NPX token — how it works in practice
As mentioned in our Whitepaper, in simplified terms, our NPX token gives right to 2 key features:
1. Trading signals
2. 85% of performance fees over the first 10 DAFs (described in our Blackpaper)
In practice, each token materializes a license right over a set of information, the trading signals, given by the ten first proprietary algorithms described in the Blackpaper.
This license may be exercised by unlocking a software or a web portal through the private key associated with the ETH address holding the NPX token.
This license is freely transferable. The holder of such license, may transfer it by transferring the NPX token attached to this license.
The license may also be sub-licensed freely, albeit on an exclusive basis (i.e. one license can not be sub-licensed twice at the same time). In practice, sublicensing may give right to a sub-license fees, to be negotiated between the sub-licensor (the NPX token holder) and the sub-licensee.
The ICO consists in selling these licenses, valuating the R&D provided to create the first 10 trading algorithms described in our Blackpaper. Tokens’ buyers are companies or people used to manage or sell financial information.
As only a limited number of tokens will be issued at the end of the ICO, these licenses will represent a scarce asset and its value will be derived from the quality of the trading bots.
Access to feature 1 : the trading signals
The access to the information, will be obtained through a software downloadable directly from our platform when it is fully operational, or directly through the platform. To activate it the token holder will need the private key associated to the ETH address detaining one or more NPX tokens. In case of a NPX transfer, the associated private key will change and only the new NPX owner will have access to it. This is to avoid forgery.
The software or platform will provide trading signals of the first 10 trading bots as described in our Blackpaper. To run properly, it will need to be fed by the right market sources which can be freely accessible from the internet or through professional market data provider.
There will be 3 levels of speed at which the signals will be provided depending on the number of tokens (represented by their keys) that one ETH address holds:
· up to  tokens you will get the standard signal 30mn after market close
· from [1,000] up to [9,999] you will get the signal 15mn after market close
· above [10,000] NPX token you will get the signal 15mn prior market close with a refresh less than 1mn after market close.
This mechanism will avoid NPX holding dispersion and should act as strong price support for the token.
Access to feature 2 : 85% of performance fees over the first 10 DAFs (described in our Blackpaper)
Each NPX token is associated to a license that can be freely be sub-licensed. However, the sub-license can only be granted one at a time according to terms that need to be negotiated individually with the contracting party.
That means that anyone will be able to monetize on their own with any counterparty. The choice that might drive this choice may involve profit sharing levels as well as asset under management offered. They could also be sub-licensed for a flat fee. Potential bidder might be online platform such as eToro or Quantopian, asset managers or wealthy individuals.
The asset management company launched by Napoleon Crypto will be amongst the potential bidders for such sub-licensing. We will set the conditions at 1 / (number of issued NPX tokens) x 85% of performance fees charged by the asset management companies over the first 10 DAFs launched. The DAFs will be charged 25% performance fees.
Each sub-licensing contract will run for a year and can be renewed at the same condition. In particular, this contract will be coded in a smart-contract deployed on the ETH blockchain.
The rationale for this offer is that we want to control competition once the sale has been done. At each anniversary date, the NPX token holder can retake control of his license and use it as he wishes.