Your Questions Answered — November

Thank you for your questions over the last month. Moving forward, we will be publishing a “Your Questions Answered” post on a monthly basis. To have your question put in front of the team, you can submit them via this form:

We will not be publishing a list of all questions asked. However, will seek to answer as many questions as the company deems valuable to our community and in the interest of our commitment to transparency and flow of information to our token holders.

Ivy Network-related Questions:

Q: How are the partnerships hinted at around the private sale time progressing?

Ivy will disclose all partnerships as soon as they are formalized. Most recently Ivy formed a Strategic Partnership Agreement with Goldfields Money. LINK

Q: Is Ivy planning to list on any new exchanges?

Additional exchanges are not a focus for the Company right now. The Company is focused on product delivery. Once the product is further developed it may make sense for Ivy to be available for purchase on additional exchanges.

Q: How do you see the competitive position of Ivy and ivyPay with Identitii (ASX:ID8)?

One key point of difference is Identitii is fiat to fiat. Ivy (including ivyPay) is crypto & fiat. Beyond this, we encourage you to do your own product research.

Q: Do you plan to release “epics” and “use-cases” for the Ivy Network soon?

Not at this time.

Q: Has the secondary smart contract been set up to control the burn process as was previously announced?

No. On the agenda for discussion with our partner HiveEx.

Q: What are the plans for sharing technical details on the development of the MVP?

We would like to show more during the building of the re-scoped technology development plan. The Company can’t make a commitment to timelines prior to the re-scope being finalized, however, it is the Company’s intention to work with the development team to show more progress to the community when available and appropriate to do so.

Q: Can you please explain the “Friends and Family Token Sales”? When did those token sales occur? How much were the tokens?

In our original White Paper, the intended structure of the Token Generation Event was described in Section 7. “Token Sales” represented 40% of the intended post-issuance total Tokens of approximately 1.5bn. “Token Sales” were expressly noted to include “all tokens sold up to the TGE, including all prior token sales and associated token based fees”. The Tokens offered through the pre-sale were noted to be 150m Tokens with an offer price of USD0.10 to raise USD15m. The balance of the 40% comprising “Token Sales” was intended to comprise “Friends & Family” Token Sales, Seed Investors & IP Vend Tokens and Tokens issued by way of payment of fees for various services.
In the updated White Paper (issued after the Token Generation Event had been completed), we updated the disclosures as to the total number of Tokens generated (1,610,924,200) and we provided a more specific breakdown of the Tokens issued that were included in the 40% of Token Sales. The Token Sales comprised the following issuances:

· Friends & Family Token Sales — these Tokens represent 3% (rounded to the nearest %) of the total Tokens. They were sold to “Friends & Family” prior to the pre-sale and were sold at a price of USD0.05 per Token (raising USD2.773 million ). “Friends & Family” are people who have backed Ivy from an early stage. Their early investment has been critical to the development of Ivy.

· Seed Investors & IP Vend Tokens — these Tokens represent 24% of the total Tokens. The Seed Investors were Elmoson and Change Financial. These Seed Investors provided initial, important funds to Ivy, together with substantial “sweat equity” and know-how as part of their seed investment. In the agreement between Elmoson and Change Financial (which is subject to non-disclosure restrictions), the seed investors were to be issued tokens and equity for their risk capital. It is important to remember the critical nature of this seed investment from Elmoson and Change Financial. They invested hard cash at a critical time for Ivy. This risk capital was appropriately recognized and rewarded.

· Fees Paid for Various Services — these Tokens represent 2% of the total Tokens (i.e. approximately 38m Tokens).

· Tokens sold via the Pre-sale Token Sale process — these Tokens represent 11% of the total Tokens (i.e. approximately 170m Tokens) and were issued at USD0.10. The sale of these Tokens raised approximately USD17m.

Q: How come the token sales now only make up 38% of the total instead of the previous 40%?

As mentioned above, the 40% Sale Tokens comprised 3% Friends & Family; 24% Seed Investors & IP Vend Tokens; 11% Pre-Sale Tokens and 2% Fees Paid for Various Services. The Tokens issued by way of fees for services represent tokens issued for value, as contemplated in Section 7 of the original White Paper. The fees were converted into Tokens based on a Token value of USD0.10 (i.e. the same price paid via the Pre-sale Tokens).

Q: For the “IP Vend Tokens”, that was used to “acquire IP”, can you be more specific about which IP you are referring?

The reference to “IP Vend Tokens” in this question is a reference from the updated White Paper to the 24% of Tokens described as “Seed Investor & IP Vend Tokens”. The Seed Investors (particularly Change Financial investment in Ivy), provided enormous and critical financial and intellectual capital support to Ivy in the early phase of its development. The intellectual capital involved (among other things) very significant and mission-critical know-how and network/industry introductions, including in relation to banking procedures, KYC and KYT requirements and introduction to prospective banking partners.

Q: The pre-sale sale amount seems to have changed from the oft-quoted $16.5m to $17m. Could you elaborate on how that happened?

We announced a preliminary calculation of the funds raised from the Pre-sale Tokens of approximately USD16.5m. We then undertook a more detailed and complete reconciliation by way of a third-party audit ahead of the Token Generation Event. That audit process resulted in an upward correction to the amount raised to USD17m.

Q: Ivy originally said there would be 1.5b tokens on the issue, and it increased to 1.61b. Why did it increase?

The original White Paper stated that we were proposing to issue “Approx. 1.5 billion” Tokens. We had significant demand for Tokens beyond the USD15m we initially intended to raise. Given this additional demand, and as previously announced, we decided to increase the size of the Token Sale to accommodate the demand, and consequently more Tokens were issued. The other Token pools were also then appropriately scaled to maintain the proportions that were disclosed in the White Paper.

Q: Who is Ivy Blockchain Pty Ltd?

Ivy Blockchain Pty Ltd is an Australian registered company with the same shareholders as Ivy Koin LLC. This company was involved in the Token Generation Event.

Q: Has Ivy been re-purchasing Ivy tokens from others (via exchange or otherwise)?

Occasionally in small quantities on exchanges.

Q: What are Ivy’s thoughts on CCA’s current financial position?

No comments on Change Financial’s (CCA) financial position, or their intentions. CCA was part of the voluntary escrow of 500 million tokens as disclosed in our post on June 18th:

Q: Please provide more clarity on what the testnet actually does. Does it include a working model of the Ivy platform? Only the Ivy token and not IvyB? Does it have a test ETH blockchain in it? How about the other 10 coins that are expected to be available? (Reference —

As a result of the re-scope, this is all the information are able to divulge. We will provide more clarity on the testnet post re-scope.

Q: Could you clarify the details surrounding the roadmap milestone “Private testnet and Public testnet”?

The internal testnet is for integration with platform partners only. This is currently happening.

The public testnet will be available for banks and financial institutions to view in H1 2019. The public testnet is not available until H1 2019 as the Company did not have sufficient engagement with a bank to assist in guiding the development of the public testnet during H2 2018.

We anticipate a more detailed account of the technical re-scope Q1 2019

Q: What are the IvyB tokens and how will they be used in the MVP?

The Company is planning to re-scope the technology to make it an easier sell to banks and financial institutions. The theme of the re-scope is lower integration with Banks, meaning IvyB tokens will not be required in the re-scoped MVP. Timeline and roadmap will be updated post-completion of the re-scope.

Q: Why does Ivy plan to “distribute the growth pool” to FI’s for testing in H2 2018 when the Public testnet will be available in H1 2019?

The Company thought it would have greater engagement with Banks during this quarter to warrant distribution of the Growth Pool. Distribution is likely to start next year, however, the Company has a view that it has over-allocated tokens to this pool, and the allocated numbers will not be required to be distributed.

Q: How does Ivy expect “Financial institutions testing Ivy beta product on live network” in H2 2018 when the Public testnet will be available in H1 2019?

This is unlikely to happen during H2 2018.

Q: In relation to the MVP’s KYC & token utilization, what is the plan to incorporate the token as a necessity?

The Company is looking at ways to incorporate more usage of the token and will provide more information in the future.

ivyPay-related Questions:

Q: Will you consider an ivyPay wallet in future? This would avoid having to pay a gas fee every time a bill is paid and cut out having to transfer both the crypto of choice and ivy for fees (as the fee could be automatically debited from the wallet during the transaction)

ivyPay wallet is not in the development pipeline right now. The concept is interesting and may be considered in the future, however, we are looking at opportunities to potentially integrate ivyPay into other wallets

Q: Is there much preventing ivyPay becoming a merchant style platform where businesses can be onboarded to accept crypto as payment (or choose immediate fiat conversion)?

Nothing much preventing it from moving in this direction, other than engineering and business development.

Q: Is there a plan to streamline the process of sending tokens to 2 separate addresses in ivyPay?

Agreed, and yes there is a plan to streamline this in the future.

Q: The ivyPay User Interface is ultrasimple at the moment. Is there a plan to add motion and a bit more exciting interaction to modernize the interface?

No immediate plans, however, small improvements will occur over time.

Q: With apps more popular than ever, is ivyPay intending to advance to a dedicated app, or remain a website?

Remain a mobile-optimized website. If ivyPay gains significant traction the Company may build a mobile App in the future.

Q: How do you envisage a new partner might help advance ivyPay and also differentiate it?

Discussions with Goldfields are focussed on Ivy Network and other use cases specific to Goldfields. We will be opportunistic if there are opportunities with Goldfields which can assist in the promotion of ivyPay.

Q: Will the tokenomics of ivyPay improve over time?

ivyPay is a valuable proof of concept in getting a product to market. The Company is looking to increase usage of Ivy tokens in the re-scoped technology development plan. More on this re-scoped plan will be available at the end of December 2018. Token holders (many of whom are in Australia) are able to use IVY tokens to get a reduction in fees when paying bills, paying off credit cards and off-ramping crypto into your bank accounts, via ivyPay.

Q: Will ivyPay be included in the roadmap and/or have its own roadmap?

At this stage, it will not have its own roadmap.

Q: In relation to the Ivy Network, will ivyPay work in parallel or will they meet in the future?

ivyPay and Ivy Network are parallel.

Q: Will ivyPay launch in other countries outside of Australia?

We are still looking to explore other countries, with the biggest opportunity and the one that makes the most sense being the U.S.

Q: Has ivyPay seen traction and will you be sharing data?

We have a small but growing user base. The biggest challenge has been the state of the market. We may share specific customer and transaction information as product usage grows.

Q: What do you see as the next evolution for ivyPay?

We have only just launched ivyPay! Our biggest focus right now is the Ivy Network re-scope, and if/how we potentially can wrap ivyPay into that.

*Note* These questions were answered by the team during the first weeks of December 2018. As a constantly evolving project, answers are accurate as of time of publishing but could change over time.