Important Investor update (part 2/3)

Progress and Developments

Dear Investors,

It has been some time since our last update. Since then, we have made significant strides in various areas, primarily focusing on development and coding to launch our application with an enhanced user experience. Finally, we have reached that moment, a few days ago, we successfully launched our application. Achieving this milestone is not only a testament to our team’s hard work and dedication but also a crucial step toward realizing our vision for PayAccept.

That said, it’s time to cover the next headlines in this update:

1. The Application
2. Platform Features and Innovations
3. Partnerships
4. Investor Relations and Tokenholders
5. Marketing

The application

Let’s begin with the launch of our application. From the outset, we diligently worked towards its completion, initially collaborating with external development agencies. This approach was necessitated by the challenge of recruiting skilled developers in Eindhoven, a city bustling with technological activities. In such a tech-driven environment, it’s reasonable to ask why a top-tier developer might choose PayAccept over established giants like ASML or Philips. This dilemma isn’t unique to PayAccept; it’s a nationwide challenge across various sectors in the Netherlands to secure committed and skilled employees.

Working with external agencies had its ups and downs. Initially, there was great excitement among developers about working with cutting-edge technologies like web3 and blockchain. However, as we delved deeper into the development process, the complexity of the tasks at hand became increasingly apparent. The intricacies involved in such innovative technology development are substantial, and this reality necessitated a strategic shift.

Ultimately, we decided to take back control and continue the development in-house. Despite being a time-consuming decision, giving up was never an option for us. It’s a fundamental belief at PayAccept that only through performance and persistence can significant goals be achieved. And that is precisely what we did. After overcoming these challenges, we are proud to present the application to the public.

Looking back, the past few months have been a period of intense focus and quiet determination, akin to the calm before the storm. Now, as we celebrate this milestone, we eagerly anticipate the next phase of our journey.

Platform Features and Innovations

The release of our application marks a significant milestone. It provides both existing holders and new users the opportunity to sign up for an account, granting access to a multi-currency wallet supporting BTC, ETH, PAYT, EUR, and USD. We anticipate a substantial increase in onboarding members as we implement the following features and innovations on the PayAccept platform. Here’s what you can expect from us:

1. Adding More Tokens, Coins, and Blockchains: Currently, our wallet supports EUR, USD, BTC, ETH, and PAYT, serving as the foundational phase of our platform. The next upgrade includes integrating Bitcoin Lightning and incorporate various Ethereum-based blockchains like Polygon, Arbitrum, Base, and Matic. Similarly, we are ready to support all ERC20 tokens, recognizing their value on these blockchains.
2. Introducing NFTs and STOs: Our ambition extends beyond tokens. We’re integrating NFTs (ERC-721 and ERC-1155) into the wallet, allowing users to store digital artworks, collectibles, or rights securely. Additionally, we’ll incorporate security tokens (ERC-1400, ERC-1404, and ERC-3643). PayAccept will introduce an NFT member card and an STO token to familiarize users with these standards.
3. Ecommerce Integration, Pay Buttons, In-Browser Wallet: To streamline online transactions, PayAccept will bridge the gap in e-commerce. With the integration of Pay Buttons and an in-browser wallet, making payments online will become effortless and secure.
4. SocialFi and Trading: Aiming to enhance user engagement and distinguish ourselves from other wallets, we are integrating a unique form of SocialFi into the PayAccept platform. Coupled with trading facilities, including index, social, and token trading, we are simplifying market access for our users.

As we continue to innovate, these features will not only enhance user experience but also solidify PayAccept’s position as a frontrunner in the digital finance landscape.

Partnerships

In addition to our developmental strides, we have established the complete company structure as previously discussed in our last investor update. We have engaged in discussions with several potential partners, each bringing exciting prospects to PayAccept. Let me highlight some of these partnerships (in the making):

1. Collaboration with a Crypto ATM Vendor: One of our most promising conversations has been with a vendor of crypto ATMs deployed across Europe. During our discussions, we explored integrating PayAccept with these ATMs, offering users the ability to deposit and withdraw cryptocurrencies at physical locations. We plan to continue these talks in the coming months, aiming to seamlessly integrate our technologies.
2. Engaging with Legal Expertise: We have also consulted with a law firm to acquire the necessary licenses for our operations. For the VASP (Virtual Asset Service Provider) license, we have chosen Lithuania. Meanwhile, for our security token operations, we are proceeding similarly to how we handle NFTs and utility tokens. Anticipating further market regulations in 2024, we are positioning ourselves to adapt and continue our operations seamlessly. This proactive approach ensures that we are prepared to implement and deploy NFTs and STOs in PayAccept, securing a strong position in the market.
3. Exploring Stock-Market Opportunities: Lastly, we are in ongoing discussions with a stock-market company regarding a potential reverse-listing of PayAccept. Concurrently, we are engaging with investors interested in a SPAC (Special Purpose Acquisition Company) arrangement with PayAccept. This topic, however, is more suited for a detailed discussion in our next update.

These partnerships are vital components of our strategy, enhancing PayAccept’s capabilities and market presence. As we progress, we will continue to explore and develop these collaborations, ensuring they align with our vision and contribute to our overarching goals.

Investor Relations and Tokenholders

Many may wonder why they should invest in PayAccept. We have been deliberate in our approach, choosing to focus on solidifying our application before opening up to new investors. This strategy was aimed at ensuring substance and stability over mere hype, thereby avoiding the pitfalls of a rapid rise followed by a steep decline. PayAccept is ideally suited for long-term investors who seek to embark on a journey with us, a journey where we strive to add value both to the company and to our investors.

Streamlining Tokenholders on a Single Blockchain:

To create a more efficient and cohesive environment for our tokenholders, we have consolidated their presence on a single blockchain, Ethereum, and discontinued support on Binance Smart Chain. Operating across multiple blockchains with varying valuations and ecosystems did not align with our vision. Unifying our tokenholders and establishing clear tokenomics is our chosen path forward.

Current Tokenomics of PayAccept on Ethereum:

As of November 14th, the total allocation of our 45M PAYT token supply is as follows:

• 9,024,000 PAYT held in the team’s PayAccept contract, which will be reallocated to reflect the whitepaper.
• The remaining 6,566,272 PAYT are distributed as:
• 568,047 PAYT in smart contracts for Uniswap or other DEXes.
• 450,000 PAYT across 10 PayNodes.

Resulting in a current circulation supply of 5,548,225 PAYT tokens among over 500 tokenholders.

Adjustments to Align with Our Whitepaper:

In reviewing our whitepaper, we recognize that our existing tokenomics require adjustments to better align with our initial vision. To remedy this, we plan to reallocate the 9 million PAYT currently held in the team’s contract. Of these, 3 million PAYT will be secured in a linear vesting contract, ensuring their gradual release over an extended period. The remaining 6 million PAYT will be strategically utilized to support various aspects of our operation, such as marketing, development, awareness and a reserve for swaps. This reallocation strategy is designed to progressively introduce these tokens into the circulating supply, thereby optimizing our tokenomics in accordance with our original plan.

Left: current tokenomics. Right: adjusted tokenomics.

Relaunching the Staking Program

In addition to the revised tokenomics, we are re-launching the PayAccept token staking program for our tokenholders. As previously, there will be three distinct staking options available. The first is the standard staking program, offering a fixed 5% Annual Percentage Yield (APY). For those holding over 25,000 PAYT tokens, the VIP staking program provides a variable 10–15% APY on the principle of, the longer you stake the more you get as a bonus. Finally, the exclusive PayNode Staking, accessible only to approved investors, offers a remarkable 50% APY.

Seed Round and Future Plans

We are actively seeking larger investments from venture capitalists and accredited investors to participate in PayAccept’s growth. A significant step in this direction is the conversion of 25% of our capital share into security tokens, to be publicly traded or potentially listed through a SPAC, reverse-listing, or other means. These security tokens, designated as PAYS, will be available for conversion by PAYT tokenholders holding over 45,000 PAYT.

With these changes, we aim to enhance our tokenomics significantly, ensuring a stable and healthy token environment. This approach, coupled with a focus on robust marketing strategies, is designed to attract new tokenholders and create a more compelling market proposition for PayAccept.

Marketing

In our quest to optimize marketing efforts, we’ve engaged with several agencies but often encountered prohibitive pricing or unsatisfactory terms. Consequently, we’ve decided to take control of our marketing strategy. This involves recruiting a dedicated marketing specialist who will spearhead our content creation and social media management, ensuring we hit the ground running. Our phased marketing approach will include the following initiatives:

1. Social Media and Blog Updates: We’ll consistently update our social platforms and blogs to ensure information is both readily available and consistently presented.
2. YouTube Presence: Creating at least one engaging YouTube video to introduce and explain the PayAccept platform.
3. Press Engagement: We plan to publish press releases or articles in prominent magazines to broaden our reach.
4. Influencer Partnerships: Identifying and collaborating with influencers who resonate with our brand and can commit to long-term partnerships.
5. Targeted Outreach: Conducting a cold-mailing campaign to reach at least 1 million cryptocurrency enthusiasts.

We believe these strategies will significantly boost the token’s volume and enhance PayAccept’s brand awareness. Additionally, by launching the exciting new features outlined earlier, we aim to drive even more traffic to our platform, thereby attracting a growing user base.

So far, so good. Let’s keep the rest for the next investor update.

As we continue our journey, we remain committed to innovation, regulatory compliance, and user-centric development. Thank you for your continued support and trust in PayAccept. Stay tuned for more exciting updates!

Sincerely, The PayAccept Team