growth as a service - integrity.one...growth as a service – first generations of clusters 46...
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Growth as a Service Distributed Platform. Universal. Business-to-business.
Unleash the Power of Small Businesses
Nikola Leger & Thomas Le Maguer (last updated Dec 06, 2018)
integrity.one / White Paper draft - v1.50 / readability: grade 9 / 63 pages - 68 min
White Paper Updates – Summary Dec 06, 2018 In this update, we:
● updated the order of subsections in tokenomics ● added new material for tokenomics ● updated operating model chart ● updated council model ● updated order of narrative ● updated growth hacking chart ● placed some material in supplementals
● further edited for brevity
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Disclaimer The document is a marketing document and is not intended to be legally binding. Nothing in this document shall be deemed to constitute a prospectus of any sort or a solicitation for investment, nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any jurisdiction. The information in this document does not constitute a recommendation by any person, nor does it constitute advice on the merits of participation in any purchase of Integrity Tokens or any other cryptographic tokens or currency. Potential purchasers should refer to the Terms and Conditions, as available on the Integrity website from time to time for the terms of the token sales and a non-exhaustive analysis of the risks involved in purchasing Integrity Tokens. You will be required to agree to these Terms and Conditions before purchasing any Integrity Tokens.
Participants must make their own independent assessment, after making such investigations as they consider necessary, of the merits of purchasing any Integrity Tokens. Participants should consult and rely upon their accounting, legal and tax representatives and advisers in order to evaluate the economic, legal and tax consequences of purchasing Integrity Tokens.
Certain statements contained in this document constitute forward-looking statements or speak to future events or plans. Such forward-looking statements or information involve known and unknown risks and uncertainties, which may cause actual events to differ materially. No reliance should be placed on any such forward-looking statements or information.
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Table Of Content White Paper Updates – Summary 1
Disclaimer 2
Abstract 8
Background 8
Opportunity 8
Problem 9
Leading Causes 9
Operating AND Growing at the Same Time is Very Hard 9
We Don’t Know Who to Trust for Marketing 9
A Marketing Ecosystem Plagued by Waste and Inefficiencies 9
What if? 10
Solution 10
Embrace the Platform Revolution 10
Core Values 11
Blockchain use case 12
Unleash the Power – market timing 12
A Distributed Record Of Trust 13
The Three Layers of the PoWR2 protocol 13
Proof of Wisdom 14
Proof of Reputation 16
Proof of Results 16
GRIT – the integrity work token 20
Why GRIT? 20
Incentive is behavior 21
Game theory 22
Focus 22
Transparency 22
Collaboration 23
Specialization 23
The Two Engines of a Platform 23
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Transaction engine 23
Learning engine 24
Machine Learning 25
Payments, Money and Engine Fuel 25
Crypto vs fiat 26
Coin or token? 26
Existing or new? 26
INTEGRITY DOLLAR (ID) – the integrity utility token 28
Wealth Distribution 28
Why ID, the integrity dollar? 28
VIRTUE – the integrity vote token 29
The Foundation and the Council 29
Traction & Market Fit 30
Talent 33
Leadership 33
Team 33
Collective (Partners, Advisors, Consultants) 35
Financial partners 37
Building The Platform 38
Pilot 38
Prototype 38
Agile development 38
User Interface and user experience 39
Mind Map 39
Drill up - drill down 40
Timeline 40
Chatbot 40
Business Intelligence, Relevant documents and Artefacts 41
Functional prototype 41
Product Roadmap 41
Go to market strategy 42
Marketing Collateral 43
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Total Addressable Market 44
Serviceable Market and Target Market 46
Token Usage and Demand 46
Growth as a Service - first use case – one agency 46
Growth as a Service – first generations of clusters 46
Growth as a service – the total network 46
Propensity to Hodl Derived From a True Circular Economy 47
The network effect of a virtuous circle 48
Burn and mint or reinvest in small business growth? 50
Market Conditions and Timing 51
Tokenomics 52
Economic Model 52
Token design 52
Economic Equation 53
Demand 54
Supply 55
Monetary Policy 55
Use of Funds 55
Operating a Surplus Economy 56
Treasury Management 57
Asset-backed Integrity Dollar 57
Fiat to Integrity Dollar Exchange Rate Risk 58
Circular Economy: Value for All 59
Token Sale 60
Programmatic Releases 60
Token Allocation 62
Token sale 62
HOW TO PARTICIPATE 63
Seed Round (being finalized) (for 5% equity of the company building/operating the platform) 63
Private pre-sale (-live-) 63
Private sale (- Q1 2019 -) 63
Public pre-sale (- Q2 2019 -) 63
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Public sale (3 stages) (- to be announced -) 63
SUPPLEMENTALS 71
Token design (continued) 71
Capturing Value 72
Valuation models 72
Equation of exchange and velocity 72
Compelling motivation to hold and net present value 73
Incentive to hold 73
Small business owners 74
Freelancers and agencies 74
Experts and consultants 74
Tech providers 74
Crowd 75
Vesting 75
Market Cap 75
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Abstract (these 3 sections were last updated as of 2018-12-04)
This white paper describes a distributed Growth as a Service platform. It is based on the Proof of Wisdom, Proof of Results and Proof of Reputation (PoWR2) protocol. The integrity.one platform matches small businesses to marketing providers (people, process, technology). It empowers the ecosystem to deliver fair and accessible growth on demand.
Background Small businesses matter. They’re the true engine of the economy (with 54% of all sales, 66% of new jobs 1 2
and 64% of innovation in America ). And numbers are similar around the world , for both high income and 3 4 5
emerging economies. Small businesses drive the world.
Opportunity In the U.S., 29M small businesses spend around 49B USD a year advertising , to try and fuel their growth. On 6
a global scale, that number is closer to 200B – for the more than 125M registered small businesses around 7
the world.
Digital marketing has been on the rise but is still leaving most behind. Business owners generally lack the time or expertise to take advantage. Only about a third of small businesses know their marketing efforts are working . Most find themselves rather frustrated and eager for a solution. 8
1 Throughout this document, we use “small business” in reference to “Micro, Small & Medium Businesses” 2 Source: SBA U.S. Small Business Administration 3 Source: Entrepreneur.com 4 Account for 60-70% of jobs in most OECD countries. - World Forum 5 Source: World Bank / IFC 2010 6 Source: emarketer reports 151B in U.S local ad spend for 2018. About 64B national ads, 49B SMB and 36B local, non SMB 7 Source World Bank / IFC 2010 8 Source https://www.infusionsoft.com/resources/small-business-marketing-trends-report
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Problem (this section was last updated as of 2018-12-06)
More than half of new businesses will not survive the first 5 years. And 70-80% will be out of business by the 10-year mark. 9
Leading Causes 1. Operating AND Growing at the Same Time is Very Hard
You have to run the business, grow the business and deliver value to your customers , all at the 10
same time. But those three core areas require very different skills. Few owners go into business knowing how to manage a business well ... and even fewer excel at sales or marketing. 11
Most people start a business because they love delivering a certain product/service. The whole struggle over the rest of it ultimately results in wasting a lot of time and money. And as they try to juggle it all, they often end up neglecting what creates the most value: their product . 12
2. We Don’t Know Who to Trust for Marketing To grow, you need the right people, process and technology. Who can we trust with that? Agencies are usually costly. Freelancers often lack results. And local media has been struggling with “digital” forever. How do we know who’s got the skills, expertise or tools to deliver? Sadly, we don’t. And precious funds get wasted, at an alarming rate, as owners try to figure it out.
The owners often end up having to come up with the overall strategy. They have to assemble the pieces of this very complex puzzle. That results in a challenging process for everyone involved. It creates a vicious circle of failures, from which very few recover.
3. A Marketing Ecosystem Plagued by Waste and Inefficiencies To make matters worse, the market is very fragmented. Long gone are days of the simple listing in the phone book. There are now over 7000 technology providers . That is across more than 100 13
functional areas of marketing) . And they overlap in ways that prove overwhelming for most. 14
enlarge enlarge
9 Source: Entrepreneur.com 10 Unbundling the Corporation by John Hagel III, Marc Singer, Harvard Business Review 11 E-Myth revisited: Why Most Small Businesses Don't Work and What to Do About It Michael Gerber 12 Throughout this document, we often use “product” in reference to “product and/or services” 13 Source https://chiefmartec.com/2018/04/marketing-technology-landscape-supergraphic-2018/ 14 Source https://www.gartner.com/technology/research/digital-marketing/transit-map.jsp
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As we touched on, 29M small businesses spend over 49B a year on ads in the USA alone. And 125M small 15
businesses invest well over 200B in advertising globally. Bear in mind that most insiders estimate that 16
50-80% of that ad spend goes straight to waste 17
What if? What if there was a way to leverage all that wasted capital? What if those millions of businesses didn’t have to fail over the next 5 years? What if a better model has already been emerging, at the edge of the ecosystem? What would happen if over 100B a year, instead of getting wasted, could build upon itself? What if it compounded year after year, in an efficient circular economy?
1. What if a new business model can finally manage to unbundle small businesses? What if business owners got to focus on product while trusted experts handled the growth?
2. What if blockchain can finally enable a real trust index of marketing providers? And what if legitimate people, process and technology joined forces on ONE platform?
3. What if such a platform makes it possible to power and fuel a true circular economy ? 18
What if we eliminated most of the 100B+ of waste and invested in efficient sustained growth?
Solution (this section was last updated as of 2018-11-28)
A Growth as a Service platform to empower small businesses to win.
Embrace the Platform Revolution A true platform model that operates on the prescribed three levels: 19
1. individual/organization level: oust the bad actors and reward productive behavior 2. community/interaction level: establish trust to help and orchestrate collaboration 3. ecosystem level: reduce friction for marketing, advertising and growth.
15 Source: of the 150B annual ad spend reported by BIA Kelsey in the U.S, approximately ⅓ or 50B comes from small businesses 16 Source emarketer 17 Very few marketers will publicly admit it. But they will do so off the record and it’s a well known fact in the industry. 18 Source: https://www.ellenmacarthurfoundation.org/circular-economy/overview/concept 19 as defined by Simone Cicero in the acclaimed Platform Design Toolkit white paper
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A first universal platform, with a simple intuitive and visual interface, that delivers: 20
● anything and everything you could ever need to grow a small business, all in one place ● powerful incentives to collaborate and co-create (freelancers, experts & tech providers) ● true waste reduction and fair wealth distribution, for the whole ecosystem to prosper.
GROW Get matched to the right mix of people, process & technology, to grow on demand
CO-CREATE The best marketers, specialists and tech providers join forces to be better together.
PROSPER Fuel a true circular economy between: - freelancers, experts & tech builders - small business owners - the backers, contributors and community
Core Values To deliver on this vision, we honor 7 core values that we hire, fire and promote by:
1. Put People First The only way to get people to care is if they know you care first
2. Evolve, Always Seek and embrace change. Innovate and mutate to evolve.
3. Better Together None of us is better than all of us. Together, we go further and achieve more.
4. Deliver more value We focus on giving exponentially more than we take.
5. Believe Believe in the vision, the mission, the customer, the team, yourself, and life.
6. Tell the real story Have the courage to tell and receive the uncomfortable truth.
7. Build resilience Thrive to outlast, to serve and honor the next 9 generations behind us.
20 Integrity is agnostic, a truly unified platform to access all the people, process and technology that can deliver growth
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Blockchain use case What does any of that have to do with blockchain, tokens or smart contracts?
blockchain 21
“Blockchain refers to a type of data structure that enables identifying and tracking transactions digitally and sharing this information across a distributed network of computers, creating in a sense a distributed trust network.” – Webopedia
1. We can rebuild a layer of distributed trust as a new foundation for the small business marketing
ecosystem
token 22
“A unit of value that an organization creates to self-govern its business model, and empower its users to interact with its products, while facilitating the distribution and sharing of rewards and benefits to all of its stakeholders.”– William Mougayar
2. We can use a “point system”, tokens as powerful incentives for marketers to do right by small
businesses.
smart contracts 23
"a set of promises, specified in digital form, including protocols within which the parties perform on the other promises" [...] to improve execution of the four basic contract objectives: [...] observability, verifiability, privity and enforceability. – Nick Szabo
3. We distribute operations and applications to impact a maximum of businesses much more
efficiently
Unleash the Power – market timing We’ve been monitoring the space for 25 years for the right conditions for this paradigm shift when it comes to:
● software development frameworks ● microservices architecture ● machine learning ● natural language processing ● blockchain ● smart contracts ● crowdfunding ● smart tokens & cryptocurrency ● governance and regulations. ● and so much more!
And we’re now finally standing in the eye of the perfect storm. There’s never been a better time to unleash the PoWR2.
21 Source: https://www.webopedia.com/TERM/B/blockchain.html 22 Source: https://medium.com/@wmougayar/tokenomics-a-business-guide-to-token-usage-utility-and-value-b19242053416 23 Source: www.nasdaq.com/article/smart-contracts-described-by-nick-szabo-20-years-ago-now-becoming-reality-cm611829
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A Distributed Record Of Trust The ecosystem is ripe with incompetence , fraud and a big tech bubble of shoddy software. With people, 24 25
process and technology on one platform, we can measure their performance. Despite all the snake oil out there, we can follow the science and find the precious signal within the noise. We can determine:
● who’s doing good work ● who knows how to grow a business well ● and who builds great tools that actually produce results.
A blockchain allows us to secure that data on a distributed public source that can’t be tampered with. It also allows us to filter out the bad agents. And we can reward the good ones for being a productive member of the ecosystem. Together, we will finally be able to write new rules and change the game . 26
The Three Layers of the PoWR2 protocol Our first major contribution to the ecosystem will be to develop the protocol. It will enable people, process and technology to join forces. Distributed entities can deliver more value together. We are focusing on the use case to orchestrate distributed growth on demand. But there is already interest for use cases in other industries as well.
To determine what works best and delivers the most value for growth, marketers have to test: ● a variety of marketing people (freelancers, agencies, etc.) ● processes (strategies, tactics, procedures,etc.) ● and technologies (systems, applications, software, etc.).
We observe series of campaigns and funnels. And have to change, quantify and adjust a multitude of variables throughout. We then test and refine until we end up with a proven system. It can then deliver consistent growth. That is: on demand and across a huge variety of different use cases and scenarios.
24 Source: Linkedin 25 Source: Business Insider 26 Source: Market Design: Auctions and matching
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Thanks to recent advances in computer science, we can build that logic into algorithms. And form the basis of our Proof of Wisdom, Proof of Results and Proof of Reputation (PoWR2) protocols.
1. Proof of Wisdom
Experts spend years mastering a niche and perfecting their craft. And we could not achieve exceptional growth without them. Growth hacking requires a good dose of both art and science. They are the masters who know what works, how to make it work and why it works. They have what’s referred to as wisdom . In knowledge management, it is the highest and most valuable form 27
of knowledge.
wisdom “Uncover why the derived knowledge is applied by individuals in a specific way. i.e. finding the reason behind any decision-making..” – CertGuidance
The Data - Information - Knowledge - Wisdom pyramid model:
source: Electronics360 28
They craft those processes over the years. They hold the kind of recipe for growth we all need to fuel our businesses. There’s a reason that experts like Sean Ellis , one of the original growth 29
hackers , was able to: 30
● grow LastPass (Logmein) from zero to a 342M IPO in 6 short years 31
● put DropBox on the path to a 1 Billion run rate in 7 months ● grow and sell Qualaroo for millions (valued between 29M-44M) under 4 years 32
growth hacking is a process of rapid experimentation across marketing channels and product development to identify the most effective, efficient ways to grow a business. – barnraisersllc.com 33
27 Source: https://www.certguidance.com/explaining-dikw-hierarchy/ 28 Source: https://electronics360.globalspec.com/article/4890/optimal-analysis-algorithms-are-iot-s-big-opportunity 29 Source: https://blog.growthhackers.com/@SeanEllis 30 Source: http://rocketship.fm/episodes/the_strange_origin_of_growth_hacking_growth_ep_1/ 31 Source: https://www.crunchbase.com/ipo/logmein-ipo--bd96aa19 32 Source: https://finder.startupdelta.org/companies/qualaroo/ 33 Source: http://barnraisersllc.com/2017/07/10-greatest-growth-hacking-case-studies-learning/
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True growth hackers have proven track records up to 10-20X returns on marketing investment. 34
Most marketers struggle to achieve even a 2-3X return. The key to their consistency and amazing results starts with their processes.
We can infer the level of wisdom for these experts by measuring the performance delivered (leads, sales, revenues, etc.). And by the strength of those results.
We obtain proof of wisdom by validating that a process is consistent. It needs to yield proven results over a statistically significant sample size.
Using using smart contracts allows the platform to issue those experts work tokens. These tokens grants them rights on the platform. They act as a license to allow them to contribute their expertise to the system. It’s a small piece of secure code issued to them that will act as a permission. It lets them access different areas and platform features.
Smart contracts allow us to take advantage of software automation. The business organization is the opposite of traditional command and control corporate structures. They need large quantities of middle management and clerks throughout. We don't.
A lot of efforts focus on increasing the scalability of smart contracts. They aim to compete with high frequency transactions like credit cards, as an example. They need to handle over 150 million transactions per day.
We expect thousand of members to join integrity in the next couple of years. Even then, our daily transaction volume will remain in the thousands at first. It DOES NOT present much technical challenges, as far as volume, for the foreseeable future.
As experts contribute their wisdom to the platform, it benefits all the businesses that need it to grow. The platform uses a series of smarts contracts and micropayments. It ensures fair compensation of experts. And pays them every time someone uses their process.
34 Source: http://barnraisersllc.com/2017/07/10-greatest-growth-hacking-case-studies-learning/
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Ultimately, a blockchain allows them to commit their process to the platform. It ensures a wider distribution and streams of passive income. It also encrypts and protects their intellectual property. The mechanics are similar to licensing or royalties.
2. Proof of Reputation
To execute those processes correctly, we need people with the right attitude/aptitudes to deliver the best results. Those are the honest people who care and have what it takes to get the job done right. They are reputable players in the ecosystem. They spent years doing good work, building their name and reputation. They’re the ones we can count on to build and manage what the experts recommend and for their process to deliver growth.
Once a freelancer or agency is proven to have reputation and deliver consistent work, we also issue them work tokens. The work tokens grant them their own set of rights on the platform. It also acts as a license that allows them to perform certain work in the system. It is based on their specific skill set and track record.
We’re also developing a potential staking mechanism to allow them to leverage the work token they earn as they build their credentials on the platform.
The platform also uses a series of smarts contracts, escrow and micropayments to ensure the right people qualify for an assignment. When a process requires execution to deliver results and grow a business, it is assigned to the right worker, based on their specific skills and proof of reputation.
The people selected to perform the work then use the learning engine of the platform to get a clear definition of the task at hand. They access educational material on the work involved. They can also access case studies, step by step guides, full standard operating procedures and checklists to help them achieve the work with the greatest level of efficiency.
And they can request support from the community of practice within the platform. It ensures optimal results to fulfill their contractual obligation. It also benefits the collective.
The work is completed and submitted, at every step of the process. It then gets audited and micro payments are released from escrow, once the quality meets the standards,. Auditing will be assigned to peer validators in the beta and expected to be progressively automated via machine learning over the next 3 years.
A blockchain allows us to commit that performance history to the platform in full transparency. It creates opportunities for the freelancers and agencies by ensuring a steady flow of assignments and income based strictly on the quality of their work and their proof of reputation. They can earn work simply by doing good work rather than being forced to solicit prospects and waste precious energy on sales and marketing efforts. All that is also achieved by way of smart contracts to keep the whole operation lean and limit the layers of middle management.
3. Proof of Results
And finally, those people need the right tools to execute those processes efficiently. Software is generally meant to deliver efficiency. There are thousands of marketing tools and pieces of code out there. But only a fraction delivers the results we need to fuel consistent growth.
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Thousands of hours spent implementing different technology across thousands of funnels enable growth hackers and marketers to follow the science, and pinpoint the right pieces of software and code to deliver the most value.
We can connect all the proper marketing and advertising technologies to the platform via their Application Programming Interface or APIs. The sum of these components (web-based systems, operating systems, database systems, computer hardware, or software library) allow our programmers to fetch exactly what people need to execute and deliver growth for the expert processes in question.
Thanks to the rise of microservices architecture , our software architects, engineers and 35
developers can use all these different pieces of the puzzle (whether they be routines, data structures, object classes, variables, or remote calls) and assemble them, or mash them up together, following our very own recipe, as well as building our own user experience and interface, to deliver the exceptional growth we’re after – in the simplest, most user friendly, comprehensive and holistic format possible.
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As everything that happens on the platform, each piece of software, each microservice will be subject to split testing and multivariate testing. When microservice A proves objectively more efficient than microservice B, the system can establish proof of results. Once a tech provider and their software or hardware is proven to produce results, the platform also issues them work tokens. Those tokens grant them their own set of rights on the platform. It’s like a license that allows them to connect and contribute their technology to the system, based on the specific ability of their machines/code.
It can sometimes feel a bit abstract, in theory, to imagine a system that can measure software efficiency. It simply entails measuring the gains in efficiency the tools provide.
e.g. imagine that a gardener has to water a field. It takes him 3 hours to water it with a bucket. If he were to use a hose that would allow him to do it in 1 hour. You can track that gain in efficiency.
35 Source: https://blog.g2crowd.com/blog/trends/digital-platforms/2018-dp/microservices/ 36 https://blog.g2crowd.com/blog/trends/digital-platforms/2018-dp/microservices/
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And the same is true of a sprinkler that would take him 5 minutes to set up. That’s what we mean by results and efficiency.
The platform also uses a series of smarts contracts, escrow and micropayments to pick and reward the right tools for the job. Whenever a process requires their software or hardware to deliver results and grow a business, the tech providers simply get the business, based on results.
A blockchain allows them to earn a steady flow of income through an API call model (or pay as you go model, if you will) based on the merit of their technology – as opposed to a tech provider earning market shares based on the ability of their sales and marketing team to push their product unto users, regardless of the merit.
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This means that software developers will gain the ability to focus on their niche and progressively divest from sales and marketing to further invest in research, development and actual computer science. It means they can progressively do away with all the bells and whistles in their application and focus on the raw power of what makes them different.
It means that a bunch of bloatware and vaporware will wither away while the great technology out there finally gets to thrive in a much more efficient and powerful meritocracy. It means we get to write new rules to reward research, progress, collaboration and actual results rather than sales and marketing buzz.
It will, of course, in part, be a potential initial nightmare for the venture capital who are backing/pushing bad tech at the moment. But it will also bring a progressive but powerful relief over time – as they gain new insights into what tech actually deliver results and is worth their investment. Together, we can usher a new era of objective tech valuation.
37 source: https://steemit.com/ethereum/@ryuzakilost/ethereum-smart-contracts-101-hello-world
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Tech capital is currently diluted like the billions of kilojoules that get dispersed from the sun. That kind of massive energy sometimes only amount to a mere sunburn when it is scattered as such. But you can also harvest and concentrate just a few kilojoules of energy and cut through the thickest steel, once it gains the focus of a laser beam.
It’s time to collectively focus our efforts towards true small business growth. It’s time to get rid of the inefficiencies and the waste in the ecosystem; time for laser focus!
We don’t have to put up with choosing from an exponentially growing set of over 7000 different technologies anymore. We can connect them all into one massive efficient machine and evolve the system as a whole. One test, one experiment at a time, we can emulate natural selection and evolution of its components. All that, through one massive universal matrix. We’re not against diversity. We embrace and encourage it. We’re creating a common ecosystem for it to thrive more than in the actual broken system. And we’re simplifying the ability for the small business owner to capture the value that emanates from a higher order of collaboration.
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GRIT – the integrity work token We’ve established that as the best experts, freelancers and tech providers join forces to run campaigns on ONE platform, we can monitor their true results and the growth they generate. A work token will allow us to grant them rights to contribute to the platform.
But complex systems need more than a simple binary permission as a driving force, if we want them to greatly evolve over time. We also need our work token to express a dimension of quantity, a certain gradient of intensity. It will be necessary if we want to be able to accelerate the growth. It will be required to efficiently catalyze the behaviors we are looking to shape and influence – for the greater common good, through this platform.
And this is why we're introducing GRIT, the integrity work token. Freelancers, experts and tech providers will be able to earn this work token based on the quantity and the quality of their input and their output. They will earn GRIT based on the quantity and quality of their contribution, throughout their own journey and the history of the platform.
And they will lose GRIT if they don’t act in the best interest of the ecosystem. – We’re currently working with our team of engineers in Ukraine and our economists in Switzerland to design, model, build and test the best staking mechanism for the work token.
These work tokens cannot be traded or sold. They serve the single purpose of empowering the individual or the entity who earns them, in order to serve the greater common good. This kind of token enables us to build a layer of distributed trust as a robust foundation for the platform and the ecosystem.
(As a side note: we will cover later how the second type of token, the utility token will also help fuel this new economy. And we’ll cover how everyone can take advantage to grow and prosper.)
Why GRIT? The concept has been getting a lot of attention, thanks namely to the work of pioneer psychologist Angela Duckworth . She’s the Founder/CEO of Character Lab , a nonprofit whose mission is to 38 39
advance the science and practice of character development. She is also the Christopher H. Browne Distinguished Professor of Psychology at the University of Pennsylvania, faculty co-director of the Penn-Wharton Behavior Change For Good Initiative , and faculty co-director of Wharton People 40
Analytics . 41
Grit 42
“in psychology is a positive, non-cognitive trait based on an individual's perseverance of effort combined with passion for a particular long-term goal or end state (a powerful motivation to achieve an objective). This perseverance of effort promotes the overcoming of obstacles or challenges that lie on the path to accomplishment and serves as a driving force in achievement realization” – wikipedia/Grit_(personality_trait)
Angela received a MacArthur genius grant in 2013 and has advised the White House, the World Bank, NBA and NFL teams as well as Fortune 500 CEOs. Her TED talk is among the most-viewed of
38 Source: https://angeladuckworth.com/about-angela/ 39 Source: https://characterlab.org/ 40 Source: https://bcfg.wharton.upenn.edu 41 Source: https://wpa.wharton.upenn.edu 42 Source: https://en.wikipedia.org/wiki/Grit_(personality_trait)
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all time . Her first book, the 2016 Grit: The Power of Passion and Perseverance , is a #1 New York 43 44
Times bestseller.
Her work is second to none and perfectly embodies the struggle of the small business . Passion and Perseverance are certainly at the heart of this fight. It’s ultimately what drives the economy.
And it impacts the livelihood of most families and most communities around the world. It seems fitting to have the integrity work token be a constant and powerful reminder of that.
Incentive is behavior
Thanks to the general properties of cryptocurrency and utility tokens, we have a unique opportunity to further incentivize and catalyze this whole process.
A smart contract is the ideal technology to reward the freelancers with the best reputation and progressively increase their rights on the platform. The better people perform and the higher quality work they deliver on time, the more work they get. It’s the perfect use case for a work token. It also keeps the incompetent, the charlatans and the unreliable at bay.
The same is true for the experts with the most reliable and consistent marketing wisdom. A blockchain is the ideal environment to test the different processes they contribute to the platform.
We can transparently share the results and create a public record of trust that can’t be tampered with while properly licensing and monetizing their intellectual property around the knowledge they crafted and accumulated over the years.
The more efficient their process, the more it gets used, the more income it generates for them and the more growth for the small businesses, and the community. Everybody wins! That’s the power of a circular economy! Who said economies had to be zero sum games?
And the same logic applies to the more than 7000 different marketing and advertising technologies out there. Marketing software is meant to help marketers gain efficiency. Tech providers should accrue markets shares based on the results they yield… not on the strength of their sales and marketing, or the size of their budget.
Comparing and recording results on a blockchain also allows the platform to reward the very best and protect small businesses against the snake oil that’s been rampant these last 2 decades.
This empowers promising small businesses to purchase growth on demand from trusted contributors, knowing their investment is safe and will yield a great return. If we can band together to achieve this, we can change the face of capitalism as we know it.
If we can gain critical mass and enlist the world’s most prominents experts in the various disciplines this unique feat requires, we can truly usher the next era of work and abundance for the 99%. Let’s take our rightful place at the forefront of the 4th industrial revolution!
Game theory As we touched on briefly before, one of the best use cases for blockchain, smart contract and token technology is to provide the ability for the platform to shape behaviors. This ability revolves around the capacity to reward various participants when they engage in productive behaviors (i.e. when they act in the best interest of the greater common good i.e. contribute to shift the ecosystem towards a state or near state of Pareto Optimality or Pareto Efficiency).
43 Source: https://www.ted.com/talks/angela_lee_duckworth_grit_the_power_of_passion_and_perseverance 44 Source: https://www.amazon.com/Grit
White Paper draft - page 20 Integrity.one to contribute: [email protected]
In basic game theory, we can help predict the behavior or certain players by knowing:
● the rules of the game ● what they anticipate as a payoff (or utility) ● what knowledge players have when it comes to these rules, the payoffs and how they anticipate
others to play (strategy).
It will therefore be essential to design rules and rewards for the platform that benefit the growth, the evolution and the sustainability of the community and its participants. Designing effective and powerful incentives will help to predict and fuel the growth of this new economy for the benefit of its participants and the community that supports it.
Let’s recap some of the current behaviors in the small business marketing ecosystem that are causing waste and inefficiencies and list the powerful incentives we can create to remedy some of that waste.
Focus
Rather than wasting precious funds and energy trying to market their services, it will be more much productive for freelancers, experts and tech providers to focus their energy on the quality of their output.
Allowing such a meritocracy to form where market shares results from the quality of the contribution makes the whole system much more efficient. These gain in efficiencies can translate to both more affordable growth for the small business and more profitable marketing for the providers.
Transparency
The current small business marketing ecosystem is plagued with what Nassim Taleb would refer to as information asymmetry . It’s what we like to refer as snake oil. And it 45
encompasses every lie, half truth, false claim and fraud that various players are ready to embrace in order to get your money.
The false claims are sometimes perpetrated quite maliciously and consciously by bad actors/crooks who choose to defraud businesses as a mean of living. They can count on the complexity of digital marketing to blame other factors for their lack of results.
And in numerous other cases, it also comes down to incompetence and lack of skills or of mastery on the part of foolish marketers. They’re trying their best to deliver growth through what they think should be appropriate work, tools and processes but they just can’t hack it. The market grew too big, too fast and left them behind. They have been stuck trying to play catch up ever since but, for the most part, failing to deliver.
By rewarding the good actors who deliver real growth with both work and utility tokens, the protocols can increase their ability to secure work on the platform and earn more. This builds a virtuous circle where excellence and merit are fueling financial abundance and opportunities at a much faster rate than any fraudulent attempt would.
This incentive can attract high performing marketers because their talent will be much more valuable on the platform as a true signal of growth rather than lost in the noise of competition, in the general market, outside of integrity.
45 Source: Skin in the Game, Nassim Nicholas Taleb, Feb 2018
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It can also inspire and motivate less experienced marketers to perfect their skills through the learning engine on the platform - (more on that later…)- and increase their competence to create more opportunities.
And it keeps fraudsters and crooks at bay since their usual deception will not be fruitful in a performance based system where they can’t sell, market or charm their way through.
Collaboration
By allowing experts to specialize and focus on their processes, freelancers to focus and specialize in execution and tech providers on the quality of their tools, we are creating a powerful incentive for these players to collaborate and work better as a team.
Specialization
Once they are free to focus on what they do well, providers will also have an incentive to specialize in what makes them unique. Tech providers will be better off focusing on the microservice that makes them stand out. Experts will profit more by honing their unique process. And freelancers will also perform better by focusing on their strength.
The Two Engines of a Platform Once we establish a solid foundation for our platform with the three layers of the PoWR2 protocol to build distributed trust in the ecosystem, we can finally build a platform on top, in the application layer. Platforms empower people to connect and interact through a transaction engine and they empower them to learn and share knowledge through a learning engine.
1. Transaction engine
The platform takes advantage of smart contracts to orchestrate the work you need to grow. Out in the market, a lot of time and money is usually spent on coordinating work at the execution level.
Here we can build a proper workflow engine to call in the right experts, assign work to the right people and take advantage of the right tools. That becomes the transaction engine of the platform. Everyone focuses on what they’re best at and gets fairly compensated.
Money can be held in escrow and the funds released once the quality of the work has been validated by the system. This completes the transaction and initiates the next step in the sequence.
Performance based marketing has been extremely popular with business owners (e.g Google Ads or Facebook Ads) but only covers a portion of current marketing investments, in the market as a whole. Recent advances in technology can help deliver that kind of performance based payments across the full marketing spectrum and completely flip the tables for the industry.
Removing several layers of middle men makes the whole process much more efficient and much more affordable for small businesses. It also makes the work much more profitable for the experts, the freelancers and the tech providers. Everybody wins.
Focus on what you do best and let integrity handle the rest.
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2. Learning engine
From successfully onboarding members to helping them learn how to use the platform well and ultimately how to capture new and better opportunities, the learning component of a platform is extremely crucial. 46
The Experience Learning Canvas “The more the platform helps participants reach new opportunities the more the learning engine attracts new participants thanks to the power of success stories. Learning is indeed a fundamental engine of growth: not only success stories drive more interest and participation from the ecosystem, but the learning process creates skilled participants that increasingly hold a bigger stake in the common platform and care more about its evolution and governance. When Platforms generate an evolutionary path ranging from initial participation and ending in participating in governance the learning process becomes the most powerful evolutionary engine for the Platform and the organization(s) behind it.” – Simone Cicero - Stories of platform design 47
If we want those who create processes to behave in a productive manner, it helps if we help them to learn how to do so. The same is true of those who execute the processes. And it also applies to those who build tools to help. Education is key on all fronts.
That means we must empower the community to define what those behaviors are and help them build a learning engine around that content. It’s in the best interest of all the participants for the system to continuously evolve. And sharing knowledge is a good way to stimulate and accelerate evolution.
As we’ll see later when we explore the essence of what makes a circular economy thrive, it is essential for economic activity to build and rebuild overall system health. And learning contributes largely to system health. 48
46 Source: https://platformdesigntoolkit.com/platform-design-whitepaper/ 47 Source: https://stories.platformdesigntoolkit.com/platforms-are-engines-of-learning-4f7b70249177 48 Source: https://www.ellenmacarthurfoundation.org/circular-economy/overview/concept
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It creates a powerful incentive for the ones who are not performing as well to hone their skills. It leads them down a path where they too can aspire for more financial abundance by up levelling their skill set and improving the quality of their results.
Machine Learning
Over and above the human learning that needs to take place, there is also a massive opportunity for the ecosystem to use the platform to take advantage of recent advances in machine learning and deep neural networks. Ultimately, we’ve established that in order to be able to deliver growth on demand on a very large scale, we need to continuously monitor a very large amount of data and constantly measure wisdom, reputation and results for all the people, process and technology involved, across the whole platform. The only way to achieve that efficiently, at scale, and in the most resilient fashion will be to use computing power, machine learning and powerful algorithms to speed up the process.
From a technology standpoint, that’s how we need to rev up the Proof of Wisdom, Proof of Results and Proof of Reputation that constitute our PoWR2 protocol.
Payments, Money and Engine Fuel How do we fuel those two engines? What should we use for payments and transactions? Bitcoin, ethereum, fiat money? A payment token specific to the platform? Why? Why would integrity even consider building its own coin or utility token?
49
Crypto vs fiat
Let’s first examine the case of using some sort of crypto currency versus traditional fiat currency. Crypto currencies are progressively getting better suited for global transactions than fiat money.
● it facilitates using one single currency across all economies. ● better suited for micropayments, in theory , since usually divisible to 8 or 10 decimals. 50
● alleviates a lot of the processing fees by removing a lot of the intermediate layers.
In our case, using a common currency across global markets not only simplifies transactions and reduce fees, but also enables the small business to take advantage of much more competitive and affordable costs around the globe. There is a significant opportunity for arbitrage on the platform
49 Source: https://www.linkedin.com/feed/update/urn:li:activity:6425251433473544192 50 Source: https://bitcoinmagazine.com/articles/bitcoin-now-useless-micropayments-solutions-are-coming1/
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.e.g. you can get a great designer offshore at a highly discounted price that will deliver great design, while providing financial security for his family. Everybody wins.
As far as micropayments go, depending on the size of our payments to the different contributors, our engineers may have to explore potential integrations with probabilistic payment channels if 51
we truly move into micropayment territory. That essentially means that some of the smaller payments could be made off chain and finalized on chain periodically. It’s an efficient way to lighten the load, if it comes down to it, while the technology continues to mature and evolve.
By building a distributed platform, we can:
● unite the best world experts ● tap into the best technology ● and connect a global workforce to do the work for a fraction of the cost.
A universal token allows us to transact seamlessly across economies. It also removes 6 or 7 layers of middle men between the provider and the end user, when compared to handling marketing transactions in the traditional financial system.
Coin or token?
So should integrity build its own blockchain and mint its own coin? Or should it take advantage of an existing and established blockchain with robust smart contracts to issue its own token?
Let’s establish that we have no immediate appetite for creating our own blockchain or our own coin. The industry is still fairly experimental and we can mitigate a substantial portion of the risk by building our token on top of one of the more proven blockchains such as Ethereum. We are considering different possibilities and leaning towards an ERC-223 utility token for the token crowdsale – but certainly not building our own blockchain or coin for the time being.
Existing or new?
Shouldn’t the platform use on one of the well established coins as currency like Bitcoin, Ethereum or Litecoin?
It certainly presents advantages and we have considered it, at length. It does however expose us to volatility, speculation, security risks and potential market manipulation that could be quite detrimental to the community and the platform.
We have to keep in mind that tokens are very intimately linked to smart contracts. In the case of building a platform like integrity, with a clear aim to reduce inefficiencies in a given ecosystem, issuing an integrity utility token does open a world of opportunities for:
● better governance ● better incentives ● and better influence
...when it comes to shaping the behavior of agents in the system and on the platform.
52
51 Source: https://medium.com/@gustav.simonsson/ethereum-probabilistic-micropayments-ae6e6cd85a06 52 Source: http://tompeters.com/writing/books/excellence-dividend/
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It benefits the greater common good substantially if the transaction engine runs on its own utility token. The platform can accrue the value generated by reducing the prevalent risk of running a great business but poorly managing growth. There's an inherent systemic risk in seeing great business fail! And a unique opportunity to capture value by solving that for the ecosystem.
INTEGRITY DOLLAR (ID) – the integrity utility token We need all kinds of transactions to make this platform engine purr. Business owners need to pay the platform, pay people, pay for the process, and pay for technologies. And we ideally want the ability to make seamless micro payments every time a set of conditions is met. That’s what our smart contracts and integrity dollar (with ticker symbol ID), the utility token, are designed for.
Issuing a utility token allows platform members to purchase future access to the growth they seek. By the simple act of purchasing services in advance, the members do two things:
1. Every token they stake is creating value and growth for the platform to build, operate and evolve. 2. Drive the price and value of the economy simply by investing in their growth
The better the platform gets at reducing inefficiencies in the ecosystem, the more it accrues value. The better it gets at delivering consistent and efficient growth, the more desirable it becomes. And that causes the utility token to appreciate in value.
Operating with its own utility token also allows a unique symbiosis between the platform and the members. Members can consciously support the platform financially by acquiring and staking utility token. They know that every token they stake fuels the cash flow to build the platform, to operate it and to make sure it improves and evolves over time.
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In order to reward that behavior, staking integrity dollars yields a return every 2 months. The initial yield is set at 1% every two months The community can therefore earn the equivalent of 7.2% of compounded interest per year for supporting the platform. The community and council will have the ability to increase or decrease the yield. This instrument of monetary policy will help increase or decrease the velocity of the token as need be, to promote the well being of the new economy.
They can increase the yield to encourage token holders to stake more of it and support the platform. Or they can decrease it to encourage token holders to spend their token on growth to increase liquidity in the economy.
And lastly, as a token holder, you also know that any contribution in kind you make to the ecosystem by helping members, increasing reach, referring business contacts and more, also supports the value of the token you hold and the platform that fuels the growth of your business.
Wealth Distribution
That unique synergy promotes a fair and sustainable distribution of wealth in the ecosystem. And it is made possible, in large part, by introducing ION, the integrity.one utility token.
The integrity utility token model allows wealth and value to be shared and distributed between all participants, in a fair and sustainable way.
Why ID, the integrity dollar?
The Integrity Dollar (ID) is meant to promote the unification and consolidation of the ecosystem into one single universal distributed platform and new circular economy based on integrity.
White Paper draft - page 27 Integrity.one to contribute: [email protected]
VIRTUE – the integrity vote token One of the big challenges we face in building a distributed platform is to articulate good distributed governance mechanisms that will help serve the greater common good and stay true to our core values. One of those values is to build resilient infrastructures that can benefit the next 9 generations – well beyond the span of our own lives.
We are currently seeking and enlisting the help of some of the world's foremost experts to build that governance framework and stay true to the essence of the fourth industrial revolution.
The Foundation and the Council
We are exploring the ability for platform members to delegate some of their influence to a council of leaders in a set of key disciplines. We are paying close attention to the foundation model and have been drafting a council model. The 2 founders would sit with 7-9 delegates that strongly align with our core values and whose core genius would span across the different chairs we need to deliver on this vision, namely in the fields of:
1. platform design 2. sustainable development 3. social entrepreneurship 4. small businesses 5. investments and portfolio management 6. economics and game theory 7. governance, compliance and regulations 8. ethics 9. evolution of computer science
(machine learning, business automation, software architecture and microservices)
This council would bear the responsibility of leading the basic research and attracting the talent integrity needs in each of those fields to deliver on this vision and fuel progress over the next 9 generations. On one hand they would lead the academic effort for research, funding and publications on relevant topics. On the other hand they would also attract the world’s foremost experts in applied sciences to execute and apply the science, driving innovation.
We can design governance mechanics where they would harness influence when they align with the core values and when their actions are aligned with the greater common good and benefit the community and the platform. And they would lose influence when they digress.
This can be achieved by introducing VIRTUE, the integrity vote token. We are currently exploring different existing governance models and mechanisms that are being experimented with in the blockchain and crypto space. It will allow us to devise the best system to align the incentives of the platform contributors, the token holders and the council members. We are looking to design the optimal model to efficiently foster proper accountability and stewardship of this common good and new circular economy.
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Traction & Market Fit (this section was last updated as of 2018-11-28)
We’ve been testing the Growth as a Service model and validating our driving assumptions through our existing agency, with paying clients, over the last 18 months. Here are some results:
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Talent (these 4 sections - talent, leadership, team, collective - were last updated as of 2018-11-30)
Emboldened by the incredible growth we’ve been able to fuel the last 18+ months, the lives we’ve changed and the businesses we’ve turned around, the incredible partners we’ve attracted and the traction we’ve been getting, it’s time to scale Growth as a Service to the platform level.
Time for us to give the ecosystem the means to self organize into a new version of itself that is much leaner, much more efficient, much more honest and that takes advantage of everything the fourth industrial revolution has to offer.
Building such a platform will present a mountain of challenges and we’ve also spent the last 18 months attracting the right type of talent and putting together the right team to do so.
Leadership
Thomas Co-founder, CEO
Founder/CEO eRational Marketing – contending for top 50 fastest-growing new companies in Canada. Generated over 500k leads/ 35M in revenues. Proud father of 4, former VP Sales of 350M investment firm at 25. Founder of algorithmic Forex trading co.
Niko Co-founder, President/COO President/COO at eRational Marketing. Former Digital Product Director at TC Media, a 2B/year media group. Co-created a workflow engine to handle 500 clients/account manager with 4% annual churn. Spent last decade growing multiple business units from zero to 7 figures. Corp rebel at heart.
Dmitry
Head of Technology Leads platform engineering at Integrity. CEO at SHS, an international technology consulting firm in AI, Big Data and Blockchain. Predictive analytics maestro. Responsible for the granulating and designing of blockchain philosophy and projects for top European financial institutions.
Jose Head of Growth Partner at eRational and Integrity. Leads growth strategy and product innovation. Found his inspiration at 21 when diagnosed with cancer while living in China. Founder of 5 successful startups (last one reaching 8 figures). Acted as consultant on the British Airways and Iberia merger.
White Paper draft - page 32 Integrity.one to contribute: [email protected]
Camilla Marketing Campaign & Strategy With a background in business management, founded two startups and now advises small to medium businesses on growth, digital and marketing strategies.
Simone Platform Design Expert Creator of Platform Design Toolkit. Managing partner at Boundaryless. Helping organisations create platform strategies to mobilise ecosystems for growth, impact and evolution.
Christian Lead Economist Regulation & competition. Produces expert reports for government departments/regulatory bodies. Also specializes in pricing & quantitative management.
Peter Privacy.Tech.Innovation Privacy, data protection, IP, corporate, commercial and regulatory work in the tech, innovation and financial technology.
Team Max Lead Developer - platform, blockchain High-performing Project Manager with 15+ years of successful delivery in developing complex web based applications and e-commerce websites. Specialized in roadmaps design, adoption and new concepts based on Hyperledger, Ethereum, Bitcoin protocols.
Dirk Lead Analyst - platform, blockchain Business Analyst and Project Manager with 20+ years in the digital marketing industry, having engaged with Fortune 500 companies successfully delivering on complex web-based applications and e-commerce websites.
Rob Head of Information Systems CIO/CFO at eRational Marketing. Former IT Director for Sun Life Financial, and Executive Director of the Canadian & American Investors Associations. Fueling the rocket boosters of infrastructure. Led multiple turnaround and mergers/acquisitions as a consultant for a big 6 accounting firms.
Ross Subject Matter Expert - Automation Campaign strategy, automation and customer experience specialist for marketing funnels. Built world class campaigns for major Internet marketing players from Frank Kern to Digital Marketer.
Nick Head of Client Success Leads the client success team. Built his own growth hacking boutique firm from the ground up. Specializes in marketing automation, strategy, conversion-focused copywriting and training, having helped generate over 500k leads and 35M in revenues for small businesses.
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Trevor Subject Matter Expert - Lead Generation Lead Generation and Online Reputation Expert. Accomplished Serial Entrepreneur and co-founder of Linked Into Leads helping businesses leverage the power of Linkedin to add millions to their pipelines.
Mark Subject Matter Expert - Sales enablement Business development and sales expert helping companies like Mitsubishi, Sobeys, Toyota, State Farm Insurance and Manulife Securities. At Sobeys Pharmacy achieved record MOM sales growth and at Selloffvacations.com the biggest YOY growth in company history.
Bryan
Subject Matter Expert - Business and marketing International marketing and business keynote/conference speaker, best-selling author and strategist who consults Fortune 500 clients such as IBM, Cisco, Bloomberg and Pitney Bowes on humanizing business through social media, content and digital marketing.
Justin - Community Manager Manages some of our social media communities and communications
Christine - Funding Coordinates grant applications and various forms of alternate funding
Michael & team - Telesales Sets phone appointments with prospects for our clients
Waraq & team - Messages Sets phone appointments with prospects for our clients
Edgar - Back End Maestro Lead developer for marketing funnels and quality assurance
Chris - marketing Handles messaging and scripting for various lead generation initiatives
Jason - Linkedin Specialist Targets Linkedin customized audience for our clients
Asif - Creative Lead Designer Design, UI, UX & Front End Development for our clients
Daryl - Video Buff Shooting, editing and directing video content for our clients
Ashlyn - Video Queen Shooting and editing video content for our clients
Jenn - Client Success Manager Client onboarding, customer satisfaction and loyalty
And many more!
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Collective (Partners, Advisors, Consultants) Jason Coles ICO Co-Founder With a degree in accounting, Jason has vast cryptocurrency experience as a trader, investor and entrepreneur. Experienced Blockchain and ICO advisor, having helped over 100 different ICO's in the past 2 years. Jason's primary focuses are in community building, oversight and project management, as well as business strategy and investor relations.
Bobby Barone ICO Co-Founder Experienced advisor, investor & enthusiast with a proven history of working in financial services and blockchain industry. Formerly a Financial Securities Advisor, became deeply intrigued by blockchain technology & disruptive business models. Advised and consulted for several cryptocurrency projects.
Edmund Lowell ICO Founder 22M Raise Founder of KYC-Chain and SelfKey, a platform to empower individuals and organizations with more freedom and privacy through full ownership of their digital identity. Selfkey and KYC-Chain helped a dozen ICOs succeed, including Polymath. Advises on Asia strategy, banking and financial modelling.
Samuel Banks Blockchain and Securities Token Expert Former Partner at Appleby Global - corporate law. Successfully structured a series of ICOs to go to market, helping them raise millions. Background in computer science and led legal structuring and offering from a Cayman Law Perspective.
Peter Colegate Data Privacy, Technology and Innovation Lawyer at Appleby. Privacy, data protection, IP and commercial and regulatory work in the technology and innovation sector.
Rebecca Jack Legal. Tech. Regulation Lawyer at Appleby specialising in corporate, equity investment, finance and regulation in the technology and innovation sector.
Robert Sestito Blockchain and Machine Learning CEO, SHS Canada. Co-founded an 8 figure international software development company (crypto & blockchain since 2012). Responsible for blockchain projects with top European banks. Robert advises Integrity on technology/business applications of blockchain.
Giovanni Lesna Blockchain Strategy Advised over 15 startup’s and ICOs, providing unique solutions in business development and commercialization of blockchain technologies.
White Paper draft - page 35 Integrity.one to contribute: [email protected]
Christian Jaag Lead Economist Regulation and competition. Produces expert reports for government departments and regulatory bodies. Also specializes in pricing and quantitative management
Tobias Binz Economist Focuses on the economic analysis and quantification of effects arising from mergers, horizontal and vertical agreements, as well as abuse of dominance cases.
Matthias Hafner Economist Research, regulation and competition. Acts as liaison for the cryptecon partnership
Stephen Brown Fundraising Co-founder at Crypto IB. Specializing in releasing value & raise funding from smart contracts & blockchain technology through our offices in Hong Kong, Singapore, Shanghai, Chile, Ireland, Korea and Monaco.
Brian Elders Compliance and fundraising Founder at Crypto IB. Innovating in the blockchain / token / ICO / SCO revolution that is impacting global finance. Advising established companies that wish to tokenize meeting the highest standards in compliance and best practice.
Simon Wajcenberg Founder at North Block Capital Manages an investment bank for the digital token capital markets that delivers advisory, capital markets, and asset management services.
Cenk Utkan Capital raising Managing partner at Devonshire Warwick Capital LLP. Provides capital raising services for alternative investment managers who are seeking clients in Europe, the US, the Middle East and Asia. Cenk is a FCA Securities and Financial Derivatives Representative in the United Kingdom.
Upcoming announcements
Various fields and disciplines We are also onboarding various leading experts in the field of tokenomics, platform design, merger acquisitions, private equity, machine learning, mind mapping and advanced game theory to deliver a platform that can truly capture the full network effect at the edge of the local marketing ecosystem.
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Financial partners (this section was last updated as of 2018-11-30)
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Building The Platform (this section was last updated as of 2018-11-30)
Pilot Being an existing business allowed us to take our value proposition to the market, with a low tech prototype, spend the last 18+ months testing the business model with paying clients and results have been simply spectacular.
We now have dozens of testimonials and use cases from paying customers who love focusing on their product while someone else powers their growth. They no longer have to deal with multiple vendors or face the prohibitive cost and mixed results of traditional agencies.
● We attracted top experts who are happy to join forces, finally offload fulfillment and to be able to focus on client relations and strategy instead.
● We now have access to a vast pool of freelancers, around the globe, who can do the work at a fraction of the cost.
● And we have our first dozen of technology providers who have been dying to find a way to tap into the small business market at a reasonable acquisition cost.
Prototype We were able to use our existing business, our marketing agency to run the model as well as test and map the processes. We also implemented a minimal viable set software automation to validate assumptions.
We’re happy to report that the pilot phase has been wildly successful with this minimal viable product and helped eRational Marketing place somewhere mid field in the top 50 fastest growing startups in Canada (for new companies over a million in revenues).
We will now leverage our expertise in product management and software engineering to build that very model into a highly scalable distributed platform.
Agile development As we continue to grow the client base, add experts, freelancers and connect with more technology, our product management team is mapping processes and features in order for our software engineers to build up the platform that will progressively automate most of these processes over time.
Every few weeks, we aim to release a portion of code that automates a new aspect of the work. That is expected to enable us to deliver a highly automated solution over the next 18-36 months.
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User Interface and user experience Most marketing automation software present a degree of complexity that would send most business owners running for the hills - especially when you have to use dozens of them to get the job done. We believe growing your business should be simple and straightforward.
Mind Map A picture paints a thousand words. And we’re working with top data visualization and user interface experts to design a simple yet compelling mind map to illustrate the journey of your business and evolution of different functional areas over time.
example of mind map, for illustrative purpose only
Why a mind map you might ask? Because managing your business, getting a sense of where things are at and monitoring your progress should be efficient, fun and entertaining. Moreover, it should be near addictive. Wouldn’t you rather form the habit of checking up on your business’ progress throughout the day rather than wandering aimlessly on Youtube or getting lost in a Facebook or Instagram feed?
Any gamer who’s ever had the pleasure of checking out their progress in a good video game whether it be through the character profile or a good skill tree knows exactly what we mean here. Making progress on key items, celebrating milestones and keeping a pulse on how everyone’s work is shaping the business should be thrilling. And it can be. Our brains are designed to process visuals much more efficiently than anything else . 53
example of blockchain ecosystem map, for illustrative purpose only
53 Source: blogs.biomedcentral.com
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Let’s get in the habit of painting a picture, day by day, of the dream life that our small businesses can provide for our families. As Nir Eyal puts it, in the excellent Hooked, that explores our near addiction to modern platforms and software... Let’s release endorphins where it counts, one completed task and one victory at a time. Let’s get a sense of progression, completion and validation, as we, business owners, take care of business, execute and deliver on our vision.
Mind Maps to the rescue
To further illustrate the power of truly visual interfaces, consider the story of a friend of ours with a PhD in industrial psychology. His team experimented with mind maps with colleagues who were helping drug addicts visualize their journey to recovery.
The results they obtained turned out to be quite the phenomenal breakthrough... They managed to increase recovery rates by so much that they received government funding to further the research and build a new therapy framework leveraging those types of visual aids.
If better visualization using a mind map can pull an addict from the jaws of drug abuse, imagine what it can do to:
● alleviate the daily burden of a business owner ● engage them fully with their growth ● and bring more clarity on the state of their journey.
Drill up - drill down The integrity Mind Map also allows you to zoom in and out anywhere in the map in order to inspect everything from the big picture to the smallest micro detail.
Timeline And you can also use a slider to travel across the timeline, as icons line up all the way from the very birth of a simple idea, through the different stages of your growth, the present state, and even project yourself into the future where you can map out your big plans... and the ultimate vision and exit strategy for your business.
Chatbot The picture takes shape as you fuel it with data. And the chatbot window triggers conversations around each element to help you define your business goals with a quick chat and a brain dump.
We simply invite you to an ongoing conversation about your business and map your different systems as you share relevant pieces of information on your progress. It’s a natural way to feed the data room for your business and to capture all the pieces of information that are relevant to telling your story, monitoring your progress, and measuring performance with the most appropriate set of KPIs.
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Business Intelligence, Relevant documents and Artefacts Business owners constantly have to package information on the business in a wide variety of different formats:
one pagers, pitch decks, executive summary, brochures, websites, landing pages, business model canvas, Profit & Loss statements, balance sheets, cash flow budgets, white papers, issues list, backlogs, product roadmaps, strategic planning, rocks, and the list goes on.
The artefact window displays the business document that is relevant to the portion of the mind map that you’re interacting with and displays the appropriate corresponding business documents so it always on hand as you work on the business.
Our team of engineers are also working on population the document assembly directly from the database in order to allow all your various business documents to update in real time as you share information with your mind map interface and the corresponding chat bot.
Functional prototype Our team of developers and engineers is hard at work, collaborating with a leading expert in user interface and user experience to deliver a minimal viable product over the next few months so we can engage the community as we test and experiment with this exciting new platform.
Product Roadmap (last updated as of 2018-12-05 and CURRENTLY UNDER REVIEW with our team of engineers to combine with ICO page roadmap)
White Paper draft - page 41 Integrity.one to contribute: [email protected]
Go to market strategy Running a growth agency that’s contending for the top 50 fastest growing startups in Canada presents the advantage of benefitting from our own products to fuel our growth.
We are using our 3 proven and scalable growth systems to generate leads both on the supply and demand side (see next page)
1. ultra funnel: video funnel and email automation 2. Linkedin lead generation: messaging and telesales lead generation funnel 3. event funnel: automated event filling funnel
And have also concluded powerful marketing alliances with established industry leaders:
White Paper draft - page 42 Integrity.one to contribute: [email protected]
(this section was last updated as of 2018-10-04)
Marketing Collateral Press Kit
Summary Light Paper White Paper One-Pager Pitch Deck Yellow Paper 5 pages 18 pages - draft 68 pages - draft 1 page - draft 20 slides - draft Winter 2019
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Total Addressable Market With the equation of exchange in mind, we can look at the total addressable market for our ecosystem, take into consideration the business model as well as the go to market strategy and project the acquisition of reasonable market shares over the next 3-5 years – based on current traction – in order to infer a certain potential for appreciation.
With 29M registered small business in the U.S., the local advertising market stands at about 150B a year. Small business accounts for about 49B of it. With the more than 125M small business registered 54
worldwide , we can roughly infer a total ad spend global market of about 200B a year . 55 56
As we touched on before, it’s estimated that 50-80% of that ad spend goes to waste due to the widely reported inefficiency, friction and information asymmetry in the ecosystem (charlatans, snake oil, rampant fraud, ignorance, fragmentation, aggressive funding, legacy companies struggling with digital transformation, etc.)
If we peg our total addressable market on capturing just the lower 50% of that waste, we’re looking at a 100B/year market. And if we consider the full ad spend, we’re looking at a full 200B.
Here it is important to keep in mind that if we were to factor in all costs related to sales and marketing, as opposed to strictly the ad spend, the total cost would be much higher.
And the same is true of the total global number of small businesses. Definitions vary largely by country so the exact numbers tend to be elusive. But it is well known there are tons of micro businesses and solopreneurs that don’t appear in official numbers. The 125M number for officially registered businesses goes back to a 2010 report. Estimates in the same report gauged the potential total number to be somewhere around 375M at the time. And let’s also factor in that those numbers have grown substantially over the last 8 years.
All that to say that we’re looking at a robust 100-200B total addressable market here. If we were to consider the full sales and marketing spend, the rise of small businesses as one of the fastest growing market in the world and the rise of the gig economy as the largest workforce in the world, some experts think this market may actually be over a trillion dollar or more.
Here’s a quick acid test on that math:
The World Gross Product was estimated around US$78.28 trillion in nominal terms in 2014 . 57
Considering, as we stated and established earlier in this paper that small businesses tend to account around 50% of that revenue globally, you can infer that small businesses around the world are earning at least 35 trillion a year. How much of their revenues would you expect these businesses to be spending collectively on their growth effort? The average marketing spend of 8-12% would translate to 3.5 trillion.
A 1 trillion USD total addressable market would imply that they are spending on average less than 3% of their collective revenues on sales and marketing. Some experts consider that to still be very conservative.
54 emarketer 55 Source: World Bank Group 56 The total amount invested in overall sales and marketing effort is actually much larger. 57 Source https://en.wikipedia.org/wiki/Gross_world_product
White Paper draft - page 44 Integrity.one to contribute: [email protected]
The small business market is one of the fastest growing in the world, as demonstrated in the Intuit QuickBooks Future of Small Business Report 58
And the gig economy is rapidly growing into the largest workforce in the world:
When we state that small businesses drive the world... And that solving some of the inherent inefficiencies of that ecosystem is one of the largest market you can imagine... You start to get a sense for the size of the opportunity and the impact our joint efforts can have if we band together and join forces as a collective to make a difference here.
58 Source: https://www.slideshare.net/IntuitInc/intuit-quickbooks-future-of-small-business-report/1
White Paper draft - page 45 Integrity.one to contribute: [email protected]
Serviceable Market and Target Market From a top down perspective, if we aim to service about ¼ of 1% of the market share over the next 4 years, we’d be looking at generating around 500M a year for the Growth as a Service platform and its community.
As much as such a top down calculations can give us a decent, fast and loose, high level idea, let’s validate that further with some more robust bottom up analysis and driving assumptions derived from our actual experience and ongoing pilots in the field.
Token Usage and Demand (last updated as of 2018-12-05 and CURRENTLY UNDER REVIEW with our Swiss crypto economics partners)
We will focus on 3 value drivers for token demand in the early stages of the roadmap.
1. Growth as a Service - first use case – one agency eRational will be the first use case of an agency using the platform to grow and scale. We’ve been working tirelessly with our team of engineers to devise a system that will allow to scale the lead agency, to roughly 23M, 60M and 100M a year over the next 3-4 years. Based on the current:
● sales level ● growth rate ● and acquisition strategy.
Two additional agencies are already in beta to deploy our model to their client base and about a half dozen more have organically taken interest already.
Our team of economist currently estimates that the platform could allow the lead agency to reach another 50 agencies over 4 years. They have factored in that if the others were to generate half as much revenue, at a much slower rate and with a 50% rate of failure that the platform could realistically generate around 165M by then. Token Demand: 165M/yr after 4 years (mostly lead agency with some clustering)
2. Growth as a Service – first generations of clusters That most recent draft and simulation of our distribution model organizes the network in clusters where a lead agency uses the platform’s learning engine to train and guide the growth of 6 agencies over a period of 5-9 years.
The mechanics of that distributed growth organized in a network of clusters accelerate the growth rate substantially after 4 years and reach an equilibrium around 9 years or so.
As an indication, our economists currently anticipate growth revenues totalling around 475M a year around year 5 (with 2 new agencies per cluster every 9 months). At that point in time, clusters of agencies are on average at about 16% maturity. Token Demand: around 475M/yr (acceleration of clusters) after 5 years
3. Growth as a service – the total network They estimate the current network configuration would allow the platform to deploy the model to a total of around 223 other agencies globally over the first 9-10 years. And the network would find an equilibrium at around 4.5B a year. At that point in time, clusters of agencies are on average at about
White Paper draft - page 46 Integrity.one to contribute: [email protected]
88% maturity. Token Demand: 4.5B a year (network at maturity and equilibrium)
Propensity to Hodl Derived From a True Circular Economy circular economy 59
“Looking beyond the current take-make-dispose extractive industrial model, a circular economy aims to redefine growth, focusing on positive society-wide benefits. It entails gradually decoupling economic activity from the consumption of finite resources, and designing waste out of the system. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital. It is based on three principles:
● Design out waste and pollution ● Keep products and materials in use ● Regenerate natural systems”
– Ellen MacArthur Foundation
We share the opinion that aside from the current speculation craze of the last 10 years, productive token models should yield a value fairly aligned with the cash flow generated by the underlying network. Therefore we are presented with a massive opportunity.
Anyone who spent more than a couple of years in local marketing, and small business marketing over the last 25 years can tell you that the model is broken. That market is quite simply ripe for an evolution in the business model that will massively disrupt the current small business marketing ecosystem and progressively gobble its more than 200 Billion a year in revenues.
But much more importantly, such an evolution can also massively reduce the inefficiencies in the ecosystem. And when that ecosystem happens to drive most of the economy, impact the livelihood of most families, is responsible for most innovation and provides most jobs, we could be looking at a potential Moneyball 60
event on a massive scale.
Something that if it were to occur, like sabermetrics , could prove truly revolutionary and could 61
unexpectedly change the game forever. Except this time, the game is not merely baseball but how small business drives most of the world economy. How about that for scale?
Whoever cracks the code of delivering truly effective, properly distributed, resilient and sustainable performance based Growth as a Service for small businesses will encounter massive exponential adoption, the likes of which we have not seen yet – with any of the distributed technology that have been emerging in the last 10 years.
Aside perhaps from the likes of Bitcoin competing as a digital store of value, this is arguably the ultimate use case for distributed ledger technology for the 4th industrial revolution. Growth as a Service can empower the 99%, finally distribute wealth in a fair and sustainable way and usher a new era of abundance, unlike anything we’ve seen to date in the industrial era.
What would happen to a network that could capture anywhere from 100-160B of waste (or even 500-800B of waste if you subscribe to the trillion dollar market hypothesis), and reinvest it, year after year, into fueling that network?
59 Source: https://www.ellenmacarthurfoundation.org/circular-economy/overview/concept 60 Source: https://en.wikipedia.org/wiki/Moneyball 61 Source: https://en.wikipedia.org/wiki/Sabermetrics
White Paper draft - page 47 Integrity.one to contribute: [email protected]
It would compound quite substantially over the years and benefits all the participants massively. The infrastructure that would emerge over the long term from such deployment could be the answer to the eventual collapse of the current capital markets that some of the experts have been predicting.
A platform that was able to capture the value of a fraction of the the current 100-160B of waste per year through the ecosystem could already be generating more than 200B on its own, in its first 4 years. That’s with a conservative 20% year over year growth. It’s interesting to note here that in growth hacking, growth results are more typically in the 50%-300% range… And that is why anyone who is both well versed in growth hacking and the frictions that can be reduced in this ecosystem find this to be a very compelling addressable market If one subscribes to the notion that we’re actually facing a trillion dollar market, the terminal value gets substantially larger, quite rapidly…
The network effect of a virtuous circle That all sounds like a bit much doesn’t it? Can fixing some of the growth problems of small business really have such a massive impact?
White Paper draft - page 48 Integrity.one to contribute: [email protected]
Let’s look at the math behind a simple use case for one given business.
Let’s take a small business with a million in revenues, netting a 12% profit, with a 50% cost of goods sold, 13% sales cost, 15% overhead and spending 10% on marketing.
If you look at the difference between losing 5% of your revenues to competition with poor marketing, gaining a decent 20% growth with 2X marketing return or achieving an excellent 5X return while growth hacking while investing 10% of your revenues, over 4 years, you get:
● 5% annual loss = 1M to 857k ● 20% annual growth = 1M to 1.728M… ● 50% annual growth = 1M to 3.375M
When a small business can consistently count on a 5X return while investing 10% of its revenues in Growth as a Service, it nearly doubles in size every 2 years.
No wonder true growth hackers have been quite in vogue this last decade or so...
But how feasible is a 5X return? Most marketing experts consider 3X to be a good baseline and 5X to be an excellent return. 5X is quite achievable when you can ensure you work with the best people, process and technology for the task at hand. It’s actually in the middle of the bell curve. In growth hacking, it’s not uncommon to see returns that even go up to 12X,15X and 20X when working with an exceptional team. A 5X return on marketing investment is a good bar to set.
Now keep in mind that in the integrity.one ecosystem, all players are small businesses: both on the demand side (the customer business) and on the supply side (with the freelancers, the experts and the tech providers). So, imagine the potential of a 100-200B (or a trillion dollar!) market that nearly doubles every two years…
Of course, delivering Growth as a Service is no easy feat. It requires an intimate knowledge of the small business marketing landscape and a highly innovative platform design. It will also need to take advantage of all the most recent advances in:
● workflow engines and business automation ● microservices architecture ● distributed ledgers and cryptocurrency ● machine learning ● natural language processing ● data visualization ● and so much more!
The real story here is that there are a mountain of challenges to overcome to get there. But whoever can deliver on such a vision will potentially become the ultimate use case of the 4th industrial revolution and will
White Paper draft - page 49 Integrity.one to contribute: [email protected]
seriously put a ding in the universe – as the founder of the first american company to recently hit a trillion 62
dollar valuation would put it. 63
Burn and mint or reinvest in small business growth? When it comes to designing some of the market dynamics for this token, there’s something quite elegant about a burn and mint equilibrium strategy. We could take everything the platform earns in token every month and burn it to reduce the supply. We could then in turn mint a new amount of token every month at a predetermined constant rate. This kind of strategy allows the market to self correct with short cycles of 30 days. When you burn less token than you mint, the supply increases and prices lower. On the other hand, when you burn more token than you released, the supply decreases and prices raise. The whole thing acts as a safety valve and definitely promotes a fairly efficient equilibrium over time. And for those reasons, we had to consider it.
But the nature of the interaction that link the different players in our ecosystem does however lend a unique opportunity to create a sustainable circular economy. By reinjecting the profits of the platform into Growth as a Service for the platform itself, instead of the monthly bonfire of tokens, integrity ends up not only accelerating distribution and adoption of the platform and substantially catalyzing the network effect but also putting more members to work. It does create a virtuous circle that can sustain rapid and robust growth for the benefit of the greater common good and in a very resilient way, through a circular economy..
As alluring as a burnt and mint equilibrium could be, it seems to be in the best interest of the ecosystem to simply cycle back the profits of the platform into its own Growth as a Service, in order to keep fueling the network effect. Doing so continuously improves the opportunity for each and every participating small business to grow better and faster.
We can still consider a burn mechanism on top of the yield rate to act as an additional instrument when it comes to governance and the monetary policy. And we are. Paired with our successive minting rounds
62 Source: https://www.amazon.com/Steve-Jobs-Walter-Isaacson/dp/1451648537 63 Source: https://www.theatlantic.com/technology/archive/2018/08/apple-1-trillion-market-cap/566672/
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deterministic token sales, it could be quite the effective combo in our final monetary policy and governance model.
Competition
The universal platform approach is quite unique. It requires a deep understanding of the local advertising market and a the very specific combination of deep technical expertise this specific team has assembled over the last couple of years. Only with recent developments in distributed software, microservices architecture and deep learning can this vision be achieved.
The biggest competition for the time being, is from every agent of the ecosystem who are vying for the small business attention, outside of the platform (local media, agencies, freelancers, marketing technology providers, etc.) Direct competitors will soon emerge as the local marketing industry matures and consolidates while distributed technologies keep emerging and new teams scramble to catch up.
Market Conditions and Timing the Perfect Storm
The conditions of this current market are very peculiar and have been brewing the perfect storm of the fourth industrial revolution for a few decades:
● Small businesses still drive most sales, jobs and innovation around the world but face new challenges with the accelerating rise of digital.
● Freelancers are the largest and fastest growing workforce. They will make up 51% of the US workforce by 2027 and generate 2.7 trillion of global GDP. 64
● Marketing technology is now more complex than ever and ballooned from 150 providers in 2011 to over 7000 in 2018 across more than a 100 functional areas.
● Marketers and agencies are struggling with the traditional business model. 65
● 60 years in the making, deep learning & natural language processing finally reaching inflection. ● Platforms have been dominating older and more traditional business models. 66
● Token sales allowed crowdfunding to reach a whole new level and are overtaking venture capital. ● APIs, microservices architecture and devops on the rise & revolutionizing how we build software. 67
There is no doubt that we are at an inflection point and that this timing is creating unique opportunities. The question is who will be able to ride the wave.
64 source: Forbes 65 https://www.ft.com/content/3081a2ee-c955-11e7-ab18-7a9fb7d6163e 66 https://www.forbes.com/sites/gregsatell/2016/09/02/platforms-are-eating-the-world-3/#31419f014064 67 https://www.accenture.com/us-en/blogs/blogs-microservice-architecture-devops
White Paper draft - page 51 Integrity.one to contribute: [email protected]
Tokenomics (last updated as of 2018-12-06 and CURRENTLY UNDER REVIEW with our Swiss crypto economics partners)
Economic Model The Integrity economic model is a circular economy that captures the value of the ecosystem and circulates it back to the ecosystem participants.
It is the first meaningful use case that bridges the gap between traditional businesses that are operating in fiat and bringing that value into a digital economy with significant volumes (462 Million USD in yearly demand by year 5 according to our resident economists). This make Integrity a disruptor in creating a long term viable alternative digital economy with the small business as the main value engine.
Small businesses already account for 54% of economic production and therefore are the most powerful driver of value known to the world.
As we dive into the token economics for the platform, let’s first have a quick recap of the different type of tokens we mentioned.
Token design Integrity.one takes advantage of 3 token types to shape the behavior of the different players in the ecosystem. Shaping these behaviors allows the platform to reduce waste in the ecosystem by:
● eliminating some of the inefficiencies. ● reducing friction ● reducing information asymmetry
Delivering growth for small businesses in a way that is more efficient than outside attempts is in part what makes the platform desirable and valuable. It allows the platform to capture some of the value it creates by empowering participants to increase efficiency. Distributing that value between the players in a fair and sustainable way allows that growth to compound over time, not only at the small business level, but also at the whole ecosystem level (more on that later…)
Here is a quick overview of the 3 tokens in question:
● GRIT is a work token that allows good actors to contribute their process, tech or time to the platform for the benefit of the network and community. You can’t buy, sell, trade or transfer the work token. Earning more simply makes you a better contributor and grants you more opportunities in this new economy.
● VIRTUE is a vote token that enables good actors, aligned with the core values, to contribute to the governance of the platform and ensure good stewardship of the ecosystem, for generations to come. You can’t buy, sell, trade or transfer the vote token. Earning more of it, simply makes you more influential and grants you more decision power within the network, over time, as your actions benefit the common greater good.
● the INTEGRITY DOLLAR (ID), our utility token, is the preferred means of payment for the platform. It’s the crypto currency designed to purchase Growth as a Service and sustain a robust economy for its participants. You can buy it, you can earn it by contributing to the ecosystem, you can trade it for growth and, once listed, you will be able to sell it on exchanges. You can also stake it to accrue an initial yield of 1% every 2 months
White Paper draft - page 52 Integrity.one to contribute: [email protected]
Economic Equation Given its use as a payment currency, from an economic model standpoint, some will argue that, as a medium of exchange, we can expect our utility token to behave like a freestanding monetary base. As such, monetary bases are usually valued based on the equation of exchange : 68
Money Supply x Velocity = average Price level of Goods x index of expenditures (such as the total volume of economic Transactions).
Also known as MV = PT
On that topic, we tend to align with Vitalik’s analysis in his brilliant article on the topic:
“Traditional macroeconomics has a simple equation to try to value a medium of exchange: 69
MV = PT Here:
● M is the total money supply; that is, the total number of coins ● V is the “velocity of money”; that is, the number of times that an average coin changes
hands every day ● P is the “price level”. This is the price of goods and services in terms of the token; so it is
actually the inverse of the currency’s price ● T is the transaction volume: the economic value of transactions per day
The proof for this is a trivial equality: if there are N coins, and each changes hands M times per day, then this is M * N coins’ worth of economic value transacted per day. If this represents $T worth of economic value, then the price of each coin is T / (M * N), so the “price level” is the inverse of this, M * N / T.
For easier analysis, we can recast two variables:
● We refer to 1/V with “H”, the time that a user holds a coin before using it...
● We refer to 1/P with “C”, the price of the currency (think C = cost)
Now, we have: M/H = T/C or MC = TH
The left term is quite simply the market cap. The right term is the economic value transacted per day, multiplied by the amount of time that a user holds a coin before using it to transact.
This is a steady-state model, assuming that the same quantity of users will also be there. In reality, however, the quantity of users may change, and so the price may change. The time that users hold a coin may change, and this may cause the price to change as well.” 70
– Vitalik Buterin
68 https://www.investopedia.com/terms/e/equation_of_exchange.asp 69 https://en.wikipedia.org/wiki/Equation_of_exchange 70 Source: On Medium-of-Exchange Token Valuations
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Demand The demand for the Integrity Currency is rooted in its use in growing businesses. It is the unit of value used in the ecosystem to purchase business growth and facilitating trade.
Based on 5 year projections, we are expecting a $462 Million USD demand for the Integrity Dollar.
Monte Carlo simulations over 9 years point to $4.5 Billion USD in demand for the digital currency.
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Supply 3 potential releases over a period of 3-4 years will amount to a total supply of 1.2 billion tokens. That is a healthy supply to align with demand and does include built-in mechanisms for additional releases to alleviate price pressure, if need be.
● Circulating Supply: 50M liquidity/other 250M progressively unlocks through vesting schedule ● Total Supply : 1.2B (300M, 300M, 600M) over 3 releases 71
● Max Supply: kept in line with demand over 9 generations by distributed governance
Monetary Policy The Integrity Economy has 3 core monetary policy tools to manage and protect the ecosystem and the currency value.
● Minting create new token to increase supply and decrease price ● Burning eliminate token within the ecosystem to reduce supply and increase price ● Staking allowing participants to stake their tokens on the platform for incentive*
*currently set to 6% annualized. Decreases supply and velocity and exerts upward price pressure.
Use of Funds 20M USD being raised for the initial token sale.
● 10M acquisition of geographically distributed agencies (for approx. 3M USD in yearly profit). ● 4M platform growth and user acquisition (sales and marketing) ● 5M held in Bitcoin to asset back the Integrity Dollar and fund platform development
71 Source: https://www.coinist.io/understanding-token-supply/
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Operating a Surplus Economy The operating model of the Integrity Economy involves the acquisition of profitable agencies that will help us penetrate 6 different markets in North America, South America, Europe and Asia. The profit from these agencies is expected to be $3,000,000 USD per year.
The Integrity Platform development budget is $2,000,000 USD/year with a Canadian Tax Credit and Grant manoeuver that will help Integrity recover 40% of those operating costs within 1 year ($800,000 USD/year). This allows the Economy and Platform to operate in a net cash flow positive position of +$1,800,000 USD / year.
Including the covered call revenue on the 5M in BTC inventory of $750,000 USD assuming a 15% premium collected, this would represent a Digital Economy with a net year 1 operating surplus of $2,550,000 USD, not including any client revenues for services.
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Treasury Management We are in discussion with one of the top 3 regulated digital custodian in the world to hold the 5M in Bitcoin assets, the 30M in ID liquidity reserves and the 900M in undistributed minted ID token to be placed in their custody with full insurance and full cybersecurity.
Integrity is connected to multiple liquidity providers and OTC desks outside of the platform. This is to ensure price stability and access to liquidity for platform participants when they want to cash out into fiat economies.
Integrity will write covered calls on the BTC inventory for a yield of 15-25% per year in premium captured, while the 5M in BTC are held in custody.
Platform participant tokens that are staked will also be held in insured, encrypted and cyber secured custody for proper safekeeping and record-keeping.
Asset-backed Integrity Dollar We are also currently in discussion with a lead financial institution in Europe and Asia to back a portion of the currency with further digital assets.
5M in Bitcoin assets, the liquidity reserves and the 900M in undistributed minted tokens would be held at a regulated digital custodian with full cybersecurity.
Integrity would write covered calls on the BTC inventory for a yield of 15-25% per year in premium captured, while the 5M in BTC are held in custody.
Tokens staked by the platform participants, in exchange for the yield specified by the Council (currently placed at 6%), would also be held in insured, encrypted and cyber secured custody for proper safekeeping and record-keeping.
The Us Dollar backing with the gold standard was the reason the American people could have faith in the value of their currency. Although a volatile asset, gold was still recognized as a store of value that, in time, appreciated with inflation.
In the case of the Integrity Economy, we are backing our dollar with the strength of Bitcoin. Given its limited supply, increasing demand and 54% market share of the entire cryptocurrency market, it is currently the best choice, in the eyes of our financial partners, for a digital store of value and reputation strength in today’s crypto space. As such, Integrity is discussing placing 5M in Bitcoin holdings in custody to create additional trust in the value of the Integrity Dollar.
This is done with transparent and clear proof of digital asset backing on the Integrity Dollar. It will create an integrity dollar floor price but increase the trust and value of the new digital currency. However, unlike Fort Knox, the gold can’t be emptied without everyone knowing.
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Fiat to Integrity Dollar Exchange Rate Risk There is an exchange rate risk due to ID fluctuations for both the small business buying the growth services and the participants in the platform delivering the growth. This risk is mitigated by pegging the SERVICES to the USD. Only at the point of service delivery where the smart contract is activated, client account is debited in USD, that amount is converted to ID, and the ID are distributed directly to the platform participants delivering the growth.
This ensures that while we build the strength and liquidity of ID, all ecosystem participants pay and get paid in the USD equivalent of ID. Therefore, regardless of token price, everyone can pay/capture the true market value of the services being delivered.
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Circular Economy: Value for All
The key to a long term sustainable economy and strong currency is an economic model where profits and value are circulated back into the ecosystem. Sources of the value are the 50% profit margin on all services offered on the platform generating a sizable token reserve, and the profits generated from the profitable agencies that have been acquired. Key examples of circular value drivers that benefit all:
1) BTC Futures: Integrity can purchase BTC futures contracts to take delivery of the 3M worth of profits in BTC at the time of profit realization. For example, if the profits are expected to be 3M or $750,000 per quarter, and current price of BTC is $4000 USD, and the Chicago Mercantile Exchange contract is for 5 BTC, Integrity would purchase 37 futures contract per quarter for BTC delivery 90 days out. At the 90 day mark, Integrity would take delivery of 37x5 BTC = 185 BTC that would then go into Custody for further currency backing and strength to the benefit of all.
2) Token Roll-Ups: Integrity can purchase more profitable agencies at 80% token and 20% cash using token inventory and reserves. This accelerate economic growth and value since this increases the economic surplus, which increases platform development and BTC reserve purchase from profits into BTC reserves for ID backing.
3) Platform Growth: Grow the platform participant base of small business clients, freelancers, experts and tech providers to increase adoption, which increases ID value and security. Also increases revenue which feeds the operating model, the circular economy and ecosystem growth.
4) Develop Platform: Advance technology, learning engine, transaction engine and processes to increase efficiency, optimize outcomes and facilitate value transfer between ecosystem participants to maximize value exchange and creation
5) Buy more BTC Reserves: Integrity can then increase the price floor of ID for the long term benefit and safety of the entire ecosystem
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Token Sale (last updated as of 2018-12-06 and CURRENTLY UNDER REVIEW with our crypto economics partners in Switzerland)
Programmatic Releases In order to fund the development of the platform and the growth of the ecosystem, we’ve designed a series of successive token crowdsales. As suggested by Vitalik Buterin, we tied the token sales to the roadmap, the progress and the evolution of the platform, over the course of the next 9 generations.
We can have a sale which is uncapped as a whole, but which consists of a variable number of periods, where the sale within each period is capped; this way teams would not be asking for very large amounts of money without proving their ability to handle smaller rounds first. We can sell small portions of the token supply at a time, removing the political uncertainty that this entails by putting the remaining supply into a contract that continues to sell it automatically according to a prespecified formula. 72
– Vitalik Buterin
The first token sale will allow backers and members of the community to pre-order access to the platform and to fund its development. It enables the team to build a beta version of the software. It also allows the team to start backing the integrity dollar with both digital assets and productive assets (more on that later).
As the platform delivers business growth, it will progressively onboard more users and grow its transaction volume. . Once the transaction volume reaches a certain predetermined threshold, the next token sale will release the next wave of token.
We initially drafted the threshold with a price trigger but the work of our world class team of economists from cryptecon in Switzerland determined that transaction volume would be a much better trigger
● that correlates even better to platform and ecosystem growth ● and that is much more resilient to manipulation
The increase in circulating supply over time helps to reduce price pressure and avoid speculation. The funds raised allow the team to further improve the platform, invest in growth and increase the necessary reach and distribution as the ecosystem grows.
It also allows the team to collateralized\ some of the platform’s assets by performing a series of acquisitions of profitable agencies that can help roll up some of their expert processes, freelancers or marketing technology directly into the platform.
This series of acquisitions allows us to generate free cash flow that is reinvested in growth. The cutting edge work of integrating all those existing and proven technologies into a seamless platform lends itself very well for grant funding and research development credits, further reducing the operating cost and mitigating risk.
The cycle repeats whenever the price reaches one of the predetermined thresholds and every cycle contributes to expand the circular economy, for the mutual benefit of all the participant in the ecosystem.
Our current modelling projects 3 token sale over the next 36-48 months. Thanks to our partnership with world class experts out of Switzerland, we have started to test the model in order to validate the
72 Source: https://vitalik.ca/general/2017/06/09/sales.html
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mathematical assumptions. We are building the model in R , and running simulations from a game theory 73
standpoint to observe potential strategies, behaviors, incentives and scenarios when it comes to:
● pricing, demand and supply ● speculation and manipulation ● monetary policies ● circulating supply, total supply and max supply ● minting, burning and staking mechanisms ● revenue streams ● contribution ● governance mechanisms ● and much more
These simulations help us further validate/stress test token design and crypto-economic model.
This model allows the platform to grow over time but based on real results and proven utility. Rather than raise the full amount upfront (for the kind of investment such a platform will require over the years) we have opted to raise a smaller amount. We can deliver results to increase the demand and release more token in the market once we reach the next milestone.
This deterministic and programmatic token sales mechanism is inspired by the work of Vitalik Buterin on Analyzing Token Sales and the next generation of initial coin offerings and token crowdsales. It helps: 74
➔ align management supply with demand. ➔ promote a steady rise in value with a healthy degree of liquidity and price stability ➔ limit the effects of speculation by delivering value in stages with proven results
Here’s a quick look at what the first 3 token crowdsales would look like over the next 3-4 years or so with a total supply of around 1.2 Billion tokens. That time table could be accelerated if the platforms grows much faster. The advantage of a programmatic system is that it stays in line with the market. The community and the council will have control over how the platform and ecosystem grows passed those 3 first token crowdsales through our governance protocol. Our token crowdsales mechanics are still very much in the works and getting tested by our economists partners in Switzerland. Here’s a link to the latest draft of what the programmatic token crowdsales table could look like over the span of the next 9 generations.
Here’s an overview for some of the crypto economics questions and matters we are testing, modelling and exploring over the next months with our Swiss Partners (economists, behavioral economists, monetary policy experts, ani-trust experts and crypto economists) :
● What is the best trigger mechanism for ongoing subsequent token sales?
● How resilient is the model long term when it comes to manipulation by speculators?
● What’s the best economic model to reflect the value this productive utility token aims to capture and model the evolution of the market cap outside of sentiment and speculation?
● What’s the best potential staking mechanism design for the work token?
73 Source: https://www.r-project.org/about.html 74 Source: https://vitalik.ca/general/2017/06/09/sales.html
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● How could adding a burn mechanic benefit this ecosystem?
● How could a mining layer improve the resilience of the network over time? How can we reward contributions in kind with a mix of mining and utility token?
● What’s an optimal total supply over the next decade or so? What’s an optimal maximum supply for this ecosystem over the next 9 generations?
● What will be the positive effect on the model of backing a portion of the integrity dollar economy with Bitcoin through our financial partners?
Token Allocation (300M token)
(last updated as of 2018-11-30 and CURRENTLY UNDER REVIEW with our Swiss crypto economics partners)
➔ Token Sale (76.3%) 41.7% token sale ($20M) - vested 5.0% early investors premium - vested 15.0% BTC premium bonus - vested 14.6% ETH premium bonus - vested
➔ Incentives (13.9%) 1.5% legal and compliance - vested 9.0% founders - vested 3.0% advisors, contributors & community - vested
➔ Liquidity (10.5%) 10.2% small business growth - liquid 0.0% reserve
Token sale (20M dollars) ➔ 20M hard cap ➔ considering a stretch goal based on traction ➔ 2M soft cap
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(this section was last updated as of 2018-11-30)
HOW TO PARTICIPATE Integrity is raising around 20M for the first of a series of token sale. This sale has multiple private and public stages of participation. Here are the details for the various stages. 75
Target price: 1 integrity token = 0.16 USD Staking tokens yields and initial return of 1% every 2 months TAKE ADVANTAGE NOW: With our premium exchange rate* of ETH at 180 USD and BTC at 6500 USD *Premium rates are subject to change, based on market
Seed Round (being finalized) (for 5% equity of the company building/operating the platform)
➔ 1M for 5% equity with a 50% token bonus ➔ with 6% cash dividend (paid quarterly) ➔ min 100k, max 1M ➔ vested 9 months
Private pre-sale (-live-) ➔ 5M at 0.12$ (25% bonus) ➔ min 200k, max 1M ➔ vested 9 months
Private sale (- Q1 2019 -) ➔ 4M at 0.14$ (13.5% bonus) ➔ min 20k, max 1M ➔ vested 9 months
Public pre-sale (- Q2 2019 -) ➔ 2M at 0.15$ (6.25% bonus) - (to be confirmed) ➔ min 1k, max 8k - (to be confirmed) ➔ vested 6 months
Public sale (3 stages) (- to be announced -) ➔ 12M at 0.16$ - (to be confirmed) ➔ min 1k, max 2k - (to be confirmed) ➔ vested 6 months
Join us – Unleash the PoWR 2 of Small Business!
75 for additional details on next stages of token sale, please reach out to [email protected] and we’ll be happy to fill you in
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FAQ (FREQUENTLY ASKED QUESTIONS) (this section was last updated as of 2018-11-30) What are the dates of the token sale?
Here are the dates
Can I pre-register?
Yes, you can pre-register here. – Just click <Get me on the Whitelist>.
Is there a soft cap/hard cap?
We are finalizing the mechanics of the token sale and currently looking at a 2M USD soft cap and a 20M hard cap. Since there is good traction, we might include a stretch goal to firther fund acquisitions.
Do you have a privacy policy?
Yes. You can consult our policy here
Do you have a KYC procedure?
yes [insert link]
What is the Integrity utility token used for?
To buy Growth as a Service for your small business
I am part of the bounty or airdrop, when will I receive my tokens?
At the very end of the last round of the public sale.
I invested. When will I receive my token?
At the very end of the last round of the public sale.
I’m a contributor/advisor/team member. When will I receive my token?
At the very end of the last round of the public sale.
Is Integrity expected to trade on a digital exchange?
Yes. We are aiming to get the Integrity Utility Token traded on 4-5 exchanges. We are concluding partnerships to get pre-listed so we can essential provide liquidity as soon as we mint the token.
Can US citizens participate? Are there any country restrictions?
Yes, it should be possible for US citizens to participate if they are an accredited investor. We cannot accept participants from China. And please note that the Issuer does not offer to sell Integrity Tokens and is not soliciting the participation in the Integrity Token Sales in any jurisdiction or to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.
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Is your token a security? What’s the regulatory risk?
We enlisted the services of a world class firm to make sure we structure our token model and token sale to release a utility token that does not constitute a security under Cayman Law. We are not selling to retail investors into the U.S; are not selling to China; to further mitigate any risk. And the Issuer does not offer to sell Integrity Tokens and is not soliciting the participation in the Integrity Token Sales in any jurisdiction or to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.
Are my integrity utility tokens transferable during the token sale or while they are still vested? Can I move them between ETH addresses?
For security reasons, users will receive tokens at the same ETH address they used to make the token purchase. They can't transfer utility tokens from one ETH address to another during the token sale and vesting period. They can withdraw unlocked tokens from the platform system to the original ETH address, after the vesting period, and then transfer them to any other account of their choice.
How would you explain integrity.one to a 5 year old?
Imagine that stores want to get more customers. Each store owner gives money to people who work in "marketing". The job of the “marketing” people is to get more customers.
A good way to get customers is to tell people about the store on the Internet. A lot of people use the Internet and they use it a lot! But convincing people on the Internet to come to a store is hard. You have to know a lot about how to use computer programs to spread your message on the Internet. You also have to know a lot about making ads. So you need someone in “marketing” who knows all that.
The big problem is that there are a lot of dishonest people out there. Crooks! And also people who are bad at that job. Fools! And computer programs that cost a lot of money but are not very good – like a bad toy or a bad game.
In the end, the “marketing” people are always happy to take the money of the store. But they don't always bring customers. They don’t always do their job well. That is very bad for the business. So bad, that a lot of business have to close down.
So we’re making a “website” where only the good marketing people can work. They need a special “code” to enter the website. And we only give them this “secret code” if they can pass a test. This way, when a business needs to get more customers, they know it will work. It’s guaranteed to work. Only the good people will work on getting them more customers. If ever something was to happen and they don’t get more customers, they can also get their money back. Isn’t that wonderful?
We invite the best marketing people. We invite the best computer programs. And we invite the best experts to come together and do great “marketing” with us. To get all these stores much more customers!
And to encourage them, to inspire them and to motivate them we even play a game together. To play this game we have our own “points” system. The business buys points and they give points to the marketing people. The better the marketing people do their job, the more points they get. And we have rules to make sure everyone plays fair. And when you’re a good honest player, you get more and more points. Bad players & cheaters lose points.
And what can the marketing people get with those points? They can get whatever they want. Because they can sell their points to the next business owners who also want more customers. And they can buy whatever they want with that money. And it goes on and on like that. And everybody wins. :)
Why do you need a blockchain?
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To build our growth as a service platform on a distributed layer of trust. To use smart contracts instead of tons of clerks, middle men and layers of middle management. And to keep automatically keep payment fairly in escrow until quality work and results are delivered.
Why do you need a utility token?
To make it easier to reward contributors and build a fair and sustainable circular economy between all the participants.
Why not just use Bitcoin or Ethereum instead?
To avoid volatility and speculation. To better align the incentives of our contributors.
Why do you need smart contracts and a work token?
Work token allows the platform to empower the contributors who deliver real growth and keep the bad actors out of the equation. Smart contracts allow us to reach more people with a leaner model.
How can you ensure proper governance?
We are working with leading experts in the field to introduce a vote token to build mechanisms of distributed governance within the platform and the ecosystem.
How can you drive value and ensure the value of the utility token won’t crash?
Like any market, the value will be maintained if the demand is greater than the supply. We make sure to build a platform that delivers real value to the members, that puts the greater common good first and that offers a desirable utility. Given the size of the market, the limited total supply, and the sound monetary policy with distributed governance, it makes for robust economics.
Can the PoWR2 protocol be used outside of small business growth?
Absolutely. We have friends in the crypto space who are working on decentralizing manufacturing and they have to vet engineers. They see a potential use case for our protocol and so do we.
We are just starting with Growth as a Service for small businesses because it’s something we know, we’re really good at and has a massive impact. But we certainly invite our partners, community members and contributors to put the tools we build to great use. We’re definitely better together and always happy to collaborate for the greater common good!
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Who owns the platform? the network or the company?
Most of the platform code will be open source. So most of the code will belong to the community. Our engineers are working on the best way to time the release of the open source portion of the code into the ecosystem.
The platform is being built on a distributed architecture which means the nodes will be mostly owned and operated by members of the community as well.
The different companies that constitute our global corporate structure are mostly operators. They operate the platform for the benefit of the community. Those companies are owned by our founding team and seed investors in the early stages of the platform rollout.
Why do you have corporations building and operating the platform?
We were initially hoping to operate as a Distributed Autonomous Organization from the start but there is still a good bit of risk and complexity around technology and regulation so we started with a global structure of limited partnerships. We’re planning to transition to a distributed organization over the next 24-36 months.
Will there be a guide on how to add the custom token?
[insert answer]
What is the price of one token during the token sale?
We are currently aiming for 1 integrity utility token = 0,16 USD
Are there any refunds for token sale funds?
Tokne sale funds will be refunded in the event that the soft cap is not reached or under any other provision of the Terms and Conditions that legally warrants a refund.
Are there any refunds for seed funding?
No. Seed funding is not refundable.
Does Integrity have any partnerships?
Yes, they are listed on www.integrity.one
Is this an Ethereum-based token?
Yes, we are planning to use an ERC 223 protocol to release this token.
Is the Integrity Utility Token a security token, utility token, or consumer token?
A utility token
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Will you compensate me for sending money to scammers?
No. Be mindful to follow the crowdsales instructions and process throughout so you don’t fall prey to all the scammers out there. The process is safe and secure if you follow the guidelines.
Do you have a bounty campaign?
Yes. Here is the link to the bounty post on BitcoinTalk.org. We have second bounty campaign on its way.
Will there be a token airdrop?
Yes. Here is the link to the 1st airdrop post on BitcoinTalk.org and the 2nd airdrop post
What is the total token supply or max supply? Will there ever be more tokens?
We are currently aiming for a total supply of 1.2 billion tokens over the first 3 token sales.
Beyond that, our economists are hard at work to build a governance system that will allow the council to be good stewards of the economy with a robust monetary policy. The monetary policy will include the ability to set the proper yield rate based on the velocity of the token and to burn token when need be.
The council will be managing a potential max supply of approximately 1 trillion token over 297 years or 9 generations. We are working with our resident economists to ensure the economic model is optimal and can be progressively right sized over generations. Once that ultimate max supply number is set, there will never be any more tokens.
Can I participate in the ICO without a private wallet?
[insert answer]
During the token sale, do you accept credit cards or paypal? Fiat or cryptocurrencies?
We aim to accept fiat, BTC and ETH. For fiat purchases, we aim to accept credits cards, Paypal and any other payment channel we can reasonably accommodate. We are finalizing the protocols with the development team and will soon share the conversion mechanisms and flow of funds from an investor’s perspective.
Where should i keep my token stored?
You can stake it on the integrity platform to receive a yield. Or in a secure online wallet or cold wallet
What is the minimum and maximum investment?
They are listed in the “How to Participate” section
Which blockchain will be used for your project? Explain your choice.
Our distributed team of developers and engineers that have been developing enterprise grade blockchain for nearly 7 years including clients like some of the top Europe banks are considering all available platforms including Ethereum, Hyperledger and a few more. We are also building the platform to be modular, portable and agnostic in order to allow us to migrate to a different blockchain, if need be, as the industry matures over the next few years.
Where is your team based?
Canada, Spain, the Netherlands, Ukraine, Philippines, the U.K., Sri Lanka, Hong Kong and the Cayman Islands, for the most part.
How did the team come together?
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Mostly through our growth agency www.erationalmarketing.com and our business networks.
What is the marketing strategy after the token sale?
We will deploy our 3 existing proven business to business marketing funnels to attract experts, freelancers and tech providers:
● event filling funnel ● lead generation funnel (linkedin messaging and outbound telesales funnel) ● ultra-funnel (video and email automation nurturing funnel)
We also use a distributed strategy of agency clusters where a lead agency uses the platform to scale and then teaches 2 more agencies every 9 months (up to a maximum of 6) over a period of 5-9 years. This allows each cluster of agencies to properly customize and localize the strategy to their specific market, region and niche.
How can I participate in the token crowdsale sale? Is there a guide?
See www.integrity.one
Do you have a video explaining your project?
Yes. See www.integrity.one These are the first drafts and we are working on improved versions.
Do you have a price in ETH or BTC, or is it fixed to a fiat value?
We are aiming for a fixed 0.16 USD price for the token crowdsale. We are however offering a premium exchange rate of approximately 1-% on Bitcoin and Ethereum. Our current premium rate is around 6500 USD for BTC and 180$ for ETH to help backers participate in the crowdsale without having to time their token purchase with an upswing in the market. Note: Those rates are subject to change and updated when necessary.
Is the operating company incorporated? Where?
Yes. Canada and the Cayman Islands.
Have you got a vesting period for founders and early contributors?
yes, 12 months and 9 months respectively.
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Is your smart contract deployed for the crowdsale/ICO?
No, we’re currently in the last steps of the testing phase. We determined it would be more efficient to run the yield and vesting periods of tokens on a different smart contract after the token sale so we are putting the final touches to separating what started as one big smart contract into something more agile and more modular.
Do you have a working product that users can test? An MVP?
We have been servicing a limited number of small businesses and validating the business model through our existing marketing agency over the last 18+ months. We are currently building the first prototype of the distributed software platform that will enable us to scale this model. We are planning to open that prototype for beta testing over the course of 2019.
Do you have a reputable third party for KYC? How safe is it to upload my ID on your site?
Yes, we are working with Chappuis Halder and KYC-Chain under the guidance of our legal team.
I’d like to participate in the seed or private rounds of the token crowdsale. Who should I reach out to?
I’d like to contribute to building the platform. Who should I reach out to?
How can I contact the Integrity team?
www.integrity.one
Help! I have a question that wasn’t answered here.
www.integrity.one
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SUPPLEMENTALS (this section was last updated as of 2018-12-06)
Token design (continued) Tokens that currently trade in the market generally fall under three types of crypto assets. They usually either act as a:
● currencies and commodities (store of value) ● utility tokens ● security token
76
As we touched on briefly, our integrity.one utility token is very much designed to serve its purpose as a
payment currency for the Growth as a Service platform we’re building.
Although it may present a certain interest as a store of value, it’s definitely not the primary intended role.
And we diligently, constantly do everything in our power, with the assistance of our different legal teams, to keep it from looking, feeling or behaving in any way, shape, or form, like any kind of security token.
From a risk mitigation standpoint, we do align with regulation wherever possible to minimize the impact in
case utility tokens were ever declared to be deemed securities for some of the jurisdiction we operate in. But we are very much dealing with a true utility token here, as far as the law and our legal counsels are concerned.
76 Source: https://hackernoon.com/capturing-crypto-value-a-guide-to-tokenization-strategies-part-2-3-af7a696e02cd
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Capturing Value Once we’ve established the token model, how can we gain any type of insight on how its potential value
could evolve over time and if the crowd should support it?
Traditional valuation mechanism can yield some clues (with discounted cash flow analysis, net present value
or internal rate of return calculations) as to the value of the underlying economic activity. But these models have also turned out, for the most part, quite elusive when it comes to nailing cryptocurrency fundamentals.
Valuation of token models and cryptocurrency are still very much a challenge. There are many schools of
thought and the jury is still out on how to best assess the current and future expected value of any given distributed application or distributed platform token.
The current massive market cap for cryptocurrency has been mostly fueled by speculation. And so has its
extreme volatility. Very few token sales or initial coin offerings relate to a truly productive economic model. And the efforts to capture true value in token design are still rare and few apart. 77
The small business marketing and growth ecosystem is riddled with waste, friction, inefficiencies and
liabilities. There is a tremendous amount of value to be created in reducing that waste. And one of the challenges is to design a token model to capture as much of that value as possible.
Let’s have a look at some of the different economic perspectives that are available to us.
Valuation models What is the proper valuation model for an instrument like the integrity dollar? Since the jury is still out on the question, we use the following pages to explore different schools of thought on the topic and bridge the work of various leading expert with the work of our resident economists.
Equation of exchange and velocity If we want to examine the potential value over time from the angle of an equation of exchange, we also need to build an assumption for velocity.
As Kyle Samani points out in his brilliant work, the velocity of the USD M1 is about 5.5. Prior to the 78
financial crisis (for which the Federal Reserve approximately doubled the money supply), the velocity was about 10 . 79
Since the Integrity Dollar (ID) doesn’t intend to act as general-purpose money, and if we assume, for the time being, that there is no real profound compelling motivation to hold the token beyond accruing 1% yield every 2 months, we can explore a 3-10x higher velocity than USD M1. This would imply a velocity of 30-100,based on his work that we use for illustrative purpose here.
The terminal value of the market cap for the Integrity Dollar, assuming 100% market saturation, at the advertising level, would therefore land somewhere in the estimated range of $1.5B - $5B ($150B/100 and $150B/30). If you subscribe to the idea of the trillion dollar market based on true extent of sales and marketing spend and number of small businesses on the rise, you would multiply that by 6-7 for an estimated terminal value of $9B-$30B.
77 https://medium.com/paratii/on-the-immaturity-of-tokenized-value-capture-mechanisms-1fde33f2bc8e 78 Source: https://www.forbes.com/sites/ksamani/#4291e64d6057 79 Source: https://medium.com/multicoin-capital/new-models-for-utility-tokens-d26c12ec00c5
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That would represent the total potential market cap for this token model, under that framework. As Phil Bonello however expressed it in his equally brilliant work, we tend, like him, to subscribe to the idea that: “MV=PQ is generally not suitable for valuing productive assets. Rather, it demonstrates a semi-useful way to understand how a medium of exchange token behaves relative to the economic activity it generates.” – Philip Bonello 80
Compelling motivation to hold and net present value Which takes us to the next model. If Growth as a Service were, on the other hand, a pure and simple commodity like storage space, or computing power, we could most certainly rely on the Net Present Value equation to determine the potential terminal value of the platform. Similar to Kyle Samani’s analysis of Filecoin, assuming an estimated discount rate of 40% (for this type of 81
startup), and operating margins of 50%, the potential estimated terminal value for integrity could then be:
$150B x 50% / 40% = $187.5B
That’s more than a ten fold difference!
Since velocity exerts perpetual downwards price pressure, the impact of managing to escape that problem (usually associated with pure proprietary payment currencies) is quite impressive.
For that model, however,to be undeniably true, growth would have to be a simple commodity. And if it were, instead of earning a work token based on merit, as in our model, the users would simply buy a work token and stake it in order to bid on a job. The more cashflow the platform would generate, the more demand there would be to hold that tradable work token, and the price would increase with the capacity for the platform to produce cash flow.
And models for a good or service that is indeed a pure commodity lend themselves very well to that kind of mechanics. But considering that Growth as a Service is not a pure commodity when it comes to the people, process and technology that power it, our platform users would seemingly need a different (strong and compelling) motivation to hold or stake integrity dollars.
And that motivation would need to grow fairly linearly with the ability of the platform to deliver growth on a larger and ever increasing scale. This is where the notion of circular economy becomes increasingly relevant as a crucial factor in the long term outlook of this platform and this new economy.
Incentive to hold But how does the model tie in with the velocity of the token or propensity of the platform members to hold token?
In order to see the appeal of the model and the impact on the velocity of the token and the impact on the market cap, you have to be familiar with the pain that comes with the status quo. Here are the advantages for each entity to back, support and fund the development and growth of the platform throughout.
Small business owners
status quo – small businesses can sit on their marketing budget, earning little to no interest and be stuck on their own when it comes to figuring out the best
80 Source: https://hackernoon.com/valuing-productive-cryptoassets-89cedad444e6 81 Source: http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf
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people process and technology to deliver the growth they need, amidst all the noise in the market.
hold integrity token – Or they can invest their marketing budget in integrity token, earn a 7.2% yield, and support the platform that allows them to benefit from the best people, process and technology to deliver growth on demand..
Freelancers and agencies status quo – freelancers can sit on their marketing budget, earning little to no interest and have to spend precious time on figuring out to compete for contracts with the rest of the pack.
hold integrity token – Or they can invest that budget in integrity token, earn a yield, benefit from the best people, process & technology to deliver growth on demand and back a platform that expands this new source of no hassle merit-based to take their business to a whole new level.
Experts and consultants
status quo – experts could also sit on their budget, earning little to no interest and have to spend precious time not only figuring out to compete for contracts with the rest of the pack but also be stuck with executing campaigns and funnels for their clients.
hold integrity token – Or they can invest their marketing budget in integrity token, stake it and get paid a yield. They can support the platform that helps them build their business with a steady and growing flow of new clients; that lets them focus on strategy and advisory while a team of freelancers delivers the work required to power their process.
Tech providers
status quo – tech providers can watch their marketing budget sit idle, earning little to no interest and have to spend precious sales and marketing resources trying to acquire small business customers at an acceptable cost.
hold integrity token – Or they can invest their marketing budget in integrity token and get paid to back the platform that allows them to earn market shares based on the merit of their software, divest from sales and marketing to push their product development, and focus their concentrated efforts on their niche and area of true expertise as this new acquisition channel grows.
Crowd status quo – the crowd can speculate with the vast majority of tokens out there; try to time gains with a highly volatile crypto market; back projects that are, for the most part, still at concept level. And face the risk of backing unproven business models.
hold integrity token – Or they can choose to back a business with a proven model that’s looking to scale; fund something that can improve the livelihood of most families in their community, build a sustainable
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future for generations to come, bridge the gap in wealth distribution and finally empower awesome small businesses to win big.
Incentive is behavior. Integrity can flourish with a strong incentive for the small business ecosystem to support its growth, not unlike the incentive for bitcoin and ethereum developers to support their growth. And the very design of this innovative platform model ensures that such incentives rewards and shapes the desired behaviors for this new economy to flourish.
Vesting With the exception of the first 5M assigned to growth for the early adopters in our ongoing pilots, most of the early backers are vested for periods of 6-9 months. The founders and some key partners are also vested for 12 months.This allows us to allocate the funds of the token sale to ramp up the prototype and grow the platform for the benefit of the ecosystem.
The vesting schedule then allows a release of 10% per month over the next 9 months, allowing backers to get full liquidity/utility on their token purchase within 15-21 months, if need be.
Market Cap For illustrative purposes and as an example:
A 0.60$ integrity dollar value after 4-5 years would translate to a 720M USD market cap. That would put us (in the current bear market) around #15 on the coinmarketcap list, between NEM & IOTA.
From a value creation standpoint, we are helping to increase the survival rate of small businesses, driving connection, learning and cooperation. But we’re also enabling a better wealth distribution, with stronger fundamentals AND a circular economy, for the greater common good. This provides a strong foundation, a robust floor value for the ecosystem and delivers robust economics for the distributed platform, its supporters and its participants.
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