the future of media commerce.

Once Kochava and Kochava Labs began speaking publicly about XCHNG, the white paper was gated, requiring a request for distribution. This was done for a few reasons:

1. A lot of advertising technology vendors are great copiers — not great innovators. The purpose of a white paper is to communicate vision and implementation of a project — not a roadmap of what others should copy. In that spirit, Kochava Labs locked down the white paper to those that registered and were approved. Almost everyone got approved, but it was important to at least track everyone who received the white paper to engage them for valid feedback and request their participation in a partner program if applicable.
2. Kochava Labs wanted to provide reminder emails to interested parties when there was an updated version of the white paper available. Blockchain is a fast-moving space, and XCHNG is actively being refined. This approach also created an opportunity to build a relationship with the individuals interested in the project or who are interested in having stake.

The decision proved successful, as Kochava Labs has recruited over 20 OnXCHNG partners and gathered interest from many of the thought leaders within digital advertising and distributed ledger technology verticals. Fifteen advertising veterans and blockchain leaders have joined as advisors to the XCHNG project. Further, token sale efforts have been primed with leading crypto investors who have expressed interest in participating in our crypto-allocated sale.

Today (April 26, 2018), the white paper is available to all (with multiple languages coming next week) without registration requirements as we approach a token sale. Download here

Incentives & Staking

XCHNG’s consensus model is based on Proof of Stake (POS) from a Delegated Byzantine Fault Tolerance (like other POS models). This model depends on a validator’s economic stake in the network for validation of transactions. The system must operate like the enabling technology stack for other trading platforms, incentivizing both supply and demand to participate on the system. Participants within the system may earn tokens for generating new blocks (this is the POS). The blocks consist of multi-dimensional shards of transactions produced from smart contracts (which are the insertion orders).

Many POS models claim a modest or absurd percentage return based on a stake which can range from 1% to 1000%. In alignment with its pragmatic ethos, Kochava Labs cannot currently take a stance on a percentage. The XCHNG POS model is based on usage, and participants earn transaction fees as they validate transactions/blocks. The more adoption and usage the platform has, the more potential to earn within the incentive model. With adoption comes the challenges of more participants running a node with stake.

The macro-incentive models are as follows:

• Validator nodes — A POS consensus model is used to determine the amount of voting power an individual miner has over the next block being generated. The more stake a miner has in the XCHNG network, the more voting power they hold. Nodes send their receipts back to the XCHNG system IO to receive a transactional payment.
• Ad Serving Miner — The XCHNG system “gossips” (computer-computer communication) smart contract IOs to a peer-to-peer (P2P) network of ad serving miners. Ad serving miners work to fill IOs by offering their network bandwidth and system resources. Miners receive requests from clients and work to fill the response. Upon successful delivery, clients send back a receipt to the miners. Miners send their receipts back to the XCHNG system IO to receive a transactional payment. Miners are elected based heavily on their response latency to the request.
• Ratings Providers — When consensus is reached, validator nodes broadcast the transactions to the other peer nodes using the XCHNG P2P network protocol. Ratings Providers monitor validator nodes (among other ratings that they perform). If a validator node drops below a certain rating, it will be removed from the network.

In addition to the above operational incentives, 25% of the total token distribution is allocated to publishers who publish their ad inventory onto XCHNG. This is done in a way that requires the publisher to a) introduce the inventory, b) keep the inventory on the system, and c) have the inventory verified by production buys. This incentive is also scheduled to have a component of vesting over time. This process follows the philosophy of granting large ecosystem incentives but requiring that the incentives are merited to drive adoption on the network.

Finally, Kochava Labs is conducting significant econometric analyses on the token, its projected usage volumes, potential velocity, and the implications of the value of the Payment Provider role which acts as an escrow agent for actors who want to deal in fiat only. While we aren’t prepared yet to share this analysis, I believe:

• The token will have high velocity of usage because of the natural volume of media bought and sold in this ecosystem. This is not fake velocity represented by prospecting token investors who are actively trading — this is real velocity as the token is used to buy/sell media.
• The requirement for stake as a focus for the POS model will create a level of scarcity
• The intentional allocation pools that have been designated when selling the tokens initially will create scarcity by category of initial participant and facilitate balance across the ecosystem of participants
• The existence and intentional design of the Payment Provider role in XCHNG facilitates liquidity as a first-class behavior in the model (not requiring crypto-currency exchanges for actors to buy/sell media).
• The requirement for technology partners (measurement, ratings, payment, and data enrichment) to have stake in order to be an operational actor will create healthy governance, scarcity, and help facilitate the build out of the network of validator nodes

Governance / Token Allocation / Roadmap

Digital advertising is a $224 Billion industry. It is extremely important to consider what is being built when considering governance, token allocation, and overall adoption balance. At the end of the day, XCHNG represents a new framework for the ecosystem to conduct business on using a common protocol-based framework that is more transparent and collapses inefficiency. While Kochava Labs has been focused on decentralization and open source deployment of XCHNG, it is understood that a governance model must be provided that takes into account the constituents of the network the day after network launch. This means governance must account for token stakeholders.

To be clear, the ultimate success of the framework requires broad adoption and a healthy balance of participants who have stake in XCHNG and use it as the means to buy/sell media. As such, instead of taking a traditional approach to have the crypto community participate in the lion’s share of the token sale, a pragmatic approach is being taken to ensure healthy distribution of the tokens upon issuance.

The crypto-allocated sale to the crypto audience is targeted to non US participants and is only a portion of the overall sale of tokens.

The primary reasons for this are twofold: 1) To comply with US regulation related to selling a token that is not yet functional, and 2) To give the crypto community (a community that appreciates the merits of a token-based approach) the first opportunity to participate. While this is true, the crypto-allocated sale is the only opportunity for the crypto community to participate in buying initially allocated tokens for XCHNG.

This approach has a double benefit in that the community demand for the token (as an indicator of the value of the system) will drive the value of the token as other token allocations are not planned to be sold until after the system is operational.

This value will also demonstrate the value of the corresponding incentive tokens given away to publishers (25% of total circulation and are vested based on time and validated delivery of supply). Said another way: if the crypto audience values the token during the crypto-exclusive sale, it will create a natural momentum and motivation across supply partners who are being given incentive tokens to get their inventory on XCHNG — thereby creating a virtuous cycle of adoption.

In short, the XCHNG Token is a token that I believe will show signs of both scarcity and required liquidity — but is a token that should only be held by those who believe in the long-term vision of XCHNG and plan to be first class participants (not prospectors who simply want to buy low and exit on gain).

The composite of these pragmatic and healthy perspectives led to the creation of an allocation table of tokens to be sold with the crypto allocated sale happening in the near future and the other allocations after launch of the mainnet.

Kochava’s Role In Governance and Incentive

We believe that the role of governance based on stake is paramount to the future of XCHNG. While this is true, we equally believe that in order to deliver a functional product, Kochava Labs must act as a benevolent dictator who gets version 1.0 shipping and available. The 25% reserve tokens allocated to Kochava Labs supports the objective to balance governance while the rest of the tokens are allocated across partners.

Kochava Labs is actively recruiting partners to become validator nodes and ad serving miners, as it will not use its stake to generate transaction fees.

Kochava will compete as a first-class actor on the network in a measurement, ratings, payment, or data enrichment role. Upon full token allocation, Kochava’s role in governance from token allocation and overall involvement is based on our status as the measurement and attribution leader within the ecosystem. This approach provides a clear path for migration from an outdated, inefficient model to XCHNG.

While Kochava Labs will not generate transaction fees for validation on XCHNG, it will use its resources to support validation within the chain (to ensure health while the network is being adopted). Any movement of XCHNG-owned tokens or staking within the system will be noted and identified based on our intention to validate and keep the ledger secure and verified.

All decentralized systems need adoption to create a successful and secure ecosystem. We have identified that adoption needs to happen at two levels: advertising industry adoption and adoption by the crypto community. We believe the allocation approach accomplishes this.

With industry adoption, crucial roles within the system are served as they are outside, but with a more efficient model from a buying/selling perspective. Adoption from the crypto community is equally important, as the crypto community stands to be the bellwethers to building out the validator network nodes of the POS system. Early support from the crypto community allows traction, promotion, and trust as adoption of XCHNG grows.

For this reason, we welcome the crypto community’s involvement prior to industry association or participation. Kochava Labs created a unique role for the crypto community called Proof of Stake Supply Emissary, or POSSE, which plays a key role on XCHNG by making its supply of XCHNG tokens available for purchase to other participants on the network. XCHNG miners are afforded the opportunity to increase POS influence on the network by leveraging the POSSE’s token supply. XCHNG is designed to enable anyone with tokens and a computer to participate as an XCHNG validator node or ad serving miner. As a result of leveraging the utility of the POSSE on the network, the stake held by XCHNG validators or ad serving miners increases their likelihood of forging blocks, thereby earning more transaction fees. The POSSE’s ability to steward the network is directly related to the number of tokens it holds.

Token Sale Details

The following illustrates the token allocation and details around general timelines.

In the graph below, you’ll notice allocation by ecosystem partner. As mentioned earlier, the prevailing philosophy is that if tokens are too heavily weighted to one category, balance of the platform is skewed where one centralized entity (or class of entity) could control the platform based on stake and incentives.

SAFT vs. ICO

Over the past several months, Kochava Labs has been working toward a public sale of the XCHNG utility token. As anyone who follows the space can tell, the current regulatory environment (or lack of clarity thereof) has created some difficulties. Initially, the plan was to do a SAFT and sell the full allocation across all categories at once. As the regulatory fog persisted, Kochava Labs elected to take the approach described above to ensure compliance to the best of its ability.

On the advice of leading crypto law firms across dozens of worldwide jurisdictions, Kochava Labs intends to mitigate many of the regulatory risks by limiting token holder participation in the crypto-allocated sale to certain pre-screened, non-U.S. residents and to allocate the rest of the token sale after the system is operational.

In support of that initiative, a whitelist of qualifying jurisdictions is being launched, followed by a public token crypto-allocated sale as follows:

• Whitelist: April 30th, 2018
• Non-U.S. Crypto Allocated Sale: July 20th, 2018

More information about dates will be made available on the XCHNG telegram group found at http://t.me/xchng.

Open Sourcing & Licensing:

The platform is being finalized and there has been little appetite internally to post code to GitHub prematurely. The best teams have been hired across multiple disciplines of product management, development, legal (Cooley; Harneys; KWM), PR (Wachsman), audit (Deloitte), and econometric analysis- all without ICO funds or third-party funding.

Many have told us that they want to see code in GitHub to validate that Kochava Labs is doing what it says. While I recognize the desire, with the exception of its availability to our OnXCHNG Partners, code will not be provided until there is critical adoption of the platform.

Kochava Labs will be the single largest token holder upon launch of XCHNG, and will be entirely focused on the success of the project as a result. Making code available prematurely (for others to fork and copy) is not an ingredient to that success.

Incentive/Bounty Program

In the incentive/bounty program, 1.25 billion or 25% of all circulated tokens are earmarked to be given away. The majority of that figure will be to drive adoption through the platform via the OnXCHNG Partner Program. Kochava Labs will issue tokens to these industry players for entering partnership agreements, testnet participation, and publisher referral programs. For example, from the start, publishers have been targeted to create supply within XCHNG. We anticipate that the more publishers and inventory available within XCHNG, the more likely it is that demand will follow. Some might say this is a little backwards because demand drives supply. In most cases, yes, but with Kochava’s deep bench of top-tier clients, XCHNG already has the partnerships and relationships at its fingertips to drive demand. This is anticipated to drive adoption and prime the market to initiate test buys, sales, and overall participation within the ecosystem, once it is launched.

In addition to the market incentive distribution, 0.6% or an estimated $150,000 will be rewarded to participants within the “Proof of Share” referral campaign. Participants can earn up to an estimated $10 in XCHNG tokens, each referral is worth an estimated $0.10. On top of general referral rewards, there are three top prizes based on total amount of referrals. The participant with the most unique referrals will receive a total of an estimated $200, the second highest unique referrals, estimated $125; and the third highest with unique referrals, estimated $75. These prizes will all be paid in XCHNG Tokens and rewards will be issued during a Token Generation Event when the platform launches (anticipated late 2018).

Translation bounties are also being offered (estimated $20) for Bitcointalk forums, which will be in the following languages: Chinese, Japanese, and Korean. Each accurate and verified translation by Amazix, the XCHNG community agency, will be paid out in the same regard (during a platform launch). Other community-driven activities for earning bounties that provide value to the project are welcomed!

To participate within the Bounty POS model, click here.

Dutch Auction Approach to Pricing Crypto Allocated Sale

In the spirit of our ethos, we decided that we want the crypto community to determine the price of the token in the crypto allocated sale! Instead of Kochava Labs setting the price, the crypto community will set it through a Dutch auction. This type of structure is an auction in which the price on the token is lowered on a graduated scale over a duration of time. A Dutch auction is a method for pricing tokens whereby the price of the tokens offered is lowered until there are enough bids to sell all tokens. All the tokens are then sold at that price. A visual progress bar is being designed for the XCHNG website to show real-time progression of token bids during the sale. 600M tokens are expected to be made available for the crypto allocated sale (30% of 2B), and there will be a floor reserve price to facilitate a minimal about raised for promotion.

As mentioned previously, the community gets the first opportunity to be involved with XCHNG and set the token price through the Dutch auction. This is a fun and fair way for participants to determine value without feeling that the token, or overall enterprise value, was inaccurately priced.

Closer to the sale date, we’ll have the full code available for the Dutch auction smart contract for reference and personal audit.

Conclusion

Over the past year, the team has traveled around the world to meet with industry participants in every segment of digital advertising. We have also analyzed hundreds of blockchain projects and carefully curated elements that would benefit XCHNG and the XCHNG community, with the focus on creating a successful long-term protocol and framework for next generation advertising commerce.

The digital advertising ecosystem is ripe for a revolution. Blockchain is the disrupting technology to address the greatest challenges facing the industry today: inefficiency, fraud, lack of transparency, and lack of standardization. In its peer-to-peer, decentralized nature, blockchain offers a new paradigm that evens the playing field and benefits all participants. Kochava is uniquely positioned to champion the blockchain solution to the digital advertising ecosystem. We are currently welcoming forward-thinking industry players to join us as an OnXCHNG partner, to participate in the token sale, establish stake in the ecosystem, and to learn how you can run your business on the fast, secure, transparent rails of the future: XCHNG.