NEW DISTRIBUTION AND FINANCING MODEL

COMPLETELY BASED ON THE COMMUNITY

PREFACE

Based on our previous communication, everything collected during the ICO that has not passed the KyC / AML procedures has been returned to origin, despite this, the current situation of the project is still completely favorable to continue and it is due to the fact that, before initiating the Initial Coin Offering (ICO), we decided to create a contingency fund with its own contributions.

Having a contingency fund (FDC), allowed us to continue with the project as planned despite not having the funds collected during the entire ICO process.

With the FDC we were able to carry out the following stages of SCAVO.

— Construction of a data center of 300 m2. We estimate that next 10 February will be enabled the first 100 m2, fully operational (1) (2) (3) being fully adapted for crypto mining environment.
— Purchase of racks and goods for customized construction of servers (motherboards, micro processors, memory, cases, SSDs).
— Purchase of switches, routers for the core and the interconnection of the different racks with their miners.
— Start of production of the necessary servers (4).
— Development of the complete scavo.farm site (front-end and dashboard for interaction with the user) (5).
— Purchase of inverters and pack of solar panels.
— Manufacturing and purchase of plates for miners GPU (6).

1. We decided to carry out the construction and conditioning works in thirds, therefore, the remaining 2 thirds will be completed as the mining farm grows.
2. An agreement of cession of space for a total of 1000 m2 was signed for a period of 10 years. Due to the nature of the agreement, during this period NO values ​​should be paid for rent or retribution for the space provided. You can download a copy of the agreement here.
3. A subsidized connectivity agreement was signed for 12 months. You can download a copy of the agreement here.
4. Once operational and online. We only have to rack them in their final destination within the data center, once it is enabled.
5. Our goal is to have both sections of the site operational for next February 1st.
6. 500 base boards were manufactured for the construction of miners based on GPU and FPGA. Payment is 50% of the entire order. 50% left for releasing of the order.

WHAT ARE WE MISING?

MINERS!!!

While we have all the underlying infrastructure necessary to start mining operations (not least), it is almost unnecessary to even mention that we lack something very important that is the heart of the whole project and that is the miners. Of course we need them to mine different cryptocurrencies no matter what are these based on ASIC, GPU or FPGA.

Based on this, our alternative proposal will focus on obtaining the necessary resources for the acquisition of the different miners and begin the mining operations, as soon as possible, for a value of 100 BTC.

In the same way, we want to inform our entire community that in November 2018, a group of 50 miners based on ASICs (sha256 and scrypt) were acquired with funds used by the FDC. These were acquired with the objective of approving them to be able to import them without inconveniences.

PROPOSAL

THE FACTS

Before making our proposal public for the financing of the project, it is necessary and precise to remind each of our investors, as well as the entire community that makes up SCAVO, that for not complying in time with the sending of the corresponding documentation of KyC / AML, based on current legislation in Argentina, the automatic execution of the process of returning money to origin took place. This resulted in the non-accreditation of all the funds collected during the ICO process.

During the ICO we have raised USD 1,055,877.58.
Sales could be validated for USD 276,887.61.
Funds were returned for USD 778,989.97.

The soft-cap during the ICO was USD 500,000.

Since the funds duly credited were less than the proposed soft-cap, the mandatory process of returning the funds to all the investors who acquired the tokens during the ICO period will be executed. (see REIMBURSEMENT OF INVESTMENT)

We also want to inform our community that until the last day of the deadline, December 29, 2018, we did everything in our hand to meet the requirements and once we finally got the necessary and official data, we have taken the decision to comply with the agreement and proceed as established.

We recognize that it is a hard blow not being able to count on the necessary funds for the purchase of the miners, nevertheless, SCAVO will continue with its operations according to the original plan. This is due, as we have indicated above, to the fact that it has all the support infrastructure and a number of miners that will allow mining operations to start on a reduced scale than projected with ICO funds. All this could be achieved with the FDC.

REIMBURSEMENT OF INVESTMENT

A NECESSARY RIGHT BY OUR INVESTORS

Any person who has acquired the SCAVO token during the entire period of the Initial Coin Offering (ICO), that is to say in the period between July 15, 2018 and October 31, 2018, may exercise his right to reimbursement of his/her investment, if so decided, in accordance with the stipulations of the terms and conditions established in the purchase agreement for the token. It will be enough to continue with the corresponding procedure that we will detail next:

1. Our team will be formally communicating to each investor via email declared in their profile.
2. The investor must inform SCAVO of his/her decision to proceed with the reimbursement of its investment or continue in the project whose deadline is January 31, 2019, inclusive.
3. If your decision is to move forward with the reimbursement of your investment, we will agree on the form of reimbursement (compatible with your purchases) and the time of reimbursement.
   You must send your tokens to the address: 0xC6590ca62eEE713608a49D0C25D53d964c573Fe5
4. If your decision is to continue as a member of SCAVO, the procedure will be executed under the new proposal (see DISTRIBUTION OF TOKENS COMMUNITY).

TOKENS DISTRIBUTION SCHEME

COMPLETELY BASED ON THE COMMUNITY

CURRENT SCAVO TOKEN DISTRIBUTION MODEL:

NEW SCAVO TOKEN DISTRIBUTION MODEL:

As we told above, our objective is the purchase and acquisition of miners based on ASICs, GPUs and FPGAs (last one for testing), for a maximum value of 100 BTC (~ USD 360,000).
As a premise, we base ourselves on the worst scenario, that is, each of the investors decides to withdraw from the project, which will result in not having the funds to purchase miners. That said, the following adjustments will be made to the current metrics that will affect, we understand, in a positive way to the whole community and at the same time will allow us to achieve our goal as well as to equal each of the current and future token holders.

To do thist:
1. All previous token distribution categories will be eliminated, including the allocation to the founders and the team.

2. There will be a snapshot on February 1, 2019 at 00:00 GMT-03 (Buenos Aires / Argentina). Based on this, the new distribution will be advanced.

3. The following will be taken as equivalence: 1 SCAVO = 1 satoshi (0.00000001 BTC).

4. SCAVO token will be issued for a nominal value of 100 BTC, this is:

1 BTC = 100.000.000 SCAVO

100 BTC = 10.000.000.000 SCAVO

5. The tokens will be sold directly in the exchanges in the following way:

a. At GRAVIEX (SCAVO/BTC pair): 1 SCAVO = 0.00000001 BTC (0.000000010 BTC)

b. At WeiDEX (SCAVO/ETH pair): 1 SCAVO = 0.00000030 ETH
In the case of SCAVO/ETH, the value of the token will be updated daily or if there is a variation of more than 10% (whichever occurs first) taking as reference value the one published in CoinMarketCap.

All sold tokens will be sent to the following addresses:

a. BTC: 34T1Bs2iLPVTDty2CiGjgayq22XdxHaVUa

b. ETH: 0xF1c4cDD0E26380f287743aF9013e72A0b8dc3dCD

6. The values of the current token holders will be adjusted. (see ADJUSTMENT TOKEN INVESTORS and ADJUSTMENT TOKEN COMMUNITY).

7. The sale of the tokens will be destined EXCLUSIVELY to the purchase of miners.

ADJUSTMENT TOKENS INVESTORS

AUTOMATICALLY AS OF 02–01–2019

For those investors who decide to continue accompanying and providing all the support received so far, we have devised an adjustment to the new distribution scheme that will reflect the degree of commitment of both parties with SCAVO. To do this, an equitable adjustment was considered and it continues to reflect the current status, being represented as follows:

1. The current share will be respected.
2. The corresponding tokens will be credited according to the new distribution.
3. A total of 10% will be added to the total of tokens acquired during the period of the ICO (July 15, 2018 to October 31, 2018).

There are three cases that can represent the situation of an investor and are the following:

a) THE INVESTOR ONLY ACQUIRED TOKENS DURING THE ICO PERIOD

For this case we will proceed as follows.
(example) The investor acquired a total of 200,000 SCAVO, representing 1% of the total of the tokens issued under the previous distribution scheme.

1. Then 1% of the new distribution system is 100,000,000 SCAVO (10,000,000,000 SCAVO * 1%).
2. The sending of the 200,000 SCAVO will be requested to the address: 0xC6590ca62eEE713608a49D0C25D53d964c573Fe5
3. Once point 2. has been completed, 100,000,000 SCAVOs will be sent.
4. An additional 10,000,000 SCAVOs will be sent.

b) THE INVESTOR ONLY ACQUIRED TOKENS IN EXCHANGES

For this case we will proceed as follows.
(example) The investor acquired a total of 200,000 SCAVO, representing 1% of the total of the tokens issued under the previous distribution scheme.

1. Then 1% of the new distribution system is 100,000,000 SCAVO (10,000,000,000 SCAVO * 1%).
2. The sending of the 200,000 SCAVO will be requested to the address: 0xC6590ca62eEE713608a49D0C25D53d964c573Fe5
3. Once point 2. has been completed, 100,000,000 SCAVOs will be sent.

c) THE INVESTOR ACQUIRED TOKENS THROUGH A COMBINATION OF a) AND b)

For this case we will proceed as follows.
(example) The investor acquired a total of 300,000 SCAVOs of which 200,000 SCAVO acquired them during the ICO and 100,000 SCAVO acquired them through Exchange, representing 1.5% of the total of tokens issued under the previous distribution scheme.

1. Then 1.5% of the new distribution system is 150,000,000 SCAVO (10,000,000,000 SCAVO * 1.5%).
2. The sending of the 200,000 SCAVO will be requested to the address: 0xC6590ca62eEE713608a49D0C25D53d964c573Fe5
3. Once point 2 has been made, 150,000,000 SCAVO will be sent.
4. An additional 10,000,000 SCAVOs will be sent.

COMMUNITY TOKEN ADJUSTMENT

RESPECT THE PRINCIPLE OF COLLABORATION

As we have said innumerable times, our base of sustenance is the community that supports the project continuously. We analyze carefully the situation that was happening in relation to the different participations that occurred from last July to date and we believe that it is necessary to carry out a complete adaptation of all the distributions by the different campaigns carried forward with community participation, being these:

— SCAVO general Airdrop campaign
— SCAVO Bounties Campaign
— MEMEs and GIFs contest
— Airdrop campaign from WeiDex
— Airdrop campaign of FatBTC
— Airdrop campaign by CoinChangex

Shortly we will be publishing in detail how we will distribute the tokens to adapt to the real values according to the new distribution of tokens.

We decided to dedicate a publication exclusively to the community because we pretend that each of the campaigns should reflect the nominal value that was originally stipulated and not as it has happened with the majority of each of them that once the value was found to be significantly lower.

We hope to be able to count on you as they have done so far. Slowly, but without pause we are conforming an increasingly solid community, which expects to see the results towards where we are focusing all our energy!

Guillermo J. Nardoni
CEO — SCAVO Technologies