Forest1Coin Whitepaper

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Forest1Coin Whitepaper

November 2019 Whitepaper

(v3.5 Updated on 15 November 2019)

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Forest1Coin Whitepaper

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TABLE OF CONTENTS

A. VISION AND MISSION 3

B. EXECUTIVE SUMMARY 4

C. INTRODUCTION 5

D. FORESTONE DIGITAL TRANSACTION PLATFORM 28

E. MARKET AND COMPETITOR ANALYSIS 41

F. INTRODUCTION TO BLOCKCHAIN 52

G. TYPE OF BLOCKCHAIN USED 55

H. INTEGRATION OF BLOCKCHAIN TECHNOLOGY ONTO THE FORESTONE PLATFORM 63

I. TOKENOMICS 74

J. PROJECT ADVISORS 101

K. DISCLAIMER 103

L. FOLLOW US 104

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A. VISION AND MISSION

Our Vision ForestONE aims to be the next generation cashless Digital Transaction Platform (DTP), empowered through a community natural spending recycling loyalty reward program, where natural spending is mainly around essential items that are consumed daily or every other day to keep life going (e.g. F&B, groceries, petrol, utilities bills, etc.).

Our Mission Our mission is to: ● Promote the adoption of cashless natural spending on the ForestONE platform through

convenience and lucrative financial incentives ● Further build ‘Trust’ through natural spending on the ForestONE platform with the

adoption of Blockchain Technology ● Expand the ForestONE platform to accept various types of digital currencies

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B. EXECUTIVE SUMMARY

ForestONE is a next generation cashless Digital Transaction Platform (DTP) that enables both merchants and consumers to complete transactions swiftly and securely while earning rewards via the natural spending of their communities. This whitepaper elucidates the current business model and application of the ForestONE DTP in terms of the potential and future expansion plans. ForestONE has already partnered with a myriad of reputable merchants which will be shown further in the whitepaper. Having already been in many successful businesses and public listed companies, the founding team of ForestONE has stellar track records of being exceptionally innovative in FinTech applications. This Whitepaper will include information on how ForestONE was founded, the management team of ForestONE and the Tokenomics of this ICO project. Case studies and statistical data from South East Asia have been used to strengthen the ForestONE stance on this ICO project.

Moreover, this whitepaper will further elaborate on how and why blockchain will be implemented on the ForestONE DTP and how it complements the current ForestONE business structure. This includes how merchants and users of Forest1Coin (FOC) can reap the benefits of this amazing and lucrative ForestONE business structure. By implementing Stellar Blockchain Technology and integrating it with the current ForestONE business, there are numerous strengths and benefits of this blockchain structure and how it will aid in further user and merchant acquisition within the region. Milestones have been set in place along with the projected future growth for the ForestONE business as it aims to expand its already growing eco-system. Other key elements listed in this Whitepaper includes a demonstration of the acquired merchants in the current ecosystem and planned future potential collaborations. Token Details: • Token Name: Forest1Coin (FOC)

• Token Price: USD 0.25

• Token Sale Period: 6 to 8 months

• Blockchain Solution Chosen: Stellar

• Project Gist: Digital Transaction Platform

• Soft Cap: USD 5 Million

• Hard Cap: USD 30 Million

• Existing Business: Yes

• Existing Customer Application: Yes

Latest Development:

a) MOU was signed with Human Plus Inc. (HUPAYX) on 1st Oct 2019 to explore expansion plans of ForestONE into South Korea.

b) MOU was signed with dClinic Pte. Ltd. (dCLINIC) on 1st Oct 2019 to explore expansion plans of ForestONE into Indonesia.

c) MOU was signed with Hatchasia Inc. and PAY8 Inc. (both are Philippines incorporated companies) on 7th Oct 2019 to explore expansion plans of ForestONE into the Philippines.

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C. INTRODUCTION – Board of Advisors and Management Team of ForestONE

MR. JP CHIN – Founder & Chairman

• 36 Years of IT experience in Banking & Finance, Insurance and Telecommunication

Industry

• Founded Silverlake Innovation Partners (SIP) Sdn Bhd in 1996 with Mr. Goh Peng Ooi,

currently Chairman of Silverlake-Axis Ltd (listed on Singapore SGX in 2003)

• SIP is the main distributor/system Integrator for Silverlake Integrated Banking system

(SIBS) and business partner to IBM for the past 22 years, dominating more than 50%

of the finance services industry in Malaysia

• Currently a Director in Symphony Life Berhad (listed on KLSE), with principal business

in Property Development and Management

• Vice Chairman of PanGlobal Berhad, a company previously listed on KLSE, involved in

the business of General Insurance, Hotel and Coal Mining

• Mr Chin was with IBM from 1983-1996. During his thirteen years career, he headed in

both the Banking & Finance and Telecommunication Industry where he was

responsible for a number of strategic IT implementations, including projects for the

national telecommunication company (Telekom Malaysia) as well as the biggest

commercial bank in Malaysia (Maybank Berhad & Bank Bumiputra-now known as

CIMB)

• Graduated with Honours Degree in Computer Studies from Brighton University, United

Kingdom

• A renowned car/bike collector in the region with collection in excess of 100 cars (classic

sports, American Muscle cars, Supercars and Hypercars), motorcycles and bicycles

• An amateur racing enthusiast from 1990-2010, both in JetSki and Saloon car races.

Achieved many podiums in his 20 years of racing career. Now advisor to several car

and motorcycle clubs in Malaysia. Brand Ambassador for Bugatti in Malaysia

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DATO TJ CHIN – Group Advisor

• CEO of Silverlake Innovation Partners Sdn Bhd

• Managing Director for JPM Group since 2007, in charge of all Motorsport events locally

and international including JPM Integra Cup Malaysia (2006 – 2008), JPM Time

Challenge Hill Climb (2009 – 2010), JPM Kota Bharu Supercar Drive (2010), SUPER GT

Malaysia Round (2011 – 2013)

• Acquiring knowledge, skill and experience of event management, sponsorship

acquisition and mass communication over the years in JPM Group

• Went to University of Manchester with a degree in Accounting and Finance (2006)

• Adopted the required knowledge and skills required for banking and banking

technologies through role of key account manager, strategic business development

and solution architect

• Has been spearheading the implementation team for Silverlake core banking system

implementations for organizations including KWSP, AffinBank, Alliance Bank, Hong

Leong Bank, Bank Islam, MBSB Bank and Bank Rakyat Kerjasama Malaysia

• Currently exploring Fintech alternatives for banking and Digital Initiative drive for SMEs

in SIP

• Avid racing drivers, with racing experience in Formula BMW Asia, Merdeka Millennium

Endurance Race (2002 to 2010, Youngest overall class winner in 2003 and multiple

podium finish since), Asia Touring Car Championship (2009 with 3 wins and multiple

podium finish)

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DATO TP CHIN – Group CEO

• Group CEO of ForestONE and SEND. SEND is an on-demand, last-mile logistics solution

platform (www.send.com.my) established since 2016. With sheer determination to

take the business to the next level, he then spearheaded SEND into the e-Commerce

space through the creation of the SENDingDong brand (www.sendingdong.com) which

then became the first and only e-Commerce platform in Malaysia which could fulfil the

delivery requirement of products sold via the platform to reach consumers within 1-4

hours

• To complement the logistics and e-Commerce ecosystem, he engineered the launch of

ForestONE to tap on the growing need for a comprehensive Customer Loyalty Reward

Program platform

• He is also an Advisor to a Singapore-based paper manufacturer which exports to

regional countries within ASEAN, advising them in areas of business strategy and

logistics

• Previously while attached with a Malaysian investment bank, he took part in advising

public listed companies in Malaysia on various corporate exercises, which ranges from

IPO to Private Placement, including Mergers & Acquisitions

• He holds a Bachelor of Commerce (Business Law & Economics) from Monash University

(Clayton) in Melbourne, Australia

• He is an avid racing driver, having driven in the Merdeka Millennium Endurance Race

Series from year 2004 to 2010 in a Porsche

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RICHARD KHOO – Group CSO

• Has been in the Financial Services industry for over 25 years covering Insurance,

Mutual Funds, Stockbroking, Investment Banking, Fund Management and Precious

Metals.

• Through his career in Investment Banking, he assisted taking companies for IPO

listings, M&A and fundraising activities, through his network of corporate and private

clients in Malaysia and Singapore

• Served as the Managing Director of a Fund Management company in the Singapore

office of a Swiss Banking Group

• Executive Vice President of Singapore Precious Metals Exchange Pte. Ltd.

• Served as CEO of a Public Listed stockbroking group with 8 branches throughout

Malaysia, where he spearheaded the non-rated firm to be eventually voted #9 of the

Top 10 Stockbroking firm in Malaysia within 18 months of taking office

• Prior to that he was with three other Malaysian investment banks, with responsibilities

such as Head of Institutional Dealing, Head of Premium Broking and Head of Group

Corporate Affairs respectively

• He started his career in the capital markets when he was first attached to the

International Private Client Group of Merrill Lynch Malaysia for five years

• He holds a Bachelor of Business in Business Administration majoring in Management

from RMIT University, Melbourne, Australia

• A petrol head with unwavering passion for Classic Mini Coopers for over 30 years.

Currently an active member of the Mini Enthusiasts Club of Singapore and Kelab

Peminat Kereta Mini Malaysia (Mini Enthusiasts Club of Malaysia).

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MOHD KAMIL HADSRIM BIN IBRAHIM – Group CFO

• A knowledgeable, skilful and competent finance professional with extensive

experience in banking, business development, audit and administration

• Excels at interfacing with others at all levels to ensure organizational goals are attained

• Excellent interpersonal, analytical and organizational skills

• Excels within highly competitive environments where leadership skills are the keys to

success

• An effective motivational person with the skills necessary to direct, train, and motivate

staff to its fullest potential

• Former Financial Associate at Royal Bank of Scotland Regional CFO Office in Singapore

• Former Internal Auditor Manager at Am Investment Berhad in Malaysia

• Former Financial Manager at OCBC Bank (M) Berhad in Malaysia

• Former Business Development Head at BSNC Corporation Berhad in Malaysia

• Former Auditor at BDO Simpson Xavier in Ireland Qualification

• Chartered Accountant of Ireland – Dublin, Ireland

• Bachelor of Arts in Accounting & Finance – Manchester Metropolitan University,

United Kingdom

• Diploma in Accounting – London Chamber of Commerce, United Kingdom

• Islamic Law Certificate – International Islamic University Malaysia, Malaysia

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TM CHIN – Managing Director

• Previously as Director of Business Engagement of SEND Network Sdn Bhd, he

successfully grew the customer base to hit 40,000 and the SENDer pool of delivery

partners to reach 12,000 within 18 short months

• He comes with a wealth of experience, having taken on the role as Head of Marketing

for JPM Motorsports, which successfully hosted the Super GT event attended by over

100,000 spectators

• Subsequently as Operations Director of JP Motorsports Sdn Bhd (JPM) and JP Moto

Malaysia Sdn Bhd (JP Moto), and having an eye for detail and ensuring operational

clockwork, it resulted in the team’s successful participation in the Moto2 Motorcycle

World Championship Series

• Holds a Bachelor of Commerce Major in Marketing from Monash University (Clayton),

Australia

• Began his career in Project Management at Silverlake Innovation Partners Sdn Bhd

• He is an avid racing driver, having driven in the Renault Megane Race Series

• A Muay Thai Kickboxing enthusiast and participated in local boxing bouts

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ALICIA LO - Chief Operating Officer

• She began her career as an Accounts Analyst in IBM Malaysia, thereafter as a Marketing Manager

at Silverlake Innovation Partners Sdn Bhd, managing key banking customers such as MBSB and

Bank Islam, deploying key projects such as the GST system for banks, core banking system and

internet banking

• In the year 2011 to 2013, as Head of Operations for JPM motorsports, she was responsible for

hosting the Super GT event, which saw more than 100,000 attendance (yearly), signing on more

than 50 automotive and lifestyle brands to be exhibitors and sponsors (such as Honda Malaysia,

Nissan, Toyota, Denso, Mercedes Benz, Redbull Malaysia, Porsche, Petronas, Subaru, Motul etc.),

including securing the sponsorship from Malaysia Major event (Tourism Malaysia), and Touch n

Go as the official cashless partner

• Spearheaded the implementation of a Pilot Program of Going Cashless during the Super GT event

held at the Sepang ForestONE Circuit in Malaysia for two years running in 2011 and 2012. Over

100,000 of the spectators who attended were given a Touch n Go payment card which doubles

up as a ticket and the mode of payment for all purchase during event (F&B and merchandise)

• Organized biggest supercar and performance car gathering in 2011 and 2012, managed to break

the Malaysia Book of Records with more than 650 Super Cars gathered at the Sepang

International Circuit

• Organised the first Summernats event in Malaysia in 2014 and 2015, which attracted a crowd of

more than 50,000 and participation of 100 brands. The event generated more than USD 5 million

in media and PR value Involved in JP Moto Malaysia Racing Team - participation in Moto2

Motorcycle World Championship Series. With the over- achievement of points scoring season, it

garnered worldwide TV exposure to the sponsors livery on motorcycles which also introduced

ForestONE to its home audience in Malaysia and other neighbouring countries such as Indonesia

and Thailand

• With the role as COO of SEND Network (for both SENDelivery and SENDingDong), she

meticulously provides guidance to both the Operations and Merchant Acquisition teams, which

saw the successful delivery of more than 3,000 items on a single day

• She holds a Bachelor’s Degree in Accounting

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What is ForestONE?

ForestONE is a cashless Digital Transaction Platform (DTP) empowered by a community

natural spending recycling loyalty program that utilizes a mobile phone application to allow

both merchants and consumers to transact in a fast, efficient and secure manner. It is also a

Virtual Entrepreneurship Franchise Business Model to all participating members allowing

them to “fuel” their business revenue income via the recycling of their ForestONE

Community’s monthly natural spending. In short, everyone can be an “entrepreneur” by

joining ForestONE.

After years of research and development in the appropriate field of virtual technology and

digital transactions, along with adapting towards the demanding consumer climate,

ForestONE was launched in September 2018. With MasterCard and Visa dominating majority

share of the world’s digital payment platform service and charging merchants between 2 to

3% transaction fee, the founders of ForestONE now see an opportunity to seize a portion of

the global market share. By offering more attractive transaction fees to merchants and

rewarding consumers through their community’s natural spending, this provides ForestONE

with a competitive advantage. ForestONE already has a myriad of reputable merchants and

some of them include KFC, PETRONAS (over 1400 petrol kiosks), PETRON (over 600 petrol

kiosks), Starbucks, TESCO, Giant, llaollao, Watsons, Cold Storage, Marks & Spencer’s,

Parkson, Uniqlo, KK Mart (a local 7-Eleven like convenient store with over 350 outlets), and

99 Speedmart (popular neighbourhood grocery store with over 1,500 outlets). This list has

grown and will continue to grow on a daily basis. With merchants of this calibre pouring in, it

is inevitable that ForestONE will start to gain both regional and global credibility and be a head

turner in the near future.

With over 70,000 users to date, merchants on the ForestONE DTP will be able to capture the

increasing monthly natural spending of ForestONE members. ForestONE has a systematic

Community Growth Program (CGP) and a Many-To-One (M2O) rewards program that

encourages consumers to refer more members to join their communities as well as consuming

their natural spending with the ForestONE Merchants so that every member can reap the

benefits of their own community’s monthly total natural spending.

ForestONE DTP also provides the necessary business tools to all their merchants, be it online

or physical, that do not have sophisticated POS or IT systems. Some of the benefits include:

1. Digital Transformation – The ForestONE Merchant Apps allows merchants to capture all

sales transactions and also reflects real-time sales reports and settlements.

2. Marketing Channel – Free advertisement and sales promotion programmes via the

ForestONE App and ForestONE Social Media channels to the growing users of ForestONE.

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3. Data Planning – Sharing of big data information to merchants by predicting future

forecasts on member’s spending behaviour, thus being able to strategically maximize

business opportunities.

4. Customer Base Growth - With the CGP and M2O programs of ForestONE, members will

be conditioned to patronize and switch their loyalty only to the ForestONE merchants.

History of ForestONE

Coming from a humble background, the Chairman of ForestONE, Mr JP Chin, has 36 years of

experience in the IT industry, particularly in the Banking & Finance and Telecommunications

Industry. He founded Silverlake Innovation Partners (SIP) Sdn Bhd together with Mr. Goh Peng

Ooi, who is currently also the Chairman of Silverlake-Axis Ltd (a Public Listed Company on the

Singapore Exchange Limited (SGX)).

• In 2007, even before the first iPhone was launched, ForestONE was already being

conceptualized as the future platform of virtual digital transactions. This was done by

implementing a loyalty rewards program through the recycling of natural spending by the

ForestONE community on a monthly basis.

• From 2008 to 2010, in-depth market readiness assessment and SWOT analysis were done

to identify the needs and ever-changing demands of both merchants and consumers in

this growing space, fuelled mainly by the rise in Internet and smart phones. Cashless

spending and customer loyalty were identified to be the next “big” thing in the ever

challenging and demanding consumer environment. From here, appropriate branding and

strategic marketing strategies were planned for the execution of ForestONE.

• From 2011 to 2013, the Pilot Program agenda of “going cashless” was executed at an

International Motorsports Event (Super GT) which was held at the Sepang International

Circuit (SIC) in Malaysia. The event turned out to be a huge success with over 100,000

attendees and they were provided with a ForestONE/Touch & Go payment card which

had a viable option of a ticket and all purchase payments during the event. It was the first

ever Motorsport Event in Malaysia that went cashless.

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Figure: JPM Berjaya Hills Time Challenge 2009 to 2010, going cashless with ForestONE.

Figure: SuperGT Malaysia 2012 (https://www.youtube.com/watch?v=wpngfJRg6eM)

Figure: SuperGT Malaysia 2013 (https://www.youtube.com/watch?v=oKYl8sn-SBs)

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Figure: SuperGT Malaysia 2011 to 2013, going cashless with ForestONE

(https://www.facebook.com/pg/SuperGT.my/photos/?tab=albums&ref=page_internal)

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Figure: Summernats Malaysia 2016, going cashless with ForestONE

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• From 2014, with the success and popularity of Ali Pay, WeChat Pay in China and other e-

Wallet applications, the public acceptance towards a cashless society grew exponentially

and the e-Commerce space started to explode with mass adoption. ForestONE used this

to their advantage to tweak their marketing strategy to better cater towards their

customers and have a refined service with a designated angle to achieve mass adoption.

• From 2015-2016, ForestONE partnered with SEND (which is an ultimate last mile and on-

demand delivery service platform) which sponsored a JPM Malaysia Moto2 Racing Team

for 2 seasons in the MotoGP Motorcycle World Championship Series. The JPM Moto2

team did well by scoring some key championship points in the 1st year and gained

worldwide recognition through TV and Public Media. This helped to introduce the

ForestONE brand to neighbouring nations which are passionate about MotoGP, namely

Thailand and Indonesia. Moreover, another branding promotion of SEND was executed

with the signing of Jorge Lorenzo, a 5-time World Champion, to be a SEND Global Brand

Ambassador. Upon the successful sponsorship of Moto2 Racing Team, SEND, the

revolutionary last mile and on demand delivery platform was launched. SEND gained

instant stardom and became a hit in Malaysia with more than 10,000 thousand vehicle

owners singing up as SENDers. SEND has been the centre for thousands of last mile

deliveries within Malaysia since then.

Figure: SEND has officially launched the on-demand delivery platform together with their Global Ambassador, Jorge Lorenzo

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Figure: SEND Delivery Official Launch with 5- time MotoGP World Champion, Jorge Lorenzo

https://www.facebook.com/SENDMalaysia/photos/a.533135170214792/533135506881425/?type=3&theater

Figure: SEND Delivery, a platform that provides last mile deliveries

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Figure: SEND, your online on-demand delivery platform. https://www.facebook.com/SENDMalaysia/

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Figure: JP Moto Racing Team in Moto2 Motorcycle World Championship Series, from 2015-2016. Sponsored by

ForestONE (https://www.facebook.com/JPMoto-Malaysia-Racing-Team-1533944616887855/)

• Since the successful launch of SEND, ForestONE intended to innovate and implement the

complete service for all types of consumers in their entire ecosystem. This resulted in the

launch of SENDingDong, an on-demand high value and/or time sensitive e-Commerce

market. SENDingDong was also designed to further compliment SEND, providing a wider

range and needs for on-demand and last mile delivery. Examples of these products are

valentine gifts and hampers.

Figure: SENDingDong, 1-4 Hours Delivery e-Commerce (https://www.sendingdong.com/)

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• In Q1 to Q2 2018, ForestONE has finalized the entire business structure and integration

for its entire ecosystem with enhanced technological development. The ForestONE

ecosystem now covers logistics (SEND), online marketplace (SENDingDong) as well as a

digital transaction platform (ForestONE). The aim is to create a unique lifestyle and

rewards application that would in turn help create a holistic and simplistic Fintech

ecosystem for both merchants and consumers. Pre-operational planning included

appropriate merchant sourcing and onboarding.

Figure: Introduction to ForestONE (https://www.youtube.com/watch?v=AYeGvMvdNfc)

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• In Q3 2018, the merchant onboarding process was a massive success with many well-

known and nationwide brands like Petronas, Giant, Starbucks, Lazada and Zalora joining

ForestONE. To date, the list of merchants coming on board has grown on a daily basis.

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• In Q4 2018, ForestONE initiated its first Pilot Program with the launch of the ForestONE

Application. The aim was to understand and research on the acceptance rate and total

feedback collated from the users. With this, it made it easier for ForestONE to start

community building and to handle the transactions with merchants. ForestONE has an

80% conversion rate for new members joining the ecosystem after introduction and

appropriate elaboration of the program.

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Figure: ForestONE members who believed and became our pioneer users, now enjoy the rewards of the ForestONE program

• In Q1-Q2 2019, ForestONE was focusing on the acquisition of more merchants and

membership drive to grow the ForestONE community and increase natural spending.

Roadshows were carried out for the promotion of products and services which gained

positive feedback for the ForestONE Application.

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Figure: ForestONE marketing roadshows with ForestONE merchants, focus on growing communities and bringing customers to merchants

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Figure: A presentation with Seri Stamford College, empowering students to earn by growing their community.

Figure: ForestONE mobile app sales promotion, encouraging members to spend via ForestONE

• In Q4 2019, ForestONE aims to achieve 500,000 users and merchants. Whilst growing

the total amount of users, ForestONE is also planning to execute their expansion roll-

out plans in various markets within South East Asia.

• In Q1 2020 ForestONE aims to have strategic partners within the ASEAN region. To help

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expand the ForestONE Application domestically in every country in ASEAN, ForestONE

aims to acquire more merchants and focus on increased user awareness to gain mass

adoption.

• In Q3-Q4 2020, ForestONE platform and app aims to be the leading cashless ecosystem

within ASIA, while looking to expanding towards other parts globally.

Aim of ForestONE

One of ForestONE’s aim is to promote and encourage both merchants and consumers to go

digital and cashless. By adopting the ForestONE Application, consumers will also be

incentivized financially through the recycling of their community’s monthly total natural

spending while merchants get the benefits of a bigger ForestONE members’ wallet share and

loyalty. By changing consumers’ natural spending habits from physical cash to cashless

transactions via the ForestONE app, consumers can reap the benefits provided by ForestONE

both in convenience, discounts and rewards.

By implementing blockchain with ForestONE in the near future, it instils trusts to the entire

ecosystem and potential users because data collected on the blockchain is immutable. With

this, consumers and merchants do not have to worry about potential hacks or leaks which

might jeopardize their business. As ForestONE grows, it plans to accept various kinds of

cryptocurrencies which will be beneficial to the entire ecosystem as a whole in the long run.

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D. FORESTONE DIGITAL TRANSACTION PLATFORM (DTP)

ForestONE Sales Reward and Discounts Program

Like most traditional Discount Cards and Payment Apps etc, the first key element to the ForestONE

Digital Transaction Platform (DTP) lies in the Sales Rewards and Discount Programs. This is a simple

program where ForestONE wants to reward its members, through the use of discounts on selected

items. These discounts are either given by the merchants or sponsored fully by ForestONE to show

its gratitude for those who have supported the company along the way in this journey. The

ForestONE application is also convenient and can be transacted at high speeds, besides also

providing improved branding for merchants through the exposure of their brands on the ForestONE

platform.

Figure: ForestONE application provides the exposure of promotions from merchants to all ForestONE community

members. Acting as a platform to provide networking and marketing values for ForestONE merchants towards

ForestONE members

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ForestONE Loyalty Reward Programs: Many-To-One (M2O) and Community Growth Program (CGP)

As described earlier, ForestONE Digital Transaction Platform (DTP) is unique as it also serves

as an Entrepreneurship Franchise Business Model to all its participating members. To

differentiate ForestONE from other payment apps or e-Wallets, ForestONE is empowered by

2 loyalty reward engines to “fuel” the success and sustainability of its business model. To be

part of ForestONE DTP Ecosystem, one can join as ForestONE member either as a Premium

Partner for RM398 or joining for free as an Ordinary Member.

a) Many-to-One Program (M2O)– Natural Spending Recycling Rewards

In the Many-to-One Program, every Partner (Premium) or Member (Free) will be assigned to

a ForestONE Community Business Structure Model that can host up to 21,844 of members

(using a 4 to the power of 7 formula).

Assuming in a matured ForestONE Community of 21,844 members and all of its Community

members spends an average of RM 1,000 every month (21,844 x RM1,000 = RM21,844,000),

ForestONE will recycle 0.1% of the Community’s monthly total natural spending back to the

founding Partner/Member as a reward. Hence, RM21,844,000 x 0.1% = RM21,844 will

be recycled back as a reward every month. Regardless of the size of the community (i.e. from

a minimum 4 to 21,844), the founding Partner/Member will always enjoy a flat 0.1% of his

ForestONE Community’s monthly total natural spending provided that:

1. He/she also spent minimum RM1,000/month; and

2. Recruited a minimum of 4 direct partners/members.

These two requirements set by ForestONE are to ensure self-sustenance. As a Community

performs its monthly natural spending and rewards are generated from it, a member would

have no choice but to spend, to refer and to grow its community. Hence, the cycle of

ForestONE Natural Spending Recycling program will continue perpetually.

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The picture below sheds light on how this program works:

Figure: M2O program from the ForestONE website

b) Community Growth Program (CGP) – Applicable to paid Premium Partners

ONLY

The Community Growth Program is a program that is designed to incentivize the Premium

Partners to grow their community rapidly and exponentially.

In ForestONE, as everyone is encouraged to join as Premium Partner by paying a one-time fee

of RM398 (Approx. USD100) as a life time Partner. Partners are then encouraged to

recommend a minimum of 4 direct premium partners to start his/her own ForestONE

Community. With the Community Growth Program, the founding Partner will be able to earn

RM100 for every direct premium partner joined, hence, to start a ForestONE Community with

minimum 4 direct partners, a founding Partner will receive a bonus of equivalent to RM100 x

4 = RM400. However, the founding Partner is also encouraged to recruit more than 4 direct

partners as any additional direct partner joined (up to unlimited numbers) will earn him an

additional RM100/partner which at the same time also help in growing his M2O Community

in parallel.

On top of the RM100 for every direct partner joined, a total bonus of RM218,480 can be

earned for every new partner joined in a founding Partner’s direct partner community

(maximum 21,844 members in a matured community). Hence, for every founding Partner’s

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Community, assuming with a minimum of 4 direct partners, the founding Partner will

potentially have a bonus of (RM100x4) + (RM218,480 x4) = RM874,320 to be earned in an

unlimited time frame.

ForestONE Community Growth Program

With that in mind, all premium Partners are encouraged to recruit more than 4 direct partners.

The more direct partners they have, the more bonus they will earn through Community

Growth Program. Hence, with this powerful program, it will push ForestONE membership to

grow exponentially.

As a Partner refers and grows its community via the Community Growth Program, all partners

who have joined, whether direct or indirect, will be contributed into the founding Partner’s

Many-to-One Community structure to enjoy the 0.1% recycling rewards program.

Note: All rewards and rebates are given out as F1Points which is equivalent to 1 F1Voucher or

RM1.00.

A diagram of how Community Growth Program works:

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Forest1Coin as the next upcoming cryptocurrency with Community Growth Program As ForestONE members play an important part in supporting the business, ForestONE positions Forest1Coin as a part of the rewards into CGP as an education on blockchain and allowing them to be a part in the ICO exercise. Not only that, this would also allow ForestONE Premium Members to have their own (maybe their first) private Interstellar wallet as the first step of education into the blockchain world, making Interstellar the next upcoming private wallet. Pre-ICO Promotion (Before End of December) New Premium Members will be given 10 free Forest1Coin (FOC) upon joining. Similar to CGP reward, 1 FOC will be rewarded for every new Partner recommended and joined its community. Hence, a total of 21,844 FOC can be earned per Partner joined (maximum 21,844 members in a matured community). With the minimum requirement of 4 Partners in its community, a Partner will earn 21,844 FOC X 4 = 87,376 FOC As stated, Premium Partners are allowed to find more than 4 direct Partners, whereby the more direct Partners they have, the more FOC can be earned. This would allow the adaptation of Forest1Coin as a cryptocurrency for global mass adoption.

ForestONE Rewards Cash-Back Opportunity

When a Partner/Member has accumulated more rewards points (F1Point) than he needs to

sustain future months’ natural spending, he can sell back his excess F1Points for cash, less

administration charges. All CashBack payments shall be paid digitally to ForestONE

Partners/Members’ Bank Accounts or Credit/Debit Cards Companies.

Merchants Signed Thus Far

As a young platform, ForestONE is proud to announce that it has secured collaborations with

some of the biggest merchants in town. To gain their collaboration, ForestONE as a platform

had to come under their operational and financial scrutiny. Despite this, it has successfully

secured a collaboration with some household brands which many will know. There are over

200,000 SKUs on board the ForestONE platform. Some of our participating merchants include:

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Scan & Redeem

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Digital Vouchers

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Physical Vouchers

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Merchant Testimonials

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Video:

Figure: KK Mart, more than 300 outlets in Selangor and Kuala Lumpur, Malaysia accepting ForestONE

(https://youtu.be/XZOtlP7OWTA)

Figure: Constant Pharmacy, one of ForestONE’s pioneer merchant, with over 30 outlets

ForestONE Constant Pharmacy Video Link

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ForestONE accepts a variety of merchants, from Enterprising Hawkers to merchants with outlets located Nationwide

(https://www.youtube.com/watch?v=ZDLp3MBYaJ4)

Figure: One of ForestONE’s biggest merchant, 99 Speedmart, has more than 1500 outlets nationwide

https://www.youtube.com/watch?v=kPolDiRatIw

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Figure: Giant Hypermarket, one of the largest chain of hypermarkets in Malaysia with more than 80 outlets, is a ForestONE

Merchant (https://www.facebook.com/watch/?v=1168934956596622)

Figure: Uncle Don, one of ForestONE’s earliest merchant, has 6 outlets in Kuala Lumpur

(https://www.facebook.com/watch/?v=624025561368657)

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Figure: Petronas, a ForestONE merchant, has more than 1200+ petrol stations nationwide.

(https://www.youtube.com/watch?v=eDH4cnTH8V4)

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E. MARKET AND COMPETITOR ANALYSIS

Market and Competitor Analysis E-commerce Overview of E-commerce in South East Asia

With a steady population density growth within the ASEAN region of about 1.03% annually

and with the influx of foreign DFI, the foundations for the infrastructure of cell-com towers

has made internet and wireless connectivity readily available.

Year Population Population Density

(per sqkm) Growth Rate

2019 662,375,294 152.6 persons 1.03%

2015 634,609,846 146.2 persons 1.17%

2010 597,327,771 137.61 persons 1.23%

Table: Overview of E-commerce in Southeast Asia1

With increased internet connectivity, South East Asia has become an upcoming market of

interest for e-Commerce giants to penetrate, thus presenting many growth opportunities for

businesses that are ready to face its challenges and competitors.

The 2017 Temasek report foresaw a $200 billion economy in the region by year 2025. South

East Asia’s internet economy hit an inflection point in 2018. E-Commerce grew at an

unprecedented rate, turning the heads of many investors, which influenced the sudden influx

of capital injection into the region.

1 http://worldpopulationreview.com/continents/south-eastern-asia-population/

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Figure: Spending in Southeast Asia

As a result of this, the regions’ internet economy will hit $72 billion this year alone, meaning

it would have more than doubled since 2015. This has reinstated investor confidence in the

region, contributing towards a total of $9.1 billion raised in 20182.

2 https://www.thinkwithgoogle.com/intl/en-apac/tools-resources/research-studies/e-conomy-sea-2018- southeast-asias-internet-economy-hits-inflection-point/?_ga=2.68780049.1801409552.1543419960- 1799759620.1542638499

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Figure: Highlights of funds raised to Unicorns

South East Asia is an emerging market and is currently a very attractive market for companies

that are involved globally in the e-Commerce sector and for smaller local players, all vying for

a piece of the market share. Below is a macro look at internet availability and mobile

penetration for the countries that ForestONE are aiming to enter and how quickly the users

of South East Asia are adapting to the competition and growing emergence of e-Commerce.

Country Population Internet Users Social Media

Users Mobile Users

Indonesia 269,536,482 132,700,000 130,000,000 177,900,000

Thailand 69,306,160 57,000,000 51,000,000 55,560,000

Malaysia 32,454,455 25,080,000 24,000,000 21,620,000

Philippines 108,106,310 67,000,000 67,000,000 61,000,000

Vietnam 97,429,061 64,000,000 55,000,000 70,030,000

Singapore 5,868,104 4,830,000 4,8000,000 4,710,000

Korea 51,225,308 41,749,115 43,800,000 41,900,000

Table: User density for each country3

3 https://aseanup.com/overview-of-e-commerce-in-southeast-asia/

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The total number of internet users in South East Asia as a whole adds up to create a huge

untapped market. Although the Singapore e-Commerce scene is more mature and the

Malaysian market is more dynamic and more competitive, the remainder of Indonesia,

Thailand, Philippines and Vietnam presents itself at an infant stage for e-Commerce and also

acts as a reservoir of growth for e-Commerce players.

As demographics across the world and Malaysia continue to evolve, consumers are becoming

more demanding as they continuously seek for faster, safer and more efficient methods to

pay for their goods and services. In Malaysia, 67% of consumers have utilised at least some

form of cashless payment, with debit cards and credit cards becoming the more preferred

medium4.

A recent study published depicting the landscape of Malaysia’s payment mediums show that

although a majority of Malaysians make payments using cash and debit card transactions, only

27% have ever utilised a credit card to pay for their expenses and only 8% have used mobile

wallets.

Figure: Table highlighting usage ratios of non-cash payment methods

4 https://www.nielsen.com/apac/en/insights/news/2019/cash-or-cashless-malaysias-shifting-payment-

landscape.html

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Hence, ForestONE aims to capture the crowds who use debit and credit card more through

the sale of digital and printed vouchers, making it easy to pay exact amounts. This puts the

company in a good position to tap on the crowds generated from all 4 segments. There is no

segment missed in terms of user experience.

Key Factors that Empower Consumers to Fuel the e-Commerce Scene in South East Asia

a. Rise of the middle class

• With an increase in the middle class, it allows a larger market segment to have bigger

disposable income, hence with this the increased Natural Spending on e- commerce.

b. Greater Mobile penetration

• With greater availability of mobile connections, e-commerce platforms are more easily

accessible to the public as a whole

c. Influx of new e-commerce players

• With more players entering the market, it presents greater choices to consumers who

eventually hold the upper hand

d. Increasing logistic options

• Making deliveries more efficient and effective to the consumers

e. Alternative payment methods

• Making payment for online goods and services faster and easier, consumers are always

looking for the most cost-efficient manner to pay for their service

Challenges of E-commerce in South East Asia

1. Lack of a robust ecosystem

2. Management of consumer expectations and demands

• High level of personal customer service needed for minimal purchases

• Level of trust in online payments

• Securing supply of products

3. Inter-country commerce

• Inconsistent duties

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• Corruption

• Logistics and customs

4. Lack of low cost and efficient infrastructure

• Localized contracts and deals

• Structurally flawed due to the limitations of not being able to serve the scale of e-

commerce

Solutions to solve these challenges

1. Increase of connectivity

• Increase of broadband speed and wireless data access to rural areas

• Making connectivity more robust (having a stronger signal)

2. Local support

• Supporting local industry players

• Partnering with local SME’s and manufacturers

3. Reinforcing online security

• Payment gateway protection

• Anti-phishing

4. Promoting e-payment

• Making payments faster and efficient

• Tracking of payments and payment history

• Less hassle and reducing online transaction fees

5. Improve logistics

• Making deliveries faster

• Shorter lead time for consumers which will in turn promote another online purchase

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A Further Look at the Malaysian Context

To understand the potential of ForestONE in the context of a transactional platform, it is first

important to understand the overall environment of cashless transactions. Do note that the

focus of the discussion is on cashless payments and does not make any kind of representation

towards what ForestONE is. ForestONE purports cashless transactions through the utility

vouchers which can be stored anywhere and carried in any form.

The usage of cashless virtual transactions and its proliferation will give us a good indication of

how rampant cashless natural spending will be in the future. In an interview by The Edge

Malaysia, it has been shown that online banking recorded a total of RM6.5 trillion dollars in

transactions, followed by credit card transactions amounting to RM125.6 billion and mobile

banking at RM50.7 billion. Debit card transactions recorded RM29.8 billion and e-Money

recorded a total transaction volume of RM9.1 billion5.

The portrayed statistics depicts a clear understanding towards the goal of ForestONE, which

is to promote natural spending and integrating the element of blockchain inside ForestONE’s

ecosystem. Based on the above information, ForestONE has projected that the trend of

natural spending will not be solely within Malaysia. Instead there is space for growth within

the South East Asian markets.

By examining cashless payments further, statistics have shown that cashless payment

methods such as debit cards and credit cards still overshadow e-Wallet payments, with the

latter representing only 8% of the total cashless transaction volume6.

Moreover, the average transaction value per capita of credit card and debit cards increased

from 21.54% to approximately RM4,175 per capita and 158.42% to RM1,243 respectively from

2014 to 2018. There is a clear upward trend here in terms of cashless payments through credit

and debit cards7.

However, e-Wallet payments are extremely popular for small ticket items like food and drinks.

Malaysians generally prefer credit and debit cards for big ticket items in terms of cashless

payments. ForestONE as a platform is well prepared to cater to the many types of users by

offering instant purchases of shopping vouchers for big ticket items.

5 Interview by The Edge May 2019 Issue 6 https://www.nielsen.com/my/en/insights/reports/2019/cash-or-cashless-malaysias-shiftng-payment- landscape.html 7 The Edge May 2019 Issue

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Challenges Ahead for Forest1Coin

Although the majority would be celebrating the birth of blockchain technology with the

fairness and transparency it brings, the general market and retailers have not truly adopted

it. While ForestONE has plans to eventually get merchants to accept the Forest1Coin as

payment through a Fiat on Ramp mechanism, this is still very much subjected to merchants’

approval and the support of the local authorities. The usage of digital currencies is also

subjected to the improvement of security features of wallets which hold such digital

currencies. In addition, the current knowledge of blockchain technology and digital currencies

is at an infant stage for the mass majority. Concurrently, blockchain and digital currencies

could prove very useful in terms of cross-border payments, which further substantiates why

there is a strong need to expand into foreign markets.

Projecting Ahead for Malaysia

ForestONE is targeting a customer acquisition rate of 20% in Malaysia. While it remains to be

seen whether ForestONE is able to achieve such a goal, it is nonetheless heartening to know

that it is a goal that has already been reached by platforms such as Boost, the likes of which

has a user base of approximately 3.9 million people and 75,000 online/offline merchant

touchpoints for consumers8. Referring to the case study of Boost is important as Boost

officially entered the App Store only in July 2018. The case study of Boost makes it apparent

that the Malaysian population is highly adaptable towards cashless payment methods.

Expanding into Other Markets A Brief on the Vietnamese Context

In Vietnam, cashless payment is similarly becoming a common practice. Moreover, it is

projected that cashless payments will make up 50% of all transactions in Vietnam within the

next 3 years. This projection was made by the CEO of M-service, and the operator of the e-

Wallet known as Momo9.

The Vietnamese context differs slightly from the Malaysian context due to the degree of

unbanked-ness, which is much greater in Vietnam than Malaysia. This has resulted in the

government becoming more pro-active in pushing for cashless payments and developments

8 https://www.nst.com.my/business/2018/10/424140/boost-named-digital-disruptor-year-malaysia

9 http://www.hanoitimes.vn/economy/2019/03/81e0d489/cashless-payment-to-make-up-50-of-total- transactions-in-vietnam-in-3-years-exper/

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of e-Wallet systems. This is further supported by the State Bank of Vietnam, whose governor

has openly supported devising initiatives to promote cashless payment10.

Vietnam has seen a solid development of transactions by means of new payment methods,

wherein e-Payment in the January to August 2018 period ascended by 48% in amount and

27.7% in cash value against a similar period in 2017. Moreover, the Finance Industry will come

together with the SBV to advocate non-money exchanges, online duty affirmation and

payments to decrease invoicing cheats.

As a platform, ForestONE is capable of macroeconomic functions as well. The ability of the

ForestONE platform to recycle natural spending back into the economy via its signature Many-

to-One Program will contribute significantly towards boosting the Vietnamese economy.

As per an arrangement on non-cash payments in Vietnam in the 2016 to 2020 period, before

the end of 2020, the proportion of cash transactions will be decreased to below 10%.

Looking at the above statistics, it appears that Vietnam is a ripe market for ForestONE to

explore due to three primary circumstances:

● “Un-bankedness”

● Ease of client acquisition due to pre-existing culture

● Government support

A Brief on the Indonesian Context

While the central government is doing their best to encourage cashless natural spending,

there are still many obstacles due to political, social and geographical reasons.

Indonesia is advancing towards a cashless future as consumers are progressively certain about

utilizing computerized payment frameworks and going cashless. A Visa's Consumer Payment

Attitudes study in 2017 has found that around 8 out of 10 Indonesians (76%) state they can

abandon money for a whole day. As indicated by the investigation, less Indonesians are

conveying large amounts of money since they are utilizing electronic instalments more

frequently (57%) and feel that utilizing cards is more secure than money (61%). 60% of

respondents state they would support to eradicate the physical procedure of paying.

Several key trends indicate Indonesians’ readiness to embrace the country as a digital nation

in the future. One of the trends is the growth of seamless digital payment methods. Visa has

collaborated with Cashlez in circulating 5,000 versatile POS gadgets to extend contactless

10http://www.hanoitimes.vn/economy/banking-and-finance/2018/11/81E0CEA6/vietnam-c-bank-to-further-push-cashless-payment-c-bank-governor/

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instalment acknowledgments in vacationer goals nationwide. This new POS offers a spot for

checkouts and fabricated connections, whilst also rewarding customer loyalty.

As payments become more digital and threats to payment confidentiality escalates, challenges

in payment securities are becoming increasingly acute. However, technologies such as EMV

chips, point-to-point encryption, tokenization and stronger biometric authentication are being

widely developed to strengthen payment security.

However, World Bank reports that only 27% of 2017’s transactions comprised of digital

payments. Meanwhile, debit card ownership has only reached 31% of the population in 2017.

Credit cards do not fare any better either11.

Indonesia’s large land mass makes it highly difficult to implement an across the board solution

for encouraging cashless payments. There are still many Indonesians that prefer to use cash

to meet their daily transaction needs rather than using credit cards. However, the central bank

has recorded an increase of more than 50% in the past year of debit and credit card use as

well as e-Money transactions. This increase proves that the country is adapting to electronic

payments. The value of e-Money across Indonesia reached nearly USD 80 million in 201712.

A Brief on the Singapore Context

Despite being a small country, ForestONE has identified Singapore as the second market to

expand to, primarily due to high natural spending power per capita and the general readiness

of the market.

With an average household natural spending of close to USD 3,455 per month, Singapore

stands at the top of the food chain when it comes to natural spending power. Moreover,

Singapore is a natural progression for marketing and expansion due to the similarities in

culture, natural spending habits and most importantly retail brands. In addition, the Singapore

government is the friendliest government among the countries that have identified for

expansion towards digital currencies and a huge advocator of cashless payments.

More than 8 in 10 Singapore consumers have adopted e-Payments while almost 3 in 5

Singapore merchants are accepting e-Payments. This bodes well with Singapore’s aim of being

a cashless society13.

ATM withdrawals have declined by more than $300 million a year, falling by 40% compared

with the previous year. The decline in ATM withdrawal figures have provided an insight into

11 http://fintechnews.sg/22095/indonesia/cashless-indonesia-e-money-card/

12 https://news.cgtn.com/news/3d3d414e7755544d79457a6333566d54/share_p.html

13 https://www.3ecpa.com.sg/blog/singapore-is-going-cashless/

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the wider shift towards a cashless society and it shows that consumers are shying away from

bricks-and- mortar bank branches14.

Following the rising adoption of e-Payments by Singaporeans in line with the Government’s

cashless economy policy, the cheque transaction volume has hit a low figure by 28% last year,

falling from 37% in 2015. The decline in cheque transaction volume shows that Singapore is

on the right track to becoming a cheque-free country by 202515.

Even with the government throwing its full weight in support of Singapore’s cashless

ambitions, a number of sectors and demographics remain hesitant to adopt mobile payment

alternatives as they still find comfort in hard, cold cash.

A Brief on the South Korean Context

As per the research conducted under the “Tokenomics” section of this whitepaper, it has been

shown that South Korea has the highest potential in terms of money spent on natural spending

per capita. For this simple yet incredibly important reason, South Korea has been selected as

one of the six countries which ForestONE is targeting to expand to.

14 https://www.bloomberg.com/news/articles/2018-06-20/singapore-set-to-cut-cash-cheques-on-path-to- digital-economy 15 https://www.3ecpa.com.sg/blog/singapore-is-going-cashless/

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F. INTRODUCTION TO BLOCKCHAIN

What is Blockchain?

Blockchain technology underlines Bitcoin and many other cryptocurrencies. It relies on a

public ledger that is continuously updating to record all transactions that occur. Blockchain is

ground-breaking as it allows transactions to be processed without a central authority— such

as a bank, the government or a payment company. The buyer and seller interact directly,

removing the need for verification by a trusted third-party intermediary. Hence, cutting out

costly middlemen and allowing businesses and services to be decentralized. Another

distinguishing feature of blockchain technology is the accessibility for involved parties. It’s akin

to Google Docs, where multiple parties can access the ledger concurrently. Today, if you issue

a cheque to your friend, you and your friend balance your respective check books when it’s

deposited. However, things start to go awry if your friend forgets to update their check book

ledger, or if you do not have enough in your bank account to cover the check (which the bank

has knowledge beforehand). With blockchain, you and your friend would view the same ledger

of transactions. The ledger is not controlled by either of you, but it operates on consensus, so

both of you need to approve and verify the transaction for it to be added to the chain. The

chain is also secured with cryptography, whereby no individual is able to change or alter any

data on the blockchain after the distributed ledger is updated.

Figure: How blockchain technology works

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In other words, blockchain technology is extremely useful in terms of three aspects:

● Transparency (All transactions on the ledger can be clearly seen and viewed by anyone

and everyone)

● Immutability (All transactions once recorded cannot be changed and stays permanently

on the blockchain)

● Decentralization (This provides a security layer as data nodes can no longer be a single

point of failure, in a blockchain system, there can never be a single point of failure)

So why exactly is ForestONE utilizing blockchain to enhance and strengthen its existing

ecosystems?

The answer: Blockchain technology makes it virtually impossible to counterfeit online

transactions. This is the most important feature which ForestONE, as a platform, wishes to

utilize. Forest1Coin’s main utility will eventually act as a form of payment for the merchants

of ForestONE and the integrity of the currency can only be protected through implementation

of blockchain technology. This ability is to prevent counterfeit currency and double spending,

which makes blockchain technology the perfect medium for ForestONE to adopt.

Benefits to Consumer

ForestONE constantly seeks to innovate and improve their abilities. This could come in the

form of more merchants or even more rewards and incentives when members use the

ForestONE platform. Hence, the ambition to move to a payment token also stems from the

desire to make the lives of the consumers efficient and convenient. The most important

element of using a digital token as payment instead of fiat lies in safety. Carrying cash around

in certain countries can be a dangerous endeavour. Transacting via cashless forms is much

safer as a consumer. Another advantage of using digital tokens lies in lowering foreign

exchange costs. When consumers travel, they tend to bear the bulk of the foreign exchange

costs. Transacting in digital currencies enables consumers to suffer less risk as the foreign

exchange spreads and risks are borne largely by the merchants and the ForestONE platform.

The last advantage which a consumer benefits by using a digital currency instead of a fiat

currency relates to how a consumer can now save time and effort in looking for a

moneychanger before they travel overseas, especially if they are sure that the destination

country has many merchants using or accepting digital payments.

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Benefits to Merchants

The first benefit to merchants comes in the form of enhanced security. A traditional drawback

to mobile payments has always been the lack of security. With the advent of blockchain

technology, transactions are immutable and the security layer is now more secure.

The second benefit comes in the form of loyalty points. Having blockchain technology means

merchants can monitor the loyalty points in a secure manner to calculate accrual of loyalty

points, followed by redemption of these points. These capabilities will be demonstrated later

on in the Whitepaper.

The third benefit lies in supply chain management. Blockchain can be utilized to follow the

voyage of every item in the inventory network from the producer to the wholesaler, and even

to a retailer's stockroom. The item is tracked closely to avoid any hidden and deliberate

tampering of goods and furthermore to raise caution when there is a medical problem (e.g.

an E. coli breakout for sustenance items).

The fourth benefit which merchants get to benefit from embracing blockchain technology is

the authenticity of goods and products. Blockchain is able to catch each touch point in the life

of an item, making it easier to decipher the legitimacy of the product.

The last benefit which this Whitepaper will highlight is the fact that embracing blockchain

technology also means better margins for both the consumer and the merchant as the

intermediaries, which provides no value to the marketplace, will be abolished. Blockchain

technology can eradicate these third parties by structuring a commercial centre that bolsters

distributed sharing instead of centralized sharing.

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G. TYPE OF BLOCKCHAIN USED

Protocol Comparison

Before scrutinising the details of what the ForestONE platform chose for a blockchain

protocol, it is important to understand the different available protocols and which one in

particular suits the ForestONE platform best. The following blockchain protocols are available

to issue a transaction coin:

• Ethereum

• Bitcoin

• Ripple

• Stellar

• Hyperledger

• Corda

For the sake of this Whitepaper, we will leave out Hyperledger and Corda, as these two

protocols are mainly used for enterprise transactions. More importantly, they sacrifice the

immutability function as there is a master access, called a “master node”, which can be used

to alter transactions if needed. This Whitepaper seeks to only discuss protocols pertaining to

public chains because a full public chain will be able to enjoy the immutable features of

blockchain technology.

Below provides a brief description of each protocol and their uses:

a) Bitcoin

The protocol on which the cryptocurrency Bitcoin is transacted, this was the earliest of the

blockchain protocols. The following are the key features of the Bitcoin protocol: public

blockchain, i.e. permission-less, where any party can join. The underlying technological

components are cryptographic hash function, digital signature, private-and-public key

encryption, peer-to-peer (P2P) network and proof of work (POW) consensus algorithm. The

protocol allows users to conduct non-reversible transactions without having to explicitly trust

a third-party. Every node has the complete information on the blockchain, making the

network a decentralized one. Transactions contain unique transaction ID, input Bitcoin

address, the number of Bitcoins to be transferred and the output Bitcoin address of the

recipient.

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The transaction making process involves the initiator of the transaction and ‘miner’, i.e.

combination of special-purpose software, powerful hardware and their user. The transaction

initiator pays transaction fees to the miner, who tries to include the transaction in the next

block. A block is processed in every 10 minutes and the transactions included in that are then

recorded in the blockchain. Creating a new block requires not only the transaction information

of the current transaction, but also a reference to the last recorded block. The last recorded

block is not known, and the miner needs to solve a complex cryptographic puzzle to find it,

and this essentially involves a large number-crunching operation done at a high-speed. Hence,

the miner needs to try one number after another, which requires high computing power.

Majority of the participating nodes must approve the transaction. Since this is a decentralized

network, it is impossible for anyone to capture the majority of the computing power on the

network, thus making the network very secure. While POW mining ensures high security of

blockchain, it it also computing-power-intensive resulting requirements for high amounts of

energy16.

b) Ethereum

Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some

significant technical differences between the two, the most important distinction to note is

that Bitcoin and Ethereum differ substantially in purpose and capability. Bitcoin offers one

particular application of blockchain technology, a peer to peer electronic cash system that

enables online Bitcoin payments. While the Bitcoin blockchain is used to track ownership of

digital currency (Bitcoins), the Ethereum blockchain focuses on running the programming

code of any decentralized application.

In the Ethereum blockchain, instead of mining for Bitcoin, miners work to earn Ether, a type

of crypto token that fuels the network. Beyond a tradeable cryptocurrency, Ether is also used

by application developers to pay for transaction fees and services on the Ethereum network.

There is a second type of token that is used to pay miners fees for including transactions in

their block, called gas, and every smart contract execution requires a certain amount of gas to

be sent along with it to entice miners to put it in the blockchain17.

c) Ripple

Ripple Net is a network of institutional payment-providers such as banks and money services

businesses that use solutions developed by Ripple to provide a frictionless experience to send

money globally. For example, Mr. Jones lives in New York and has a chocolate box he doesn’t

need. He is very interested to watch a baseball game but does not have a ticket. Secondly, Ms.

16 https://medium.com/edchain/a-comparison-between-5-major-blockchain-protocols-b8a6a46f8b1f 17 https://blockgeeks.com/guides/ethereum/

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Smith lives in Los Angeles and has a rare stamp she would like to give away for a chocolate

box. Lastly, we have Mr. Brown who lives in Alaska and is looking for a rare stamp, and he has

a ticket for a baseball game in New York. In our current system, these people would probably

never find each other and remain with their ‘not valuable’ valuables. However, in the Ripple

world they could say: “Hey, I have chocolate, I want baseball” and the system will look for the

shortest and cheapest combination to make this transaction happen. Moreover, the platform

allows for payments to be made in any currency including Bitcoin and have a minimal internal

transaction commission of $0.00001. The only reason it is not free is to prevent DDos attacks.

What is XRP?

XRP is a token used for representing the transfer of value across the Ripple Network. The main

purpose of XRP is to be a mediator for other - both cryptocurrencies and fiat - exchanges. The

best way to describe XRP is a “Joker”, where “the card that can be any other card”. For

someone looking to exchange Dollars to Euros, it can be Dollars with Dollars and Euros with

Euros to minimize the commission. As highlighted above, the transaction cost on Ripple is

$0.0000118.

d) Stellar

The Stellar network is a blockchain-based distributed ledger network that connects banks,

payments systems and people to facilitate low-cost, cross-asset transfers of value, including

payments. Stellar has its native cryptocurrency called Lumens, which is denoted by the symbol

XLM. All three terms—Stellar, Lumens and XLM—are used interchangeably, although Stellar

is the blockchain network, Lumen is the cryptocurrency and XLM is its trading symbol. Stellar

is operated by a non-profit organization called Stellar.org and was founded by Jed McCaleb,

who also co-founded another popular cryptocurrency, Ripple. Similar to Ripple, Stellar is also

a cross-border transfer and payment system that connects financial entities with an aim to

significantly reduce the transaction costs and time lags. Each transaction has a standard

mining fee of 0.00001 Lumens19.

A brief description of each type of coin is provided above. This Whitepaper will simplify the

overall structure of the above stated coins and do a cross examination on the strengths and

weaknesses of each blockchain protocol.

18 https://cointelegraph.com/ripple-101/what-is-ripple#what-is-ripplenet 19 https://www.investopedia.com/terms/s/stellar-cryptocurrency.asp

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Field of

Comparison Bitcoin Ethereum Stellar Ripple Mastercard

Average

Transaction

Confirmation time

1 hour 15 minutes 3 to 5 seconds 3 to 5 seconds 1 to 3 seconds

Average

Transaction fees

$0.61 per

transaction

$0.02 per

transaction

$0.01 for

300,000

transactions

$0.01 for 3

transactions 0.2% to 1%

Transactions

per second

2 transactions

per second

7 transactions

per second

3,000

transactions per

second

3,000

transactions per

second

5,000

transactions per

second

Consensus

Mechanism Proof of Work Proof of Work

Federated

Byzantine

Agreement

Ripple

Consensus

Algorithm

Private Server

Validator Control Distributed Distributed Decentralized Centralized Highly

Centralized

Collaborating

Companies

No official

partner due to

anonymity of

creator

Cisco, JP

Morgan, Intel,

AION

Foundation

Stripe, IBM,

Deloitte, ICICI

Bank

Mercury FX, IDT,

SBI Holdings,

MoneyGram

All major banks

across the world

Table: Comparison across the different blockchain protocols

Conclusion: From the table above, Stellar is the preferred choice in terms of transaction speed

and transaction throughput rate. As a community and transaction platform, ForestONE

believes that widespread adoption is key to the success of the platform. Hence, Stellar has

officially been endorsed as the official blockchain protocol that ForestONE will use to issue its

digital tokens.

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Why Stellar?

To understand why ForestONE chose the Stellar protocol, further elaboration will be provided

on the:

a. Consensus Model

b. Stellar Consensus Protocol

c. Byzantine Agreement

Consensus Model

The way an agreement is achieved on what to record in the distributed ledger among the

nodes. Each node in the network holds a copy of the distributed ledger. To continuously record

new data, current data recorded needs to be finalized and every ledger has to be the same.

Every copy of the distributed ledger must contain the same data. Although the type of data

recorded will undoubtedly differ from the different blockchains, this is essentially how a

blockchain functions.

Stellar Consensus Protocol (SCP)

Defined as the underlying consensus algorithm of the Stellar Network that functions as a safe

construction of the Federated Byzantine Agreement (FBA). The Stellar network implements

many similar mechanisms for distributed fault tolerance across a financial network as other

cryptocurrencies with some distinct variations.

Byzantine Agreement (BA)

The SCP is derived from the concept of BAs and is tailored towards a decentralized and

permission-less network using quorums and quorum slices. Understanding the SCP requires a

brief history of BAs and how it compares to the FBAs followed by a description of quorums

and quorum slices, the federated voting model and the commit/abort ballot system of the SCP

protocol.

BA is the Byzantine fault tolerance of distributed computing systems that enables them to

come to consensus despite arbitrary behaviour from a fraction of the nodes in the network.

BA consensus makes no assumptions about the behaviour of nodes in the system. Practical

Byzantine Fault Tolerance (pBFT) is the prototypical model for BA, and it can reach consensus

fast and efficiently while concurrently decoupling consensus from the resources (i.e. financial

stake in POS or electricity in POW)

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However, BA (pBFT) does not scale well and requires a large communication overhead

between all the participating nodes. The system needs a unanimous agreement on

membership of the network to mitigate Sybil attacks.

Federated Byzantine Agreement was introduced by the SCP Whitepaper and explicitly

addressed the limitations of BA by fostering a consensus protocol that guarantees the

following:

• Decentralized Control: ForestONE intends for their coins and their transactions to be as

spread out as possible. The ledger containing the transactions must be immutable, as

this prevents any double spending, a problem that is critical to avoid as ForestONE will

function primarily as a transaction utility coin.

• Flexible Trust: ForestONE chose the Stellar protocol due to the flexible trust system. This

means that while the protocol is flexible, there must be trustlines established before any

transaction can occur. This makes Stellar less susceptible to attacks. As compared to

Ethereum, the flexibility provided by Ethereum for developing complex smart contracts

attracted early adopters making Ethereum the most widely used portal. This popularity of the

portal resulted in congestion within the network and its own flexibility made the platform prone

to anonymous hackers which resulted in the code becoming vulnerable and exploitable. As per

a research conducted by the National University of Singapore on Ethereum smart contracts,

there were nearly a million active live smart contracts. When testing initiated, more than 34,000

smart contracts showed vulnerability with over 2,000 smart contracts showing high-risk

vulnerability, which meant that these contracts could be manipulated “easily” by a third party.

• Low Latency: Stellar was chosen because ForestONE wants their users and merchants

to enjoy a fast and seamless payment. Hence, ForestONE needs a protocol which will

ensure minimal lag and maximum speed. The average settlement time for Stellar

transactions is 5 seconds. For Ethereum, it is 3.5 minutes. This gives Stellar a tremendous

advantage over Ethereum. The transaction fee on the Stellar network is also

considerably smaller when compared to that on the Ethereum network. The fee for

100,000 transactions, would be approximately 1 XLM. There are no fees required to be

paid to third party exchanges for transactions. This is only a fraction of the fees we

usually pay on the Ethereum network, which is around 0.01%.

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The Stellar Consensus Model

One of the primary consequences of FBA compared to BA is that the FBA system is open to

nodes joining in a permission-less setting rather than through a closed (permissioned)

membership list. In other words, the nodes within the Stellar consensus model and

memberships are not solely decided by a single party. This is how decentralization and

immutability are obtained.

FBA comes to agreement on state updates by using a unique slot where update dependencies

between nodes are inferred. Nodes must agree on the slot update in each round of consensus.

Since the system is open to nodes joining and leaving the network at will, a majority-based

quorum consensus mechanism will not work. Instead, the FBA in the SCP employs quorum

slices that are subsets of quorums which are capable of convincing particular nodes of an

agreement.

Quorums and Quorum Slices

A quorum is defined as a set of nodes needed to reach an agreement in a distributed system.

When nodes attempt to reach an agreement, they communicate with each other (under the

assumption no messages are forged (this is where cryptography comes in)) and concur that

an update on the state is valid once a specific threshold of nodes in agreement is met.

Quorum slices are the subsets of a quorum that are capable of convincing particular nodes for

an agreement, meaning that a node can rely on multiple sets of nodes asserting statements.

A node can depend on numerous slices for information, and this trust can be based on

information from outside of the system. Notably, trust is set up within the node’s config file,

allowing for the dynamic formation of quorum slices and subsequent decentralization20.

For example, Node A can determine that it does not trusts banks, resulting in the need for another quorum slice that Node A trusts to come to an agreement with banks. Once an agreement is reached, a quorum is formed. The graphical description below provides a better explanation for this example. Node 7 (and 8) would represent Node A that does not trust banks21.

21 https://blockgeeks.com/guides/what-is-stellar-blockchain/

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Figure: Graphical highlight of how quorum slices work22

Traditional BA requires that all nodes accept the same slices, rather than discerning sources of trusted information for themselves. Therefore, there is no way to distinguish slices and quorums, requiring a closed and permissioned member access to the network.

The FBA model relies on individual nodes to choose their own sets of quorum slices, effectively

enabling the organic and more decentralized formation of quorums that rely on individual

decisions, hence the name “federated.”

According to the SCP white paper, “A protocol can guarantee an agreement only if the quorum slices represented by function Q satisfy a validity property, which is called a quorum intersection.”

Quorums intersect if a node is shared. Good quorums share nodes and lead to overlapping

quorums. Nodes are responsible for ensuring that the selection of quorum slices do not violate

quorum intersections and typically requires that nodes select slices that are conservative and

lead to larger quorums.

When quorums do not intersect, they are known as disjoint quorums. Disjoint quorums are

bad quorums that can lead to contradictory statements that undermine consensus. To ensure

a proper slice selection process, nodes need to balance safety and liveness.

22 https://blockgeeks.com/guides/what-is-stellar-blockchain/

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H. INTEGRATION OF BLOCKCHAIN TECHNOLOGY ONTO THE FORESTONE PLATFORM

Forest1Coin Key Utility – making big data collection/merchant advertisements easier, faster and more effective In recent years, the global big data industry has seen explosive growth market scale Based on a report from the IDC and the recent Cisco Study, there is a prediction that the collective sum of the world’s data will grow from 33 zettabytes in 2018 to 175 zettabytes by the year 2025. That is a staggering compounded growth of over 60%.

Problem: Merchants and Users lack clear distinctive information extracted from Big Data on spending habits, thus increasing inefficiencies in society. At present, big data still faces a number of issues, such as high levels of risk for data security, potential violations of user’s privacy, and unclear ownership of data.

Such problems are not just problems of ethics and user privacy. The implications are far more endless and stretches out further than ever. These are problems which also require the investment of manpower and technological solutions from companies managing these inherent risks and costs of big data. In contrast, blockchains are low-complexity systems which integrate proven and reliable computing and data management technologies such as distributed data storage, point-to-point transmission, consensus mechanisms, and encryption algorithms. These features can effectively compensate for the existing problems with big data. Using big data blockchain service technologies, ForestONE aims to help grow the platform by using FOC as a way of certification and rewarding correct behaviour. How does the process work? Users who participate in specific processes on the ForestONE platform such as registration, watching advertisements or even recording down their purchases through the app will have their level of activity recorded in units of F1LP (this is the behavioural marker, the “points” which users gain) and these data tags/”loyalty points” will be recorded on the blockchain. These behavioural markers or points can then be exchanged for FOC. This is where the concept of “Consumption Mining” kicks in. As a user of the ForestONE App, the user can earn F1LPs by watching advertisements, recording down their consumer behaviour on the ForestONE App whenever they buy a product or use the F1Voucher, the ForestONE app ensures authenticity of feedback by showing the option to submit the purchasing behaviour only when F1Vouchers are redeemed at participating stores.

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Subsequently, the more dynamic the client is, the more F1LPs that can be achieved, and the more FOC that can be mined. This delivers win-win situation for both the platform and the clients themselves and enables all gatherings to accomplish their objectives. A client's day by day behavioural tag value, for example their F1LP value will be calculated in relation to the overall and total F1LP value recorded on the system that day and a relative portion of the FOC would be rewarded to the user.

The key point here is this, the more merchants which join us, the more extensive the range of

consumption habits which we can record and utilize. We want users to have this data as well and

both merchants and users are welcomed to purchase this data from us using the FOC which they

have on hand. This is a key contribution factor to the value of FOC and the paper will explain more

on this later.

In addition to consumption mining, it is our goal to allow ForestONE’s merchant partners to also be

able to provide FOC application scenarios to attract users and increase user loyalty and retention.

These can include advertising applications, e-commerce payment systems, cross-border e-

commerce payment systems, game payment systems, store payments, travel benefits,

crowdfunding, and other scenarios.

Ways for Users to earn F1LP which can be converted into FOC:

- Watch selected advertisements and answer questions on those advertisements

- Participate in surveys (Merchants can pay the platform in FOC to customize their surveys)

- Play games which Merchants designed

- Register for ForestONE or ForestONE merchants’ marketing campaigns/events

- Commit 30 seconds to watching advertisements

While the mechanism of earning F1LPs seems straightforward, there is a hidden layer where more

data can be collected. The ForestONE platform plans to combine the engine of Instagram, Spotify

and Facebook to collect data on what kinds of visual content are watched by which age group of

people the most. This is another crucial milestone within the ForestONE data collection roadmap.

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Introducing the Forest1 Advertisement Engine

As a normal user of Spotify, the Spotify Engine cleverly identifies which songs the user loves the

most and recommends other songs which the user may love, this same engine is used on Netflix and

YouTube.

Whereas, on Instagram, the user gets to choose under the Instastory feature which story he or she

participates and views the most and on Facebook, users get to “like” certain posts.

One might wonder, what if the three successfully merge into a new form of artificial intelligence?

The result? A new engine which allows users to choose the advertisements which they want to

watch and which ones they do not want to watch while at the same time memorising these

preferences. In other words, the ForestONE app aims to achieve the state whereby users can earn

F1LPs by watching random advertisements on the ForestONE app for a stated amount of time and

users are allowed to swipe away advertisements which do not catch their eye, for the

advertisements which do catch their eye, they can choose to “like” it as well. This is an engine which

the ForestONE mobile application plans and aims to launch as part of the data that is to be collected.

This feature will answer critical questions such as:

- Which forms of content can capture the highest amount of attention?

- Which kind of demographics of audience corresponds most strongly to which type of video content

- Ascertain the exact and precise effectiveness of different video content

Example of Insta Story

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In summary, the Forest1 Advertisement Engine achieves 3 critical elements:

- Collection of user visual activity data

- Compiling data reports based on that data and using it as a product which can only be bought by FOC

- Creates a space for merchants to advertise, increasing advertising revenue

- Initiate more spending by the existing members of the ForestONE platform on the affiliated

merchants, generating more sales for both the merchant and ForestONE as a platform, which earns

part of its revenue through the MDR (Merchant Discount Rate) given by merchants.

The Consumption Mining Model

When a user pays or transacts, that is considered as a qualifying consumption behaviour and will be

converted to the appropriate F1LP value/data tag and recorded on the blockchain. Therefore, the

increase in the numeric value of F1LP on the ForestONE platform effectively equates to the total

amount of commercial value and efficiency accumulated as a result of user behaviour. The higher

the value of user behavioural markers on the platform each day, the more value the platform

produces. There is no upper limit on the total number of F1LP on the platform. The temporal data

recording method of the blockchain makes it easy to analyse a user’s behavioural data to prevent

fraud and falsification. Users will also authorize the platform to send push notifications and

confirmation tasks when necessary, allowing verification of the user’s identity and confirmation of

their desired action upon the completion of the specified task, after which a guaranteed authentic

behavioural value mark will be obtained. When the user's personal or activity data has been

anonymized for sharing on ForestONE’s big data platform, FOC can be given as a reward-based

incentive.

At the same time, the user authorizes the ForestONE platform to notify them of tasks which can be

completed to earn FOC, and after the system verifies the user's completion of these specified tasks,

the user can also obtain F1LP. When a user has accumulated F1LP to a certain threshold, they can

convert it to FOC on the platform.

In order for the above to be effectively executed, the equivalent of a smart contract will be created

on the Stellar blockchain to enable a direct link between the ForestONE app and the accumulation

of F1LP on the blockchain whenever a user purchases any product using the F1Voucher or in the

near future, using FOC.

A second smart contract which compiles the total amount of F1LP on the blockchain and the

available FOC will oversee the process of how much F1LP can be converted into how much FOC.

These 2 smart contracts will be the core of the Consumption Mining Model. The formula is set as of

now but subjected to review, as 300:1 (earning 300 F1LP will get you 1 FOC).

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Thus far the ideas expounded will result in the following flowchart:

Among the 20% of tokens held by the Management Team, up to 60% of that will be used for the purposes of Consumption Mining. This figure represents the data assets converted from the combined total data value based on the consumer purchasing data collected globally. Consumption Mining Projected Statistics: 2% of total token supply (representing 20 million FOC) will be allocated for consumption mining in Year 1. This total will then be increased 15% every year. An example to illustrate this would be: 2%*115%= 2.3% in Year 2, 2.3%*115%= 2.645% in Year 3, until the allocated volume reaches at least 8%.

Post 8%, we expect the FOC in the market to continually circulate back to ForestONE as merchants continue to pay in FOC to purchase data reports and users using FOC to exchange for F1Vouchers.

ForestONE

platform

User watches

advertisements/rer

egister/any action

which can earn

them F1LP

User joins

ForestONE

User earns F1LP

User exchanges

F1LP for FOC

Merchants can

purchase data reports

from ForestONE

using FOC

FOC can be

converted into

FOCVouchers/

F1Vouchers in the

short term

“Smart Contract” 2

“Smart Contract” 1

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Forest1Coin Alternative Utility – Adoption of Payment ForestONE aims to ensure that consumers who purchase Forest1Coins are not used for speculation. Proper utility is tied to the coin because this coin is in turn tied to an existing platform with existing merchants on-board. As mentioned previously, these existing merchants include brands such as KFC, PETRONAS (over 1200 petrol kiosks), PETRON (over 650 petrol kiosks), Starbucks, Giant, llaollao, Watsons, Cold Storage, Marks & Spencer’s, Parkson, Uniqlo, KK Mart (a local 7-Eleven like convenient store with over 350 outlets), and 99 Speedmart (popular neighbourhood grocery store with over 1,500 outlets). Hence, a utility roadmap for the Forest1Coin has been carefully designed as this utility will highly influence the rate of regional expansion that ForestONE can expect to achieve in the next 2 to 3 years. These expansion efforts and the funds needed will not only come from the utility token offering but will also come from our independent revenue streams and other funding sources, such as private and/or corporate equity.

In terms of FOC as a purchasing currency,

• Short Term: Exchanging Forest1Coins for FOC Vouchers and Participating in the

Forest1Coin weekly grand draw. Participating in the Forest1Coin weekly grand draw may

also aid coin holders in gaining F1Points.

• Mid Term: Being able to use Forest1Coins directly at stores which accepts Forest1Coins

without needing to exchange Forest1Coins for F1Vouchers via the fiat on ramp

mechanism and participating in the Forest1Coin weekly grand draw. Participating in the

Forest1Coin weekly grand draw also provides them potential additional gains in terms

of F1Points.

• Long Term: Being able to use Forest1Coins directly at stores via the fiat on ramp

mechanism across several countries within Southeast Asia. For travellers and tourists,

this makes it safer for them as they do not need to carry cash. It also enables these

travellers and tourists to save costs on foreign exchange as they no longer need to

exchange for local currency to spend on local stores and services. At this stage, the

Forest1Coin weekly grand draw will still be ongoing. Participating in the Forest1Coin

weekly grand draw also stands to gain them F1Points.

• Grand Term: Once Forest1Coins become widely adopted, Forest1Coin may become a

regional transaction currency. Forest1Coin may not just be a transaction coin but may

also be a medium of exchange between transactional currencies, in accordance with

local regulations. With our respective offices strategically located worldwide, users may

expect to cash out their F1Points earned from using the Forest1Coins directly via the

ForestONE platform in local currency. Users may also sell their Forest1Coins across

borders as a way of exercising remittance functions as the ForestONE platform may by

then be prepared to purchase these coins back in local currencies, if required. At this

stage, the elements mentioned in the mid and long-term views will still apply.

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Infusing Forest1Coin into the ForestONE Ecosystem Before engaging in this segment, potential consumers may choose to watch this short video explaining how the Forest1Coin works.

Link: https://www.youtube.com/watch?v=4LU0x8t19DY&feature=youtu.be

Within the ForestONE ecosystem, an element of rejuvenation and regeneration is present.

Through the M2O Natural Spending Recycling Program, users can expect to be rewarded when

communities spend and further grow their community. However, the current ForestONE

ecosystem has not integrated the use of Forest1Coins and this section seeks to explain how it

will be integrated into the ecosystem and what benefits members stand to gain when

purchasing Forest1Coins.

The current ecosystem consists of Fiat Cash, F1Points and F1Vouchers. F1Vouchers are further

broken down into “Scan and Redeem” merchants and normal purchase merchants. No matter

the type of merchant that the user purchases the goods or services from, the process is

straightforward. Users use fiat cash to purchase F1Vouchers and then use these F1Vouchers

at the stores of the merchants. Normal users are then rewarded through the M2O Program,

the recycling of their community’s natural spending in the form of F1Points. The rewards are

generated by recycling the entire ForestONE Community’s Natural Spending, recycling 0.1%

of the total spending and reward it back to the Members. This cycle of rejuvenation and

rewards is what allows the ForestONE community to grow endlessly and to keep their user

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acquisition costs low, by making each user an active stakeholder in the business. It is a

powerful model which enhances the longevity of the business and makes providence for lower

costing expansions into overseas markets and market hype generation. These F1Points also

carry with them a buy-back function where the platform itself can purchase these points back

from the user, using cash. However, this will be transacted at a discount of 10% for Premium

Membership Partners and 20% for Free Membership Members.

So, how does this coin strengthen the ecosystem and allow for greater rewards as a holder or

user of the Forest1Coin? Through the Forest1Coin weekly grand draw.

How does the Forest1Coin Weekly Grand Draw Work?

Before explaining the mechanisms of the Forest1Coin weekly grand draw, it is important to

note that even without the Forest1Coin weekly grand draw, holders of the FOC can directly

convert their FOC into F1Vouchers to use at any of the registered merchants. ForestONE will

be working towards full acceptance of the Forest1Coin as a form of payment by the merchants

in their mid to long term plans. Besides the obvious utility of payment for goods and services,

The ForestONE platform also wishes to reward the coin holders through the Supporter’s

Rewards Program (SRP). This program is a way for token holders to earn additional loyalty

rewards via holding onto Forest1Coins. To understand the SRP, it is vital to understand the

Forest1Coin weekly grand draw. In order to participate in the Forest1Coin weekly grand draw,

coin subscribers need to sustain a fixed specific balance in terms of FOC. This means that coin

buyers may potentially be disincentivized to sell the coins, thus holding onto the coins to

participate in the Forest1Coin weekly grand draw.

Forest1Coin

Balance Ticket Level

Probability of

Winning

Ratio of FOC to

F1Points Rewards

1000 Bronze 70% Pro-Rated

1000 – 9999 Silver 75% Pro-rated

10000 – 99999 Gold 85% Pro-rated

100000 and above Diamond 99.9% Pro-rated

Table: The Draw Ticket Mechanism

As described in the table above, different Forest1Coin balances will entitle users to different

ticket levels which in turn entitles the coin buyers and users to different winning probabilities

in the Forest1Coin weekly grand draw.

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Where does this prize comes from?

As seen in the previous paragraphs, the ForestONE platform is a natural ecosystem where

users acquire other potential users using the M2O and CGP structures. The rewards for

Forest1Coin holders from the Forest1Coin weekly grand draw will directly be dependent on

the size of these communities. So, how does it work?

Basically, when the users receive the 0.1% of their entire community’s natural spending, they

receive it in the form of F1Points. The ratio of the F1Points to Cash (RM) ratio here is 1:1. This

means that if their community size has 21,844 people (which is the maximum number of

people a community can go up to) and they spend a total of RM21 million (approximately

USD5 million), this particular user will receive 0.1% of RM21 million, in the form of F1Points

as a reward. This equates to approximately RM21,000, which in turn equates to 21,000

F1Points. This is based on the M2O Natural Spending Recycling Program. The Forest1Coin

weekly grand draw taps on a separate mechanism. The Forest1Coin weekly grand draw is

ForestONE’s way of retaining and rewarding the coin buyers. Therefore, it can also be seen

that the ForestONE platform will be devoting up to 10% of the total margins gained from the

average Merchant Discount Rate (MDR) to the Forest1Coin weekly grand draw, covering up

to a maximum of 1% MDR. From a commercial perspective, this margin can be seen as

ForestONE’s marketing budget.

What is the MDR?

For example, in a scenario where ForestONE implements a 1% MDR.

A ForestONE member who uses 100 F1Vouchers (RM 1 = 1 F1Voucher, so a total of RM100

was paid to ForestONE as a platform to purchase the F1Vouchers) to redeem at a merchant's

shop. Eventually ForestONE will pay the merchant RM99 (keeping 1% as MDR).

For further illustration, assume the margin gained from the average Merchant Discount Rate

for that week is USD375,000. 10% of this will go into the Forest1Coin weekly grand draw,

which equates to USD37,500. This USD37,500 will be converted into equivalent F1Points and

will be inserted into the Forest1Coin weekly grand draw as a way to reward the supporting

coin buyers. Please take note that all rewards are in F1Points, not in cash.

Supporter’s Rewards Program (SRP)

How does the pool determine what is the amount of F1Points that each coin holder stands to

win in the Forest1Coin weekly grand draw?

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A numerical example is provided below:

Assume that the total amount of F1Points accrued from the SRP program is 37,500 F1Points,

where USD 1 is 1 F1Point equivalent and the total amount of coin balance registered within

the ForestONE main application comes up to 1,000,000 coins.

ForestONE will take 37,500/1,000,000 = 0.0375 F1Points/FOC.

As a coin holder, if you are currently holding onto 10,000 FOC, the Forest1Coin weekly grand

draw prize for that week will amount to:

10,000 x 0.0375 = 375 F1Points

Do note that a time limit for entry will be imposed each week for the Forest1Coin weekly grand

draw. However, if users miss one week of the Forest1Coin weekly grand draw, the prizes for

that week will accumulate to the next week and continue accumulating so forth, up to a

maximum of one month. In a new month, all prizes and rewards are reset to ensure systemic

consistency and fairness.

For all FOC holders, it is essential to remember to log in onto the main application to spin the

wheel once a week. There will be many attractive prices to be won.

Difference between F1Vouchers and FOC Vouchers

The FOC Vouchers available for purchase are tailored specially for the Forest1Coin Buyers. This

feature will be made available on the main application where there will be a special store for

members to use their FOC to exchange for FOC Vouchers. This is most likely a temporary

arrangement as we work towards full scale implementation of the fiat on ramp payment

mechanism. Please note here that FOC Vouchers and F1Vouchers are not the same set of

vouchers. FOC Vouchers are meant specially only for FOC Buyers.

Benefits for Token Introducers

ForestONE appreciates support of all kind, even if users are not a direct supporter by buying

large quantities of Forest1Coins. Thus, ForestONE has a referral program for all token

introducers. To obtain more details, do speak to one of our key management personnel.

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Figure: Overall flow of incentives, rewards and interaction between the existing application and the blockchain ecosystem

Attached above is the complete ecosystem of how ForestONE Users and FOC Holders will both

thrive in a common ecosystem. This ecosystem allows for better integration and better market

coherence as both ForestONE users and FOC supporters will get a constant source of

membership rewards. This is how ForestONE rewards its supporters, be it a traditional

ForestONE user or a FOC holder.

Tentatively, only FOC holders before the Forest1Coin listing will be entitled to the Forest1Coin

weekly grand draw. This program is purely for supporters of the coin and in the ForestONE

platform, not to serve as an incentive or basis of investment for speculators.

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I. TOKENOMICS

Overview The following table describes the data points captured and assumptions used to estimate the token price of ForestONE.

Description Malaysia Singapore Vietnam Philippines Indonesia Thailand Korea

Population (Million) 32,454,455 5,868,104 97,429,061 108,106,310 269,536,482 69,306,160 51,225,308

% Population Captured by ForestONE

20% 20.0% 20.0% 15.0% 15.0% 15.0% 15.0%

Population Captured by ForestONE

6,490,891 1,173,621 19,485,812 16,215,947 40,430,472 10,395,924 7,683,796

Average Natural Spending (USD/Person/Month)

267.88 1,285.08 119.81 26.46 7.13 20.22 1,340.09

Distribution of Average Expenses Captured

65.2% 41.60% 62.53% 57.97% 59.21% 53.14% 64.30%

Captured Natural Spending (USD/Person/Month)

174.66 534.59 74.91 15.34 4.22 10.75 625.86

% Natural Spending through ForestONE

35.0% 30.0% 30.0% 20.0% 20.0% 20.0% 20.0%

Natural Spending through ForestONE (USD/Person/Month)

61.13 160.38 22.47 3.07 0.84 2.15 125.17

Total Natural Spending through ForestONE (USD/Month)

396,790,498 188,222,637 437,930,957 49,750,944 34,138,463 22,344,515 961,796,228

Total Natural Spending through ForestONE (USD/Year)

4,761,485,976 2,258,671,644 5,255,171,489 597,011,327 409,661,552 268,1314,185 11,541,554,735

25,091,690,909

Allocation to Token Holder Pool 0.1%

Value of Token Holder Pool 25,091,691

Total Tokens 1,000,000,000

PE Ratio 10

Earnings per Token (USD) 0.025091691

Price per Token (USD) 0.25

Soft Cap (USD) 5,000,000

Middle Cap (USD) 63,000,000

Hard Cap (USD) 175,000,000

Market Cap (USD) 250,000,000

Table: Overall Tokenomics of the Forest1Coin

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a) Malaysia Population in Malaysia Despite a dedicated roadmap towards expanding into various countries within the South East Asian region, ForestONE is currently only present in the Malaysian market. Ranked number 45 in terms of population worldwide and backed by a steady Y-o-Y growth of 1.29-1.84% over the past 10 years, Malaysia has grown to a population of 32,454,455 in 201921. The large population size coupled with a young median age of 28.1 years represents a suitable target market for ForestONE to establish and grow its business23.

Figure: Malaysia Population (2010 – 2019)

23 https://www.worldometers.info/world-population/malaysia-population/

25.0

26.0

27.0

28.0

29.0

30.0

31.0

32.0

33.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Mal

aysi

a P

op

ula

tio

n (

Mill

ion

s)

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Average Household Natural Spending The mean monthly household consumption natural spending for Malaysia increased from RM3,578.00 (USD858.03) in 2014 to RM4,033.00 (USD967.15) in 2016, growing at 6.0 per cent per annum at nominal value24. Assuming the same per annum growth rate the mean monthly household consumption natural spending for Malaysia is estimated at RM4,803.37 (USD1,151.89) in 2019. The distribution of household natural spending in Malaysia is broken down into several categories below:

Figure: Distribution of Household Natural Spending in Malaysia25

Average Household Size The average household size in Malaysia is 4.3 per household26.

24 https://www.dosm.gov.my/v1/index.php?r=column/ctwoByCat&parent_id=119&menu_id=amVoWU54UTl0a2 25 https://www.numbeo.com/cost-of-living/country_result.jsp?country=Malaysia 26 https://www.arcgis.com/home/item.html?id=dc14741c3548429eb6c2a5a1836c2c15

6.10% 4.30%

9.40%

4.30% 39.10%

20.10%

16.70%

Markets

Restaurants

Transportation

Sports and Leisure

Rent

Clothing and Shoes

Utilities

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Average Natural Spending per Person Based on the assumption that the average household natural spending is RM4,803.37 per month (USD1,151.89 per month) and there is an average household size of 4.3 per household, it is assumed that the average natural spending per person in Malaysia is RM1,117.06 per month (USD267.88 per month).

Estimated Natural Spending through ForestONE For this estimate, it is assumed that only natural spending from the following categories are captured through ForestONE:

a. Markets (comprising of items such as milk, rice, eggs, local cheese, chicken breasts, apples, oranges,

bananas, tomatoes, water, cigarettes, etc.) (39.1%);

b. Restaurants (9.4%); and

c. Transportation (16.7%)

This equates to 65.2% of total natural spending. A natural spending capture factor of 35.0% is

assumed as not all of the natural spending from these areas are expected to be captured through

ForestONE. Based on these assumptions, the estimated natural spending captured through

ForestONE is:

USD267.88 per month x 65.2% x 35.0% = USD61.13 per person per month

The short-term aim is for ForestONE to capture 20% of population in Malaysia, which would provide

a reach of:

32,454,455 people x 20% = 6,490,891 people

The estimated total natural spending through ForestONE for Malaysia is estimated to be:

USD61.13 per person per month x 6,490,891 people x 12 months = USD4,761,485,976

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b) Singapore Population in Singapore In addition to Malaysia, Singapore represents one of the six other countries that ForestONE will be looking to first expand into. Ranked number 114 in terms of population worldwide and backed by a steady Y-o-Y growth of 1.32-2.50% over the past 10 years, Malaysia has grown to a population of 5,868,104 in 2019. Despite a relatively low population coupled with a high median age of 40.5 years, Singapore still represents a suitable target market for ForestONE to establish and grow its business due to its reputation as the financial hub of South East Asia27.

Figure: Singapore Population (2010-2019)

27 https://www.worldometers.info/world-population/singapore-population/

4.6

4.8

5.0

5.2

5.4

5.6

5.8

6.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Sin

gap

ore

Po

pu

lati

on

(M

illio

ns)

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Average Household Natural Spending

The mean monthly household natural spending for Singapore was SGD4,699.00 (USD3,429.93) in 201327. Assuming household natural spending grows in line with GDP growth of Singapore at 3.6% per annum28, the mean monthly household natural spending in Singapore is estimated at in SGD5,809.84 (USD4,240.76) 2019. The distribution of household natural spending in Singapore is broken down into several categories below:

Figure: Distribution of Household Natural Spending in Singapore29

Average Household Size The average household size in Singapore is 3.3 per household30.

28 World Bank

29 https://www.valuechampion.sg/average-household-budget-singapore 30 https://www.arcgis.com/home/item.html?id=d8f21bb3b39b401192e678c92edad325

20.60%2.70%

30.10%

4.40%

14.10%

3.80%

6.90%

5.40%12%

Fast and Food Serving Services Clothing and Footwear Housing and Related Expenditure

Health Transport Communication

Recreation and Culture Educational Services Others

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Average Natural Spending per Person Based on the assumption that the average household natural spending is SGD 5,809.84 per month (USD 4,240.76 per month) and there is an average household size of 3.3 per household, it is assumed that the average natural spending per person in Singapore is SGD1,760.56 per month (USD1,285.08 per month).

Estimated Natural Spending through ForestONE For this estimate, it is assumed that only natural spending from the following categories are captured through ForestONE: a. Recreation and Culture (6.9%),

b. Fast and Food Serving Services (20.6%); and

c. Transport (14.1%)

This equates to 41.6% of total natural spending. A natural spending capture factor of 30.0% is assumed as not all “natural spending” from these areas are expected to be captured through ForestONE. Based on these assumptions, the estimated natural spending captured through ForestONE is: USD1,285.08 per month x 41.6% x 30.0% = USD160.38 per person per month

The short-term aim is for ForestONE to capture 20.0% of population in Singapore, which would provide a reach of: 5,868,104 people x 20.0% = 1,173,621 people

The estimated total natural spending through ForestONE for Singapore is estimated to be: USD160.38 per person per month x 1,173,621 people x 12 months = USD2,258,671,644

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c) Vietnam Population in Vietnam In addition to Malaysia, Vietnam represents one of the six other countries that ForestONE will be looking to first expand into. Ranked number 15 in terms of population worldwide and backed by a steady Y-o-Y growth of 0.97-1.06% over the past 10 years, Vietnam has grown to a population of 97,429,061 in 2019. With high population coupled with a medium median age of 30.9 years, Vietnam has big potential for high adoption of ForestONE with its combination of a large population and relatively young target market31.

Figure: Vietnam Population (2010-2019)

31 https://www.worldometers.info/world-population/vietnam-population/

82.0

84.0

86.0

88.0

90.0

92.0

94.0

96.0

98.0

100.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Vie

tnam

Po

pu

lati

on

(M

illio

ns)

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Average Household Natural Spending per Person The mean monthly household natural spending per capita for Vietnam was USD98.35 in 2015. Assuming household natural spending grows in line with GDP growth of Vietnam at 6.8% per annum32, the mean monthly household natural spending per capita in Vietnam is estimated at USD119.81 in 2019. The distribution of household natural spending in Vietnam is broken down into several categories below:

Figure: Distribution of Household Natural Spending in Vietnam33

Estimated Natural Spending through ForestONE For this estimate, it is assumed that only natural spending from the following categories are captured through ForestONE: a. Food and Beverages (53.2%),

b. Transport (7.5%); and

c. Personal Care (1.8%)

This equates to 62.5% of total natural spending. A natural spending capture factor of 30.0% is assumed as not all “natural spending” from these areas are expected to be captured through ForestONE. Based on these assumptions, the estimated natural spending captured through ForestONE is: USD119.81 per month x 62.5% x 30.0% = USD22.47 per person per month The short-term aim is for ForestONE to capture 20.0% of population in Vietnam, which would provide a reach of: 97,429,061 people x 20.0% = 19,485,812 people

32 World Bank 33 https://www.ceicdata.com/en/indicator/vietnam/annual-household-Natural Spending-per-capita

53.24%

4.23%

5.31%

6.16%

7.48%4.38%

3.09%1.81%

3.50%

0.70%

10.10%

Food & Beverages Clothing & Footwear Housing

Energy Transport Education

Health Personal Care ICT

Financial Services Others

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The estimated total natural spending through ForestONE for Vietnam is estimated to be: USD22.47 per person per month x 19,485,812 people x 12 months = USD5,255,171,489

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d) Philippines

Philippines Population In addition to Malaysia, Philippines represents one of the six other countries that ForestONE will be looking to first expand into. Ranked number 13 in terms of population worldwide and backed by a steady Y-o-Y growth of 1.5-1.67% over the past 10 years, Philippines has grown to a population of 108,106,310 in 2019. With very high population coupled with a young median age of 24.3 years34, Philippines has big potential for high adoption of ForestONE with its combination of a large population and young target market.

Figure: Philippines Population (2010-2019)

34 https://www.worldometers.info/world-population/philippines-population/

85.0

90.0

95.0

100.0

105.0

110.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Ph

ilip

pin

es P

op

ula

tio

n (

Mill

ion

s)

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Average Household Natural Spending The mean monthly household natural spending for Philippines was PHP 4,699.00 (USD89.83) in 201535. Assuming household natural spending grows in line with GDP growth of Philippines at 6.7% per annum36, the mean monthly household natural spending in Philippines is estimated at in PHP6,090.64 (USD116.43) 2019. The distribution of household natural spending in Philippines is broken down into several categories below:

Figure: Distribution of Household Natural Spending in Philippines

Average Household Size The average household size in Philippines is 4.4 per household37.

Average Natural Spending per Person Based on the assumption that the average household natural spending is PHP6,090.64 per month (USD116.43 per month) and there is an average household size of 4.4 per household, it is assumed that the average natural spending per person in Philippines is PHP1,384.24 per month (USD26.46 per month).

Estimated Natural Spending through ForestONE For this estimate, it is assumed that only natural spending from the following categories are captured through ForestONE: a. Food and Beverages (47.1%),

b. Transport (7.7%); and

35 https://psa.gov.ph/content/average-family-income-2015-estimated-22-thousand-pesos-monthly-results-2015- family-

income 36 World Bank 37 https://psa.gov.ph/content/highlights-household-population-number-households-and-average-household- size-

Philippines

47.12%

2.50%

14.78%

7.34%

7.73%3.62%

1.67%

3.12% 2.75% 1.98% 7.39%

Food & Beverages Clothing & Footwear Housing

Energy Transport Education

Health Personal Care ICT

Financial Services Others

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c. Personal Care (3.1%)

This equates to 57.9% of total natural spending. A natural spending capture factor of 20.0% is assumed as not all “natural spending” from these areas are expected to be captured through ForestONE. Based on these assumptions, the estimated natural spending captured through ForestONE is: USD26.46 per month x 57.9% x 20.0% = USD3.07 per person per month The short-term aim is for ForestONE to capture 15.0% of population in Philippines, which would provide a reach of: 108,106,310 people x 15.0% = 16,215,947 people The estimated total Natural Spending through ForestONE for Philippines is estimated to be: USD3.07 per person per month x 16,215,947 people x 12 months = USD597,011,327

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e) Indonesia

Population in Indonesia In addition to Malaysia, Indonesia represents one of the six other countries that ForestONE will be looking to first expand into. Ranked number 4 in terms of population worldwide and backed by a steady Y-o-Y growth of 1.03 - 1.33% over the past 10 years, Indonesia has grown to a population of 269,536,482 in 201938. Backed by a very high population coupled with a low median population age of 28.3, Indonesia will represent a high potential market for ForestONE to tap into.

Figure: Indonesia Population (2010-2019)

38 https://www.worldometers.info/world-population/indonesia-population/

225.0

230.0

235.0

240.0

245.0

250.0

255.0

260.0

265.0

270.0

275.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Ind

on

esia

Po

pu

lati

on

(M

illio

ns)

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Average Household Natural Spending per Person The mean monthly household natural spending per capita for Indonesia was USD6.46 in 201739. Assuming household natural spending grows in line with GDP growth of Indonesia at 5.1% per annum40, the mean monthly household natural spending per capita in Indonesia is estimated at USD7.13 in 2019. The distribution of household natural spending in Indonesia is broken down into several categories below:

Figure: Distribution of Household Natural Spending in Indonesia

39 https://www.ceicdata.com/en/indicator/indonesia/annual-household-Natural Spending-per-capita 40 World Bank

48.55%

3.50%

11.60%

5.58%

8.90%2.90%

2.20%

1.76% 3%

0.31%

11.36%

Food & Beverages Clothing & Footwear Housing

Energy Transport Education

Health Personal Care ICT

Financial Services Others

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Estimated Natural Spending through ForestONE For this estimate, it is assumed that only natural spending from the following categories are captured through ForestONE: a. Food and Beverages (48.5%),

b. Transport (8.9%); and

c. Personal Care (1.8%)

This equates to 59.2% of total natural spending. A natural spending capture factor of 20.0% is assumed as not all “natural spending” from these areas are expected to be captured through ForestONE. Based on these assumptions, the estimated natural spending captured through ForestONE is: USD7.13 per month x 59.2% x 20.0% = USD0.84 per person per month The short-term aim is for ForestONE to capture 15.0% of population in Indonesia, which would provide a reach of: 269,536,482 people x 15.0% = 40,340,472 people The estimated total natural spending through ForestONE for Indonesia is estimated to be: USD0.84 per person per month x 40,340,472 people x 12 months = USD409,661,552

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f) Thailand

Population in Thailand In addition to Malaysia, Thailand represents one of the six other countries that ForestONE will be looking to first expand into. Ranked number 20 in terms of population worldwide and backed by a steady Y-o-Y growth of 0.18-0.49% over the past 10 years, Thailand has grown to a population of 69,306,160 in 2019. Despite a high median age of 38.341, Thailand is backed by high population, which provides ForestONE with a big potential market to tap into.

Figure: Thailand Population (2010-2019)

41 https://www.worldometers.info/world-population/thailand-population/

66.0

66.5

67.0

67.5

68.0

68.5

69.0

69.5

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Thai

lan

d P

op

ula

tio

n (

Mill

ion

s)

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Average Household Natural Spending per Person The mean monthly household natural spending per capita for Thailand was USD18.73 in 201742. Assuming household natural spending grows in line with GDP growth of Thailand at 3.9% per annum43, the mean monthly household natural spending per capita in Thailand is estimated at USD20.22 in 2019. The distribution of household natural spending in Thailand is broken down into several categories below:

Figure: Distribution of Household Natural Spending in Thailand

42 https://www.ceicdata.com/en/indicator/thailand/annual-household-Natural Spending-per-capita 43 World Bank

39.63%

2.82%

29.38%

3.85%

10.94%1.1%

1.31% 2.57% 4%0.31% 4.59%

Food & Beverages Clothing & Footwear Housing

Energy Transport Education

Health Personal Care ICT

Financial Services Others

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Estimated Natural Spending through ForestONE For this estimate, it is assumed that only natural spending from the following categories are captured through ForestONE: a. Food and Beverages (39.6%);

b. Transport (10.9%); and

c. Personal Care (2.6%)

This equates to 53.1% of total natural spending. A natural spending capture factor of 20.0% is assumed as not all “natural spending” from these areas are expected to be captured through ForestONE. Based on these assumptions, the estimated natural spending captured through ForestONE is: USD20.22 per month x 53.1% x 20.0% = USD2.15 per person per month The short-term aim is for ForestONE to capture 15.0% of population in Thailand, which would provide a reach of: 69,306,160 people x 15.0% = 10,395,924 people The estimated total natural spending through ForestONE for Thailand is estimated to be: USD2.15 per person per month x 10,395,924 people x 12 months = USD268,134,185

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g) Korea

Population in Korea Korea also represents one of the countries that ForestONE will be looking to expand into. Currently ranked number 28 in terms of population worldwide and backed by a Y-o-Y growth of 0.16% over the past 10 years, Korea has grown to a population of 51,225,308 in 2019. With a mature median age of 41.4 years44 coupled with their large population size, Korea represents a suitable target market for ForestONE to establish and grow its business.

Figure: Korea Population (2010-2019)

44 https://www.worldometers.info/world-population/south-korea-population/

48.5

49.0

49.5

50.0

50.5

51.0

51.5

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Ko

rea

Po

pu

lati

on

(M

illio

ns)

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Average Household Natural Spending per Person The mean monthly household natural spending per capita for Korea was USD1,340.09 in 2019. The distribution of household natural spending in Korea is broken down into several categories below:

Figure: Distribution of Household Natural Spending in Korea

8.50%3%

6%

47.10%

4%

22.70%

8.70%

Transportation Clothing and Shoes Sports and Leisure Markets

Utilites Rent Restaurants

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Estimated Natural Spending through ForestONE For this estimate, it is assumed that only natural spending from the following categories are captured through ForestONE: a. Restaurants (8.7%);

b. Markets (47.1%); and

c. Transportation (8.5%)

This equates to 64.3% of total natural spending. A natural spending capture factor of 20.0% is assumed as not all “natural spending” from these areas are expected to be captured through ForestONE. Based on these assumptions, the estimated natural spending captured through ForestONE is: USD1,340.09 per month x 64.3% x 20.0% = USD625.86 per person per month The short-term aim is for ForestONE to capture 15.0% of population in Korea, which would provide a reach of: 51,225,308 people x 15.0% = 7,683,796 people The estimated total natural spending through ForestONE for Korea is estimated to be: USD625.86 per person per month x 7,683,796 people x 12 months = USD11,541,554,735

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Forest1Coins and Token Holder Pool Allocation

The total estimated natural spending through ForestONE in the seven targeted countries of Malaysia, Singapore, Vietnam, Philippines, Indonesia, Thailand and Korea is USD25,091,690,909. This is summarized in the table below:

No. Country Total Natural Spending through

ForestONE (USD/Year)

1 Malaysia 4,761,485,976

2 Singapore 2,258,671,644

3 Vietnam 5,255,171,489

4 Philippines 597,011,327

5 Indonesia 409,661,552

6 Thailand 268,134,185

7 Korea 11,541,554,735

Total 25,091,690,909

Table: Total natural spending in each country

A total of 1,000,000,000 Forest1Coins will be created. A proportion of total natural spending through ForestONE, which ForestONE sets aside as their platform marketing budget will be redistributed back to token holders in the form of F1 Points but only for Coin Holders who log in to check out the latest happenings and events at ForestONE. This proportion will be set at 0.1% of total natural spending through ForestONE, which will provide a token holder pool estimated at a value of: USD25,091,690,909 x 0.1% = USD25,091,691

Earnings per Token The earnings per token is estimated at: USD25,091,691 / 1,000,000,000 = USD0.025091691

Valuing Forest1Coins The valuation of Forest1Coins will be based off a Price/Earnings (PE) ratio of 10. This represents a conservative estimate compared with MasterCard’s latest PE ratio of 41.3143 in May 2019. Based on an earnings per token of USD0.025091691 and a PE ratio of 10, the estimated price per token will be valued at: USD0.025091691 x 10 = USD0.25

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Hence, the Forest1Coin price will be set at USD0.25 per FOC.

Soft Cap, Mid Cap and Hard Cap Analysis The ForestONE roadmap has not only introduced a soft and hard cap, but has also included a mid cap that is intended to show ForestONE’s commitment towards their token subscribers. The presence of the mid cap is to mark ForestONEs’ beta launch and expansion into the first 3 countries. These countries are namely Malaysia, Vietnam and Singapore. The hard cap, which is the maximum funds to be raised, will represent the initiation of the beta expansion efforts into the latter 3 countries, which are Thailand, Philippines and Indonesia.

Token Sale Allocation

Figure: Pie Chart explaining Token Sale Allocation

Based on the figure above, ForestONE intends to offer 80% of their total tokens for sale, which are targeted towards 3 main groups: private investors, buyers who come in the seeding rounds and buyers who come and buy at the official ICO stage. The management team will maintain 20% of the total tokens as a way of stabilizing market price if the coin price fluctuates too drastically. This is important as the Forest1Coin is expected to be able to serve as a payment coin in the future. More coins will then be released to stabilize the coin price. In addition, the 20% which the management team is holding on to also serves as a buffer against excessive demand of the Forest1Coin. If the demand for Forest1Coin continues to surge even after the Pre-ICO and ICO phases, the management team may use this buffer as a way to extend the public sale by releasing more coins for sale. However, out of the 80% that is offered to the public, 10% of it has been subscribed by our private investors. In order to set an appropriate

Pre-ICO (30%) ICO (40%) Management Team (20%) Private Investors (10%)

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mid cap, ForestONE therefore defined the mid cap as 25.2% of the tokens being subscribed and the hard cap as all 70% of the tokens being subscribed. Putting this into numbers, this brings us to a hard cap of: 700,000,000 x 0.25 = USD175,000,000 (USD175 Million) A corresponding mid cap of: 252,000,000 x 0.25 = USD63,000,000 (USD63 Million) In terms of soft cap, while ForestONE works on all markets concurrently in terms of expansion, Vietnam is the first market which has been targeted to do a beta launch on. The costs needed for beta launch is approximately USD 5 million. As such, the soft cap will be set at USD5,000,000 (USD5 Million USD)

Fund Allocation

Figure: Pie Chart explaining Fund Allocation

Business Development (48%): The funds raised allocated for business development will be used for creating marketing materials pertaining to local culture, experimental advertising, liaising with key contact points for merchants, securing key collaborations and running of promotions for merchants whom want such promotions in return for their collaboration. The funds here will also be used as a buffer against merchants who do not want to provide a merchant discount rates in the short term, which may force ForestONE into incurring initial opportunity costs. Legal Expertise on Local Regulations (10%):

Business Development (48%) Legal Expertise on Local Regulations (10%)

Bounty Programs (5%) Market Research (5%)

Liquidity Reserve (20%) Engagement with Local Communities (12%)

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The funds raised for this portion will be invested into hiring local legal counsels whom will help to conduct marketing campaigns, draft contracts, advise on work flow and user experience in terms of legality. Every country has slightly different legal expectations and hence funds must be allocated here as a buffer.

Bounty Programs (5%): The funds allocated here are to be used for buying other tokens if necessary, to perform air drops, organize hackathons to solve problems which may arise in the project and offer bug bounties for experienced programmers. Market Research (5%): The funds allocated here will be used as a start-up fund to conduct market research for best-selling products, popular merchants and tech savvy communities, etc. The research done here serves as the bedrock on which ForestONE will tailor their marketing and strategies moving forward. Liquidity Reserve (20%): The funds raised which are allocated here are used as a price support mechanism when the coin is officially listed. A reasonable portion is allocated here because at ForestONE, the target is for users to be able to purchase goods and services with the Forest1Coin and hence the price of the coin will need to be sustained at a reasonable level. Engagement with Local Communities (12%): This takes up the largest portion for a simple reason. This is the primary reason for raising funds, to engage with the main user base and the retail consumers. The funds here will be used for liaising with community leaders, running roadshows, conducting seminars and all kinds of user acquisition maneuverers.

Token Milestones (Subjected to Changes)

Below are a set of dates which we have set for key Forest1 ICO milestones. Please take note that all dates showcased here are tentative dates, these are meant to serve as guidelines for objectives, not served and displayed with finality. Further Timelines will be released as the project progresses.

• Vietnam Community Setup (May 8th 2019)

• Facebook for Forest1 ICO setup and ready to go (May 11th 2019)

• Twitter for Forest1 ICO setup and ready to start (May 13th 2019)

• LinkedIn for Forest1 ICO setup and ready to start (May 14th 2019)

• Singapore Community Setup (June 1st 2019)

• Forest1Coin Member Dashboard is Ready (July 20th 2019)

• Private Sale Begins (July 2019)

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• Programming of Forest1Coin on the Stellar Blockchain is completed (July 2019)

• 1st Batch of FOC is sent out (July 2019)

• Aiming to onboard 99 Speedmart as one of ForestONE Platform’s Merchants (July 2019)

• First Roadshow in Vietnam (July 21st 2019)

• First Roadshow in Singapore (July 31st 2019)

• Aiming to integrate payment capabilities into the ForestONE Application for Telecommunications Companies like Maxis, Digi and Celcom. (August 1st 2019)

• Integration of Forest1Coin Balance to Main Application is completed (Initial Function would be to use Forest1Coins to redeem FOC Vouchers, the Forest1Coin weekly grand draw function starts only after Mid Cap is reached) (20th August 2019)

• 2nd Batch of FOC is sent out (24th August 2019)

• Total Targeted member count on ForestONE Main Application: 200,000 (10th September 2019)

• Testing of Fiat on Ramp payment structures (Subjected to Regulations Control) (25th September 2019)

• Participation at Korea Blockchain Week 2019 (30th September & 1st October 2019)

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J. PROJECT ADVISORS

NICHOLAS SOONG – Co-Founder and Director of Jigsaw Capital

• 6 years of experience in investments, market research and economic advisory for policy, planning and decision making within government and the private sector

• Currently leads the community building, events and public relations practice at Jigsaw Capital

• Formerly an Economics Consultant with a Big 4 Company

• Formerly part of the Investments team in the sovereign wealth fund of Malaysia

• Geographical project experiences include South East Asia, East Asia, South America and the Middle East

IAN CHEW – Co-Founder and Director of Jigsaw Capital

• 5 years of experience specializing in market penetration and strategic investments for the Oil and Gas industry

• Currently leads the business development, strategic partnerships and fund-raising practice at Jigsaw Capital

• Early adopter of Bitcoin and began cryptocurrency trading before entering market arbitration within Asia

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JAPHET LIM – Head of Blockchain Development at Jigsaw Capital

• Certified Blockchain Expert, which was an honour provided by the World Blockchain Council

• Author of “The Guidebook for the Crypto Beginner”

• Completed the London School of Economics’ certification course on “Cryptocurrency and Disruption”, graduating with a score of 93%

• Invited as guest speaker for the Singapore delegation in the China and Singapore Belt and Road Economic Cooperation Summit Forum, where students included entrepreneurs, tertiary students, office workers and stay-home housewives

• Invited as guest speaker at Singapore Management University, Nanyang Technology University and National University of Singapore

• Interviewed by Youku, the dominant social video platform on the topic of Cryptocurrencies

• Interviewed at the Showfx exhibition in Singapore

DUNSTAN TEO – President of Sanctum Pte Ltd; CEO of Interstellar Innovations Pte Ltd

• Founder and CEO of Interstellar, the only official DEX on the apps store and the only official DEX and wallet for Stellar Lumens

• Venture Partner of Alpha Omega Capital Partners

• Polymath that was self-taught and later mentored in Economics, business strategies, game theories, sociology, behavioural psychology and social conditioning

• Started mining Bitcoin 9 years ago as it as an interesting project to gamers and it became a game trading token. Started to be involved in ICOs 4 years ago

• Mentored crypto influencers and was involved in sovereign level blockchain projects as a CTO

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K. DISCLAIMER

This Whitepaper is created to serve the informative purposes only, therefore, the

representations herein should not be relied on. ForestONE makes no representations or

warranties (whether express or implied), and disclaims all liability arising from any

information stated in the white paper. This white paper shall not and cannot be considered

as an invitation to enter into an investment. It does not constitute or relate in any way nor

should it be considered as an offering of securities in any jurisdiction. This whitepaper does

not include or contain any information or indication that might be considered as a

recommendation or that might be used as a basis for any investment decision. Forest1Coins

are just utility tokens which can be used on the Forest1 platform and are not intended to be

used as an investment. The offering of Forest1Coins on a trading platform is done in order

to allow the use of the ForestONE platform and not for speculative purposes. The offering

of Forest1Coins on a trading platform does not change the legal qualification of the tokens,

which remain a simple means for the use of the ForestONE platform and are not a security.

Acquiring Forest1Coins shall not grant any right or influence over ForestONE organization

and governance to the users. Regulatory authorities are carefully scrutinizing businesses and

operations associated to cryptocurrencies in the world. Any person undertaking to acquire

Forest1Coins must be aware of the ForestONE business model, the whitepaper or terms and

conditions may change or need to be modified because of new regulatory and compliance

requirements from any applicable laws in any jurisdictions. In such a case, contributors,

users and anyone undertaking to acquire Forest1Coins acknowledge and understand that

neither ForestONE nor any of its affiliates shall not be held liable for any direct or indirect

loss or damage caused by such changes. Anyone undertaking to acquire Forest1Coins

acknowledges and understands that ForestONE does not provide any guarantee that it will

manage to achieve it. They acknowledge and understand therefore that ForestONE (incl. its

bodies and employees) assumes no liability or responsibility for any loss or damage that

would result from or relate to the incapacity to use Forest1Coins, except in case of

intentional misconduct or gross negligence.

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