Thanks for the numerous questions asked yesterday during our first live AMA! Your questions and feedbacks are extremely valuable to us and, thanks to yesterday’s positive experience, we confirm that we will have more of them coming in the future.
A lot of areas of discussion arose, and we are starting to address all your concerns one by one: for some we will publish already next week a comprehensive statement, for others more time is required. What we can promise, however, is that your voice will not remain unheard!
For those who unfortunately were not able to attend the AMA, or anyone who is interested in refreshing his/her own mind, the minutes of the meeting are available here!
1. Do you plan to get token listed on more exchanges?
“Yes, right now we are focusing on the Binance DEX. We are confident that we will be able to get list on their DEX, but, of course, we are waiting for an official communication from Binance.”
2. Could you tell us more about the July 26th deadline for Binance DEX?
“If you have looked into the public on-chain proposal, it says that the deadline for the listing is set to July 26th. This means that the node operators will need to make a decision by that date. We are in close communication with Binance on the matter and we are confident that we will be able to land the listing on the 26th. We would appreciate, however, if the meanwhile you could keep showing support on the Binance DEX application thread.”
3. What are your plans for maintaining the 50k USD requirement for the Binance CEX listing?
“We are aware of this requirement and we take this topic really seriously. We have been discussing internally the best options and next week we will release a comprehensive statement illustrating our strategy in this regard.”
Token and Price Development
1. What is happening with LIT, why did it drop so much? Also, what are the 625k LIT wallet transactions that appear from time to time?
The main reason is the token unlock. As previously announced, we have several seed investors. Their tokens unlocked 90 days after TGE. We believe that our token is valuable and, therefore, we promote holding. We definitely don’t support dumping, yet we didn’t set any restriction to our seed investors, who are, hence, free to trade as they please.
Also, worth mentioning: Lition team does not dump its own tokens. We believe in the long-term value of LIT. As we were surprised by the negative price performance causes by this event too, we are currently discussing the possibility of introducing OTC deals for the unlocks exclusively.”
2. What utility the Lition token will have once the mainnet goes live? What makes LIT valuable in the future?
“LIT’s utility lies in the presence, and expectations, of new use cases. Unlike many projects, the Lition token is being used right now by a real-life commercial product: whenever a money transaction occurs on the Lition platform, there will be Lition tokens flowing to a staker. While in the alpha version tokens run in a close network, with the launch of the mainnet, we will migrate the energy use case, and then the Lition token will have real utility.”
3. What is your message to Lition hodlers?
“If you are a Lition hodler, you are in for the technology. We believe in a decentralized future: that’s why we have created our token. The fact that you deliberately chose to hodl your tokens instead of actively trading them shows that your view is aligned with ours.”
Mainnet and Staking
1. Which functionalities will be included in mainnet 1.0?
“Version 1.0 will be a fully functioning solution, which will therefore include all the core components of the Lition sidechains. It will include therefore:
1. Ability to create your own sidechain (free and open source for non-commercial users)
2. Ability to use LIT to operate it
3. Ability to get staking rewards (90% sure)
4. Data deletion features (although scheduled for mainnet 1.5)
2. Will the mainnet be available for use right after the launch?
“Well, the word mainnet may be a bit misleading: Lition is a sidechain solution. But yes, Lition energy will migrate immediately.”
3. When will staking begin?
“Probably when mainnet is launched, so end of Q3, although we are not comfortable promising that yet. If staking is not available for mainnet 1.0, we will launch anyways the Genesis Phase.”
4. What is the reward for the 20k masternode?
“To make things clear, Lition does not support masternodes and the minimum requirement for a node is 1000 LIT. It’s only 1000 because we want as many nodes as possible in order to increase decentralization. We know staking rewards are proportionate to the number of users on the platform. Since we are a young company, we are not expecting large amounts of users in the beginning. To compensate for the lack of transactions we will implement a Genesis Phase: 20% reward the first year, and 10% the second.”
5. Why moving to Tomochain?
“While Ethereum as mainnet could work for Lition, we realized that it’s too slow. This is ok for some use cases, but it is not a viable option for Lition. The banking use case, for example, has some activities in which it is important that the bank approval is authorized on the mainchain rather quickly. Here’s where Tomochain comes in handy: it is faster and has cheaper transaction fees.”
1. Will Lition energy be integrated in the blockchain or it will remain separated? Also, the use of tokens is never mentioned there: could you clarify on that?
“Lition energy can only live with the blockchain, therefore once version 1.0 of the mainnet will launch in the end of Q3, the energy use case will migrate immediately. Lition.de will use the token. The reason why blockchain is not mentioned is because the normal person doesn’t understand blockchain and often are scared by this topic.”
2. How do I switch to Lition as energy provider?
“You fill in your id information and meter number, and the team will take care of the rest, including the termination of your existing contract.”
3. Can you explain more about the banking use case?
“We will provide a platform for syndicated loan: one loan taker and many makers who sign the loan with their private keys. We do not have approval yet: it is quite difficult to be adopted by traditional banks.”
4. When will the first STO be?
“This is something we will announce in Q3. We currently have two projects with which we are in negotiation.”
5. What are other use cases you are thinking about?
“Our main use cases are the energy one, the syndicated loans and the STO. In a lesser way also our partnership with Lawpilots, although this is simply a case of data authorization. Other that that, Logistics could be a suitable area for Lition.”
1. Could you provide details on the partnership with SAP and Microsoft?
“The contract with SAP is under NDA, but we have a reliable interview with SAP CTO, which we invite you to watch. Also, in the whitepaper there is a brief description of the nature of the partnership.
For what concerns press releases, SAP typicalls does joint announcements only when a solution is ready to be marketed meeting the SAP quality bars. The details about the nature of our relationship are limited to what we have mentioned in our official documents.
For what concerns the partnership with Microsoft, we are part of the Microsoft for Startups project. This gives us access to a wide range of Microsoft tools as well as their cloud. Also, it includes really useful trainings for our personnel.”
2. How many people from SAP work on the project?
“More than we were expecting once we first singed the agreement. While we have the developers and architects that we expected, but soon learned that there are well over a dozen others involved too — from business development staff, communication experts, IP lawyers, lower and senior management, just to name a few.”
1. Do you think you will be able to respect the deadlines set by the roadmap?
“We promise that we will deliver on time. We are overseeing the development and it’s proceeding as expected. The next deadline is the launch of our mainnet 1.0 which will be on the end of September.”
2. Are there further plans that have not been communicated yet?
“We believe that ours is the best solution on the market. For this reason, we are actively working on onboarding new clients. Along with that, we are working on three different areas specifically for the Q3:
1. Increase liquidity (the comprehensive strategy will be released next week)
2. STOs: we are negotiating with two promising projects for the launch of their security tokens
3. Additional real-life use cases”
3. Where do you see Lition in 2 years from now?
“In two years, we want to be one of the leading solutions for commercial use cases that handle private data in a legal manner. We believe that there’s a large portion of companies to which this apply to. And we want blockchain to leave the niche in which it is right now and become a “normal” technology, like Java.”
1. Aren’t the rewards for the Lition wars too high?
“After receiving so many feedbacks on this topic, we will discuss it internally and address the issue in a fair way.”
2. Is Lition participating in any crypto events?
“Last year we have participated to over a dozen conferences worldwide. This year’s plan is to onboard new clients, therefore we are participating more to “traditional” conferences.”
3. Any updates on the Japanese community?
“Yes, we will shortly release a statement on that. Stay tuned!”
1. What about the Lition revenues?
“More information has been released on the Forbes article. This year revenues for the energy use case are expected at €3 million and, according to our projections, €7 million next year.”
2. Do you have enough funding for many years?
“Yes, we do, and you can see how we intend to spend our funds in the whitepaper. So far, we are below budget, so we are confident about our sustainability. Thanks to the energy use case Lition can benefit from a continuous stream of income as well.”
3. Have you converted your crypto gains into fiat?
“We converted the majority of the ETH raised in the ICO. We do not support neither practice speculation.”
1. Why aren’t you active on GitHub?
“We use Bitbucket on a private repository. We will release our source code publicly on GitHub, but only when we will be comfortable publishing this kind of information. We plan this to be next month.Everything that you’ll need to create your own sidechain will be public.”
2. What are the biggest risks to Lition adoption?
“Of course, macroeconomic risks which involve every blockchain project, but the most impactful one is definitely is the corporate risk aversiveness. When we talked to many companies and explained the Lition blockchain solution they are reluctant, and managers are not comfortable with the history of blockchain. In this the partnership with SAP has helped us a lot.”
3. Deletablity goes against the philosophy of blockchain, explain us your rationale for such offering and please do not explain it with GDPR compliance because data protection can be achieved via encryption.
“I disagree that encryption satisfy the conditions set by GDPR. GDPR states that customers have the right to have their data deleted, and companies take this literally. Whenever private data is stored on our sidechain, we separate the data from its hash, which gets stored on the public blockchain while the private data gets stored in a distributed database to which all validators have access. If customers require the deletion of their private information only the data itself is deleted but not the hash.”
4. What is [Richard’s] role in advising German government? How will this help Lition?
“It mainly consists in three tasks:
- Participating to earrings (its common that experts are invited to the conversations)
- Speaker at government events
3. Counseling Parliament members on STOs
By attending to these events and building this kind of relationships we are able to indirectly shape the legislations as well as designing our STO solution knowing which the government’s concern are.”