Frequently-Asked-Questions (FAQs)

1. What is Rate3 (RTE)?

Rate3 is a new payment token to inspire a world of payment without borders. Rate3 will be the native cryptocurrency used in a new global e-commerce ecosystem to help consumers, merchants, suppliers and other intermediaries transact efficiently, cheaply, securely and quickly.

2. What are the key features of Rate3?

Rate3 has three key features: low transaction fees (a fraction of a penny per transaction), faster processing time (about 40 times faster than Ethereum’s) and it is easily exchangeable for other currencies (distributed exchange).

3. What will Rate3 be used for?

Apart from being the native token of exchange in the ecosystem, merchants can incentivise consumers with instant cashback and rewards by using Rate3 tokens. The Rate3 blockchain will also be used to minimize both consumer-side and merchant-side fraud. Ultimately, we also believe that the Rate3 token can aid in the construction of a more comprehensive credit profile for any consumer.

4. What about Rate3’s team? What makes them unique?

The Rate3 token and ecosystem are conceptualised and created by the same team that brought you RateX and RateS.

A quick overview: RateX is a desktop browser extension that helps consumers pay less when they shop online by providing shoppers with mid-market exchange rates for cross-border purchases and the ability to auto-apply the best coupon codes with a single click at checkout. RateS is the mobile app version of RateX, with an additional feature: it allows users to discover deals and price-drops across online merchants.

The Rate team has already shipped two existing products and have extensive experience in the intersectional space between e-commerce and payment services.

More importantly, they have assembled a highly renowned and capable team of advisors to guide the team in fully realizing the potential of Rate3.

5. Is the Rate team supported by institutional and venture funds?

Yes, they are. Apart from the list of advisors providing strategic guidance, the Rate team has been very fortunate to receive funding and support from various renowned institutional and angel investors.

Their first prominent institutional investor is Alpha JWC Ventures. Alpha JWC Ventures is a venture capital firm that invests in early to growth stage technology companies both in Indonesia, as well as anywhere outside of Indonesia. Alpha JWC Ventures has a deep fintech sector focus and expertise, and are committed to partnering with entrepreneurs for value creation. Alpha JWC Ventures’ notable portfolio companies include Carro, Funding Societies, UangTeman and DealStreetAsia.

Another renowned institutional investor is Insignia Ventures Partners. Insignia Ventures Partners is a venture capital firm with a focus on investments in Southeast Asia. It is founded by Tan Ying Lan, ex-Sequoia Asia Partner. He was the first hire and Venture Partner in Southeast Asia, having sourced multiple investment opportunities for Sequoia including Tokopedia, Go-jek, Traveloka, Carousell, Appier, Dailyhotel, Pinkoi and Insignia Ventures Partners’ notable portfolio companies include EV Hive.

6. What is the relationship between Rate and Rate3? Does Rate own equity in Rate3?

Rate Pte Ltd (“Rate”) and Rate Network Pte Ltd (“Rate3”) have entirely different corporate structures — they are different legal entities. Rate’s s equity investors do NOT own equity in Rate3.

The Rate Management team owns 100% equity in Rate3 and Rate3 will never undergo any equity raise. This is to ensure total token supply is being held solely by the team.

7. Will the original Rate equity investors have additional tokens and incentives?

Since Rate and Rate3 have entirely different corporate structures, there are no free tokens for the original Rate equity investors. Rate3 will claim the network that the Rate management team creates as its own, and the resources (engineering, design, time spent on developing and pushing the network for adoption) comes from Rate.

Advisors are already incentivized to provide any value given their vested investment in Rate3 + equity stake in Rate. There are NO advisory fees nor any sort of compensation. Compensation is the bonuses allocated for their investment in Rate3 and equity stake in Rate (if any).

In exchange for the work that Rate did, Rate3 is tied on a service agreement. Hence, there is an allocation of funds for software development. The engineering team will be expanded and offices will be set up in major e-commerce cities to expand the network for rapid adoption.

8. What is Rate3' business model?

Rate3 will not charge consumers and merchants any transaction fees for using the network, as outlined in Rate’s original vision.

Instead, Rate3’s main revenue streams will be digital prepaid card fees, affiliate marketing fees and interest from credit loans. More details can be found in our whitepaper.

9. Why will mechants work with us?

The key to adoption in any e-commerce ecosystem is two-fold:

1) The inherent proposition / benefits for all participations;

2) The actual efforts taken for merchant education, acquisition and user adoption.

The first point about the inherent proposition is clear: using Rate3 tokens has no transaction/exchange rate fees, as opposed to the current payment method (debit, credit cards/PayPal). This zero transaction fees benefits both shoppers and merchants, so the inherent benefits are clear.

The second point pertains to the actual efforts to educate, acquire and retain merchants, users. Luckily for Rate3, it is not starting from ground zero — unlike other ICO projects. Rate have already supported existing merchants (Amazon, Lazada, Taobao etc..) and acquired a sizable active customer base.

10. You mentioned about interest from credit loans. Are loans risky?

Loan defaults can be addressed in two angles:

  1. How to reduce loan defaults in the first place: For any credit scoring model at the start, Rate3 might be unable to predict loan defaults as well without sufficient data. However, since Rate3 loans are mainly used for e-commerce purchases, the default rate will be lower than other type of loans.
  2. How to retrieve bad debt loans (if loans default): In terms of loan defaults or bad debt loans, most capital providers/financial institutions have to be willing to accept a certain default rate. Furthermore, Rate3 willalso be working with third-party debt collection agencies (like every other credit company.)

In fact, this is also where Rate3’s advisors value-add: Alpha JWC Ventures/ Insignia Ventures both have portfolio companies that deal directly with such credit problems. For instance, Alpha JWC’s portfolio companies include Funding Societies and UangTeman, both of which operate lending in SEA. Likewise, Carro has their own credit arm as well (Genie Financial). Rate3 will be working closely with these companies.

11. How are Rate3' advisors helping them?

Our advisors are one of our greatest pillars of support. They help in 2 distinct areas:

  1. Technical Expertise: The Rate3 team primarily comprises software engineers, but blockchain technology is still in its nascent stage so we seek advisors to advise us. For instance, Dr Primavera from Jun Capital is a permanent researcher on blockchain technologies and distributed governance, providing updates on the latest blockchain research. Likewise, Loi Luu from Kyber Network is another technical adviser for us.
  2. Networks & Connections: A key element of building an ecosystem is establishing partnerships. Our advisors bring the most valuable connections and networks, for instance Reynold Wijaya of Funding Societies and Modalku advises us on lending and credit facilities. Likewise, Shi Yi of ODYSSEY Foundation and oBike Asia provides us with valuable advice on navigating the token sale process.

12. What blockchain is Rate3 based on? Why the Stellar network?

Rate3 is built on top of the Stellar network and you can read more about it here.

The Stellar network was chosen because the Stellar Consensus Protocol (SCP) allows for decentralized control, low latency, flexible trust, and asymptotic security. In short, it allows for fast and cheap transactions and can be easily exchanged for other cryptocurrencies or even fiat currencies. To learn more about SCP, read this.

13. What is the token allocation and how will the funds be used?

The exchange ratio of the token sale is 1 ETH: 8,000 RTE. The soft cap is 20,000 ETH and hard cap is 50,000 ETH. The allocation of funds can be seen here:

Token Allocation

  • 40%: Token Sale (Sum of private sales, pre-sales, public sales)
  • 25%: Company (Maintain ecosystem operations)
  • 10%: Listing & Exchanges (Supply of tokens to be used for anchors and various exchanges)
  • 10%: Team & Advisors (Locked up: 2 years, vesting to ensure alignment of team and advisors’ interest)
  • 10%: Reserve (Locked up: 1 year, maintain liquidity of the RTE tokens)
  • 5%: Community (For community engagement, airdrop campaigns)

Use of Proceeds

  • 30%: R&D (Technical development, according to roadmap)
  • 25%: Partnerships (Merchant acquisition and engagement costs, partnerships with financial institutions, payment providers)
  • 20%: Marketing (Marketing campaigns to raise awareness, engagement and retention of ecosystem for users and partners)
  • 10%: Listing Fees (Fees paid to various 3rd-party exchanges for listing; this is different from the 10% tokens supplied for exchanges)
  • 10%: Operations (Business operations; including but not limited to hiring external vendors)
  • 5%: Legal (Legal contracts, compliance costs, legal DD)

14. Why is the token sale done with Ethereum and not the Stellar blockchain?

We choose to list ERC-20 tokens initially because it provides the most ease for a token sale. Likewise, an ETH wallet is common amongst many investors and this facilitates an easier transfer. There will be a 1:1 token swap between ERC-20 tokens and $RTE on Stellar.

15. When will the project officially launch?

The project is currently concluding the private sale campaign and you can read more about it here. We have concluded two airdrop campaigns — do join our official Telegram channel to learn more.

We are concluding our pre-sale right now.

16. Why is the public sale so late? I can’t wait to buy RTE tokens now!

We understand that all of you are anxious to participate in the public token sale and the team has been working very hard.

However, we want to make sure we are compliant with all legal regulations, so we are working extensively with our lawyers (Denton Rodyk), external third-party vendors for KYC/AML and smart contract audits. This takes time but it will make this token sale a smooth experience for all investors.

17. Where can $RTE be purchased in the future?

$RTE tokens can be purchased in other exchanges in the future and more details will be released soon. Stay tuned and follow us on Twitter and Telegram for the latest official updates by our team.

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