White Paper - The BitEquity Protocol
The future of currency, equity and every other financial instrument is going to be based on the crypto currency protocol. The BitEquity Protocol is designed to build a portfolio by accumulating equities in crypto based startups via early stage seed funding.
The BitEquity are unique equity shares based on bitcoin protocol of which part will be pre mined and rest will be mined.
The premined part will be distributed to the public via the following routes
The BTC funds thus generated shall be distributed as
The profits coming from these projects may be
The profits accrued thereby is distributed as dividend equitably amongst the holders of the BitEquity. Part of the profits not exceeding 50% of the total for that year may be re invested into seed funding other startups.
Total 21 million BitEquity
Premine 1 million BitEquity
www.bitequity.org
IPO - Initial Public Offering of BitEquity
Initial Public Offering will last for just 30 days from IPO Date (will be announced shortly) where 1% of the total Premine or 10000 BitEquity which will be distributed across all the IPO applicants for BitEquity. An IPO applicant can send any amount of Bitcoin to the BitEquity IPO account. These 10000 BitEquity will be distributed as per the weightage calculated for the applicants. The earlier applications will get almost double the weightage and double allocation than the later applications in order to heavily incentivise the early adopters. The weightage or the multiplier value decreases to half from the first to the last IPO application.
Case 1 : Investor Number 1 Sally invests 1 Bitcoin out of the total IPO Figure of 91.69 Bitcoin and gets an allocation of 154.87 BitEquity out of total 10000 BitEquity issued.
Investor Number 50 Jacob invest 1 Bitcoin as the last of the IPO investors near the last date of IPO and gets an allocation of just 78.99 BitEquity half of what Sally got for 1 Bitcoin.
Case 2 : Investor Number 1 James invest 1 Bitcoin out of total IPO Figure of 234.02 Bitcoin and gets an allocation of 57.45 BitEquity out of total 10000 Bitequity issued.
Investor Number 100 Jake also invest 1 Bitcoin but on the last day of IPO and gets only 29 BitEquity almost half that of james who invested on the first day of IPO.
Case 1: The IPO totaled at 91.69 BTC giving an average market value of 0.009 BitEquity per BTC.
Case 2: The IPO totaled at 234.02 BTC giving an average market value of 0.023 BitEquity per BTC.
CPO - Continued Public Offering of BitEquity
CPO is instituted in 2 or more routes.
The rule of minimum 10% Lot Hike:
After 30 days the CPO will start and the starting value of CPO issue will be double the average market value determined by the IPO method. (In Sample Case 1 it will start at 0.018 BTC per BitEquity) (In sample case 2 CPO will start at 0.046 BTC per BitEquity) In the CPO Route an investor has to spend a minimum of .25 BTC for a single Buy of a fixed lot of BitEquity. So in sample case 1 an investor opting for CPO route will have to pay 0.25 BTC to aquire 13.8 BitEquity in a single Buy. The BitEquity will never be issued via CPO at a price lesser than the previous Lot Purchase rate. Each time an investor buys a CPO BitEquity Lot the CPO price will be hiked automatically by a minimum value of 10% for the next lot to be issued. So in the sample case 1 the Second buy of BitEquity via CPO route will happen at a minimum rate of 0.0198 BTC per BitEquity only. The same investor may opt to buy multiple lots at a single CPO Price point in a single transaction..
In Nutshell Aquisition of stake in BitEquity via IPO or CPO the aquisition cost goes on moving higher and higher with time
Seed Funding into startups.
BitEquity will provide a platform for various crypto based startups to publish their ideas to be discussed on. Passionate teams will be identified and mentored by the BitEquity community. Selected startups will be seed funded against a negotiated equity acquired by BitEquity
Investing in emerging Crypto currencies.
Parked funds may be used to purchase and sell emerging crypto currencies in secondary market and generate profits thereby.
Distribution of Profits to the Equity Holders
Profits accrued by means of dividends coming from startups, profits made from parked funds, capital appreciation made from exiting the equity in startups and other incomes for BitEquity are divided Equitably amongst all the BitEquity Holders. Part of the Profits not exceeding 50% of the annual profit may be retained by BitEquity for reinvestments. All the investments, trades etc will be public and transparent and available on block chain.
Future of BitEquity:
Each of the BitEquity will function as a currency and an equity at the same time. Each BitEquity as it will be holding equities in various startups the valuation of those startups will also attribute to the valuation of BitEquity. Along the time BitEquity is poised to become the seed funding platform for major upcoming crypto based startups. BitEquity is also aiming to become the platform to help startups raise crowd funds apart from the seed funds provided by bitequity. BitEquity will be helping seed funded or even unseeded startups to list their cryptoequity in asset exchanges like nxt and list them on the BitEquity platform to help them raise crowd funds based on their BitEquity Ratings. BitEquity is all set to be the future of crypto based startup funding and it is also the first CryptoEquity which will get dividend yields.
BitEquity Community Formation:
Please PM cryptoavatar on the bitcointalk forum or mail me at cryptoavatar@gmail.com BitEquity will be forming a community of Developers and other people passionate about BitEquity projects. We are open to accept passionate individuals interested in working with BitEquity Project.
Launch Schedule and IPO dates will be announced soon. On 26th July 2014 a Discussion is scheduled with saffroncoin who will be the lead developer for this project. Following which an announcement will be made.