Rodion Kovalenko

CONTENT IDEA............................................................................................................................................. 3 DOWNSIDES.........................................................................................................................4 MARKET OVERVIEW....................................................................................................... 7 BOOMSTARTER.NETWORK SOLUTION. GLOBAL CROWDFUNDING 2.0..................................................................................................14 WHY DOES WE NEED BLOCKCHAIN?.......................................................... 16 HOW SMART CROWDFUNDING WORKS .................................................. 17 ECOSYSTEM MEMBERS............................................................................................. 19 THE GENERAL ECOSYSTEM PLAN............................................................. 25 TOP MINER REWARD........................................................................................... 26 THE CRYPTOCURRENCY VOLATILITY...................................................... 26 USER CASES....................................................................................................................... 27 TOKEN.....................................................................................................................................28 TOKEN USAGE...........................................................................................................28 TOKEN VALUE............................................................................................................ 29 FACTORS AFFECTING THE TOKEN VALUE OVER TIME....................................................................................................................30 BC TOKEN CROWDSALE.................................................................................... 31 CROWDSALE GOALS AND MILESTONES.............................................. 31 TOKEN ALLOCATION............................................................................................. 31 FINANCING DISTRIBUTION............................................................................. 32 FOUNDERS AND ADVISORS................................................................................38 TEAM........................................................................................................................................ 39 2 THE IDEA Boomstarter.network — smart blockchain-based smart-contract crowdfunding platform using the technology of crowdmining. INTRODUCTION Crowdfunding actively develops as investment attraction tool since 2009, when Kickstarter, the most popular crowdfunding website in the world, was launched. Since that time many similar websites have appeared not only in the US but throughout the world. Inspired by Kickstarter, the Boomstarter team launched its own crowdfunding project in 2012 and got to the top of the market from its first days. Thousands of successful projects, tens of thousands of backers, hundreds of millions of rubles have been gathered during 6 years of Boomstarter and Russian crowdfunding development. 2000 Successful projects 250 Thousand backers have supported the projects We worked hard to create a useful tool for business and creative teams, which will support their goal of getting ideas funded and sharing products of their creativity with the whole world. 3 But do the classic crowdfunding platforms use a full set of available opportunities and methods nowadays? Does everyone get to use this classic format? We watch cryptocurrencies step into our lives. Thousands of people gained new possibilities of international low-commission payments for goods and services. Some of them even use a computing power of their PCs to take part in cryptocurrencies mining and to profit f rom it. The world has changed — it’s time for crowdfunding to change too. DOWNSIDES Classic crowdfunding has a number of downsides, still unresolved in the standard model. CREATOR ISSUES: 1. International restrictions Citizens of only 22 countries can place their project on Kickstarter without a representative. The population of these countries is a bit over 1 bln of people. But there are 6 bln of potential inventors, creators and businessmen who can’t participate in international crowdfunding. For example, if you hail from Kazakhstan and you want to launch your project on the world’s largest crowdfunding platform Kickstarter or on the local platform Boomstarter, you are going to face the law and financial regulations and restrictions. To launch your project on Kickstarter you need to be a resident of one of the available countries (USA, Great Britain, Australia and some others). Similar rules are applied, if you launch your project on Boomstarter. In practice, it leads you to search a representa- 4 tive or intermediary in one of these countries, and that means new expenses for intermediary commission and for negotiation time. The intermediary himself adds to the project risks - there is always a possibility that he will disappear with creator’s money, and it’s the creator’s reputation that will suffer. 2. High commissions Every crowdfunding platform raise a commission for their services. It is their one and sometimes the only source of income. Commissions rate varies from 5% to 15% (rarely it’s higher). It makes a large part of investments, that otherwise could have been invested in the project development. Add here inevitable taxes (that can reach 20% of investments) and intermediary commissions, if you’re from Kazakhstan, like the project from the previous example. 3. Limited ways of project investment Cryptocurrencies become more and more important part of our society, internet-culture. New coins appear as the alternative to the most demandable Bitcoin and Ethereum, while the blockchain technology is continually adapting to more complicated tasks — from documents fraud prevention to utility bills distribution. Meanwhile, there’s still no tool for raising funds in cryptocurrency. 4. Platforms liabilities are lacking full and timely money delivery to the creators’ detriment. Centralized crowdfunding services set their own rules. It’s not just about international regulatory law constraints. Delivery time may vary, but usually, they range from several days to several weeks or sometimes more in some special cases. Sending the original documents, personal visit to crowdfunding company office and different banks transactions (sometimes between foreign banks) steal the precious time from the creators - the time, that could have been spent much more effectively. Money must work. Some- 5 times - rarely, but it happens - the organizers got driven towards the desperate measures and ask authors to pass extra compliance before got the access to funds or even return all funds back to backers in controversial situations. BACKERS ISSUES 1. Money allocation conducted by a creator is untraceable Time and again we hear stories f rom Kickstarter projects, that gathered millions of dollars and never completed the stated goals in time. Or they have completed it, but not the one that has been stated. One of the best examples — the Pebble Watch. Why do such situations happen? The team rarely communicates with the purchasers, and when the communication f inally occurs the team cannot give the answers needed. The product is still absent, and the unrest among backers comes close to the boiling point. The consequences of the lack of transparency of project money allocation are these, aforementioned issues. The team can spend a lion’s share of the budget for ineffective campaigns during the f irst days of success, while the backers are still in the dark about what’s happening. 2. International regulatory law constraints Almost everyone have cards, issued by centralized banks, obeying financial legislation of their country of origin. Even now there are issues with transaction processing, if you’ve got a german card, but live in London and want to purchase something with this card. Many payment aggregators and card emitents can simply block the payment in such cases without looking into the details. Just because you are not where you are expected to be by payment operator or bank of issue. 6 3. Limited ways of project investment In the developing world of technologies there are different money tools like fiat money (classic money) and cryptocurrencies. For classic crowdfunding platforms investments made in cryptocurrency are still unavailable. 4. Inability to contribute intangibly to the project Many users have no ability to support the project with money, but they still like the idea and are ready to participate in projects development by other means. 5. Backing up a project doesn’t yield any financial out comes for contributors You can buy project’s product or receive an intangible gratitude from a creator. But these options do not always satisfy the backers, who see crowdfunding projects as investment objects. MARKET OVERVIEW Despite the fact that the official countdown of crowdfunding market started in 2007, it has begun to gain popularity in the last 4 years, although remains somewhat limited even today. After the crowdfunding market began to form, some projects started using this type of financing technology for narrow areas: if the platform initially accepted any projects seeking investment, then by 2015 many platforms had a narrow profile, specializing in creative, business, public or other specific types of projects. The use of the narrow profiles helped platforms to cover more specific areas, including, for example, FinTech, but somewhat slowed the development of the market as a whole. Most of the current websites are concentrated in several key 7 regions: the largest and most famous sites are in the US and Western Europe. These regions account for about 70% of the total crowdfunding market value. In other regions, the remaining 30% is divided proportionally. It should be taken into account that the number of platforms is rather limited even for 2018, despite the potential of the sphere: the score of large American and European sites goes to dozens, but in Russia there are relatively few large crowds. Expansion of this sphere in Russia is influenced by “childhood” problems of crowdfunding, first of all, little popularity of such a method of collective investment in general and its limited transparency in particular. The reasons for the first are very simple: Russian Federation has “stepped” into the new type of financial system relatively recently, without worrying about the so-called financial literacy of potential consumers of such services. The sphere of financing is still presented quite narrowly, so the emergence of new investment methods - including crowdfunding - may seem not completely transparent and “reliable”. However, as practice shows, for the Western world this phenomenon is much more characteristic, as the potential of investments grows from year to year. The level of traffic for such platforms requires special attention: it varies depending on the degree of fame and profile of the sites. In some cases, the average monthly attendance of crowdfunding platforms can show about 20-60 million unique views with a fairly stable average percentage of failures (about 60). This indicator can be considered a record for a sphere that is just gaining momentum and is directly connected with the format of collective investment, which is little-known for most countries. At the same time, the level of people’s interest in crowdfunding is easily determined by the allocation of organic traffic from the total volume. The figures in this case are also impressive: for Western European and American sites, they are an average of about 93% (kickstarter, Indiegogo). For Russian platforms – up to 99%, however, with a smaller amount of traffic in comparison with Western projects. Despite this, crowdsanding areas in Russia attract quite large amounts of 8 funds: for example, in 2016, the 3 largest Russian sites (purely for my understanding, which 3rd site he had in mind, if he writes above about ten) were able to attract about 1 billion ($ 17 million) as a collective investment. Of these, Boomstarter.ru accounts for about 326 million rubles. In 2017, the total amount invested increased by at least 40%, while it is expected that in 2018 a qualitative leap may occur due to the use of new technologies, including the use of crypto currency / lock-up as the most promising technologies and means of payment. From this follows the conclusion: the market development kraudfandinga in the past year and a half is directly related to the market of crypto-currency and its active expansion. THE CRYPTOCURRENCY MARKET The market of crypto-currencies can be considered even more “young” than the market of crowdfunding. A conditional reference point is 2009, i.e. The moment when the f irst cryptocurrency appears is Bitcoin. What was initially perceived as a strange idea, in a few years has become quite a prof itable investment direction, which caused an avalanche effect of the appearance of new cryptocurrencies. At the moment, their number has exceeded 1500, with most of the new cryptocurrency originated in the last year and a half. The idea of ​​a decentralized payment system divided the world currencies into two new categories: f iat (traditional) and non-phyty (cryptocurrencies). Due to the fact that the mechanism for obtaining a “crypto” currency is signif icantly different f rom that for a conventional currency, the cryptocurrency has received an initial impulse to growth and development. Mining as the initial basis for the creation of various cryptocurrencies is very different f rom the off icial issuance of currency by the central banks of countries; while it is not subject to the standard problems of f iat currencies, including inflation, regulation, etc. 9 However, for all its simplicity and attractiveness, the cryptocurrency has faced a key problem that is not typical for f iat currencies — inf rastructural limitations. Despite the currency spread and worldwide mining, the use of cryptocurrency as a means of payment in the POS is still very limited. The answer to this limitation was found: the mining boom and the cryptocurrency value growth reached its apogee in 2017, thanks to new investment technology, or ICO (Initial Coin Offering). Basically ICO has a very similar purpose to crowbanding: it is a form of collective investment in the project with the goal of prof it after its launch by increasing the value of purchased coin produced by the company. The additional f inancial attractiveness is possessed by coins, which are traded on crypto-exchanges (by analogy with the exchange mechanism of IPO). The low potential cost of most coins at the initial sale (presale procedure) in some cases gave the potential for growth of the initial investment in tens, and sometimes hundreds of times. In this case, as a payment method, other types of cryptocurrency are used most often, i.e. an exchange of one cryptocurrency for another takes place, without participation of f iat funds. Although, as in the case of crowdfunding, ICO’s cryptocurrencies and procedures got their pluses and minuses. The pluses are: - A small level of international restrictions. At the moment, the cryptocurrency market is still not regulated, despite all the steps taken by the leadership of the states. In some countries, cryptocurrency is prohibited or restricted, but in the vast majority of cases its status is open and not prohibited by law. - Low internal commissions. In most cases, internal transfers within each specif ic cryptocurrency are subject to a low commission, and in some cases do not have a commission at all. 10 - A huge number of types of cryptocurrency. Acceptance of payments can be made if necessary in absolutely any cryptocurrency. - A short transaction processing time. Most cryptocurrency transactions can take f rom a few seconds to several minutes and can easily be compared to any other type of online payments. - No restrictions on the amount of transactions. In contrast to the use of standard mechanisms of transfers of funds, cryptocurrency transfers are not limited in scope and mostly are not the subject of questions f rom the regulatory authorities. - Greater transparency of investments. Compared with crowdfunding, the ICO procedure has much greater visibility and transparency due to the openness of the blockage code on the one hand and the openness of the product realization stages on the other hand. The main disadvantages include the following factor: - Tougher regulatory conditions. Due to the fact that, a number of projects proved to be frankly fraud, a number of large search engines, as well as social networks, significantly limited ICO and cryptocurrency advertising, which complicates the search for potential crypto-investors in the ICO. So, the Crypto currency market is in a rather curious position: it is not fully regulated, while its capitalization ranges from $ 300 to $ 700 billion. It was able to find answers to a number of questions that have not yet been resolved within the frameworks of crowdfunding, with most major platforms continue to ignore blockchain and cryptocurrencies, reducing their efficiency and growth potential. Due to the fact that crypto currencies and the use of blockchain technology can potentially solve a number of the most vital problems of crowdfunding, combining these markets is only a matter of a short time. 11 WHAT DOES CROWDFUNDING GET WHEN USING CRYPTO ASSETS AND BLOCKCHAIN TECHNOLOGY? - Wide investment opportunities. A huge selection of non-f inancial payment instruments. - Greater transparency for any project within crowdfunding, as well as the transparency of payments and the structure of commissions - The possibility of investing at any time f rom any part in the world - Direct opportunity to benef it f rom project support, which was not previously available. The combination of the two developing and promising directions within a single project can give the company a huge number of new growth points, and potentially bring it to a new level with low competition: as already mentioned, most of the largest sites are not yet ready to use cryptocurrencies. INVESTMENT APPRAISAL OF CROWDFUNDING POTENTIAL IN 2018 The potential for crowdfunding in the current year is worth assessing in comparison with investments in the ICO, based on the data of 2017. The reason is quite simple: due to the tightening of the regulatory environment, ICOs will not cease to be popular, but their number will greatly decrease. The potential for growth in the number of ICOs is now quite limited, since most of them should be in the so-called “White sheets”. However, this factor has a positive impact on the crowdfunding market: blockchain solves a number of key issues of the crowdfunding market, so it will eventually become an integral part of it. However, given the limited number of ICOs, some of the investment will inevitably flow f rom the ICO to crowdfunding. 12 In order to assess the maximum potential of crowdfunding market in the ICO cross-section, let’s look at the statistics. According to the rating agency DiGrate: Since 2014, there have been 1463 ICOs in the world. Of these, 192 projects were recognized as LOST (unpromising). Projects are recognized as LOST, if the tokens did not appear on the stock exchange for 4 months, information appeared that the founders of the project were taken under arrest, or the ICO website became unavailable. Investors have invested about 850 million dollars In such projects for all time. Of the 1,463 projects, 565 were unable to collect the necessary amount for ICO and were forced to close. 706 projects f rom all the ICOs in the world have been successful. This is about 48% of all projects; in general, this f igure can be considered quite high. A few more f igures f rom the ICO Market Stats: if in 2016 only about $300 million was raised, in 2017 this f igure has already grown to $7 billion, while in the f irst three months of 2018, investments in the ICO market have already attracted about $4 billion. At the moment, the largest is the ICO of the Filecoin project (the development of a decentralized data storage network), during which in August 2017 it managed to raise $257 million. The previous record — the Swiss blockchain startup Tezos (development of a network protocol, alternative to Ethereum) — collected about $ 230 million during the ICO in 2017. The potential of investments in the ICO before the end of this year is estimated at $10 billion. For example, we estimate the dynamics of growth in investment volume in crowdfunding: Based on the data of the TABB Group, which conducted an expert appraisal of the market crowding market on a global scale, we can focus on the following indicators. 13 - 2015: investments amounted to about $ 8 billion, while at least 40% of these funds are charity / public funds. - 2017: investments amounted to about $57 billion, while at least 20% of these funds fall on IT projects. Taking into account the dynamics, the crowdfunding market in 2018 may exceed the $ 70 billion mark, as well as pass a mark of $ 100 billion by 2020. BOOMSTARTER.NETWORK SOLUTION. GLOBAL CROWDFUNDING 2.0 Now crowdfunding becomes predictable, transparent and independent f rom centralized platforms, meaning decentralized. Boomstarter uses Ethereum platform , which executes decentralized application for cryptocrowdfunding. That all being said, turns crowdfunding up to the whole new level. Just imagine, there are no international restrictions anymore — anyone could launch the dream project f rom any point of the world with stable Internet connection. With your help crowdfunding would look like that in a few years — as convenient as possible. Authors now sure that they would get funds raised for the project. Funds becomes available for them in a few minutes (average transaction time in Ethereum network takes f rom 30 seconds up to 5 minutes tops). We build smartcontracts using the mathematical logic, so they would obey it independently f rom all centralized departments or organisations. 14 Authors call up to their supporters to help with not only money, but spending their computing power to mine cryptocurrency for the Author’s project pool and help to make the world a better place. Backers/Sponsors track transactions f rom the Author’s wallet, making it impossible for them to waste funds on non-targeted purposes. Backers gain an ability to support projects in cryptocurrencies, which removes most of the international restrictions and inconveniencies. Miners prof it f rom supporting Authors with a computing power of their PCs, making easier for Authors to generate investments, while actually getting richer themselves. The best miners are f ighting for the big part of the whole cryptocurrency pool raised for the project. KICKSTARTER INDIEGOGO — — 14 days 21 days Cryptocurrencies support — — Opportunity to gain profit for Backers — — up to 10% up to 10% BOOMSTARTER NETWORK International restrictions Authors’ expenses transparency Guarantees to authors in obtaining funds Funds transfer speed Commissions 5 minutes 0% 15 WHY DOES WE NEED BLOCKCHAIN? Centralized crowdfunding platforms proved themselves as not safe and convenient enough to guarantee the Author the receiving of funds in time. The Ethereum blockchain platform and decentralized applications on its basis are extremely convenient, because it is a ready-made infrastructure that provides trust between nodes in a trustless environment necessary for the transfer of crypto assets between the addresses (wallets) in the network. The Ethereum smart-contract will guarantee the invariability of the initial investment conditions in the project. In addition to the actual receipt of funds, the smart-contracts of the Ethereum network allow almost instantaneous collection of funds to all participants in the transaction chain. In the new world of crowdfunding is not only the Authors, but the miners, who also help them in the implementation of projects with their computing power. Backers are also able to add their computing power, converting it to the chosen cryptocurrency. The type of the cryptocurrency mined could be defined within the Backer’s Web UI. Bureaucratic and legal international barriers are also easily eliminated through the use of the blockchain technology and smart-contracts. There are no more obstacles, and now every inhabitant of the planet with access to the Internet will participate in crowdfunding. Users of smart crowdfunding from Boomstarter, built on the Ethereum blockchain and smart-contracts, will be assured of the safety of their facilities and the reliability of the system. Decentralization of the blockchain guarantees it. The last, but not the least reason, is the openness and transparency of the data, guaranteed by the blockchain. All transactions are publicly available, and now no one can distort real data, even if he or she wants to. 16 HOW SMART CROWDFUNDING WORKS CROWDMINING TECHNOLOGY One of the main ideas implemented in the framework of Boomstarter smart crowdfunding solutions is the introduction of crowdmining technology, which allows a lot of people to support projects with the computing power of their equipment. It is enough to have an ordinary home computer. Boomstarter Mining Pool is going to be used to control users’ mining activities with the following pool of tasks: Decentralization. The computing power belongs to the miners pool and no one possesses more than a half of it. Risk mitigation. Boomstarter Mining Pool is presented as one huge miner for the chosen blockchain, providing uninterrupted power allocation, which guarantees the most efficient mining. 1. User def ines the project he wants to support. 2. User determines the mining type, which he prefers: - Within the Backer’s space through the browser, in which case we would automatically def ine which part of the CPU power could be used for mining in such way that provides stable work on other tasks for the user during mining. - Download an app for Windows/MacOS/Linux. User would be able to chose currencies that cannot be mined through the web browser and also would get more precise f ree power estimation than in the web version (Backer’s space) 3. The community of such users help Authors to raise enough funds in cryptocurrency, adding their important contribution in project realization. 17 4. User, whom we call Miner in the given context, receives a part of the cryptocurrency mined due to his contribution. This part can be no less than 10% of all cryptocurrency pool raised for the project. 5. The creator gets the cryptocurrency mined in addition to the general fund of his project, and implements the project, making the world a better place. INSTANT TRANSACTIONS Thanks to the architecture of smart-contracts, the creators will be able to receive the collected funds almost instantly. The average processing time for transactions in the Ethereum network is a few minutes. The creators will be able to dispose of the collected funds right after the end of crowdfunding campaign and to start creating new ideas and products that change the world. GUARANTEED FUNDS FOR ALL PARTIES Ethereum smart-contracts depend on only one thing — strict logic, based on clearly def ined conditions. At the moment when a predetermined amount is collected at a predetermined time, the smart-contract transfers money to the creator within few minutes. This process does not depend on any third parties or forces, only on the logic laid down in the smart contract. The same is true for the percentage received by the miners and top-miners. All participants of the ecosystem are guaranteed to receive their funds. TRANSPARENCY OF CREATORS EXPENSES Ethereum network stores all transaction data from the first block and provides public access to any part of the data chain, creating the “transparency” of the Ethereum address (wallet). If you get 10 ETH to your wallet (the address in Blockchain), information about this transaction would also be available publicly to everyone who knows your wallet address, e.g using etherscan.io 18 And also everyone will be able to find out that you have recently spent it somewhere else or that you are still holding it at your address. In the ecosystem of Boomstarter smart crowdfunding, the creators’ expenses will now be transparent and everyone will be able to ask you about the flow of funds or why this movement is not available if the project should already have been implemented. ECOSYSTEM MEMBERS Within the framework of the created ecosystem we can identify the following participants, which influence the result of the system operation. Author Creates a project to raise funds to implement his idea. It can be any idea that does not contradict the norms of morality and basic law, as well as in classic crowdfunding. Implement public projects, design technological equipment, create new products, embody your creative talent in creating songs, books or paintings. Anyone with access to the Internet can now quickly and easily become the creator of the project. Sponsor (Backer) The sponsor can support projects like in the classic crowdfunding, but now he does it using cryptocurrency. People from all over the world will be able to support new ideas and receive unique rewards from authors. Miner Miner puts his equipment computing power (for example, an ordinary computer) into a common project support pool. He gets a part (5%) of cryptocurrency that was mined due to this contribution to the project, if his part of the contribution would be considered the most significant. 19 Miner Pro Miner Pro can regulate part of his contribution to the total cryptocurrency mining pool, within the limits allowed by the creator of the project (at least 10% and not more than 50%). He can also claim 5% of the project total cryptocurrency mining pool, if he makes the largest capacity contribution to it. AUTHOR The creator of the project creates a request for the project’s placement and specifies his Ethereum account address. A smart contract transfers funds to this account if financing is successful. If financing has failed (the amount is not collected for the period determined by the Creator), the creator will not receive anything, and the funds collected by this moment will be returned to Sponsors (Backers), Miners and Miners Pro. To start the project, the Creator needs to pay for one of the placement formats. Payment is possible only with BC platform tokens (BoomstarterCoin). When using fiat currencies or other cryptocurrencies, BC tokens (BoomstarterCoin) will be exchanged and transferred to the account of the Creator, and in turn, he will pay them for the placement on the platform. More information about the placement options is provided in the TOKEN section. 20 SPONSORS/BACKERS The sponsor (Backer) uses cryptocurrencies available to him to support the project. Most popular cryptocurrencies, as well as BoomstarterCoin tokens, will be accepted. If sponsoring takes place using Ethereum or ERC-20 tokens tied to an Ethereum account, the Ethereum account address is being fixed in the smart contract system so that, if the project fails, the smart contract will return the money to this address. This will happen automatically if the project’s amount determined by the creator is not collected within a certain period of time. If the sponsorship is being executed using other cryptocurrencies, then with the help of a converter the cryptocurrency will be transferred to the project’s smart contract, and the Sponsor (Backer) will get the account address in the Ethereum network with an offer to generate a private key to it. This key is accessible only by the Sponsor (Backer). Private key will not be kept by the Boomstarter platform. In case of unsuccessful completion of the project, funds will come to the named address, and Sponsor (Backer) will be able to use them at his own discretion. If the project succeeds, regardless of cryptocurrency chosen for sponsoring, the Sponsor (Backer) will receive the corresponding fee from the creator of the project. 21 MINERS Miners can use their computing power to contribute to the common cryptocurrency pool for the project. The mined cryptocurrency (for example, Monero) comes through the converter to the address of the Ethereum account hidden from Miner, but visible to the smart contract system of the project. The funds are being transferred to a project smart contract from this address. If the project is successful, Ethereum account reserved for Miner will get a 10% transfer of cryptocurrency mined by this Miner. Miner can access the Ethereum account address and generate a private key for it (private key will not be kept by the Boomstarter platform). After that, miner will be able to use these funds. If the project is unsuccessful, the same logic is implied, but the entire volume of the cryptocurrency mined by Miner for the project will return to the Ethereum account address. Miner: Can mine only a fixed amount for himself (10%) Cannot attempt to claim the top-miner reward (5% from the project’s mined pool) M - the whole amount of cryptocurrency the miner has mined for the project 22 MINERS PRO The Miner PRO participation in the ecosystem logic is the same as that of Miner, but several key points are different. To obtain Miner Pro status, you must pay 1 BC (BoomstarterCoin) monthly. The cost of 1 BC on the platform will be $10. Miner Pro has the ability to change the mining cryptocurrenсy percentage for himself, within the limits allowed by the creator (from 10% to 50%). Miner Pro can claim the Top Miner award, which is 5% of total volume of this project mined cryptocurrency. N - cryptocurrency percent the miner mines for himself inside the frame allowed by project’s creator, but no less than 10% M - the whole amount of cryptocurrency the miner has mined for the project COMMISSIONS AND TRANSFERS SCHEME WITHIN THE BOOMSTARTER.NETWORK SMART CROWDFUNDING ECOSYSTEM Commissions being held by Boomstarter.Network, as well as funds being received by the Creator, are possible only if the project is successfully completed. 23 The funds transferred to the project by the Sponsors (Backers) are transferred to creator in full (with the exception of the Ethereum blockchain transaction commissions). The funds transferred to the project from mining by Miners and Miners Pro are transferred to creator in the amount of 80% of their total volume. 20% of mining is the subject of Boomstarter.Network commission. 25% of the Boomstarter.Network commission (or 5% of the total volume of the project’s mined cryptocurrency) is transferred to Top Miner (Miner Pro with the maximum hashrate contribution to the total project mining pool). The next chapter represents the additional scheme of transactions and fees within our ecosystem. All transactions and the received commission amounts are guaranteed by the blockchain technology and mathematical logic of the smart contract system on Ethereum platform basis. 24 THE GENERAL ECOSYSTEM PLAN Now that we have presented all the participants of the ecosystem separately, it’s time to demonstrate the entire ecosystem in a complex. The diagram demonstrates vividly all the mechanics of the work of an intelligent crowdfunding ecosystem, the interaction of all participants, commissions and transactions between them. BC - Boomstarter Coin N - cryptocurrency percent the miner mines for himself inside the frame allowed by project’s creator, but no less than 10% 25 TOP MINER REWARD One of the ecosystem key decisions is the opportunity for Miner Pro to receive 5% of the total volume of the cryptocurrency mined by the project pool. This reward is received only by one Miner Pro - the one that made the largest hashrate contribution to the overall output of the project pool. The award is very attractive for many members of the crypto community who have the opportunity to mine cryptocurrency with their equipment. This awarding system is similar to the consensus system Proof of Work, which is common in many blockchain systems. It proposes a coin reward to a miner who picks up the necessary hash for the extraction of a new block. This can only be done by miners with the ability to generate a large enough hash to be one of the best. We can say that the very system of Boomstarter smart crowdfunding is analogous to reward mechanics in blockchain systems. THE CRYPTOCURRENCY VOLATILITY A lot of factors influence the developing cryptocurrencies market what often leads to dramatic increases in their prices. During a few months many cryptocurrencies may lose 3070% of the value, or grow to the same or even more significant amount. At the same time, when the Project creator launches his project, he must be sure that the amount collected will be enough for him to implement his project. A solution that will avoid the risks of market volatility is needed. A solution within the Boomstarter smart crowdfunding ecosystem will be a separate smart contract that will provide the course, taking it from the API with the service coinmarketcap.com. The project smart contract will regularly check the ETH rate and adjust the project collected amount to USD equivalent if necessary. 26 USER CASES BUSINESS CREATING A NEW PRODUCT Businessmen from any country can now get support to create their products not only in their own country, but also in countries that they could not even dream about earlier. Now, while in Canada, you can offer to pre-order your product with zero commissions for a Hong Kong resident, thousands of miles away. CHARITY ORGANIZATIONS THAT RECEIVE SUPPORT FROM AROUND THE WORLD A striking example of UNICEF, a world-wide charity organization for helping children under the auspices of the United Nations, has proved that it is possible to receive support f rom around the world in the cryptocurrency. Now the whole world will be able to make donations for any charity organization participating in the ecosystem of smart crowdfunding without international barriers and other restrictions. And donations can not only be made with cryptocurrencies, but also through the production of cryptocurrency by hundreds and thousands of people in favor of specific charity projects. CELEBRITIES RECEIVING SUPPORT FROM FANS AROUND THE WORLD World-famous artists and athletes, as well as simply good people with or without world fame, can now receive cryptocurrency support for their ideas and projects without restrictions and international barriers and create new fantastic movies, songs and other products faster and more efficiently. 27 ORDINARY PEOPLE WHO CAN EARN MONEY BY SUPPORTING NEW IDEAS Everyone who has access to the Internet and a computer can now receive income by providing support to others and helping to create new things that change the world. Owners of powerful computers will be able to receive significant revenues simply by participating in supporting interesting projects. Top Miners in the ecosystem of Boomstarter smart crowdfunding receive 5% of the total production of crypto currency by the project. This is an excellent reward for those who want to help projects seriously. TOKEN For certain calculations between the Boomstarter.Network platform and the members of the smart crowdfunding ecosystem, we introduce the BC - BoomstarterCoin token. This is a utility token intended for use by Creators to pay for project placement services, and Miners, to update the level of account to Miner Pro. Only with the help of BC token it will be possible to use the premium placement options and get the best opportunities for mining. TOKEN USAGE 1. The projects creators. Any creator from anywhere in the world can freely place the project, for only 1 BC per month. This is the minimum necessary payment, after which the project can be available for support by other people. Several variants of placement are possible. Usual placement, costs 1 BC (BoomstarterCoin)/month: possibility of using standard site functionality. 28 Premium placement, costs 15 BC (BoomstarterCoin) / month: additional project views among the others, access to advanced analytical tools of the platform, project support by platform resources (inclusion in the mailing list). Professional placement, costs 30 BC (BoomstarterCoin) / month: in addition to being included in Premium placement, this option has a unique opportunity of support by professional Boomstarter employees advising any creator with any project from the very beginning of its preparation to a successful completion. 2. Miners For a significant number of people it’s not enough to have simple Miner account, so they will inevitably want more. Therefore, we introduce additional features in the Miner Pro account, which give users another level of income (this is the adjustment of the percentage of mining for themselves, and the chance to receive the Top Miner reward of the project). Access to the Miner Pro account is available only for BC tokens.Such users pay 1 BC monthly and receive additional opportunities to increase their income on the platform. It should be noted that for the convenience of Creators and Miners, the possibility of paying with fiat currencies will be introduced, while the automatic platform algorithm will exchange them for tokens BC through the exchange. TOKEN VALUE The one BC token value under the platform is set at $ 10. At the same time, we understand that the price on the stock exchanges may differ f rom this price, and we leave users with a choice when buying a token – either use the exchanges services or buy a token directly from the platform. In any case, the user will have different offers and will be able to choose his own. 29 FACTORS AFFECTING THE TOKEN VALUE OVER TIME The demand for BC tokens will inevitably grow. Several key factors will influence this. Creators create demand Thousands of creators will monthly launch their projects and use BC tokens to pay for placement, premium payment and additional promotion opportunities. Miners create demand Each project can support hundreds and thousands of people. And each of them can easily move to a new level of opportunities for mining within the f ramework of the Boomstarter smart crowdfunding, paying only 1 BC. This is a small fee for one person, so a lot of people will be able to produce it monthly painlessly for their budget. The number of tokens will decrease The BC tokens coming to the platform account f rom the Creators and Miners will be burned, this function is embedded in token smart contract. This will be happening until the total number of tokens reaches 4,000,000 BC. After that, the tokens coming into payment will form a special fund, the means of which will be a reward to the most interesting projects. 30 BC TOKEN CROWDSALE CROWDSALE GOALS AND MILESTONES BC tokens presale pursues several key goals. 1. BC issuance for users who want to use the platform services in the future. The price of the token within crowdsale is much lower than the future price on the platform. 2. Getting the necessary investments to create and promote the perfect technological tool of smart crowdfunding based on Ethereum blockchain and smart contracts. 3. To acquaint people with our solutions and to attract as many supporters as possible to the development of the smart crowdfunding ecosystem. The token emission is based on Ethereum smart contracts. There are several periods of sales of tokens. TOKEN ALLOCATION The token emission is limited to a maximum of 36,000,000 BC. This amount is embedded in token smart contract and can not be changed. After the end of the crowdsale, unsold tokens will be burned (the token burning function is also built into the token smart contract). All tokens will be allocated to buyers within a month after the end of crowdsale. Before that, tokens will be frozen and their usage will be impossible. Tokens allocated to the team are designed to motivate each team member to achieve key performance indicators for the platform. Therefore, the share of team tokens is divided 31 into three parts, with the second and the third being unfrozen and available for usage only after 12 and 24 months respectively. Не более - вс Token Sale (TS) — 75% Team — 15% Partners & Advisors — 4% Early Investors — 5% Bounty — 1% FINANCING DISTRIBUTION A simple desire is not enough to create an outstanding product. Boomstarter.network crowdsale will allow us not only to issue a single token for calculations in the ecosystem, but also to attract the necessary funding for the creation of this ecosystem. Each dollar invested will be spent as efficiently as possible. Here are the key directions of financing: Development of convenient and effective software solutions. The service will be used if it is convenient, fast and fairly functional. A quarter of the funds raised will be used to create: - effective solutions for mining, simple and understandable to ordinary users 32 - User-friendly solutions for converting cryptocurrency into fiat money and back - complex architecture of smart-contracts that distribute funds to projects and users - solutions based on artificial intelligence: automatic moderation of projects, automatic ranking of projects High-level employees Only a strong team will allow us to create an outstanding service for users. Marketing To create a smart crowdfunding ecosystem, it is necessary to attract those who will use it. 5 million users from all over the world will join us until 2020. Маркетинг и PR (Экспансия на международные рынки) — 50% Юридические затраты — 5% Финансирование команды — 15% Разработка продукта — 25% Прочие операционные расходы — 5% 33 FOUNDERS AND ADVISORS The Boomstarter platform founders have been developing crowdfunding not only in Russia, but also in the world since 2012. A productive alliance with advisers multiplies the capabilities of the team. Paddy Tan Advisor Founder at InterVentures Asia. Paddy is the ’go to guy’ with a no-nonsense approach for tech startups and ventures. He is armed with vast experience in identifying startups from an idea to mentoring, funding and acquisition stage. John Fitzpatrick Marketing Advisor John Mark Fitzpatrick is a cofounder and currently responsible for the Business development function at SLAVA Group advertising agency, a company founded in 2010. SLAVA Group creates TV and Digital campaigns for Google, Ferrero, PepsiCo, Renault and Lego. William Chilcott Analytical Advisor Managing Consultant at Adelphi Executive Search & Recruitment Nadia Cherkasova Financial Advisor, Early Investor The member of Board of Directors of «Otkrytiye» bank, Nadiya became one of the top-35 world’s successful women in 2007 by World Business Magazine 34 Ruslan Tugushev Co-founder, Early Investor Storiqa marketplace founder. Project’s ICO successfully raised $25 mil in 2018. Evgeny Gavrilin Co-founder, Early Investor More than 15 years of marketing and international sales experience TEAM The team backbone is made up of people who came to crowdfunding in 2012. Each of them understands the mechanics of crowdfunding deeply and knows what to do to bring the industry to a new level. Maria Dokshina Chief Executive Officer (СЕО) Lead expert in crowdfunding technologies in Russia, more than 6 years of international fund raising experience 35 Mikhail Svinukhov Project Manager Launched more than 1000 crowdfunding projects for more than 250 mil rub Vladimir Ovcharov СТО Blockchain evangelist, Developer DApp, Expert in information security. Aleksandr Pavlov Senior UX/UI Designer More than 8 years experience in interface development for web-projects and software Arthur Mass Head of Community More than 10 years of international community management experience, provided community support for Cashbet and Cappasity ICOs Daria Averkieva Head of HR More than 7 years of experience in international digital-marketing and fintech projects promotion. 36 Rodion Kovalenko Сhief Marketing Officer More than 7 years of experience in international digital-marketing and fintech projects promotion. Eugane Manevskiy Business developer Evgeniy developed 6 venture projects in Russia and USA 37