Cedric Goby Rebienot

 Re-Inventing The Link WhitePaper Version 1.3 July 2019 Table Of Contents 1  Table of Contents Section 1 Introduction4 1.1. Executive Summary 5 1.2. The Problem12 1.3. The Vision13 1.4. The Solution14 Section 2 Introducing 2key's Technological Innovations15 2.1. Brief Description of 2key's Innovations 16 2.2. In Depth - The 2key Protocol and Multi-Party State Networks 21 2.3. In Depth - 2key Links24 2.4. In Depth - 2key's Multi-Step Tracking25 2.5. In Depth - General Incentive Model For Online Sharing 31 Section 3 2Key Network36 3.1. 2key Network Vision Outline37 3.2. 2key Network Technology Outline39 3.3. A 2key Campaign Journey, Step-by-Step41 3.4. Types of Players on 2key Network42 3.5. Types of Incentive Models on 2key Network43 3.6. Real World Use-Case Examples46 Table Of Contents 2  Section 4 Token & Tokenomics48 4.1. Introducing 2key’s Token Economy49 4.3. 2key Token Distribution - Diagram52 4.4. 2key Token Distribution - In Depth53 4.5. 2KEY Token Valuation Mechanisms55 4.6. Reputation Economy Overview57 4.7. In-Depth: Rewarding Reputation 59 Section 5 Team62 5.1. Core Team63 5.2. Advisory64 5.7. Legal Disclaimer66 Table Of Contents 3  Section 1 Introduction Table Of Contents 4 Executive Summary 1.1 Executive Summary INTRODUCTION Online link sharing generates huge economic value. When we take an active role and share links with our friends, we're advertising the products, services, or content related to them. In the current online reality, however, we don't get to share this value and so our sharing remains random, impulsive and largely unproductive. At the same time, small businesses, organizations and freelancers are struggling to identify and reach the right audience without going through centralized platforms such as Google or Facebook and risking their budgets on costly online campaigns that often fail to lead to conversions. It doesn’t have to be this way. We’re all connected by no more than six degrees of separation to one another. So that if we collaborate, we could potentially get links to their potential audience without relying on a centralized platform. This could be achieved if we forwarded links from one person to another with the specific goal of finding the right audience for them. The key is to get people to actually behave in this way, on a large scale. The 2key network enables businesses, organizations and freelancers to Table Of Contents 5 Executive Summary bypass the centralized platforms and collaborate directly with their fans and supporters. It is based on groundbreaking blockchain technology that makes it possible to use some of the value generated by online sharing to reward the people who share, instead of giving it away to centralized platforms. The uniqueness of 2key’s incentivisation mechanism is that it rewards EVERY person in referral chains leading up to conversions, each for their relative contribution. When each person gets to share the benefits of the value they helped create, a whole new way of connecting people and information becomes possible. 2key’s innovative incentivisation mechanism creates a powerful network effect and turns the human network itself into the best online ‘targeting’ mechanism in the world. THE 2KEY NETWORK Our starting point for building 2key network’s technological infrastructure were regular HTTP web links, the most ubiquitous feature of the current world wide web. Our goal was to create a decentralized network, in which each link has the power to independently track, record and automatically reward every participant it has passed through when it generates a result. Because the 2key network is decentralized, we designed it so that each link on the network will act independently as a type of smart contract that rewards participants who have shared it when certain conditions are met. Table Of Contents 6 Executive Summary One of the important advantages of the 2key links is that they are regular web links combined with smart-contracts, so that anyone can effortlessly use them through their regular web-browser without requiring any technical knowledge. To achieve this, 2key network combines three unique 2key innovations with blockchain technology. First, 2key developed a technology called multi-step tracking, which can be seamlessly embedded into regular links, enabling them to automatically track and record each person they pass through. (more on this topic in section 2.4.) Second, we developed the 2key protocol, which seamlessly embeds smartcontracts within regular web links. This allows each link to encapsulate agreement terms and carry them out independently, just like a smart contract. On the 2key network, this technology is used to define and distribute the amount of the reward that each participant who has shared the link will receive, in case the link leads to a desired action, such as someone making a purchase, leaving their details or investing in a project. (more on this topic in section 2.2.) Third, to make the entire network more efficient, the 2key protocol will enable participants to create, through their regular web browsers, multiparty state networks. The great advantage of these decentralized multiparty p2p networks is that they will allow users to connect directly and dynamically update contracts in real-time, enabling rapid transactions Table Of Contents 7 Executive Summary among participants, which are then synchronized with the main blockchain layer. (more on this topic in section 2.2.) The 2key network will offer a online tool that every small business, freelancer or individual can easily use to advance their goals through human collaboration. Creating a link on the network will require no technical knowledge or complex code installation. This will offer a new world of possibilities for the entire long tail of businesses, who currently have no viable online alternative to reach the people who may be interested in what they have to offer (more on this section 3). At the same time, the network will offer every participant a new possibility of effortlessly monetising their social knowledge and connections by forwarding the right links to the right people, and being rewarded for their efforts and contribution to the people they know. To optimize the network’s efficiency and prevent its abuse, 2key developed another unique technology which combines game-theory with artificial intelligence to create a complex system to calculate a dynamic individual ‘reputation score’ for each of the network’s participants. In very general lines, each participant’s reputation increases when they participate in a successful link-sharing trail and decreases whenever a link they shared is ignored or reported as spam. The percentage of the reward that each participant will receive for successfully sharing links will be strongly influenced by their reputation score (more on this topic in section 4.3). Table Of Contents 8 Executive Summary 2key network opens up the untapped potential of human networks to rapidly search and identify the right individuals for achieving specific goals or tasks. It offers a way for humans to collaborate in transmitting the right information to the right people by simply rewarding each person on the network for active participation and intelligent decision making. By offering a simple new and effective tool for online collaboration, the 2key network is creating a new source of value, offering people a new method for achieving goals that weren’t possible before. 2key network is an entirely decentralized blockchain network, governed by the 2key token (2KEY), the network’s utility token. As tokens, 2KEYs incorporate a specific set of rules, which enable the network’s self-governance. The network’s economy is based on intensive research in token economics and game theory. It is designed to serve the functionality of the network as well as the long-term viability of its economic model. 2KEYs will be the tokens used for all activities on the 2key network, such as creating campaigns, rewarding participants or purchasing services from the network’s integrators (more on the different players on the 2key network in section 3.3). The token economics model applies a complex system of incentives designed to motivate users to optimally combine participating in the network and staking 2KEYs. An important part of our token economics model is hardwiring the business Table Of Contents 9 Executive Summary model of network integrators, among them 2key Ltd., with the viability of the 2KEY token. Necessarily, the more people conduct transactions on the platform, the higher the value of 2KEYs will be, which naturally aligns 2key’s interests with those of investors and the community. But in addition, our model is specifically structured to ensure that the profits made on the 2key network will also increase the standing value of all 2KEYs (more on our token economics model in section 4). B. THE PROBLEM WITH MARKETING PIXELS Online referral marketing programs were an attempt to create a more organic alternative by rewarding people for recommending stuff online. But these solutions were they’re technologically limited. They were based on ‘pixel’ technology which came with its own set of issues: • Pixels require costly and complex integration and expert knowledge for their operation, so they're ineffective for the long tail of businesses. • Pixel-based solutions require a (relatively high) monthly fee Whether or not they create results. So businesses risk investing in them without seeing returns. • They require businesses to have a working website or app Preventing small businesses and solopreneurs who don’t have one from using the technology • Pixels can only track user behavior within the single website or app on which they are installed. Which means they can't track the user Table Of Contents 10 Executive Summary journey across the web and provide actionable insights. • They can't create a network effect Word-of-mouth gains momentum by passing from one person to another, yet current referral solutions use a direct reward system that offers no incentive for working in collaboration. • They don't invoke trust By rewarding referrers per result, these solutions promote unreliable referrences, which quickly lose reliability and become ineffective. RISING AD COSTS A RT I F I C I A L TA R G E T I N G NO A LT E R NAT I V E and smaller profit margins for businesses Inaccurate, unnatural, un-organic to Google / Facebook duopoly Table Of Contents 11 The Problem 1.2. The Problem A . T H E P R O B L E M W I T H A L G O R I T H M - B A S E D TA R G E T I N G The massive online advertising industry has been practically taken over. The Google-Facebook duopoly controls over 70% of the market, using their enormous scale to collect data and deliver targeted advertising. Yet algorithm-based targeting creates a multitude of issues, three of which particularly stand out: • Businesses and organizations can’t directly interact with their customers. And are forced to pay increasing sums for exposure, often without results. • Robotic targeting is remarkably inaccurate. It’s still difficult for robots to figure out the right audience for stuff, resulting in extremely low average click-through rates. • Growth through robotic advertising is inorganic. Algorithms create a customer base that’s not connected through social connections, so that it’s weaker and less sustainable in the long run. Table Of Contents 12 The Vision 1.3 The Vision It’s been shown that every person is connected to every other person in the world through other people, by a maximum of six degrees of separation. So to get information to the right people through a human-based network, the trick is to find the right people. We set out to enable effective and accessible referral sharing based on human social intelligence, rather than algorithms. The 2key network will: • Incentivise people to collaborate in getting campaigns to the right audience. By continuing to share them until they produce results. • Focus people’s natural tendency to spread information towards achieving real-world goals. • Directly reward the people sharing campaign-links, rather than the platforms they share them through. • Offer simple, risk-free access for using the power of referrals and pay only when campaigns generate value. • Protect participants from being bombarded by irrelevant or unreliable advertisements, information or referrals. • Enable people to exchange information directly in a decentralized network that isn’t controlled by any centralized server. Table Of Contents 13 The Solution 1.4. The Solution By combining 2key’s technologies with blockchain and smart contracts, 2key can now place entire referral campaigns in regular HTTP links. So each link on 2key network can act as an independent smart contract, which defines the campaign’s goals, and the rewards for achieving them. As people share the link, the link tracks and records each person who shared it. Each time the campaign achieves a result, the link automatically unlocks the pre-defined reward and distributes it among all the people who’ve shared it.When each participant is rewarded simply for getting the word out, information spreads virally and campaigns rapidly reach their ideal audience to generate results The 2key network offers a referral solution that’s fair, accessible and effective. Everyone wins. Campaigners get a powerful tool for using referrals to achieve their goals, while the people who share the campaign finally have a way for being rewarded for their online sharing. Table Of Contents 14  Section 2 Introducing 2key's Technological Innovations Table Of Contents 15 Brief Description of 2key's Innovations 2.1. Brief Description of 2key's Innovations The development of blockchain protocols and the Dapps that run on them is highly interdependent. That's why we’re developing both the 2key protocol and the 2key network at the same time. The 2key network is the first Dapp implemented on top of the 2key protocol. It combines three 2key innovations, offering an entirely new model of online collaboration. Potentially, 2key protocol can also support other applications in the future. 1. THE 2KEY PROTOCOL 2key protocol acts as a bridge between regular web browsers and blockchain networks. It enables people to easily use smart-contracts through their regular browsers without entry barriers or complex code implementation. The 2key protocol is seamlessly embedded into regular HTTP links, creating cryptographically signed links that can be shared across the web just like regular links. As they are being shared among participants, 2key links connect the browsers they pass through into an ad-hoc blockchain state-networks, consisting of multiple participants. These networks allow participants to deploy a smart- Table Of Contents 16 Brief Description of 2key's Innovations contract among them and update it in real time through their regular web browsers. 2 . M U LT I - PA RT Y S TAT E N E T W O R K S In general, state networks are second-layer blockchain networks, which enable people to perform some transactions more rapidly and effectively by taking them off-line. 2key enables participants to ‘create’ state-channels through cryptographically signed links (embedded with the 2key protocol). These state networks are different because they can include multiple participants, allowing them to dynamically interact off-chain. Another great advantage of the 2key statenetworks is that they enable people to create state networks ad-hoc, without requiring prior knowledge of the parties involved. 3 . M U LT I - S T E P T R AC K I N G Multi-step tracking is an innovative technology that enables regular HTTP links to automatically track and record every person who shares them. The technology is effortlessly embedded into regular links, allowing the links to independently track and record every person who shares them. This makes it possible to reward each person who shared the link once a result is achieved. Table Of Contents 17 Brief Description of 2key's Innovations Multi-step tracking is at the core of the 2key network. It enables the network to reward each participant individually for their relative contribution to collaborative efforts. When each person knows that their small contribution will be tracked and rewarded, each person has a strong motivation to collaborate towards achieving common goals. 4. 2KEY LINKS 2key has created two distinct technologies that can be seamlessly embedded into regular links: the 2key protocol and multi-step tracking. A 2key link is a link that's embedded with these two technologies. In fact, this means that the link is embedded with a smart contract and can act as a store of value, which automatically unlocks this value in case certain conditions are met. 2key link is deployed per referral campaign by the campaign initiator (the “link creator”), who deposits value in the form of 2KEY tokens, as a potential reward for completing the contract. With the 2key link, the campaign smart contract constructs a multi-party state channel spawning from the initiator of the campaign to the referrers, while 2key’s multi-step tracking technology records each person who forwards the link. In this way, referrers are guaranteed their reward in case the link reaches its target audience and generates results.There is no need for exchange of commitments, as the 2key link itself acts as commitment. Table Of Contents 18 Brief Description of 2key's Innovations 5. 2KEY NETWORK The 2key network is a new kind of referral solution. It is based on people collaborating and sharing information with the goal of getting campaigns to their ideal audience. What makes the 2key network different is its unique incentivisation model. The 2key network rewards each person who participates in a campaign’s success, so that people can trust that they'll be rewarded if the campaign generates results, even if they’re not the ones directly responsible for conversions. By rewarding people for simply getting the word out about campaigns, 2key network generates a type of online virality that’s focused on achieving results. Campaigns on the 2key network are targeted by the people who share them, who can rely on their social knowledge to estimate which links might interest the people they know. By combining 2key’s proprietary technologies with blockchain and smart contracts, 2key network is able to track the journey of campaign-links through the web and reward people according to their efforts. It also combines a powerful incentive model that strongly incentivises people to share links with people who are interested in the campaigns they share and powerfully discourages spamming. Table Of Contents 19 Brief Description of 2key's Innovations 6 . A L G O R I T H M I C G A M E T H E O RY B A S E D I N C E N T I V E M O D E L The novel algorithm computes a reputation score for each of the participants, rewarding productive referees according to the value generated by their online sharing and penalizing spam and irrelevant-information sharing. Combining thousands of factors, the model rewards each participant individually for the value they generate across time by their online sharing, ensuring the optimal incentivization for participants to use judgement in choosing the people with whom to share the links. Table Of Contents 20 In Depth - The 2key Protocol and Multi-Party State Networks 2.2. In Depth - The 2key Protocol and MultiParty State Networks The 2key protocol is the technology that enables 2key links to independently carry out smart contracts. The process begins with a link creator who generates a campaign. To do this, the link creator must insert a commitment for payment to referrers into the contract, which will be unlocked and distributed to referrers in case a result is achieved. At the moment of campaign generation, the newly generated 2key links are automatically embedded with the 2key protocol. The protocol is embedded within the links’ front-end code, transforming these regular HTTP links into cryptographically signed links that hold within them a smart contract and the commitment of payment for its completion. In other words, the links turn into a store of value. As the links are passed on during the campaign,people interact with them, clicking on them and sharing them with others. Whenever a browser opens the link, the 2key protocol automatically connects it with the last and next browser who interacted with the link. In this way, the network of connected browsers grows as the link is shared. The 2key protocol connects these browsers into ad-hoc state networks that can act out the smart contract for the campaign. Table Of Contents 21 In Depth - The 2key Protocol and Multi-Party State Networks Because the 2key link itself contains a smart contract and stores value, the browsers can create off-chain state-channels through which they can act out the smart contract without touching the 1st layer blockchain for the majority of the contract's life cycle. This ad-hoc browser’s network is created per contract. It has the qualities of a state network because it is decentralized and allows participants to play out smart-contracts off-chain and then sync with the main blockchain network. Yet the networks created through the 2key protocol have the significant advantage of allowing multiple people to participate in these state networks, without requiring any previous knowledge of the parties involved. These upgraded state-networks are called Multi-Party State Networks. Browsers that participate in the network will be able to advance the state of the contract, off-chain, by simply sharing it with others. Upon conversion or finalisation of the contract, participating browsers will submit the signedlinks to the main-chain, synching it with contract’s new state and rewarding referrers for their actions. We are now working to expand the 2key protocol to enable a general multiparty state channel solution. As the network grows, storing all of the information in a single link will be limiting. We are now building an option of moving this information to a centralized storage, currently using IPFS. In the future, the 2key signed link will contain a single hash that represents Table Of Contents 22 In Depth - The 2key Protocol and Multi-Party State Networks the entire state at the moment of interaction, transaction or state change request. We are aiming for the 2key signed link to ultimately become a small piece of javascript that will use specific IPFS hashes and state hashes to direct browsers to load larger javascript codes from a decentralized storage. Table Of Contents 23 In Depth - 2key Links 2.3. In Depth - 2key Links 2key links are links embedded with the 2key protocol. They're basically a short javascript containing a Code Hash and a State Hash [~ js://{codehash}&{state-hash}]. They're not location based and don’t have any IP reference. The Code Hash is a Merkle-web hash dictating the code required to download from decentralised storage (e.g. IPFS). This code contains the actual Dapp UI and the 2key protocol cryptography, which turn any browser they reach into a peer in a decentralized ad-hoc p2p network. As the link is shared across the web, this p2p network grows to include each browser that has touched the link. This browsers’ network can then play out the smart contract offchain, in a pure front-end-2-front-end decentralised manner. The State Hash is a transaction request or state change request propagated between participants in the campaign network, thus advancing the contract's state graph. 2key’s unique novelty is building multi-party state networks through these cryptographically signed 2key links. We can do this because each 2key link carries a commitment for a payment for a path of referrals. Table Of Contents 24 In Depth - 2key's Multi-Step Tracking 2.4. In Depth - 2key's Multi-Step Tracking A . O V E RV I E W 2key network offers a simple online tool for creating referral campaigns that offer a new level of targeting, have zero entry barriers and pose no risk for contractors. Our revolutionary multi-step tracking technology makes the 2key network possible. It enables simple links to track every person who has shared or interacted with them, forming a record of link-sharing chains. On the 2key network, multi-step technology is seamlessly embedded within regular web-links, which are also embedded with smart contracts. Thanks to the integration of these two technologies, the links on the 2key network are able to independently track and record the participants who share them. This is essential, because when the campaign achieves results, the links can then unlock the reward and distribute it automatically among every person who shared the link with the right people. Table Of Contents 25 In Depth - 2key's Multi-Step Tracking B . P I X E L - L E S S T R AC K I N G Current technology relies on pixels for tracking online referrers. Yet pixels require complex integrations and constant management and can only be installed within a specific website or app. Pixels can only track people who enter the sites or apps in which they’ve been installed, but they cannot track the entire trail of people who shared a single link across several sites and apps. Multi-Step technology enables entirely pixeless-tracking with zero integration requirements. The tracking is performed not by specific sites or apps, but by the links themselves, as they are being shared. With multi-step, each person who shares the links, anywhere on the web, is automatically tracked and registered, charting full referral chains from beginning to end. C . M U LT I - S T E P T R AC K I N G I N AC T I O N A campaign is started by a contractor who shares actionable links with a first group of people, this first group is link’s ‘sourcing seed.’ Each person in the group can now act as a referrer and share the link with people who may be interested in it. A sequence of consecutive referrals forms a referral chain. The link is intended to reach someone who will be interested to take action through it, such as purchasing a product, signing up for an event or subscribing to a publication. People who take action through the link are called converters and by their actions they unlock the reward for the Table Of Contents 26 In Depth - 2key's Multi-Step Tracking campaign.The spread of information within a campaign is charted within a referral graph which is a directed acyclic graph (DAG) updated in real time. Each person receiving the contract is registered as a referrer by default. Referrers can share the link (or the contract’s code) through any channel of online communication, with anyone they wish. This creates a new group of referrers, who can then continue to send the link onwards to one or more addresses on web3.0 or web2.0, who can then relay the contract further, in a branching out tree-like manner (actually a one-directional graph), until the link reaches the converter. D. C H A RT I N G R E F E R R A L C H A I N S The contract’s referral network (refnet) is a tree-like unidirectional graph charting the link-sharing trail. Each refnet’s starting point is the contract creator, from which it branches out to the first group of referrers and from them to the people they’ve shared the link with and so on, ending at the point of conversion. Each refnet graph includes the following data: 1. generated conversions, 2. generated value, 3. average branching-out-factor, 4. weighted net level (weighing over the branching out, seeing where most of the energy in the branching out is located), Table Of Contents 27 In Depth - 2key's Multi-Step Tracking 5. average conversion rate per level 6. average reputation of the ref net 7. conversion contribution strength - projected contribution of the influencer to conversions that arose on the refnet. A referrer’s refnet is the individual sub-tree of the refnet, which charts the tree of referrers originating with each referrer. Its starting point is the first referrer in the chain, then branching out and charting the entire net spanned from the initial sharing. The referrer’s refnet generates information on the referrer, that is then used in the calculation of their reputation score (see section 4.3). E . M U LT I - S T E P T E C H N O L O G Y FO R W E B 3 . 0 . - I N T R O D U C I N G AC T I O N R E F E R R A L C O N T R AC T S ( A R C S ) The web3.0 core architecture generates a new micro-economy around each campaign smart contract. This is facilitated by the Activation Referral Contract (ARC) token - a new ERC20 token type minted in dynamic balance for each campaign. ARCs are the 2key network’s means of computing value for each participant in a campaign. Each link in a campaign has a pre-defined number of ARCs. When the first person receives the link, the links still has its total number of ARCs. When they share the link, some ARCs stay in their web3.0 wallet and the rest move on to the person with whom they’ve shared the link. Table Of Contents 28 In Depth - 2key's Multi-Step Tracking Each person in the chain keeps a certain number of ARCs and forwards the remaining along with the link to the next person. The ARCs act like the breadcrumbs trail left by Hensel and Gretel in the Grimm’s fairy tale. When the link achieves a result, it distributes the reward among the people who hold the ARCs and so they act as a means of recording the path of link sharing. This means ARCs only hold potential value, which can only be unlocked if the campaign is successful. For anyone using a web3.0 wallet supporting ERC20 tokens, ARCs make referring as easy as passing along tokens. On the pure web3.0 front, anyone using an ERC20 compliant client (e.g. metamask), should be able to refer ARCs onwards and fulfill (i.e. convert) campaign required results directly via the ARCs in the wallet, as these ARCs are in themselves smart tokens directly associated with the 2key campaign contract. In this pure approach the web3 address of the participant is their client wallet address, but their social ID to be associated with it will still have to be explicitly extracted via some decentralised sovereign ID provider. F. M U LT I - S T E P T E C H N O L O G Y FO R W E B 2 . 0 . For those using web2.0 browser, passing forward a 2key links is as easy as sharing other regular internet links. Table Of Contents 29 In Depth - 2key's Multi-Step Tracking Behind the scenes, when a person clicks a 2key link on their regular browser, the browser is automatically invoked to join an ad-hoc decentralized network for interacting with the link’s campaign contract. In fact, the link turns the browsers and wallets sharing it into nodes in a small network of people who interact with the link, so that each can receive and refer ARCs with others who have interacted with the link. Participants can then use their browser to generate a secure wallet with a private key stored in a local storage (similar to Metamask, but which doesn’t require the plugin or extension installation). Or they can connect the browser to an existing external wallet (such as Metamask). 2key network will enable explicit Identification via federated or sovereign ID providers to ensure that the network is used by real humans. This will give everyone who joins the possibility to begin collecting social capital and reputation points from their first interaction with 2key. It is also crucial for maintaining a secure network layout against a host of attack vectors, bot schemes, collusion networks etc. Another way for participants to join the 2key network is through 2key’s mobile apps, which act as full 2key nodes and also function as a dedicated and secure 2key wallet and an ID proxy to the same types of ID providers mentioned above. Table Of Contents 30 In Depth - General Incentive Model For Online Sharing 2.5. In Depth - General Incentive Model For Online Sharing A. WHY ARE WE BUILDING OUR OWN INCENTIVE MODEL? The goal of every 2key contract is to find and reach its target audience. A contract offering tickets to a music concert, for example, is created with the goal of finding and reaching the people who’ll buy tickets to the concert. That’s what the 2key network is for. So each contract can be viewed a ‘search task,’ because the link is ‘searching’ for its target audience. From this perspective, each person who forwards the link is collaborating in this common search task of getting the link from its source to its target audience. Because every person in the world is actually connected to every other person through a chain of acquaintances with no more than five intermediaries, the trick is to find the right six people, or less, to carry the link from its source to its destination. To do this, people have to be motivated to forward each other links and use their judgement when considering who they’re forwarding the links to. Lastly, people have to be motivated to continue forwarding the links they recieve, until the links reach their target audience. Table Of Contents 31 In Depth - General Incentive Model For Online Sharing To motivate people in this way, we’re building the 2key general incentive model for online sharing. The first secret ingredient to creating strong incentivization to act is to reward each person individually, according to their own actions and contribution. To do this, we’re using 2key’s multi-step tracking to precisely track and record each participant's individual contribution. When a result is achieved, the 2key incentive model is in charge of distributing the reward among all the participants who contributed to the ‘search task.’ If we use the example of a contract for concert tickets again, let’s imagine that it’s been forwarded by four different participants until it reached a person who’s actually purchased tickets. Should each participant be rewarded equally? Should the last participant receive a greater percentage than the others? Or maybe the first participant? The 2key incentive model is using game theory and AI to answer these questions in a way that distributes the rewards on the 2key network so that each participant is optimally motivated to contribute to the network’s efficiency by forwarding the right links to the right people at the right time. Table Of Contents 32 In Depth - General Incentive Model For Online Sharing B . T H E C O N C E P T O F A N I N D I V I D UA L R E P U TAT I O N S C O R E The model is based around the concept of a personal reputation score, which is assigned to each person upon joining the 2key network and then dynamically updated with each new campaign the person participates in. The reputation score takes into account hundreds of different parameters. People who share links that lead to conversions strengthen their reputation scores, for example, while those sharing links that aren’t forwarded weaken it. Reliability, general participation, token staking, steps to conversion and many other parameters all influence each person’s reputation score. In fact, each reputation score is made-up from a number of reputation subscores, in different domains of life. So that a participant on the network can have a high reputation for recommending classical music, and at the same time have a low reputation in recommending destinations for ski vacations. The taxonomy used for the reputation score is the IBM Watson (formerly AlchemyAPI) taxonomy of ~1.5K categories, which are divided into 4 layers of categories and sub-categories spreading into all domains of life. C . 2 K E Y ’ S A L G O R I T H M I C G A M E T H E O RY B A S E D I N C E N T I V E MODEL Assisted by world-leading scientists in algorithmic game theory, our team is building an incentive model that is both personalized and dynamic. Table Of Contents 33 In Depth - General Incentive Model For Online Sharing The percentage of the reward given to each participant when they participate in a successful campaign is highly dependant on the participant’s individual reputation score. So participants have a strong incentivisation to keep their scores high. Just like a person’s reputation in life, 2key’s reputation score keeps track of past actions and productivity, while at the same time being flexible and responsive to each new action taken by the participant. It is a form of ‘social credit,’ which offers real tangible value to the person who accumulates it through their actions. If you’d like to learn the technical details of our unique incentive model, please check out our incentive model technical document. D. G A M E T H E O RY A I In parallel, we’re developing a new branch of algorithms that fuse game theory with machine learning. We’re assisted by world-leading scientists in algorithmic game theory in building a general incentive and compensation model for online sharing. Moving the web to a general proactivity incentive model is a big step, and requires developing a dedicated technological framework. The lack of big-data sets on individual contributions to value-generation Table Of Contents 34 In Depth - General Incentive Model For Online Sharing through online sharing has meant that game theory and machine learning haven’t been fused so far. The 2key network will produce the framework and datasets to enable the development of game theory AI models for online sharing and our vision is to lead the front in this field. Table Of Contents 35 In Depth - General Incentive Model For Online Sharing Section 3 2Key Network Table Of Contents 36 2key Network Vision Outline 3.1. 2key Network Vision Outline 2key network combines three technological innovations to offer a new model for targeting online campaigns. The 2key model is based around people who share campaigns about stuff they like with their friends and acquaintances. Even though people naturally share links all the time, they don't do it in a coordinated way to achieve specific goals. 2key network aligns the interests of campaigners with the interests of the people who share and forward the links to their campaigns. In this way, every person who recieves a link to the campaign will incentivised to contribute to its success by getting the link to the right people. On the 2key network, campaigns get from their origin to their audience through the people who share them. When a campaign achieves a result, it rewards each person individually for their relative contribution. So if a campaign is shared between four people until it produces a conversion, each of the four people who shared it will be rewarded. This is very rewarding for the people who share, and very effective for campaigners. The people who share a campaign are called ‘referrers.’ That’s because the 2key network applies a reputation-based incentivisation system that encourages people to only share campaigns for stuff they know and believe in. Each participant’s reputation score strongly influences their reliability Table Of Contents 37 2key Network Vision Outline and how much rewards they’ll be able to get from each successful campaign. Each time someone shares a campaign, they’re putting their own reputation on the line, because if others report them as spammers, their reputation will be damaged. Businesses can use the 2key network to search for employees with specific skills or for investors with specific interests, online publications can use it to find new subscribers, artists can search for students interested in specialized art workshops, drug companies could find new test subjects with special conditions, the possibilities are nearly endless. The 2key network is a tool for finding the right people through collaboration and social connections. Table Of Contents 38 2key Network Technology Outline 3.2. 2key Network Technology Outline The 2key network is a decentralized blockchain network, based on an infrastructure of smart-contracts on the Ethereum network. The tracking, recording and rewarding of participants’ behaviour is carried out by the code itself, so that campaign costs are nearly eliminated.This allows to re-direct campaign budgets back to the people who share the campaign’s links and let them participate in the campaign’s success. The 2key protocol works behind the scenes to place entire campaigns on smart contracts and fuse these smart contracts to regular HTTP links. So that links are produced per campaign, containing all the details for its execution. Campaigners don’t need any technological background to create campaigns in minutes, they only need to define their goals and allocate the amount of rewards they wish to invest in achieving them. 2key network takes care of the rest. Each link on the network is also embedded with multi-step tracking technology which enables it to register on the link’s front-end code each person who shared it. This means that each link on the network operates independently, tracking, recording and automatically rewarding each participant’s contribution. When links achieve a conversion, they unlock some of the reward embedded in the smart-contract and automatically distribute it among all participants who’ve shared them. Table Of Contents 39 2key Network Technology Outline To optimize this system even further, the rewards are not equally distributed among all participants. 2key is now leading the front in developing a general incentive model for online sharing based on game-theory and AI. The model combines thousands of factors to reward each person precisely according to the value they’ve generated on the network across time, in order to promote participation while making sure that people use their intelligence to relay onwards reliable information to the people who are genuinely interested in it. Table Of Contents 40 A 2key Campaign Journey, Step-by-Step 3.3. A 2key Campaign Journey, Step-by-Step S T E P 1 - G E N E R AT I N G A C A M PA I G N A campaign begins with a campaigner, who creates a 2key campaign contract by defining the campaign’s goals and rewards for referrers. The 2key network automatically creates a campaign link embedded with smart contracts and multi-step tracking technology, which enables them to carry the campaign out independently. S T E P 2 - S P R E A D I N G T H E C A M PA I G N The campaigner now shares the link to their campaign with the first group of people (friends, existing clients, colleagues etc.), who can now share it with other people, who can then continue to share it and so on. Until the link achieves a conversion. The entire chain of referrers who share the link is tracked and registered by the link itself. S T E P 3 - AC H I E V I N G R E S U LT S A N D R E WA R D I N G R E F E R R E R S Once the link achieves results the smart contract automatically unlocks some of the reward set by the campaigner and distributes it among the chain of people who shared and distributed the campaign. Table Of Contents 41 Types of Players on 2key Network 3.4. Types of Players on 2key Network There are four type of roles participants can play in the 2key network: • Campaigners - Anyone can define a target and create a contract for achieving it on the 2key network. The network will seamlessly embed the contract within a 2key SmartLink that will carry it out independently. • Referrers - referrers are network participants who relay links from the creators which to others who may be interested. They must employ judgement and relay the links only to people who may be interested in them or may know others who are. If the link reaches its target, they’ll receive a share of the reward. • Converters - converters are the potential destination address for the links. These are the potential customers, employees and other target audience, which the links aim to reach. When converters take action through the link, such as leave their details, make a purchase or download an app, the smart contract unlocks the reward and distributes it backwards to each person in the trail of people who are responsible for the link reaching the converters. • Integrators - Integrators are optional service providers on the 2key network. Contractors may choose to use their services to ensure transactions, uphold dispute resolutions, prevent abuse, provide KYC services and much more. We intend integrators to take a share of the rewards for successful conversions as payment for their services. 2key Ltd. will also act as an integrator on the network, probably the first, and we plan to provide competitive offers and remain the top choice for link creators. Table Of Contents 42 Types of Incentive Models on 2key Network 3.5. Types of Incentive Models on 2key Network Campaigner will have the option of choosing the type of incentive model for their campaign out of the following three alternatives: 1 . P R E - S E T VA N I L L A M O D E L The campaigner can choose how to divide the rewards for their campaign amont referrers out of the following types of pre-set vanilla models: Equal Equal distribution among all participants in the chain Equal + 3X Equal distribution among all participants, except the last one who receives 3 times the rest Growing Each participant in the chain gets 50% more than the one before him Manual Choose how much to keep for yourself and how much to pay forward. Table Of Contents 43 Types of Incentive Models on 2key Network 2 . DY NA M I C PA RT I C I PA N T- C H O I C E M O D E L This model each person who shares the campaign the choice of how much of the reward they wish to keep for themselves and how much they choose to pass on to others. 3 . G LO B A L I N C E N T I V E M O D E L B A S E D O N G A M E T H E O RY A N D A I We’re fusing game theory with machine learning to create the first general incentive model for online sharing. The model is designed motivate participants to use their energy, intelligence and social connections to relay links to people with interest in them and at the same time prevent spamming. It does so by distributing the rewards for a link that achieves a result individually, according to the relative contribution of each participant in the referral-chain. The model takes into account dozens of parameters such as the position in the referral chain, relative result delivery-time, a referer’s past references in this domain and, most importantly - each participant’s calculated ‘reputation score’. The reputation score is dynamic, reflecting the productivity and relevance of each participant’s link-sharing activity across time. Participants with high conversion rates will gradually improve their reputation scores, for example, while those sharing irrelevant links or spamming, will rapidly lose reputation points. Table Of Contents 44 Types of Incentive Models on 2key Network When a link achieves a result, each participant will receive a percentage of the reward that’s highly influenced by their reputation score, strongly incentivising participants to target wisely the links they share. Read the technical details of this model here. Table Of Contents 45 Real World Use-Case Examples 3.6. Real World Use-Case Examples So what kind of things can people actually DO with 2key network? The following list offers a few examples: • Selling Tokens. Projects that have already issued their tokens can get the word out about their project and promote token acquisition. • Crowdfunding a Project. Any project looking for crowdfunding can create a campaign aimed at reaching investors and receive investment in Bitcoin or Ether. • Organizing and Carrying Out Airdrop Campaigns. The 2key network is perfect for creating hype around projects, getting the word out about upcoming airdrop campaigns and automatically organizing the distribution of tokens during the campaign. • Collecting New Leads. 2key network enables creating campaigns for collecting the details of people who are interested in specific products, services or events. • Getting New Subscribers.For those offering online publications or services based on subscriptions, 2key network can be used to expand their reach and get new subscribers. • Finding Patrons. Artists and creators can use the 2key network to share their gift with the world and find patrons to support them. • Selling Tickets to Events. Anyone organizing an event can use the 2key network to get people to know about it directly from their friends and sell tickets. Table Of Contents 46 Real World Use-Case Examples • Spreading the Word About a Cause and Receiving Donations. 2key network is perfect for finding people who’d like to support a certain cause and collect their donations. • Launching a Petition. A 2key petition can be created to sign people up in support of different causes. Widely distributing the petition will be easy using the 2key network. • Distributing Content. 2key network can be used to incentivise people to share specific content. • Acquiring Valuable Information. Organizations can create 2key campaigns that reward people for filling in questionnaires and polls and get the information they need in no time. • Boosting Installations. Any business that aims to increase the installations of their new app or game, can use the 2key network to get to increase the number of installations. • Finding the Right Employees. Any business or organization can easily use the 2key network to search for precisely the employees they need. • Selling Online Products. Different online goods can easily be integrated with a 2key contract and be sold through the 2key network. • Sell Offline Goods. 2key network is also ideal for reaching customers for offline goods and enabling online transactions. • Create a Competition. Businesses or others who’d like to encourage participation in all types of competition will be greatly assisted by using a 2key network contract to let people know about the competition and encourage participation. Table Of Contents 47 Real World Use-Case Examples Section 4 Token & Tokenomics Table Of Contents 48 Introducing 2key’s Token Economy 4.1. Introducing 2key’s Token Economy Everything on the 2key network runs independently by the code embedded in the network’s smart-contract infrastructure and in the 2key tokens’ code. Basically, 2key tokens (2KEYs) are ERC20 tokens, built specifically as the 2key network’s native utility currency. They’re needed for all activities on the 2key network such as launching campaigns or rewarding participants. 2key’s tokenomics are designed to ensure 2key network’s efficiency and create a strong link between the network’s performance and 2KEYs value, so that people holding them will always gain value from 2key network’s overall success. The In the current age of social media people’s reputation, connections and social impact have great potential value, yet this value is difficult to monetize. The 2key network offers a solution. It tracks each participant’s sharing activities and can measure the number of conversion they lead to. According to this information, it then assigns each participant a dynamic ‘reputation score,’ which changes and improves as they share more campaigns with their friends. The reputation score of each participant strongly influences their earning power on the 2key network. Basically, people with a higher reputation score Table Of Contents 49 Introducing 2key’s Token Economy can earn more 2KEYs than people with lower scores. This architecture means that people who positively contribute to the 2key network can gain more from using it. By tying together reputation and value in this way ,our tokenomics provide an innovative solution for measuring and rewarding social influence. Table Of Contents 50 Introducing 2key’s Token Economy 4.2. 2KEY Token Applications on the 2key Network 2KEY tokens are ERC20 utility tokens, used for all other activities on the 2key network. We’ll mint a final number of 1 Billion 2KEYs, to uphold and operate 2key’s smart contract system. They'll be used for the following activities: • Launching contracts. campaigners will have to own 2KEYs in order to launch campaigns. They'll need to include within their contract the total amount of 2KEYs to be used as rewards, which will only be unlocked when the campaign achieves results. • Receiving rewards. referrers who share campaigns and generate results will receive their rewards in 2KEY. By choosing to keep to them or use them on the 2key network, they’ll also receive periodical rewards. • Charging integrator fees. 2key network integrators will receive fees for their services in 2KEYs. 2key itself will offer its services as a campaign integrator and the network will be open to anyone offering their services for optimizing campaigns. • Paying the network tariff. A small network tarriff will be charged out of each transaction. These tariffs will be transferred directly into a 10-year deposit smart contract, after which the 2key network community will decide together whether to release or burn them. • Obtaining staking compensation. Staking 2KEYs means saving a certain amount of them in your wallet. It’s necessary for launching campaigns, but also worthwhile for participants thanks to the various staking compensation rewards. Table Of Contents 51 2key Token Distribution - Diagram 4.3. 2key Token Distribution - Diagram A final number of 1 Billion 2KEY Tokens will be minted, and will be used to operate and maintain the 2key network. This is how we’ll distribute them: 40% Long Term Reserve Future reserve locked for 3 years minimum 22% Economy Kickstart 15% Token sale, 1% Bounties, 6% Liquidation supply for exchanges 20% Community Rewards Pool Active participation rewards & economy scaling - distributed over a decade 12% Team Vesting quarterly over 2 years with 6-months lockup 6% Advisors, Partners and Eearly contributors vesting quarterly 2 over years Table Of Contents 52 2key Token Distribution - In Depth 4.4. 2key Token Distribution - In Depth • Economy Kickstart - 22% (220m 2KEYs), which will be distributed in the following way: – 15% (150m 2KEYs): will be sold, in chronological order, via seed round, private sell, and lastly IEO phases to early adopters of the network. 2KEY official price at this stage - USD0.06 (6 cents). – 1% will be reserved for bounties and social mining during the first 3 years of network launch - released over 12-36 months from DD. – 3% will be used for liquidity depth in the 2key exchange contract – 2% will be reserved for DEX liquidity depth. – 1% will be used by the 2KEY official Market Makers for their active liquidation operations. • Team - 12% (120m 2KEYs), which will be locked for 365 days, then distributed over a 2 year period in 25 equal portions vesting monthly. • Advisors, Partners & Early contributors - 6% (60m 2KEYs). 3rd parties and contractors, advisors and early contributors supporting the development, marketing, and growth of the 2key network. Locked for 90 days, then distributed in 52 equal portions vesting weekly. • Community Rewards Pool (Mining) - 20% (200m 2KEYs) will be used to reward 2key network users for active participation and staking in the network and economy. Lock - Distributed over a decade - 2% each year. starting at DD + 90 days. • Long Term Reserve - 40% (400m 2KEYs). tokens dedicated for future use, might be used in the future for conducting additional token Table Of Contents 53 2key Token Distribution - In Depth distributions and for POS mining in the General Purpose 2key protocol (browsers as miners in MPSN). Locked for 2-5 years. 10% (100m 2KEYs) unlocked after 2 years and another 10% (100m 2KEYs) unlocked annually on the DD date conditioned on token price exceeding token sale price. Table Of Contents 54 2KEY Token Valuation Mechanisms 4.5. 2KEY Token Valuation Mechanisms A final 2key’s valuation mechanisms create a strong connection between 2key network’s performance and the value of 2key tokens (2KEYs). FO R M U L A Token valuation is calculated according to the formula used to evaluate currency: M*V=P*Q INDEX M= Token supply The amount of tokens in circulation that aren’t locked and can be freely traded or used. V= Velocity of exchange The amount of times a token changes hands in a certain period of time. This amount will increase as more people join the network, yet 2key network has a mechanism in place to contain it from increasing significantly. P= Token price level Amount of tokens needed to purchase an average good or service on the 2key network. The goal is for the price level to decrease with the growth of the network as this will indicate a rise in the value of the token. Table Of Contents 55 2KEY Token Valuation Mechanisms Q= Quantity Amount of products traded in a certain period. M*V= 2key’s economy monetary supply The amount of tokens multiplied by the amount of times a token is used on average in a certain time frame, results in the amount of tokens used within that time frame. P*Q= Network GDP- the amount of products sold multiplied by the average price level per product, results in the total value that was transacted on the 2key network in a certain time frame. Table Of Contents 56 Reputation Economy Overview 4.6. Reputation Economy Overview 2key network offers is a new way for measuring and rewarding social impact. Every participant forwarding links on the network can be viewed as a smallscale influencer and their degree of influence can be fully tracked and measured, based on the number of conversions their sharing leads to. This degree of influence is represented on the 2key network by each participant’s ‘reputation score.’ The reputation score is calculated according to a complex model, details of which will be published in a separate document. In general, a participant’s reputation improves the more successful referral chains they participate in and the closer they are to the conversion itself. Reputation points are lost if a participant receives negative feedback such as being reported as spam or if is sharing simply leads to many dead-ends that don’t result in conversions. An important aspect of reputation on the 2key network is that is is highly specific. Small-scale influencers specialized in specific fields can be more effective than more well known ‘general’ influencers. Reputation on the 2key network is based on a 1600 category taxonomy, divided into 4 different levels. This means that each participant on the network can accumulate reputation according to their specific area of expertise, experience and influence. Table Of Contents 57 Reputation Economy Overview The 2key network rewards participants’ good reputation with real value. The token economy model includes various reward mechanisms for higher reputation scores. A participant with a higher reputation score will gain more tokens from each successful conversion, as well as receive various periodical bonus rewards for maintaining their high reputation. This ensures a strong connection between a participant’s reputation and their capacity to gain rewards from the 2key network. Table Of Contents 58 In-Depth: Rewarding Reputation 4.7. In-Depth: Rewarding Reputation The 2key network distributes reputation rewards according to each participant’s ‘reputation score,’ which is made up of two different elements: participation reputation and staking reputation. Participation reputation is based on a participant’s behavior on the 2key network, while staking reputation reflects the average amount of 2KEYs held by a participant in a given time period. A high reputation score is rewarded by two separate mechanisms. First, participants with a past record of good recommendations earn more tokens from each conversion. Second, a network reputation reward periodically rewards all participants for their accumulated reputation score during a given period. To calculate this periodical reward, we are using the concept of an Eligibility Score (ES). Eligibility scores are calculated each month, taking into account the three previous months. The months are marked as follows: M0 = The previous month M-1 = The month before the previous month M-2 = The month before M-1 Table Of Contents 59 In-Depth: Rewarding Reputation At the beginning of September, for example, the eligibility score will take into account reputation from M0 (August), M-1(July), M-2 (June). For each of the 3 months, the 2key network automatically calculates the following values for each participant: Accumulated Participation Reputation (PR) Based on behavior on the 2key network, for example, number of points earned from conversions, percentage of successful sharing, any reports on spamming etc. The precise rules of participation reputation will be published in a separate paper. Accumulated Staking Reputation (SR) In the case of staking reputation, the points gained for each month will basically be a sum of the amount of tokens held each day for the days of the month. For example, if you held 30 2KEY for 2 days, you would get 60 points for that month. The precise rules for determining the staking reputation will be published in a separate paper. The eligibility score (ES) will be calculated for each participant according to the following formula: ES=((PR)(SR))M0 +((PR)(SR))M-1*0.5 +((PR)(SR))M-2*0.25 The formula rewards both participants who stake tokens and those who Table Of Contents 60 In-Depth: Rewarding Reputation participate productively, while the greatest rewards go to participants who contribute to the network AND stake their earned 2KEYs. The network reputation rewards pool will also be used for 2key network’s self-marketing campaigns such as signups, installs and user onboarding campaigns, contracted by 2key.network itself. In these campaigns, participating converters and referrers will gain reputation and rewards for bringing in new active users to 2key network. Table Of Contents 61  Section 5 Team Table Of Contents 62 Core Team 5.1. Core Team 2key is a global project, our team members are based in 7 countries spread over 3 continents, bringing together leading talents from the fields of blockchain and algorithms, finance, big data, machine learning, smart contracts, and game theory. Together, we’re building the technology for a new future of sharing, one that incentivises collaboration, honesty and trust for the benefit of all. Erez Ben-Kiki eiTan LaVi Founder, CEO Founder, CTO Product design specialist, 8 years of Director of Data Science @Keewee, experience in the financial industry Head of NLP, Algorithms R&D @ Wochit Udi Ben-Reuven Andrii Pindiura Chief Scientist Director of Engineering IDF cyber unit commander, co-founder @ Senior Tech Lead. Enjoys tackling Algotech, Senior architect @Checkpoint engineering problems and design. and 14 other team members: Click Here to view them Table Of Contents 63 Advisory 5.2. Advisory Dr. Reshef Meir Nimrod Lehavi Dr. Roey Tzezana Algorithmic Game Theory Founder and CEO Author, Futurist Specialist at Technion - @ Simplex Institute of technology. Guy Zyskind Stas Oskin Sebastian Stupurac Founder and CEO Wings Foundation Wings Foundation @ Enigma Co-Founder Co-Founder Shai Mohaban Idan Lakritz Blockchain Investor Token Economics and Advisor Specialist Table Of Contents 64 Advisory We’re heading towards a future in which people will share the benefits that are generated from using their data and information. With the right tech, that’s not only possible but also more productive for everyone. 2key aims to be at the forefront of this revolution, creating an entirely new kind of relationship between campaigners and audience, one in which everyone is on the same side. JOIN US! Table Of Contents 65 Legal Disclaimer 5.7. Legal Disclaimer This whitepaper has been prepared by 2key New Economics Ltd. (“We” and/or “2key” and/or “Company”) and is for information purposes only and may be subject to change. We cannot guarantee the accuracy of the statements made or conclusions reached in this whitepaper and we expressly disclaim all representations and warranties (whether express or implied by statute or otherwise) whatsoever, including but not limited to: • any representations or warranties relating to merchantability, fitness for a particular purpose, suitability, title or non-infringement; • that the contents of this document are accurate and free from any errors; and • that such contents do not infringe any third party rights. We shall have no liability for losses or damages (whether direct, indirect, consequential or any other kind of loss or damage) arising out of the use, reference to or reliance on the contents of this whitepaper, even if advised of the possibility of damages arising. This whitepaper may contain references to third party data and industry publications. As far as we are aware, the information reproduced in this whitepaper is accurate and that the estimates and assumptions contained herein are reasonable. However, we offer no assurances as to the accuracy or completeness of this data. Although information and data reproduced in this whitepaper are believed to have been obtained from reliable sources, we have not independently verified any of the information or data from third party sources referred to in this whitepaper or ascertained the underlying assumptions relied upon by such sources. As of the date of publication of this whitepaper, 2key tokens have no known or intended future use (other than on 2key platform which is still under development). No promises of future performance or value are or will be made with respect to 2key, including no promise of inherent value, no promise of any payments, and no guarantee that 2key will hold any particular value. Unless prospective participants fully understand and accept the nature of 2key’s business and the potential risks associated with the acquisition, storage and transfer of ERC-20 tokens such as 2key tokens, they should not participate in the token sale. 2key tokens are not being structured or sold as securities. 2key tokens hold no rights and confer no interests in the equity of 2key. 2key tokens are sold with an intended future use on 2key’s platform and all proceeds received during the token sale may be spent freely by 2key on the development of its business and the underlying Table Of Contents 66 Legal Disclaimer technological infrastructure. This whitepaper does not constitute a prospectus or disclosure document and is not an offer to sell, nor the solicitation of any offer to buy any investment or financial instrument in any jurisdiction. 2key tokens should not be acquired for speculative or investment purposes with the expectation of making an investment return. No regulatory authority has examined or approved any of the information set out in this whitepaper. No such action has or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this whitepaper does not imply that applicable laws or regulatory requirements have been complied with. Participation in the token sale carries substantial risk and may involve special risks that could lead to a loss of all or a substantial portion of your contribution. Further information about the risks of participating in the token sale is set out in the Token Sale T&Cs. Please ensure that you have read, understood and are prepared to accept the risks of participating in the token sale before sending a contribution to us. The token sale and/or 2key tokens could be impacted by regulatory action, including potential restrictions on the ownership, use, or possession of such tokens. Regulators or other competent authorities may demand that we revise the mechanics of the token sale and/or the functionality of 2key tokens in order to comply with regulatory requirements or other governmental or business obligations. Nevertheless, we believe we are taking commercially reasonable steps to ensure that the token sale mechanics and issue of 2key tokens do not violate applicable laws and regulations. C AU T I O N R E G A R D I N G FO R WA R D - L O O K I N G S TAT E M E N T S This whitepaper contains forward-looking statements or information (collectively “forward-looking statements”) that relate to our current expectations of future events. In some cases, these forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to” or the negative of these terms, or other similar expressions intended to identify forward-looking statements. We have based these forward-looking statements on current projections about future events and financial trends that we believe are relevant to our financial condition, results of operations, business strategy, financial needs, or the results of the token sale. In addition to statements relating to the matters set out here, this whitepaper contains forward-looking statements related to 2key proposed operating model. The model speaks to our objectives only, and is not a forecast, projection or prediction of future results of operations. Table Of Contents 67 Legal Disclaimer Forward-looking statements are based on certain assumptions and analysis made by 2key in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. Although the forward-looking statements contained in this whitepaper are based upon what we believe are reasonable assumptions, there are risks, uncertainties, assumptions, and other factors which could cause our actual results, performances, achievements and/or experiences to differ materially from the expectations expressed, implied, or perceived in forward-looking statements. Given such risks, prospective participants in the token sale should not place undue reliance on these forward-looking statements. NOTE: THIS DOCUMENT PROVIDES AN INITIAL S U M M A RY OF C E RTA I N BUSINESS E S S E N T I A L S U N D E R LY I N G T H E C O M PA N Y ’ S P R O J E C T. T H I S D O C U M E N T I S E X P E C T E D T O E V O LV E O V E R T I M E , A S T H E P R O J E C T P R O C E E D S , A N D T H E C O M PA N Y T E A M M AY P O S T M O D I F I C AT I O N S , R E V I S I O N S A N D / O R U P DAT E D D R A F T S U N T I L T H E F I NA L D O C U M E N T I S P R E S E N T E D P R I O R T O T H E DAT E O F T H E P U B L I C T O K E N S A L E . P U R C H A S E O F C O M PA N Y T O K E N S I S S U B J E C T T O E X E C U T I O N O F A N AG R E E M E N T W I T H T H E C O M PA N Y O R T O K E N S S A L E T E R M S A N D C O N D I T I O N S . C E RTA I N O F T H E T E R M S A N D C O N D I T I O N S D E S C R I B E D H E R E I N A R E S U B J E C T T O Q UA L I F I C AT I O N S , L I M I TAT I O N S A N D / O R E X C E P T I O N S A S S E T FO RT H I N S U C H AG R E E M E N T A N D / O R T E R M S A N D C O N D I T I O N S . T H E S U M M A RY C O N TA I N E D H E R E I N I S Q UA L I F I E D I N I T S E N T I R E T Y BY R E F E R E N C E T O T H E AC T UA L T E X T O F T H E FO R M O F AG R E E M E N T A N D / O R T E R M S A N D C O N D I T I O N S P R O V I D E D BY T H E C O M PA N Y A N D P R O S P E C T I V E P U R C H A S E R S A R E R E Q U E S T E D T O C A R E F U L LY REVIEW SUCH DOCUMENTS. R I S K FAC T O R S You should carefully consider and evaluate each of the following risk factors and all other information contained in these Terms before deciding to participate in the Token Distribution Event. If any of the following considerations, uncertainties or material risks develops into actual events, the business, financial position and/or results of operations of the Company and the maintenance and level of usage of the Tokens could be materially and adversely affected and the Tokens may have no utility or value. DEFINITIONS: 1.1 “Token Distribution Event” means the initial transfer by the Company or the Token Entity of Company Tokens, following the date hereof, to purchasers of Company Tokens who have paid consideration for such Company Table Of Contents 68 Legal Disclaimer Tokens in the form of, including but not limited to, other types of Blockchain Tokens, such as ETH and BTC, or another cryptocurrency, cash or a combination thereof. Notwithstanding the foregoing: (a) any other future tokens agreements, pre-commitments and pre-sales of Company Tokens and (b) a transfer of Company Tokens for no consideration or in consideration for work or services provided to the Company or the Token Entity or any affiliate, in each case, shall not be considered a Token Distribution Event. 1.2 “Blockchain Tokens” means digital cryptographic tokens, typically virtual currency (also known as “cryptocurrency” or “digital currency”), that are implemented on a Blockchain. Blockchain Tokens may, but are not required to be, (1) transferrable on peer-to-peer networks, such as a Blockchain network, and/or (2) governed by rules regarding an inflation schedule or any starting quantity of initial supply, as well as any programmed rights or obligations set forth prior to launch and widespread circulation of said Blockchain Tokens. 1.3 “Tokens” means the Blockchain Token that the Company intends to develop and referred to as the “2key Token” or such other name that may be decided upon by the Company. 1.4 “Available Information” the website located at https://2key.network and any information contained within, and any information served from the 2key.network domain and together with the whitepaper, litepaper, technology abstract and other documents published on 2key domains, referred to as the “Available Information”). R I S K S R E L AT I N G T O PA RT I C I PAT I O N I N T H E T O K E N D I S T R I B U T I O N E V E N T There is no assurance of any success of the Company’s Token Distribution Event or business platform that is yet to be fully developed as envisaged by the Available Information The utility of the Tokens hinges heavily on the performance of the Company’s Token Distribution Event and business platform that is yet to be developed and the continuous active engagement of its users and success of its contemplated business lines. There is no assurance that the Company’s Token Distribution Event will be successful or that its business platform that is yet to be developed will gain or continue to gain traction. While the Company has made effort to provide a realistic estimate, there is also no assurance that the cryptocurrencies raised in the Token Distribution Event will be sufficient for the development of the Company’s business platform. For the foregoing or any other reason, the development of the Company’s business platform and launch of the anticipated Token functionality may not be completed and there is no assurance that it will be launched at all. As such, distributed Tokens may hold little or no worth or value. Table Of Contents 69 Legal Disclaimer The funds raised in the Token Distribution Event are exposed to risks of theft The Company will make every effort to ensure that the funds received from the Token Distribution Event will be securely held. Further, the Company may make every effort to ensure that the funds received by it from Token Distribution Event will be securely held through the implementation of security measures. Notwithstanding such security measures, there is no assurance that there will be no theft of the cryptocurrencies as a result of hacks, sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on the Token Distribution Event website, in the smart contract(s) on which the Token Distribution Event relies, on the Ethereum blockchain or any other blockchain, or otherwise. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. In such event, even if the Token Distribution Event is completed, the Company may not be able to receive the cryptocurrencies raised and the Company may not be able to use such funds for the development of the Company’s business platform. In such case, the launch of the Company’s business platform might be temporarily or permanently curtailed. As such, distributed Tokens may hold little worth or value and this would impact their trading price. R I S K S R E L AT I N G T O T H E C O M PA N Y The Company’s business platform that is yet to be developed Any events or circumstances which adversely affect the Company or any of its successor or affiliated operating entities may have a corresponding adverse effect on the Company’s business platform that is yet to be developed, including but not limited to the development, structuring and launch of the Company’s business platform. Such adverse effects would correspondingly have an impact on the utility, liquidity, and the trading price of the Tokens. The Company may be materially and adversely affected if it fails to effectively manage its operations as its business develops and evolves, which would have a direct impact on its ability to develop, maintain or operate the Company’s business platform and/or develop, structure and/or license any Token functionality The financial technology and cryptocurrency industries in which the Company competes have grown rapidly over the past few years and continue to evolve in response to new technological advances, changing business models, shifting regulations and other factors. As a result of this constantly changing environment, the Company may face operational difficulties in adjusting to the changes, and the sustainability of the Company will depend on its ability to manage its operations, ensure that it hires qualified and competent employees, and provides proper training for its personnel. As its business evolves, the Company must also expand and adapt its operational infrastructure. The Company’s business will in part rely on its blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology. All of these systems, tools, and skillsets represent complex, costly, and rapidly changing technical infrastructure. In order to demonstrate continued ability to effectively manage technical support infrastructure for the Company’s business platform that is yet to be developed and the future functionality of the Tokens, the Company will need to continue to upgrade and improve its data systems and other operational systems, procedures, and controls. These Table Of Contents 70 Legal Disclaimer upgrades and improvements will require a dedication of resources and are likely to be complex and increasingly rely on hosted computer services from third parties that the Company does not or will not control. If the Company is unable to adapt its systems and organization in a timely, efficient, and cost-effective manner to accommodate changing circumstances, its business, financial condition and/or results of operations may be adversely affected. If the third parties whom the Company relies on are subject to a security breach or otherwise suffer disruptions that impact the services the Company uses, the integrity and availability of its internal information could be compromised, which may consequently cause the loss of confidential or proprietary information and/ or economic loss. The loss of financial, labor or other resources, and any other adverse effect on the Company’s business, financial condition and/or operations, would have a direct adverse effect on the Company’s ability to develop maintain or operate the Company’s business platform and/or to develop, structure and/or license the anticipated Token functionality. Any adverse effects affecting the Company business or technology are likely to also adversely impact the utility, liquidity, and trading price of the Tokens. The Company may experience system failures, unplanned interruptions in its network or services, hardware or software defects, security breaches or other causes that could adversely affect the Company’s infrastructure network, and/or the Company’s business platform that is yet to be developed The Company is not able to anticipate when there would be occurrences of hacks, cyber-attacks, distributed denials of service or errors, vulnerabilities or defects in: the Company’s business platform that is yet to be developed, in the smart contracts on which the Company or the Company’s business platform relies, or on the Ethereum or any other blockchain. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. The Company may not be able to detect such hacks, cyber-attacks, distributed denials of service errors vulnerabilities or defects in a timely manner, and may not have sufficient resources to efficiently cope with multiple service incidents happening simultaneously or in rapid succession. The Company’s network or services, which would include the Company’s business platform that is yet to be developed and, if successfully structured, developed, licensed and launched, the Token functionality, could be disrupted by numerous events, including natural disasters, equipment breakdown, network connectivity downtime, power losses, or even intentional disruptions of its services, such as disruptions caused by software viruses or attacks by unauthorized users, some of which are beyond the Company’s control. There can be no assurance that cyber-attacks, such as distributed denials of service, will not be attempted in the future or that the Company’s security measures will be effective. The Company may be prone to attacks on its infrastructure intended to steal information about its technology, financial data or user information or take other actions that would be damaging to the Company and/or holders of the Tokens. Any significant breach of the Company’s security measures or other disruptions resulting in a compromise of the usability, stability, and security of the Company’s business platform that is yet to be developed may adversely affect the utility, liquidity and/or trading price of the Tokens. Table Of Contents 71 Legal Disclaimer The Company may in the future be dependent in part on the location and data center facilities of third parties The Company’s future infrastructure network may be established in whole or in part through servers which it owns and/or houses at the location facilities of third parties, and/or servers that it rents at data center facilities of third parties. If the Company is unable to renew its data facility leases on commercially reasonable terms or at all, the Company may be required to transfer its servers to a new data center facility, and may incur significant costs and possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication failures. Additionally, the third-party providers of such facilities may suffer a breach of security as a result of third-party action, employee error, malfeasance or otherwise, and a third party may obtain unauthorized access to the data in such servers. The Company and the providers of such facilities may be unable to anticipate these techniques or to implement adequate preventive measures. The Company or the Tokens may be affected by newly implemented regulations Distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrency-related businesses and activities are generally unregulated worldwide, but numerous regulatory authorities across jurisdictions have been outspoken about considering the implementation of regulatory regimes which govern distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrency-related businesses and activities. The Company or the Tokens may be affected by newly implemented regulations relating to distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrencyrelated businesses and activities, including having to take measures to comply with such regulations, or having to deal with queries, notices, requests or enforcement actions by regulatory authorities, which may come at a substantial cost and may also require substantial modifications to the Company’s business platform that is yet to be developed and/or the anticipated Token functionality. This may impact the appeal or practicality or functionality of the Company’s business platform that is yet to be developed and/or the anticipated Token functionality for users and result in decreased usage of and demand for the Company’s business platform and the Tokens. Further, should the costs (financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the Company’s business platform that is yet to be developed and/or developing, structuring, licensing and/or launching the Token functionality may no longer be commercially viable, and the Company may opt to discontinue the Company’s business platform that is yet to be developed and/or the anticipated Token functionality, and/or the Tokens. Further, it is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the Company’s business platform that is yet to be developed and/or the anticipated Token functionality, and/or the Tokens. Table Of Contents 72 Legal Disclaimer The Company may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the utility, liquidity, and/or trading price of Tokens will be adversely affected and/or Tokens may cease to be traded. There may be unanticipated risks arising from the Tokens Blockchain Tokens such as the Tokens are a relatively new and dynamic technology. In addition to the risks included in the above discussion of risk factors, there are other risks associated with your purchase, holding, and use of the Tokens, including those that the Company cannot anticipate. Such risks may further appear as unanticipated variations or combinations of the risks discussed above. Disclaimer The presentation of the Available Information is solely for informational purposes. Anyone interested in purchasing Tokens and participating in the Token Distribution Event should consider the various risks prior to making any kind of decision in respect of the Token Distribution Event. The Available Information does not comprise any advice by the Company or by the Company Representatives, or any recommendation to any recipient of the Available Information, by the virtue of any participation in the Token Distribution Event or otherwise. The Available Information does not necessarily identify, or claim to identify, all the risk factors connected with the Company, the Company’s business platform that is yet to be developed, the Tokens, the Token Distribution Event, any future Token functionality or the Available Information. All the participants must make their own independent evaluation, after making such investigations as they consider essential, of the merits of participating in the Token Distribution Event and after taking their own independent professional advice. Any participant in the Token Distribution Event should check with and rely upon their own investment, accounting, legal and tax representatives and consultants in respect of such matters concerning the Company, the Company’s business platform that is yet to be developed, the Tokens, the Token Distribution Event, any future Token functionality and the Available Information and to assess separately the financial risks, consequences and appropriateness of the purchase of Tokens, or if in any doubt about the facts set out in the Available Information. A purchase of Tokens comprises considerable risk and might involve extraordinary risks that may lead to a loss of all or a significant portion of monies or monetary value utilised to acquire Tokens. Participants in the Token Distribution Event are urged to completely understand, be aware of and accept the characteristics of the Company, the Company’s business platform that is yet to be developed, the Tokens, the Token Distribution Event, any future Token functionality and the Available Information. If you are not prepared to accept any or all of these Terms or the risks set out in these Terms then ​YOU ARE URGED NOT TO PARTICIPATE IN THE TOKEN DISTRIBUTION EVENT​ . No guarantee or assurance is given by the Company or by the Company Representatives that the Company’s proposals, objectives and/or outcomes set out in the Available Information will be achieved in whole or in part. You are urged to consider whether participation in the Token Distribution Event is suitable for you having regard to your personal and financial circumstances and your financial resources. Table Of Contents 73 Legal Disclaimer No Offer of Securities or Registration The whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. No person is bound to enter into any contract or binding legal commitment and no cryptocurrency or other form of payment is to be accepted on the basis of all or any part of the Available Information. Any agreement in relation to any sale and purchase of Tokens is to be governed by the terms and conditions of such agreement and no other document. In the event of any inconsistencies between the terms and conditions of that agreement and the Available Information, the terms and conditions of the agreement shall prevail. No regulatory authority has examined or approved of any of the Available Information. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of the Available Information does not imply that the applicable laws, regulatory requirements or rules have been complied with. The Token Distribution Event and/or the Tokens could be impacted by regulatory action, including potential restrictions on the ownership, use, or possession of such Tokens. Regulators or other competent authorities may demand that we revise the mechanics of the Token Distribution Event and/or the functionality of the Tokens in order to comply with regulatory requirements or other governmental or business obligations. Table Of Contents 74 Legal Disclaimer Table Of Contents 75