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STANDARTA.IO
The White Paper
Contents
DISCLAIMER 3
What are STANDARTA goals? 5
What is STANDARTA.IO? 5
Why is it important to fight the poverty? 6
Payment system with stable currency 7
STANDARTA: stable cryptocurrency 8
Savings 8
Working capital 9
Stable purchasing power 9
Mining as compensation of a loss 9
Free mining Community 10
The dual-currency platform 11
Other Stable Coin’ attempts 12
Pre-mining registration 13
Identifying Users (KYC) 13
KYC bridge to Banks 14
Referral program 14
Mining 14
Seed wallets 14
Wallets 15
Corporate Wallets 15
Secondary market 15
Entering the secondary market 15
STANDARTA community 15
Market cap 16
“Cryptolization” of payments 16
The payment system 17
Market Overview 17
Payment system operations 18
Distribution model and technology 18
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Project stages 19
Phase 1 19
Phase 2 20
Appendix A.Tokenomics 21
Stabilization and exchange rate' methodology 22
Stabilization zone 22
Composite Consumer Price Index (CCPI) 22
STD/USD exchange rate 23
STD rate of exchange to USD 23
Depotit effect 24
STD rate of exchange to fiats 25
Primary generation of tokens 25
Secondary generation of tokens 25
A simplified methodology of stabilization 26
Wallet balancing 26
Carrying out a payment of X tokens of GCC. 27
Carrying out a payment of X tokens of STD. 27
Capitalization ratio’ balancing 27
The bull market 27
The Bear market 28
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DISCLAIMER
This document and its contents are provided for only individuals who was personally invited
and must not be copied or otherwise circulated to any other person or organization. Before
entering into any transaction the invited should take steps to ensure that the risks are fully
and completely understood and whether the participation in cryptocurrency mining suits the
objectives and circumstances, including the possible risks and benefits of entering into such
a transaction. The invited should also consider seeking independent advice on the nature
and risks associated therewith.
Neither the White paper, nor any part of it, nor anything contained or referred to in it, nor the
fact of its distribution should form the basis of or be relied on in connection with or act as an
inducement in relation to а decision to enter into any contract or make any other commitment
whatsoever in relation to the subject matter of the White paper. In particular, details included
in this White paper are designed only to provide а broad overview for discussion purposes
and remain subject to updating, revision, further verification and amendment.
The distribution or possession of this White paper in or from certain jurisdictions may be
restricted by law. Persons into whose possession this White paper comes are required to
inform themselves about and to observe any such restrictions. STANDARTA.IO does not
accept any liability to any person in relation to the distribution or possession of this White
paper in or from any jurisdiction. This White paper does not constitute an offer or solicitation
by or to anyone in any jurisdiction in which such an offer or solicitation is not lawful or in
which the person making such an offer or solicitation is not qualified to do so or to anyone to
whom it is unlawful to make such an offer or solicitation. By accepting this White paper,
recipients agree to be bound by these limitations and restrictions.
No reliance may be placed for any purposes whatsoever on the information contained in this
document or on its completeness. No representation or warranty, express or implied, is
given by way of this White paper as to the accuracy or completeness of the information or
opinions contained in this document and no liability whatsoever is accepted by
STANDARTA.IO or by any other entity discussed in this White paper, for any loss,
howsoever arising, directly or indirectly, from any use of such information or opinions or
otherwise arising in connection therewith.
Certain statements, beliefs and opinions in this document are forward-looking, which reflect
current expectations and projections about future events. By their nature, forward-looking
statements involve a number of risks, uncertainties and assumptions that could cause actual
results or events to differ materially from those expressed or implied by the forward-looking
statements. These risks, uncertainties and assumptions could adversely affect the outcome
and financial effects of the White paper and events described herein. Forward-looking
statements contained in this document regarding past trends or activities should not be
taken as a representation that such trends or activities will continue in the future. These
statements will not be updated or revised whether as a result of new information, future
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events or otherwise. You should not place undue reliance on forward-looking statements,
which speak only as of the date of this document.
The services and products that are described in this White paper are only provided for
persons with sufficient experience and understanding of the risks involved. The services
and products described in this White paper are available by personal invitation only and
public should not rely upon it.
By reading the White paper or by accepting this document you will be taken to have
represented, warranted and undertaken that: (i) you have read and agree to comply with the
contents of this notice, and (ii) you will not at any time have any discussion, correspondence
or contact concerning the information in this document with any of the directors and
employees of STANDARTA.IO, its representatives or with any of its suppliers, customers,
subcontractors or any governmental or regulatory body without the prior written consent of
STANDARTA.IO.
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What are STANDARTA goals?
We aim to create a cryptocurrency with a stable purchasing power for the consumer market
and savings. To do this, it is necessary to spread this currency among 200 million people,
who will become the decisive majority of consumers, capable of trigger a further transition to
the use of currency in the consumer market and the savings market on a global scale.
What is STANDARTA.IO?
Until now, ICOs have been conducted with the aim of obtaining money from investors, who
in number is less than 0.1% of the world's population and these investors will not spend
crypto tokens buying food in the store. Almost 99% of consumer market payments are made
by those who do not have the opportunity to make risky investments in crypto assets. That is
why ICO as a form of crypto currency distribution does not allow the crypto currency to
penetrate the consumer and savings markets.
STANDARTA.IO will allow FREE mining of 11,000 tokens for each member of Free Mining
Community who have successfully passed mandatory KYC procedure!
But how can a free cryptocurrency acquire value?
The circulation of fiat currencies in reality is driven by only two reasons:
1. The public consent on the use of a particular currency as a mean of payment. This is
a reason of dollarization in weak economies.
2. The enforcement of law requiring to accept payments only in local currency. This is a
reason why citizens in weak economies switch from US dollar or Euro to a local
currency.
That's why before mining 11,000 tokens for free, each community member have to accept
the terms of the "Community Agreement", that requires the member to:
1. Agree with the “pre-market’ evaluation of 1 token = 1 US dollar
2. Agree that the other members of the community have the right to impose sanctions
against the "pre-market" evaluation offender.
Christine Lagarde, the IMF Managing Director, noted in one of her speeches that there is a
turning point in dollarization. For example, in the Seychelles, after reaching the level of 20%,
the dollarization jumped to 60% from 2006 to 2008. STANDARTA.IO sets itself the goal to
reaching such a turning point, triggering the rapid adoption of cryptocurrency payments on
consumer market in key jurisdictions.
However, even if the STANDARTA.IO tokens are donated to only 0.1% of the world's
population, the “pre-market” cap of STANDARTA.IO tokens may exceed the total market
capitalization of Bitcoin and Ether, which will allow STANDARTA.IO tokens to bring the
market closer to the widespread use of crypto-currency payments.
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ATTENTION: STANDARTA.IO offers no tokens to general public in exchange for fiat
money or other valuable assets!
Tokens will be mined FREE of charge for pre-registered Free Mining Community members
who know each other through a “hand-shake”: In the beginning the team members issue
invitations only to those they know personally and each invited after accepting the invitation
can in turn invite his/her friends to participate in the Free Mining Community and so on. No
cold calls, no advertisement, no spam. The referral way of joining to the community of free
cryptocurrency miners means that although mining is available for indefinite number of
people, all these people are "hand-shake" friends rather than a "general public" in the
meaning used for IPO or ICO offerings.
The sponsor and investor of the STANDARTA project is Dotpay SA - a Swiss company
limited by shares, registered in the canton of Nidwalden under the number
CH-150.3.003.817-5. Dotpay SA is also one of the miners in the STANDARTA Community.
Why is it important to fight the poverty?
The latest Oxfam survey reveals that 1% of the richest people received 82% of the wealth
1
created in the world in 2017, with 50% of the world's poorest people receiving nothing. The
National Bureau of Economic Research comes to a conclusion that the emergence of one
2
industrial robot destroys 5.6 jobs, which threatens in the near future the loss of jobs to a
large number of low-skilled workers and the impoverishment of these people.
So why is it so important to raise people's incomes and improve their health care?
The well-known billionaire and philanthropist Bill Gates convincingly proves that taking care
3
of people's health leads to a decrease in the birth rate and, perhaps, this is the only way to
save the Earth from overpopulation. Another billionaire Nick Hanauer , who was an early
4
investor in Amazon, explains how an increase in wages leads to universal prosperity, while
injustice in the distribution of wealth leads to the impoverishment of the nation and to the
collapse of a free society.
That is why the social concept of Universal Basic Income has been increasingly discussed
lately. For the above reasons, the founders of the STANDARTA.IO consider necessary the
fair distribution of wealth in the world and therefore offer the STANDARTA.IO tokens in a
form of the FTM - FREE TOKEN MINING rather than in a form of an ICO. Thanks to FTM,
anyone can mine his/her 11,000 tokens using STANDARTA.IO absolutely FREE!
Obtaining free STANDARTA.IO tokens is only possible by invitation. Ask friends to send you
an invitation, and then invite your friends and acquaintances! In addition to the free mining of
11,000 tokens, for every invitation accepted by your friends, you will allowed to mine another
1 https://www.oxfam.org/en/research/reward-work-not-wealth
2 http://www.nber.org/digest/may17/w23285.shtml
3 https://www.youtube.com/watch?v=obRG-2jurz0
4 https://www.youtube.com/watch?v=q2gO4DKVpa8
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550 free tokens. Help all your friends and acquaintances to participate in FTM, the more we
are, the stronger we become!
Payment system with stable currency
Total capitalization of crypto assets only in 2017 increased by 20 times, and according to
some estimates could reach $ 3 trillion by 2020. During a December 2017 only the price of
Bitcoin has doubled and then fell twice. The value of money must remain stable over time
and the rapid growth and fall of crypto assets’ value make them unsuitable as both - medium
of exchange for payments and store of value for savings.
At the same time, electronic cashless payments are in a period of strong growth, especially
mobile contactless payments such as ApplePay and other NFC payments. The acceptance
of cryptocurrency for consumer market payments would raise demand for it and trigger its
market capitalization growth. However, the cryptocurrency acceptance today is limited by:
1. High volatility makes the cryptocurrency difficult to use as medium of exchange in the
consumer market while so called “stable cryptocurrencies” are usually pegged to a
fiat money so having no advantage over the latter.
2. Lack of interest rate for “stable cryptocurrency” does not allow its use as a means of
value storage for savings. Morgan Stanley points out: "Can Bitcoin be valued like a
currency? No. There is no interest rate associated with Bitcoin"
5
3. The slow speed of the transaction and the virtual absence of solutions for universal
processing of mobile and online payments significantly limits the use of
cryptocurrency in the consumer market: estimate <$300mn in daily purchase volume
vs. $17bn for Visa.
4. Reducing the number of global online retailers accepting payments in BitCoin:
After the formation in 2005, the Global Savings Glud led to a significant drop in interest
6
rates on deposits. As a result of the global deformation, the savings and investment market
is experiencing acute need for new products. And the new ROM cryptocurrency should
7
become such a product.
5 http://www.businessinsider.com/morgan-stanley-on-bitcoin-value-2017-12
6 https://www.imf.org/external/pubs/ft/wp/2016/wp1618.pdf
7 Rise Only Market
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The turning point for the cryptocurrency market will be:
1. Creation of ROM cryptocurrency that combines constant buying power and yield on
savings.
2. Implementation of the best practices of universal processing technologies for
consumer market’ mobile and online cryptocurrency payments with low latency and
processing fee reduced vs. VISA/MC payments.
STANDARTA.IO solves these problems by running its global dual-cryptocurrency and
payment processing platform.
We use the "TenderMint" (https://tendermint.com/) solution, capable to compete in speed
with VISA and Mastercard transactions. Our US and RU patents open the possibility of
creating an independent payment scheme based on the use of domain names and phone
numbers instead of card numbers and bank account identifiers. This in turn allows to create
a payment bridge between cryptocurrency wallets, payment cards and bank accounts, and
also creates conditions for virtualization of payment system services and unique scalability
possibilities.
STANDARTA: stable cryptocurrency
Savings
People can collect and hold savings for decades and people have to be sure that the
purchasing power of the savings is not declining over time, allowing them to buy in fifty
years, at least the same amount of goods and services that money can buy today. More than
90% of the world population spend almost all money they earn on daily consumption and
8
forced to make savings in the event of loss of job, household emergencies or health issues
etc. Even to buy a TV, a car or make another purchase is sometimes difficult without the use
of savings. In such BRICS countries as the Russian Federation or Brazil, inflation can be
high, and the rate of national currency can change overnight, as happened in December
2014 in Russia. This quickly devalues savings.
BRICS countries are no exception, inflation and other factors lead to a decrease in the
purchasing power of fiat currencies and to increase in the cost of living throughout the world.
In developed countries, the change in the purchasing power of fiat money is reflected by the
consumer price index (CPI). As can be seen from the Eurostat data, in the euro area over
9
the past 10 years the average cost of living increased by 1.24 times. Cost of living is rapidly
rising in the US, where over the past 33 years the cost of living has increased 2.46 times.
10
8 https://www.youtube.com/watch?v=uWSxzjyMNpU
9 https://www.bfs.admin.ch/bfsstatic/dam/assets/3742703/master
10 https://tradingeconomics.com/united-states/consumer-price-index-cpi
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As Nielsen research shows the most of people working on hire do not have sufficient
11
qualifications to invest on stock market or arbitrage on forex, so the respondents majority’s
savings strategy is focused on utilizing a bank account, a saving plan, life and health
insurance. But in recent years due to the Global Saving Glud the bank deposits’ interest
rates have been significantly reduced and can no longer compensate the decline in
purchasing power of savings.
Working capital
Merchants and manufacturers use their working capital maintaining a certain volume of sales
or inventory and a change in local currency exchange rate may cause a drop in trade or
production. Besides the outstanding invoices for imported goods shipped to resellers at
prices fixed in local currency may involve significant risk of loss if local currency drops in
value against the foreign currency paid for the imported goods due to the inability to price
correction. Exactly this happened in Russia, when the national currency depreciated by 50%
at the end of 2014. In an attempt to protect the money from devaluation, the population
rushed to buy goods, especially imports, as the listed price of goods in the retail network was
still as ‘before’ and so two times lower than the value of goods in USD terms. This resulted in
the loss of working capital for the importers who supplied goods to the retail network at a
fixed price in Russian Rubles.
Stable purchasing power
The term “Price-Stable Cryptocurrency” usually refers to a cryptocurrency pegged to a
certain valuable asset such as one US dollar or one ounce of gold, or one barrel of oil, or
one standard volume of another valuable asset. However, all freely traded assets' prices are
volatile and so their purchasing power is volatile by definition. The consumer price index
specifically measures the fiat currencies volatility pegged to a consumer basket, showing
how savings lose or gain their purchasing power over time.
The only constant is the volume of average human personal consumption, because on
average, each person can eat or put on no more than any other person. More than 90% of
world population can afford only a personal no-frills consumption and therefore for the
majority of the world's population the only measure of stability is the stability of the amount of
personal consumption. As we know the volume of a standard human consumption is defined
as "consumer basket of goods and services" (the "Basket"), so the purchasing power of
really stable cryptocurrency for the consumer market should be pegged to the Basket.
As far as people spend their savings to purchasing goods and services on consumer market,
stable cryptocurrency for the consumer market sutes well and for savings' market as well.
Obviously, not only the owners of savings and buyers but also merchants and
manufacturers for the consumer market are interested in cryptocurrency with constant
purchasing power, which is an essential tool for savings and perfect means of payment for
the consumer market.
11
http://www.nielsen.com/content/dam/nielsenglobal/ph/docs/reports/2014/nielsen-global-saving-and-inv
esting-report-january-2014.pdf
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Mining as compensation of a loss
Now for each fiat’ savings holder the Consumer Price Index reflects the purchasing power
dilution based on the “efforts of others” as SEC defines. Provided that said purchasing power
loss is caused by the financial and monetary policy designed by financial and monetary
international and local authorities without any effort of the owner, the return of the lost
purchasing power of savings to the owner seem fair and reasonable.
Addressing the above issues we have to make next statements here:
1. The free mining for STANDARTA community members is a way of restoring the lost
purchasing power through the free mining of tokens that represent some value of the
loss. Why only “some”? It is not feasible to check the real loss of each particular
community member and thus STANDARTA uses rather equalizing approach to allow
each community member invited by referral to mine 11 000 tokens plus 550 tokens
for each invitation issued and accepted.
2. In the modern free market conditions any asset including any cryptocurrency may
have real market value only if it is traded on a secondary market thus the GCC
tokens must be freely exchanged on the secondary market and thus the
STADNARTA.IO development team sees its role in bringing the tokens to the
secondary market with the price tag established by the community agreement at 1
token = 1 USD;
3. The STANDARTA development team’ main goal is a creation of the stable consumer
cryptocurrency called Standarta (STD token) using volatility of GCC token and
preserving algorithmically the stability of STD’ purchasing power through time for
both consumer and savings market.
4. After bringing the GCC tokens to the secondary market the price of GCC tokens will
be only governed by the community agreement and driven by the real secondary
market conditions;
5. STD tokens can only be exchanged to GCC tokens and vice versa, and after the
GCC tokens are released to the secondary market, the exchange rate of STD token
to GCC token will be calculated using the STANDARTA stabilization algorithm, which
ensures the stable purchasing power of the STD token based on the current market
price of GCC token.
6. The STANDARTA development team members personally and the team as a whole
have no reasons for pumping or dumping the GCC token price. However, the
stabilization algorithm containing built-in facilities for token mining & burning and also
for STD / GCC token exchange forth and back, in its efforts to stabilize the STD
purchasing power may trigger additional supply or demand of GCC on the secondary
market and as result this may change the market price of GCC token. But the
influence on the price in some cases may be opposite to the expected: GCC price
falling may force the stabilization algorithm to inject additional GCC liquidity to the
market thus triggering further GCC token price falling. For more details please read
the “Appendix A.Tokenomics”.
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Free mining Community
The Free Mining Community (FMC) is an informal community of people, each of whom made
a personal decision to use computers and software provided free of charge by the
STANDARTA project for personal mining of the crypto currency. Thus, STANDARTA
provides hardware and software to the members of the Community, and each member of the
community takes personal decision on mining the tokens and takes all responsibility for this
decision. FMC is not a legal entity, nor it is non-profit organization or any other form
registered by any government agency, and financial resources for the development of the
STANDARTA platform have been provided by individual members of the Community in
private round of finance in exchange for the possibility of mining the tokens.
Mining of cryptocurrency will take place in two stages:
1. "Pre-Mining" registration of miners, which allows the STANDARTA system to
calculate the number of cryptocurrency tokens that should be minted;
2. Mining of tokens for all registered miners will take place at the end of the "pre-mining"
registration.
"Pre-mining" registration will last until the moment when registration of at least 1 million
miners is complete. All this time the STANDARTA project development team will consult with
international lawyers about possible legislative restrictions on free mining. And although
everyone wishing to participate in the free token' mining will be admitted to the "pre-mining"
registration, if: 1) the regulator of your country of residence / citizenship prohibits residents
and citizens of your country from participating in the free mining of cryptocurrency
STANDARTA , or 2) our lawyers decide that the members of the project team STANDARTA
may face criminal or other prosecution for granting free-of-charge mining to citizens /
residents of a particular country, the STANDARTA project development team reserves the
right to deprive citizens / residents of the relevant country free mining of cryptocurrency. In
any case herewith, the members of the STANDARTA development team disclaim and deny
any responsibility for the personal decision to participate in the free cryptocurrency mining,
adopted by a particular member of the community, or a group or all members of the
community in aggregate.
Therefore, each miner should make a personal decision on participating in the crypto
currency mining, that complies with the legislation of his country of residence or citizenship.
We are encouraging those Free Mining Community members having a lawyer qualification to
help your country mates and prepare the necessary legal opinions and inquiries regarding
the legality of free mining in the country of residence / citizenship and if necessary to
dispatch these inquiries to the appropriate regulator with a request to give a legal
assessment of the possibility for citizens and residents of that country to engage in free
mining of the STANDARTA cryptocurrency in a sake of compensation of the previously lost
purchasing power of savings.
Since it is important for the miners to reach an agreement on the price of the tokens that all
the miners will support, the STANDARTA project invites members of the community to
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accept the terms of the "Community Agreement", which sets the price of the tokens at $ 1
per 1 token.
The dual-currency platform
We have created a dual-currency platform with a stable Standarta (STD) token and a volatile
Global Crypto Credits (GCC) token. The Free Mining Community members will own 70% of
the system's tokens, and another 30% of the tokens are kept as the system's reserve used
for stabilization of the purchasing power of the STD token and the development of the
project's ecosystem.
While the GCC token will be traded on the secondary market where its price will be volatile,
the STD token can only be exchanged for GCC tokens at the rate of current GCC token
price to the computed token price of STD token. With a decrease in the market price of GCC,
its owners will rush to exchange GCC for STD in order to maintain the purchasing power of
savings, which leads to increased demand for GCC, preventing in turn further reduction in
the price of GCC.
The system dynamically maintains the STD and GCC token capitalization ratio at the level of
1/10 by additional mining or burning of tokens in the system, which simultaneously stabilizes
the purchasing power of the STD token and creates a mechanism for automatic expansion
of the system on the market.
The presence of a reserve allows the system to keep the purchasing power of the STD token
in the preset limits by buying and selling STD and GCC tokens on the market. The size of
the reserve allows the system to buy all STD tokens on the market by selling no more than
10% of GCC tokens that are in reserve.
Another feature of the system is its ability to expand: with the market value of the GCC token
growing, the overall capitalization of the system is increasing proportionally, which leads to
an additional mining of STD tokens to maintain the capitalization ratio of STD and GCC
tokens at the level of 1/10.
The ratio 1/10 roughly corresponds to the distribution of wealth in the world - the ratio of the
total wealth of people employed by wage labor to the aggregate wealth of very rich people ,
12
as well as the ratio of speculative and consumer capital in the world.
Although the both tokens will be mined free of charge, their "pre-market" price will be
determined by the Community Agreement at the level of 1 USD per 1 token. The price of
GCC tokens on the secondary market will float free, and the market price of Standarta token
will be maintained by the system at the level computed using the methodology given in
"STANDARTA.IO, Tokenomics."
12 https://www.youtube.com/watch?v=uWSxzjyMNpU
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Other Stable Coin’ attempts
The main difference between STD token and other stable cryptocurrencies is that most of
them are pegged to a fiat currency, gold or other "valuable asset" with a purchasing power
declining over time or at least volatile while STD token' purchasing power is algorithmically
kept constant and thus STD token represents therefore an ideal storage for savings and an
ideal means of payment in the consumer market. In conditions of a decline in the purchasing
power of major currencies, the value of the STD token in these currencies will grow over
time, creating a "deposit effect".
The main advantages of the STANDARTA.IO system are:
● “Deposit effect” of STD token for savings market;
● Purchasing power stability for consumer market;
● Built-in algorithmic market scalability of the system;
● Independent payment scheme bridging regular bank accounts with cryptocurrency
wallets featuring with seamless interchange and inexpensive payments with fast
processing;
● Intellectual Property - multiple US and international patents and patent applications.
BaseCoin White Paper (page 20) provides comprehensive analysis of the shortcomings
13
for such stable cryptocurrency platforms as Seigniorage Shares, MakerDAO, Tether and
BitShares. However, it should be noted that BaseCoin with its mechanism of stabilization is
not easy to understand and use for a wide range of people inexperienced in economics and
crypto assets. Besides the Basecoin WP does not explain in Basecoin will become a
currency of choice for online and mobile payments. And if as a stable currency it is not
adapted by the consumer market, it remains unclear who will be the buyer of such currency,
because the vast majority of crypto investors today are investing in price-growing assets
rather than in crypto asset with a stable price and unclear prospects of use on the consumer
market.
Pre-mining registration
For the first time ever, anyone can mine 10,000 of GCC tokens and 1000 STD tokens free of
charge. Free mining of tokens is not limited in time, however it is limited by the number of
tokens to be mined. Hurry up!
Before mining is started, it is necessary to know the exact number of tokens that need to be
mined, so “pre-mining” registration of the miners will be done before the mining starts, and
tokens will be mined upon completion of the registration.
The free mining for members of the Free Mining Community will be launched when the
number of registered miners exceeds 1 million miners.
13 http://www.getbasecoin.com/basecoin_whitepaper_0_99.pdf
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Identifying Users (KYC)
Identification of users is necessary to avoid the repeated receipt of free tokens by a specific
user. Personal data will be collected in accordance with the requirements of KYC, ICAO
document 9303 and ISO 19794-5-2005 and in compliance with the laws governing the
processing of personal data.
The wallet will be created only for users who have successfully passed the KYC procedure.
KYC bridge to Banks
Since the final goal of the project is to create a payment system for payments in the
consumer and savings markets, a third party (bank or other institution) should be able to
confirm the belonging of the wallet to a specific user who may also be a client for such third
party. To simplify the passage of third party's KYC / AML procedures by the users of the
system, the project provides encryption of the user's personal data with the user's public key
and the placement of encrypted personal data on the user's device. Before the encryption
the system creates a hash of the personal data and saves the hash in the user's wallet
record on public blockchain. To confirm the user's right to the wallet, the third party receives
from the user his/her decrypted personal data and computes a hash of the data comparing it
with the hash of personal data stored in the user's wallet record on public blockchain.
Matching of the hashes allows the third party to make a decision whether or not the wallet
belongs to that specific user. To simplify the user's access to the decryption of personal
data, the project provides the use of biometric identification libraries for smartphones, such
as Apple Secure Enclave and similar.
Referral program
Immediately after the start, pre-mining registration will be first available only by invitations to
the team members and sponsors of the STANDARTA.IO project, and by invitation of other
registered users later.
For every invited friend who accepted the invitation and successfully completed the
registration, the inviting miner will be entitled for mining of additional 550 tokens. Thus
miners can enjoy mining of another 11 000 tokens for every 20 invited friends.
To invite a friend it is enough to log into personal cabinet, fill in the invitation fields, copy the
invitation text and personal link and send this to a friend via e-mail, SMS or via the
messenger.
Mining
Mining of tokens will begin after registration of 1 million miners.
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Each registered miner will be offered to install a software wallet, where after identification of
the miner by login and a password, tokens will be mined and stored.
Seed wallets
Seed wallets are wallets that will be created before the start of registration of invited users of
the system. Owners of such wallets will be team members and investors of the project.
Wallets
These are users' wallets registered by invitation.
Corporate Wallets
Corporate wallets contain hashes of company registration documents and may have several
signatures (MiltiSig) of individuals responsible for the wallet. Distribution of corporate wallets
will occur first through invitations, and later in the course of free registration on the project'
website.
Corporate wallets are created empty and can receive tokens only through exchange for
goods and services or through a purchase of tokens in the market.
Secondary market
Entering the secondary market
The business model of the exchange is based on charging fee from transactions and the fee
may depend on the volume of trades and on the number of trading deals, that is, ultimately
depends on the market capitalization of the crypto currency and the number of its users.
Therefore, if the number of all owners of GCC and STD tokens turns out to be comparable
with the number of Bitcoin owners (for example 10 million people), and the total
capitalization of the system will be comparable to, say, $ 10 billion, this will allow
STANDARTA.IO tokens to be listed in the leading crypto exchanges, for example, at
Bitfinex. If capitalization and the number of users are lower than expected, GCC tokens,
however, can qualify for listing of second-tier exchanges or newly created exchanges that
need to increase the number of traded assets. If each community member on average
invites 10 new members the community would only need 6 invitation' levels to reach 1 million
users having 16 500 tokens each. Provided that Community agreement defines the token
price at 1 token = 1 US dollar the total market cap would be worth some 16,5 Bln US dollar
bringing STANDARTA cryptocurrency into one of 5 major crypto-assets in the World.
STANDARTA community
STANDARTA.IO for the first time ever invites everyone for a FREE TOKEN MINING!
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The first wallets will be created for private investors and project team members. New users
will be able to create wallet and get free tokens only by invitation of existing wallet' owner,
and the owner for each accepted invitation will collect a bonus equal to 5% of his own stake
of free tokens. This incentivize owners of existing wallets for spreading invitations, allowing
owners to double the number of tokens they own just by sending out 20 invitations. The
incentivized referral way of mining turns each community member into a community
advertisement’ agent and allows the community to grow exponentially around the Globe.
The unique, intriguing nature of the free token mining should attract the attention of the press
and inflate the desire to learn more about the project. The bloggers and other media
representatives who received the invitation to join free token mining will certainly take the
opportunity to be the first to write about this event.
We anticipate these measures to allow in a few months building a community comparable
with Bitcoin and Ether' communities combined.
Market cap
Any market capitalization of the STANDARTA cryptocurrency will be a side effect of the main
objective of the project: the dominance of the STANDARTA's cryptocurrency in the
consumer market and the savings market.
Crypto-currency STANDARTA should have some price, which all members of the community
will adhere to immediately after the cryptocurrency is mined. Since the initial price of the
token can be any, for the sake of simplicity before the mining of free tokens each member of
the community will have to accept the Community Agreement setting the token price at 1 US
dollar per 1 token. The quoted price, as well as the total volume of tokens mined, will define
the total estimated capitalization of the STANDARTA cryptocurrency, before the secondary
market trading starts defining the market cap.
Regardless of the total market cap’ size, after the secondary market trading start depending
on the market conditions the STANDARTA stabilization algorithm may continue the free
token mining for distribution to those in acute need.
“Cryptolization” of payments
We set the goal to build multi-million member STANDARTA community within the first 2-5
months after the FTM start. Each million of members corresponds to estimated $15 billion
market cap allowing STANDARTA tokens to get listed for trade on the major crypto
exchanges. However, our ultimate goal is to provide free community mining to at least 100
million STANDARTA community members. This should create such a critical mass of
STANDARTA community members that is capable to “cryptolize” the consumer market
payments in chosen economies, pushing the payments through the point-of-no-return, where
cryptocurrency becomes the currency of choice for decisive majority of consumers.
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Trading the STANDARTA cryptocurrency on the exchange will allow the STANDARTA
payment cards making payments in any fiat currency accepted at point of sales by
converting the cryptocurrency into a fiats through the exchange trade.
The payment system
As disclosed above tokens will be mined for every community member free of charge in the
ratio of 1 STD token per 10 GCC tokens. This proportion reflects the ratio of speculative and
consumer capital in the world, and should support the stability of the STD token purchasing
power.
Thus STD token featuring with stable purchasing power should become the key token when
carrying out payments for goods and services.
After the start of exchange trades in the GCC tokens, our mission will be to create and
implement the cryptocurrency' payment technology in the consumer and savings markets.
The key tasks at this stage will be the creation of such mainstream technologies as:
● Online payments under the new payment scheme, patented in the USA and Russia;
● Offline payments using payment cards linked to a GCC / STD wallets, with seamless
exchange of cryptocurrency into fiat' currencies that the point of sale accepts;
● Contactless NFC payments using smartphones.
Market Overview
Mobile and non-cash payments market’ surveys show that the number of non-cash
14
payments is growing by about 16% per annum reaching 76 billion by 2019. At the same
time, the number of mobile payments is growing even faster, by about 24% per annum, and
by 2019 will reach 109 billion transactions.
14 World Payments Report 2017.
https://www.worldpaymentsreport.com/Forward-Looking-Analysis#e--and-m-payments-transactions-v
olume
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It is important therefore, for the new payment system to implement best practices for online
payments and to support contactless mobile payments using NFC technology . The speed
15 16
of payment processing in the consumer market should match or exceed the processing
speed for VISA / Mastercard card payments while the cost of payment must be reduced vs.
VISA /Mastercard.
Payment system operations
The payment system of the platform performs the following functions:
1. Exchange of GCC tokens to STD tokens and vice versa.
2. Exchange of tokens GCC or STD for fiat money and vice versa.
3. Balancing of Standard wallet.
4. Acquiring predominantly using STD tokens or fiat money.
17
Distribution model and technology
We aim to set up a Token Service Provider (TSP ) to carry out online and mobile payments.
18
The TSP is necessary for implementation of our patented method of payments using
network identifiers - telephone numbers and DNS names as financial account identifiers. The
network identifier will be placed as a PAN token in the TSP token table and simultaneously
placed in the DNS system as a valid DNS name mapped to the IP address of the TSP.
This will create an independent payment scheme - a payment routing scheme compliant with
payment card industry' payment scheme. The positioning of the payment scheme as a White
Label payment system can open the doors of large client organizations, such as major online
retailers Alibaba or Amazon etc, or social networks such as VKontakte or Facebook etc.
Scaling of the system to the client base of such organizations will be related to the automatic
generation of client account identifiers such as client_phone_number.amazon.com, each
generated ID will be mapped to the same IP address of the TSP where the corresponding
table DNS⇒PAN and STD⇒PAN are stored, allowing client to conduct the consumer
market payments in both the fiat currency and STD tokens, as well to exchange STD to fiat
money and vice versa. Using the payment system the large client' organizations for the first
time ever, can benefit from each customer purchase transaction, regardless of whether the
customer buys inside or outside of the client' organization. The time of the payment system'
configuration for a specific client organization will be commensurate with the time of setting
up AWS services.
We will also use HCE (Host Card Emulation) technology and the like to penetrate the mobile
payment market.
15 Similar to 3DSecure ® by VISA
16 Such as ApplePay etc
17 The system can process payments in GCC tokens, but buyers are reluctant to part with the
currency in the period of growth in its value, and sellers are reluctant to accept the currency in the
period when its value falls. Therefore, in a highly volatile market, the probability of using GCC tokens
as a means of payment will be lower than that of STD.
18 https://www.pcisecuritystandards.org/documents/Tokenization_Guidelines_Info_Supplement.pdf
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Project stages
Phase 1
The purpose of the first stage of the STANDARTA.IO project is a set up of a dual-currency
platform for stable Standarta (STD) token mining, as well as the volatile Global Crypto Credit
(GCC) token mining for consumer and savings markets. The platform supports two types of
user wallets - Credit’ wallet for holders of GCC tokens and Standard’ wallet for holders of
STD tokens.
Pre-registration of the Free Mining Community (FMC) members will start in June 2018. We
plan to hold TGE after pre-registration of 1 million of Free Mining Community’ members.
19
Through the TGE process, first tokens will be mined for the pre-registered FMC members.
Then additional 50% in excess of FMC members' tokens will be mined and reserved for STD
price stabilization, and as proceeds for development and support of STANDARTA
ecosystem.
To prevent the re-receipt of a share, each member of the community will be encouraged to
undergo the mandatory KYC procedure. For each member of the community who has
passed the KYC procedure will be free of charge created a wallet where his/her mined
10'000 GCC and 1'000 STD tokens with a total estimated value of 11,000 US dollars will be
stored along with tokens mined for inviting friends to become new members of the FMC.
Through the pre-registration process each new member of the community will have to accept
the terms of the Community Agreement, the core meaning of which is establishing the
agreement on the starting price of tokens i.e. each member of the community undertakes to
evaluate tokens not lower than 1 token = 1 USD.
The registration process will be completed when the number of FMC members exceeds 1
million.
19 Token Generation Event stands for free token mining for rpe-registered mining Community
members.
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Phase 2
In the second stage, we plan to develop a payment system for the fast and inexpensive
payments in the consumer market, as well as for exchange of STD or GCC tokens to fiates
and vice versa using payment cards and bank accounts. The payment system will support
the contactless NFC, as well as online methods of payment based on our intellectual
property - the patents and pending applications. By this time, the project will be open to the
participation of third parties who will be able to offer the community their own payment
solutions. The best will be funded in GCC/STD tokens. As part of integration with existing
payment card scheme a Token Service Provider, duly certified in accordance with PCI DSS
and registered, will be created within the project.
In early 2018, we have filed the patent application on routing and settlement of payments
that is now pending. Some years earlier we have also been granted with four patents
drawing a new payment scheme replacing financial account IDs with network identifiers.
The development of the payment system will be started after the end of the first stage along
with the start of trading of GCC tokens at crypto exchanges. A detailed implementation plan
will be submitted at the start of the exchange trade, and implementation started right after.
In January 2018, we have filed a patent application securing the method of creating a
payment bridge for making payments between cryptocurrency wallets and payment card
system. According to the method, we intend to create the Token Service Provider , with
20
routing table along with PAN and its BIN token containing as tokens also the cryptocurrency
wallet' IDs. Still another token will be the DNS name of the account holder mapped through
DNS system to the IP address of the Token Service Provider, allowing to use the DNS name
instead of BIN token for online routing communication with TSP to allow payments in
accordance with our granted US and RU patents. This approach creates a new payment
scheme that does not depend on EMVCo (Europay, MC, VISA), providing instant access to
seamless conversion of tokens to fiat currency, available through trade on exchanges, for
payments in points of sale on consumer market. Accordingly the TSP will be able to make
20 https://www.pcisecuritystandards.org/documents/Tokenization_Product_Security_Guidelines.pdf
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interconnected payments GCC/STD => Fiat and Fiat => STD/GCC and be integrated with
payment card scheme, supporting the PCI DSS standards.
The cloud TSP will provide a "payment system as a service" solution for such large client
organizations as banks, but more importantly, for social networks and online retailers, such
as Facebook or Amazon.
Users of the system will be offered contactless payment technology (NFC) similar to
ApplePay and the like, and online payments will support the user experience obtained by
consumers while using online payment technology such as 3DSecure by VISA.
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Appendix A.Tokenomics
Stabilization and exchange rate' methodology
Stabilization zone
The Standarta (STD) is a global monetary token requiring stabilization of purchasing power.
Economic conditions are so different from country to country that we had to choose only
some of the countries with a relatively stable economy that account for 60% of the world's
population. We called this the "Zone of Stabilization" or the "Zone":
Composite Consumer Price Index (CCPI )
The CPI (consumer price index) measures changes in prices paid by the consumer for a
Basket of goods and services in year Y in comparison with base year X, and in the base
year, according to the CPI calculation method, the basket price of goods and services is
assumed to be 100. In fact, the CPI reflects the decline in the purchasing power of the local
currency: higher CPI reflects higher Basket price in local currency. Accordingly, with an
increase in the value of the basket by 20% per year Y we observe and 20% increase of CPI:
CPIY = 100
120 = 1, 2
To ensure that the purchasing power of the currency does not change over time, it is
necessary that the СPI for this currency does not change. Thus, in the above example it is
necessary that in the year Y the Basket price is the same as in the base year X, that is, 1.2
times higher than the actual one.
Thus, in order to keep the basket cost in STD tokens unchanged, the purchasing power of
the Standarta token should change synchronously with the change in the Consumer Price
Index in each country of the Zone. However, CPI values in different countries of the Zone
are different and vary at different rates, so it is necessary to create a single Composite
Consumer Price Index - CCPI . To do this, we will sum the CPI for each "i" - country, i
multiplied by the ratio of the population of the country in the total population of the N
Ni Ni N
stabilization zone:
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CCPI = ∑(CPI )
X
i=1
i *
N
Ni
where
CCPI – Composite Consumer Price Index of the stabilization Zone
CPI
i - Consumer Price Index of the particular «i»- country within the stabilization Zone
N – total population of the stabilization Zone
Ni – population of the particular «i»-country within the stabilization Zone
As the base periods for calculating national CPI
i
in different countries are different, for the
specific "i" - country we will use not the CPI
i
itself, but the ratio of the CPI
i value of the
current period Y to the value of the base period B:
CPI
i = CPI
i−B
CPI
i−Y
therefore
CCPI ( ) Y = ∑
X
i=1
CPI
i−B
CPI
i−Y
*
N
Ni
CPI indices are published in most countries on a monthly basis, so the base period for
measuring CPI in our system is the GCC exchange trade start.
STD/USD exchange rate
The “pre-market” price of each the STD and GCC tokens is defined by the Community
Agreement at the level of 1STD = 1USD and 1GCC = 1USD .
STD rate of exchange to USD
Obviously the STD/USD exchange rate will follow the CCPI change right after the start of
GCC secondary market trade, and later STD rate will be continuously computed by the
system, while the GCC/USD exchange rate, set by the Community Agreement at the level
1GCC = 1USD in the beginning, and later will be defined by the secondary market.
To calculate the STD/USD rate of exchange R , it is necessary to take into account not USD−Y
only the change in the value of the basket in the local currency of the country CCPI , but Y
also take into account of the change in the exchange rate of the country's currency to the US
dollar in the current period in comparison with the base period . Therefore, the RB
Ri/USD
STD/USD exchange rate in any Y-period can be calculated by the formula:
R ( ) STD/USD−Y = ∑
X
i=1
CPI
i−B
CPI
i−Y
* N
Ni
* RB
Ri/USD
and
1STD = RSTD/USD−Y * 1USD = [∑( ) USD
X
i=1
CPI
i−B
CPI
i−Y
* N
Ni
* RB
Ri/USD ] * 1
As a test of the correctness of the RSTD/USD−Y
formula, let's calculate using it the STD/USD
rate of exchange at the moment of TGE, which is the base period of the system.
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In the base period CPI
i−Y = CPI
i−B and so =1. Besides in the base period CPI
i−B
CPI
i−Y
Ri/USD = RB and thus RSTD/USD−Y = ∑ . That is, as expected, the exchange
X
i=1
( N
Ni
* 1 * 1) = 1
rate of STD / USD at the time of TGE was equal to one USD:
1STD = RSTD/USD−Y * 1USD = 1 * 1USD = 1USD
wherein
1USD - one US dollar
1STD - one Standarta token.
Depotit effect
As the annual increase of the Composite Consumer Price Index CCPIY
, the price of the
Standarta token in US dollars and in other currencies will also increase. Thus, the price of
the Standarta token in year Y will increase in proportion to the growth rate of R . STD/USD
As an example the Figure 1 shows the increase of STD value in Swiss Francs ( R ). STD/CHF
Figure 1. This is a hypothetical change of the CCPI and of the STD / CHF rate of exchange until 2017
using real CPI’ and exchange rate' historical data if the system was launched in January 2006. The figure
shows that with the growth of CCPI, the STD/CHF exchange rate increases as well, although the Swiss
franc, is also one of the most stable currencies in the world.
As shown, despite the negative interest rates on deposits in Swiss francs, the value of the
STD token in Swiss francs is increasing.
Thus Figure 1 convincingly reveals and proves STD token to be the ideal
Store-of-Value and Store-of-Purchasing power for residents of any country within the
Zone.
STD rate of exchange to fiats
The exchange rate of the Standarta token for an arbitrary currency "Currency" can be
calculated using the formula for the exchange rate, similar to the one above:
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R ( ) STD/CURRENCY −Y = ∑
X
i=1
CPI
i−B
CPI
i−Y
* N
Ni
* RB
Ri/CURRENCY
Obviously, the rate of exchange of Standarta token to any other currency can also be
calculated knowing STD/USD rate of exchange calculated using R formula. STD/USD−Y
The TGE assumes the release of Standarta tokens (STD) and Global Crypto Credits (GCC)
tokens at the same time and at the same value of 1USD per token, but as the rates oа
21
exchange GCC/USD and STD/USD change, the exchange rate of STD / GCC must change
also. The GCC tokens will be freely traded against fiats, hence at any particular time there
will be GCC /USD market quote available ( R ) and the STD/USD exchange rate ( GCC/USD
RSTD/USD
) is computable at any time using the formula. This allows a computation of the
STD/ GCC rate of exchange as:
RSTD/GCC =
RSTD/USD
RGCC/USD
Primary generation of tokens
The tokens will be primary mined through the Free Token Mining event (FTM) in the ratio of
1 STD per 10 GCC tokens. The total number of primary generated (mined) tokens will be
defined by the number of miners registered through Free Mining Community membership
program and by the average referral rate. The FTM event will follow the end of registration in
the Free Mining Community (FMC) that ends when the number of registered miners exceeds
1 million FMC members.
Secondary generation of tokens
Given the stable price of the STD token, the the GCC token’ secondary market price
increase or fall leads to an increase or fall in the total capitalization of GCC tokens and a
dilution of the share of STD or GCC tokens in the total capitalization of the system. To avoid
the dilution, the system uses an algorithm that leads to the secondary mining of STD or GCC
tokens in the amount necessary to maintain the original 1/10 ratio of STD / GCC tokens
capitalization unchanged. This model dynamically balances the ratio of the aggregate
capitalization of STD tokens and GCC tokens, providing the community with the ability to
mine new STD tokens for distribution to the needy.
A simplified methodology of stabilization
Although Standard wallet is called so because it can only contain STD tokens, for simplicity
of understanding, suppose that there are two parts of the Standard wallet requiring
synchronization of the purchasing power:
● volatile part - nominated only in GCC tokens
22
21 The initial GCC price is suggested by the Community Agreement and is only effective if the Community
members adhere to this price. The STD price is computable and controlled by only the algorithm that runs
on the decentralized full nodes of the ledger. Thus no particular individual person or entity can control or
influence the price of both tokens neither during the token generation event nor after.
22 This part is not exist actually
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● stable part - nominated only in STD tokens, wherein STD value represents the
current purchasing power of the wallet.
The GCC price may experience a decline or rise, therefore, below we will consider two
situations:
● GCC price falls
● GCC price grows
At any given moment, the purchasing power of the GCC tokens in the volatile part of the
wallet should be equal to the purchasing power of the STD tokens found in the stable part of
the Wallet. Therefore, before making an inbound or outbound payment, these purchasing
powers of GCC and STD tokens must be compared and, if they are unequal, the purchasing
power of STD tokens and GCC tokens should be balanced preventing dilution of the Wallet’
purchasing power.
The general idea of balancing of purchasing power of GCC and STD parts of each wallet in
the system not only leads to equalization of purchasing power of all GCC tokens with
purchasing power of all STD tokens in the system but as a side effect this also leads to
stabilization of the STD/GCC capitalization ratio in the system, automatically returning it to
the value of 1/10.
In the conditions of growing demand for GCC tokens in the secondary market, the balancing
of wallets leads to automatic STD mining opening the possibility of using the freshly mined
STD tokens for the development of the STANDARTA project ecosystem. In the conditions of
falling demand for GCC tokens in the secondary market, the balancing of wallets leads to
automatic GCC mining that may affect the STD/GCC capitalization ratio stability.
Wallet balancing
Suppose that before a Spending is written off or credited to the Wallet, the volatile part ща
23
the wallet contains GCC tokens in the amount of B and the stable part contains STD tokens
in amount of S, and the payment is made in GCC tokens or in STD tokens. Before a new
payment is processed, the purchasing power of Wallet must be balanced equalizing the
purchasing powers of the volatile and stable parts of the Wallet and only when the balancing
is completed the payment can be processed:
1. Through the GCC second market volatility, the current purchasing power SB of the
volatile part of the wallet containing GCC tokens in the amount of B could now be
different to the unchanged purchasing power of the stable part of the wallet
containing STD tokens in the amount of S , thus we need to calculate SB using
R - the rate of exchange of STD/GCC: STD/GCC
SB = B * RSTD/GCC
2. The calculated SB value representing the purchasing power of the volatile part of the
wallet now must be compared with the S value of STD tokens found in the stable part
of the wallet:
a. Bull market: if S > , the purchasing power of the volatile part is greater B S
than its volatile part and to equalize the powers the STD tokens should be
mined by the system in the amount of ΔS = S .
|
| B − S
|
|
24
23 Spending - a sum of the inbound or outbound payment of the Wallet.
24 The entire ΔS amount of mined STD tokens is being credited to the system's special wallet to finance
ecosystem development
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b. Bear market: if S < , the purchasing power of the volatile part is weaker B S
and system needs to mine more GCC tokens in order to equalize its
purchasing power with the purchasing power of the stable part of the wallet
supporting so the ratio of STD / GCC' capitalization in the system.
3. Carrying out the payment as described below.
Carrying out a payment of X tokens of GCC.
After balancing the wallet it contains a sum of B tokens GCC and the sum of S tokens STD
with the same purchasing power.
1. The sum of the GCC tokens in the volatile part of the wallet decreases or increases
by the amount of GCC tokens X:
BRESULT = B ± X
2. The sum S of the STD tokens in the stable part of wallet is increased / decreased by
the amount of STD tokens:
Y = X * RSTD/GCC
and the total amount of STD tokens in the stable part of the wallet will be:
SRESULT = S ± Y
4. The sum of X GCC tokens is debited from the sender's account and credited to the
beneficiary's account.
Carrying out a payment of X tokens of STD.
After balancing the wallet, it contains the imaginary sum of B tokens GCC and the real sum
of S tokens STD:
1. The sum of S tokens STD of the stable part of wallet is increased / decreased by the
amount X of STD tokens:
SRESULT = S ± X
2. The sum of B tokens GCC of the volatile part of wallet is increased / decreased by
the amount:
Y = X *
1
RSTD/GCC
and the total amount of GCC tokens in the volatile part of the wallet will be
BRESULT = B ± Y
Capitalization ratio’ balancing
The bull market
How the GCC' secondary market price volatility and the associated secondary mining of
tokens affect the size and ratio of GCC and STD token capitalizations in the system?
На Figure 2 the total capitalization of all GCC and STD tokens is assumed to be 100%, and
the diagram shows the change in the capitalization of GCC and STD tokens when the price
of GCC tokens changes. After the initial generation, the price of the GCC tokens is the same
as the price of the STD tokens, so at the Free Token Mining (FTM) start on the X axis, the
GCC / STD rate is 1. The area to the right of the FTM point in Figure 2 shows that when the
secondary market price of the GCC token increases, the secondary mining of the STD
tokens keeps the ratio of the STD and GCC token capitalizations at the previous level of
1/10.
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At the same time, with the increase in the price of GCC tokens, the secondary mining of STD
tokens if left in the user’s wallet might lead to the unreasonable savings yield growth equal
25
to the growth in the price of the GCC token, so the generated STD tokens are credited to the
system' special wallet and used for expansion of the system.
The write-off of the generated STD tokens from the user's wallet to the system's special
wallet occurs because we want users to spend STD tokens in the consumer market while
high yields of the wallet may encourage users to choose savings strategy, preventing the
STD tokens to become the currency of choice for payments in the consumer market.
The Bear market
The area to the left of the FTM point in Figure 2 shows that if the price of the GCC token fell
10 times, the following secondary mining of GCC tokens in the Wallets will equalize
capitalization of STD and GCC tokens in the system. However, the generation of GCC
tokens in wallets does not necessarily lead to pouring out of the generated GCC tokens into
the system for the following reasons:
1. In the case of GCC price falling, GCC token owners will seek to exchange their GCC
tokens to STD tokens to avoid a loss while those who holds STD tokens will not likely
exchange them to GCC. Therefore the STD tokens will mostly be supplied for
exchange to GCC by the system, so the excessive GCC tokens will soon be credited
in the system's wallet and locked there, ultimately limiting the number of GCC tokens
circulating in the system stabilizing in turn the price of the GCC token on the market.
2. Despite the mining of secondary GCC tokens in the wallet occurring in both cases of
an incoming or outgoing payment, however, secondary GCC tokens can enter the
system only in the case of an outgoing payment, which halves the possible volume of
inbound secondary GCC liquidity in the system.
3. Even in the worst case, if the price of GCC is reduced by 10 times from the initial
price set by Community Agreement, the primary GCC tokens will be able to settle up
to 10% of outgoing GCC-payments in the system. Therefore, secondary
GCC-liquidity start to flow into the system only when the outgoing payments volume
exceeds the threshold of 10% of the collective GCC-value of Wallets. Since in the
long term the 10-fold fall of GCC token price along with simultaneous excess of 10%
threshold by value of collective GCC outgoing payments seem unlikely, the
secondary liquidity is not likely to enter the system.
For the reasons given above, it is expected that the mining of secondary GCC tokens can
not significantly influence the GCC market price.
25 The growth preventing the miner from using the currency as a mean of payment on the consumer
market.
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Figure 2. Dependency of Capitalization on linear decline and linear increase in the GCC /
STD exchange rate.
Figure 3. Capitalization of STD and GCC depending on oscillatory increase in the GCC /
STD rate of exchange. The GCC/STD exchange rate trend is based on the real exchange
rate trend BTC/USD. The graph shows that the ratio of capitalization of GCC and STD is not
changing.
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Figure 4. Capitalization of STD and GCC depending on the oscillatory decline of the GCC /
STD exchange rate. The trend of the GCC / STD exchange rate is based on the reversed
trend of real BTC/USD rate of exchange. The graph shows that the capitalization of GCC
tokens has decreased to 60% with a 17-fold decrease in the GCC / STD exchange rate,
which allows one to make a statement about the weak influence of the secondary generation
of tokens on the ratio of GCC / STD market caps.
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