Important changes on a white paper and business model (2017.02.07)
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After several weeks of consultations with legal partners, we decided to make some major changes on a white paper and our business model.
New parts added/changed on the white paper:
1. Two new advisors joined the team of Edgeless Project. Paolo Rebuffo (Linkedin) and Ransu Salovaara (Linkedin)
Paolo Rebuffo is a whale cryptocurrency investor and senior advisor/strategist of “Digital Identity”. His work is related to search and analysis of valuable blockchain-related projects. “Digital Identity” has its own development team that is currently working on the bitcoin and ethereum blockchains. They also do direct financial investment in other crypto projects. Besides that he actively travels the globe and meets blockchain project teams in person.
Ransu is the co-founder and CEO of Revoltura, the company behind BitcoinETI, Europe’s first bitcoin-backed exchange traded instrument. BitcoinETI is listed on the Gibraltar Stock Exchange and traded at the Frankfurt Stock Exchange. Ransu is also an escrow for several blockchain projects. Additionally, he is an active blockchain community member and believer in decentralisation.
2. Edgeless development team gets 10% of EDG tokens, which is 50,000,000 EDG tokens. Tokens are automatically locked for 12 month by Ethereum Smart Contract.
Reason: The development team now has an additional economic incentive to increase the value of its own tokens and build a successful casino business. Tokens are locked for 12 months so that the team cannot deflate the value of the tokens in the early stages of the business.
3. Total issued EDG tokens: 500,000,000. Unsold tokens are automatically burned by Ethereum Smart Contract.
Reason: To reduce the risk of token value deflation. Otherwise unsold tokens could be bumped, which would be a serious devaluation of the token.
4. EDG tokens are no longer backed by casino’s profit and do not offer 40% profit sharing. EDG tokens are a regular ERC20 protocol token which is not liked/preprogrammed to any equity/profit sharing smart contracts.
Reason: After long legal research and consultations, we had to make the decision to replace profit sharing with a different value backing. Legal authorities treat crowdsale/ICO projects as IPO (Initial Public Offering). IPO is strongly regulated and has a huge list of requirements which cryptocurrency crowdsale projects cannot fulfil.
We contacted a good number of successful crowdsale projects and asked them. It turns out — they DO have legal problems.
Major problems arise when it comes to equity/profit sharing:
First, the largest exchanges are not going to take the risk of accepting equity/profit sharing tokens.
There is a huge shadow over the cryptocurrency world, and equity/profit sharing makes it even worse. Regulators are pushing cryptocurrency exchanges to take more legal measures against exchange participants.
For example: Poloniex Exchange has 7 million visits a month and a massive amount of business. They are not going to risk their business for one or two equity/profit sharing tokens in the near future. This is one of the biggest reasons why you cannot find these tokens on large exchanges today.
Not being on a large exchange means a loss of token liquidity which important for the token and Edgeless’s business.
Second, legal authorities look more positively on currencies/tokens which are involved in a business model. That’s one of the reasons why most crowdsale projects include their tokens in business models, such as First Blood, Golem and others.
5. Instead of a profit sharing model we decided to incorporate our EDG token in the casino business. Introducing “Edgeless Lounge”!
40% of casino profits are automatically sent to the lounge prize pool. “Edgeless Lounge” has a special game which is similar to a lottery. Game can ONLY be accessed using EDG tokens — it’s like an entry pass. Every month EDG token holders can compete and win a share of the jackpot. Prize pool is paid in Ethereum currency. Players cannot lose their EDG tokens.
Technically the EDG token value is backed by a lottery game which is in the player’s favor.
Detailed explanation follows: “Edgeless Lounge”
QUICK LINKS:
Website: www.edgeless.io
White paper: http://bit.ly/2jHIb7T
Slack: edgelessethcasino.signup.team
Reddit: reddit.com/r/edgeless
Twitter: twitter.com/edgelessproject
Facebook: www.facebook.com/EdgelessCasino
