Whitepaper Ver. 1.2
Mr. Alessio Borsato, Chief Technical Officer
10 market Street, Suite 140
Camana Bay, Grand Cayman, KY1-9006,
This whitepaper is not endorsed by any Government authority and it is available on www.REALTHIUM.com and may not be redistributed or published, in part or in whole, for any purpose, without the prior written consent of REALTHIUM Inc.
This document does not constitute an offer or solicitation of regulated products or securities.
Everything in the Whitepaper represents only the opinions and views of REALTHIUM.
Table of Contents
- The REALTHIUM Token
- Token Distribution Plan
- Use of Proceeds
- Project risk
Distributed Ledger Technology (DLT) is on the raise nowadays.
Of course, this fundamental change in the way start-up in the DLT space get financed is disrupting Venture Capitalism and Governments and Regulators are struggling to identify the balance between protecting unsophisticated investors from pouring money into technology start-up that either are poorly managed or carry an extreme risk of not succeeding as planned, and letting the market to balance himself out thorough a (sometimes for someone) painful learning curve.
DLT technology is in his early days to say the least, and it’s a pretty specific field of development for ordinary people to understand.
When thinking about how to use DLT advantages in making real estate rental operations cheaper, faster and more secure we don’t necessarily look just at PoA architecture, but are more concerned about Oracles input verification (e.g. the reliability of the confirmation a door has been unlocked via execution of a smart contract on the Ethereum blockchian).
Being aware of the recent developments in the regulatory space, we decided to inspire ourselves to the “nine DLT principles” listed in the DLT Regulations that recently (January 2018) came into effect in Gibraltar, that call any DLT companies to:
- conduct its business with honesty and integrity;
- pay due regard to the interests and needs of each and all its customers and must communicate with its customers in a way which is fair, clear and not misleading;
- maintain adequate financial and non-financial resources;
- manage and control its business effectively, and conduct its business with due skill, care and diligence, including having proper regard to risks to its business and customers;
- have effective arrangements in place for the protection of client assets and money when it is responsible for them;
- have effective corporate governance arrangements;
- ensure that all systems and security access protocols are maintained to appropriate high standards;
- have systems in place to prevent, detect and disclose financial crime risks such as money laundering and terrorist financing;
- be resilient and must develop contingency plans for the orderly and solvent winding down of its business.
The following is provided for summary purposes only and does not form part of any agreement to purchase REALTHIUM Tokens.
- The REALTHIUM Token
The REALTHIUM Token (RHT) will be an ERC-20 compliant token, to be issued on the Ethereum blockchain.
The ERC-20 token standard prescribes the functions that a token on the Ethereum blockchain should incorporate to enable the issuance, distribution and control of tokens in a standardized manner. It is a set of guidelines that a token issue contract should adhere to in order to be compatible with most wallet software.
The REALTHIUM Token and related smart contracts to be developed will adhere to the ERC-20 token standard by declaring standardized function names and standardized event handles in order to make it easier for decentralized application developers to utilize REALTHIUM Token in the.
Token will be exchangeable on the main crypto exchange worldwide as soon as it get distributed, without any guarantee of liquidity or price limit.
The REALTHIUM Token is to be considered in this stage of development as an Utility token or a Hybrid token according to the MME BCP (Blockchain Crypto Property Classification model) and is intended to be used for acquiring services or utilities rendered by Assets listed on our proprietary platform plus:
- membership to REALTHIUM, with privileged account benefits including potential discounts on services or additional service on an exclusive basis;
- priority access to further token offerings;
The token is therefore no sort of security and give the holder no rights over Company’s properties.
Blockchain technology can innovate Real Estate market in many ways, so let’s first take a look at the potential benefits of blockchain:
- High data availability and reliability: this is all about the Distributed Ledger or the distributed storage architecture that makes multiple copies of the ledger holding transactions history available;
- Timing: transactions can happen almost in real-time, and that means a lot in terms of overall efficiency and security;
- Trust: blockchain implements a trustless environment, where two (or more) entities can make a transaction without need for a central body to validate it;
- Incorruptible chain: when you try to manipulate transactions (for double spending fraud, for example), you’d better have a significant stake of the global, worldwide computing power under your belt otherwise it is simply impossible not to break the chain and make new transactions possible;
- Censorship: not such a thing in our world, because People get compensated to maintain the network and no one wants anyone to tell him if they can or cannot do it.
Think about a Lease Agreement, from prospecting properties through a fragmented and inefficient process based on MLS (Multi-listing Services) to physically taking possession of the property: it takes time and money, there’s the need to have trusted Parties (e.g. a notary) to certify the agreement is legal and enforceable but the process remains intrinsically prone to unilateral decisions with expensive (legal) remedy. We’ll use ethereum Blockchain technology to disintermediate property transactions, as they can be independently verified by the participating nodes of the network and automatically reconciled.
Also, we aim to dramatically improve the ability to manage ongoing lease agreements especially when it comes to governing cash flows: blockchain based smart contracts perfectly match with the Internet of Things ecosystem to have our utility token being the medium of choice to close and record transactions, monitor usage of Assets, enforce specific actions to resolve controversy and access public utility services.
In the first phase we will acquire Real Estate assets to build up our proprietary ecosystem while developing a Proof of Assets (PoA) protocol and an appropriate File System to track and audit ownership of assets, as a fundamental step to be reached before fully implementing our Vision.
In the second phase we’re going to develop state of the art Smart Contracts to enable Users and Assets to directly and digitally sign contracts to exchange Unit of Services using our RHT tokens, and access public utility services like waste and water, energy and parking.
Proprietary Assets will be enriched with technologies to track presence and with an extra layer of switches or interconnected gateways to govern access to utilities and services (e.g. telco services).
Our tokens will therefore grant holders the right to access Unit of Services supplied by our portfolio of Assets: in other terms RHT is the utility token that drives users to access services provided by our Assets.
REALTHIUM has no intention of being an investment platform though: please not that in our vision, buying and selling a property is an archaic way to manage assets, of any kind.
A transfer of ownership is not necessary to implement a fair, transparent, efficient, speculation resistant social-economic model, where people and companies actually acquire spaces (either residential or business spaces) to make use of them, not to preserve capital or to speculate on their future market value.
When selecting assets to become part of the Proprietary Ecosystem, REALTHIUM will be following these non comprehensive criteria set:
- Cap Rate not lower than 2.0%
- Strong visibility in terms of cash flows predictability (e.g. longer residual contractual life)
- Recently built or refurbished properties
The Company will undertake a reward based crowdfunding campaign hosted on Demetra Valley www.demetravalley.com; our Backers will receive a voucher, either digital, paper or physical ones, to certify their rights to receive a specific amounts of RHT tokens, different according to the amount pledged by the Backer, when the distribution event will take place according with the timing set forth in the Whitepaper.
Vouchers and tokens distributed by REALTHIUM have no monetary value (so we’re not undertaking any token sale whatsoever), as they are to be considered simply as a reward for Backers, notwithstanding the fact that we hold a contractual obligation towards Backers to do our best to finalize the Project and deliver our rewards.
REALTHIUM has agreed to some economic terms of service with DEMETRA VALLEY Limited, which requires to pay the platform a basic compensation equal to 8% of the raised funds plus the exact amount of commissions paid by Demetra to its network of professional fund raisers.
Considering our Funding Goal, the fact that we are a pre-revenues start-up in a new technological business area, we definitively consider the Fees reasonable.
REALTHIUM may undertake offerings of RHT from its reserve in the future.
- Token Distribution Plan
REALTHIUM Tokens are proposed to be distributed as follows:
- Use of proceeds
- 35% (max, depending on final fund raising commissions)- Demetra
- 50% – Real Estate Ecosystem build up
- 15% – Operations
The proceeds will be securely stored by REALTHIUM and disbursed in accordance with appropriate procedures at REALTHIUM’s sole discretion.
REALTHIUM may invest any unused proceeds from time to time as it sees fit and it may also sell or exchange the proceeds for digital assets.
- Project risk
The same as any project, the development and execution of our Project may have the risk of delay or even failure. Although the core team has a good record in research and development and business management experience, this is not a guarantee for success. The team will strive to implement milestones and will publish our progress and challenges as transparently as possible.
Mr. Alessio Borsato – Chief Technical Officer
A computer science professional with specific knowledge of systems architecture. Alessio possesses a rock solid work ethic and has the ability to inspire his co-workers as a hands-on leader with a flexible mind-set and a quick time to action.
Mr. Peter Schott – Chief Financial Officer
A finance professional with over 25 years experience spent in reputable Banks and Financial Institutions, a strong international background. Peter is fluent in 5 languages and has a remarkable expertise in the real estate market.