BITBON SYSTEM WHITE PAPER

Global Marketing Strategy
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    IDEA

    The world is rapidly developing, generational change of technologies has become a permanent process, and information space is expanding at the rate that exceeds the capabilities of analytical tools. These trends lead to decreased stability of financial systems and, as a result, to decreased reliability of usual financial instruments, which were used to preserve savings and long-term investments. They also result in increased complexity and cost of attracting investments to business, since traditional financing methods require long (in order to reduce risks) and complicated procedures aimed at proving the validity of business and related projects.

    In response to these challenges, the society and the market created various crowdfunding platforms, which quickly suffered the same fate as traditional investment institutions: they went bankrupt, turned into pyramid schemes or became so strictly regulated that lost their meaning. The reason for that were the same problems associated with proving the validity of business and related projects in modern informational conditions.

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    BLOCKCHAIN

    To rectify the situation, Blockchain[i] technologies were used. Today, crypto currencies have demonstrated fairly well that financial systems can be implemented on the basis of decentralized ledgers. Furthermore, several different methods for consensus-building have been developed thus far, such as PoW, PoS, DPoS etc. These methods are constantly being improved, which helps to increase the reliability and stability of decentralized systems.

    It seemed that a solution had been found. Numerous ICOs (Initial Coin Offerings) have been and are currently being conducted. However, today, we hear a lot about cases of fraud during ICOs and tough response of regulating authorities to them. The trends indicate that most companies follow the same negative path as the first-generation crowdfunding platforms.

    The majority of solutions available on the market are aimed at providing investment services based on the existing infrastructure for user authorization and fraud protection. Usually, such solutions contradict the laws of some jurisdiction and, instead of proposing legalization of investment activities, they suggest changing the jurisdiction. In other words, none of the existing solutions were developed as a complex product aimed at ensuring the implementation of the concept of democratic investment as well as providing and creating infrastructural components (not only digital, but also commercial, social and regulatory), which would guarantee transparency, legal status and protection of investment activity.

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    BITBON SYSTEM SOLUTION

    The Bitbon System[i] offers a comprehensive solution to problems of investing and attracting investment through the following properties:

    • Absolute transparency due to the use of the Blockchain technology.
    • Full legality and personal responsibility achieved by means of:
      • Full registration of all Users with mandatory verification of ID documents;
      • Personal credibility rating for each User;
      • Bitup-Agencies[i] in each jurisdiction, which protect the Users’ interests;
      • Bitbon legal nature.
    • Decentralization and high stability of the System is ensured through the following measures:
      • Social management of the Bitbon System;
      • System nodes, which are distributed among the Bitbon System Users and Participants[i]. Several hundred thousand nodes are expected to be deployed;
      • Openness to the state and regulating authorities;
      • Remuneration system for the Bitbon System Users[i] for providing their own resources to ensure the System functioning.
    • High level of protection due to:
      • Use of the Blockchain technology;
      • Storage of all investment documents in the Blockchain (including the results of project audits) and open access to them;
      • Open access to all documents of the investment project and to the rating of all its Participants for each User;
      • Supervision of projects by Bitup-Agencies that:
        • have been certified;
        • have their own credibility rating, which depends on the success of projects they represent;
        • provide insurance coverage.
      • Highly secure storage of private data in the Blockchain;
      • Ability to restore a User’s access to the Bitbon System (loss of passwords, resolving inheritance issues etc.);
      • Resolution of disputes between the Bitbon System Participants.
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    SMART COMMUNITY

    One of the factors for developing the Bitbon System is the desire to create the Smart Community of the Bitbon System Operators[i] and Contributors[i] (investors). Thus, an environment will be created for self-organization of the Smart Community, whose goal will be better utilization of resources and cooperation without a central authority.

    The area of expertise of the Smart Community of the Bitbon System includes:

    • Determining the strategy of the Bitbon System development.
    • Introducing new and modifying existing rules of interaction between the Bitbon System Participants to improve their nature.
    • Resolving disputes between the Bitbon System Participants.
    • Financing projects important to the Community.
    • Making decisions under force-majeure circumstances to optimize the Bitbon System processes.
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    GENERAL CAPABILITIES OF THE BITBON SYSTEM
    • Bitbon is a Crypto Value based on an integral system of properties, which allows determining the value of any property and has a process organization function as it is a key component of the Bitbon System that allows each System User to profitably and safely exercise his/her right to own and dispose of such a value, which is based on the potential of the development of global social significance in all spheres of public life.
    • Contributing means a type of activity of a Bitbon System User aimed at receiving additional income from participation in the implementation of the selected business project under the terms and conditions of the Projectbon Public Contract[i] of this project.
    • Formation of indices (groups of Assets[i]) and investing in them, which allows the investors (Contributors) to receive long-term stable profits, and the managing companies to capitalize on the management of Assets.
    • Decentralized exchange, which allows exchanging any crypto assets in the Bitbon System as a mechanism for determining their fair value.
    • Using Bitbons to pay for goods and services in form of individual payments as well as by subscription.
    • Progressive mechanisms of organizing auctions and tenders, which are controlled by means of Smart Contracts.
    • Opportunity for Users to launch network nodes on the basis of their computing power, thus ensuring the scalability and high reliability of the System as a whole, and to receive an appropriate reward.
    • Rating system for all Bitbon System Participants and network nodes.
    • Unified discount system.
    • Ability to define rules of Bitbon processing before the occurrence of an event limiting the Bitbon application field.
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    TECHNICAL FEATURES OF THE BITBON SYSTEM
    • High scalability through sharding and optimal network topology; replication of data on a large number of nodes, which ensures storage reliability and access to data at any time.
    • Formally verifiable Smart Contracts with the multi-tier architecture support and subsequent transition to Turing complete Smart Contracts providing high reliability and fault tolerance in contracts.
    • Simplicity in the creation of Smart Contracts through application of a set of flexibly configurable modules and a specially developed DSL (domain specific language) — a programming language fully specialized to a decentralized Blockchain environment.
    • System of automatic segmented updating of the network nodes by means of consensus mechanisms, which enables quick development of the network without losing operation reliability and speed.
    • Exchange of encrypted messages between Users within the network and support of traffic masking mechanisms, which minimize the possibility of traffic statistical tracking.
    • Storage of all System and User data in the network nodes with the possibility of encrypting and managing access to such data.
    • Support of private (closed) network segments and groups of trusted nodes, which allows using the System even under increased demand for information security.
    • Use of post-quantum cryptographic algorithms to increase the security of data and transactions in the network.
    • Use of an improved version of DPoS (Delegated Proof of Stake) as a consensus algorithm, which takes into consideration not only the ownership stake but also the rating of a network participant.
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    VULNERABILITY OF CROWDFUNDING PLATFORMS

    Existing investment schemes have their limitations and weaknesses, which reduce the investment opportunities for a significant number of potential investors all around the globe.

    Today, stock markets look more like a speculative instrument with high volatility and rather high costs and entry thresholds for both investors and those who wish to attract capital. Overregulation of this sector of economy makes the situation even more complicated.

    Crowdfunding platforms represent a rather limited sector of investments, mainly in small and short-term projects without any procedures for evaluating projects and with restricted access provided to those who wish to attract investments. All this leads to a situation when residents of most countries cannot seize this opportunity.

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    PROBLEMS OF ICO AND DAO

    In turn, ICO mechanisms provide ample opportunities for reaching out to investors and those who wish to attract investments (ICOs are not prohibited in most countries, although there are several existing or planned restrictions) but, at the same time, do not offer any methods for countering fraud or any specific models for receiving profit from such investments.

    Investing through the mechanism of DAOs (decentralized autonomous organizations), which was meant to solve the problems of ICOs, has its limitations and risks related to vulnerabilities of smart contracts and questionable effectiveness of the proposed model of project management: decisions are made by a large unorganized group of individuals with no ties to each other. Besides, while deceiving investors in this model is not as easy as in traditional ICOs, it is not impossible due to the absence of any reporting standards as well as limited opportunities for document verification.

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    PURPOSE OF CONTRIBUTING IN THE BITBON SYSTEM

    At the same time, the principle of decentralized management based on the system of rules hardcoded in the program has proven its effectiveness, as illustrated by crypto currencies, and is regarded as a very promising direction to be used in any field, first and foremost in the sphere of economic relations, especially in such an important area as investing.

    The process of investing in the Bitbon System is called Contributing.

    The proposed model (Contributing) allows eliminating the weaknesses of the above-mentioned systems, creating a transparent, comprehensible and predictable investment model, ensuring the interest of all participants of the process in high-quality performance of their obligations. Clear division of roles among the participants of the process allows professionals in respective areas of expertise to fulfill their special functions, which significantly increases the efficiency of the System as a whole and allows achieving high profitability and quick return of investments.

    Application of a decentralized automated system will help sharply reduce the costs associated with launching new projects, attract investments to them, simplify the process of selecting interesting projects for the investors, achieve fair distribution of profits and guarantee the life cycle of investments in general.

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    TECHNICAL SOLUTION + SMART CONTRACTS = RELIABILITY OF THE BITBON SYSTEM

    Moreover, the proposed technical solution will ensure high accessibility and operation reliability of the System as a whole, safety of all data stored in the System, instant monitoring of all transactions for accuracy. The use of intelligent load balancing and distribution algorithms will provide high scalability and speed of the System operation, which will be limited only by the hardware capabilities of the global computer network.

    The new model of multi-tier architecture of Smart Contracts and application of a standard set of flexibly configurable logical modules for creating such Contracts will guarantee simplicity and speed of the development process together with increased reliability and efficiency of Smart Contracts as well as considerably simplify the search for errors arising during their implementation and minimize possible consequences of such errors.

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    INTERACTION OF THE BITBON SYSTEM PARTICIPANTS IN THE CONTRIBUTING PROCESS

    Contributing is an investment model within the Bitbon System, the central part of which is legal relations established by Projectbon Public Contracts of specific projects. These Contracts contain standardized information regarding the business projects for which the funds are raised. Such information includes estimated amount of funds raised, stages of project implementation and amounts of funds required for a specific stage, rules and timelines of profit distribution and other terms and conditions.

    Principle

    The Participants of the Contributing process include:

    • Contractat — a company (legal entity registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer) or an individual, i.e., a person, a participant of civil and other legal relations (holder of rights and obligations). The Contractat initiates creation of the Projectbon Public Contract of his/her own project, which is accepted into the Bitbon System on the basis of the admission to the IBO[i] by the Bitup-Agency.
    • Contributor — a Bitbon System User[i] who, based on the obtained Projectbons[i], participates in the selected business project in order to receive a certain amount of benefit from its implementation.
    • Bitup-Agency — a Bitbon System Participant, which has the right to make a decision on the admission of the Contractat’s project to the IBO and to supervise its implementation in the Bitbon System under the terms and conditions of the Projectbon Public Contract of a specific project by representing and protecting the Contributors’ interests.
    • Bitbon Capitalization Fund[i] — a component of the Bitbon System whose purpose is to provide a mechanism that allows the Bitbon System Users to directly manage the Bitbon System in the interests of all its Participants in order to increase the volume of the Bitbon Capitalization[i] that is generated through automatic Contributing of the Bitbon Capitalization Fund.
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    STAGES OF CONTRIBUTING

    The stages of Contributing can be divided into four basic processes:

    1. IBO Process

    The Contractat, Bitup-Agency and Contributors take part in this process.

    Once the Bitup-Agency publishes the Projectbon Public Contract of a specific project, the IBO starts.

    The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons in this business project.

    2. Contributing Process by the Bitbon System Users

    After Contributors exchange their Bitbons for Projectbons, these Bitbons are automatically transferred to the Masterbox[i] of a specific project until the IBO process is completed.

    3. Fulfilling the Terms and Conditions of the Projectbon Public Contract by the Contractat.
    Full Implementation of the Business Plan

    This process is characterized by the stage-by-stage implementation of the Contractat’s business project as well as the fulfillment of the Contractat’s obligations under the terms and conditions of the Projectbon Public Contract of this project. The additional profit received from the Contractat’s actions is recorded as a financial result and is distributed between the Contractat and Contributors.

    4. Bitbon Capitalization Process

    According to the automatic Contributing of the Bitbon Capitalization Fund (hereinafter — the Fund) in Projectbons of various projects, the profit designated in Bitbons, which the Fund’s Assetbox[i] receives, is used for the Fund’s participation in the implementation of other business projects by means of Projectbons. Thus, the Bitbon Capitalization process is being implemented.

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    FLOW CHART OF THE CONTRIBUTING PROCESS IN THE BITBON SYSTEM
    Contrabusion
    1

    The Contractat initiates creation of the Projectbon Public Contract of his/her own project.

    2

    The Bitup-Agency makes a decision on admission of the Contractat’s project to the IBO and supervises its implementation in the Bitbon System under the terms and conditions of the Projectbon Public Contract of this project.

    3

    The Projectbon Public Contract is published in order to raise funds for the business project implementation by means of Projectbons.

    4

    The Contributor purchases Bitbons.

    4.1

    The Contributor determines his/her share in the business project by exchanging Bitbons for Projectbons of this project.

    5

    By means of automatic Contributing, the Bitbon Capitalization Fund must allocate a certain number of Bitbons for the difference of the amount corresponding to the number of declared Projectbons in order to start implementing the terms and conditions of the Projectbon Public Contract.

    6

    Transfer of Bitbons received from the Contributors and the Bitbon Capitalization Fund to the Masterbox of a specific project for their further exchange for currency in order to perform necessary actions under the terms and conditions of the Projectbon Public Contract of this project.

    7

    Stages of the business project implementation under the terms and conditions described in the Projectbon Public Contract. All actions required to transfer Bitbons from the Masterbox to the Assetbox must be confirmed by digital access keys, which were generated by the Bitbon System based on the IBO results and provided to the Contractat and the Bitup-Agency. These digital keys can only be used simultaneously under the terms and conditions specified in the Projectbon Public Contract of a specific business project.

    8

    Financial result in the form of additional profit received from the Contractat’s actions under the terms and conditions of the Projectbon Public Contract.

    9

    According to the Projectbon Public Contract of this business project, part of the profit received in currency is converted to Bitbons through the exchange in order to fulfill the Contractat’s obligations to the Contributors and to the Bitbon Capitalization Fund.

    9.1

    Bitbons are transferred from the exchange to the Contractat’s Assetbox followed by their further transfer to the Masterbox of a specific project for the purpose of distributing Bitbons among the Contributors’ Assetboxes according to their shares in Projectbons.

    9.2

    Contributors receive their profit designated in Bitbons according to their shares in Projectbons.

    9.3

    Profit of the Bitbon Capitalization Fund is distributed in the Assetbox of the Fund according to the Fund’s share in Projectbons. Bitbons received as a profit are further sent for the implementation and development of other projects, the shares of which are designated in Projectbons. Thus, the Bitbon Capitalization takes place.

    10

    Part of the profit received in currency remains with the Contractat under the terms and conditions of the Projectbon Public Contract.

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    ROAD MAP
    • 2015–2017 Concept of the Bitbon System Development
      • The fundamental concept and development strategy of the Bitbon System have been defined
      • The main terms and definitions have been formulated, which provided the basis for the cooperation model of all Bitbon System Participants and mechanisms ensuring operation of its components
      • The Blockchain technology has been selected for the technical implementation
      • Copyright and trademark registration for the Bitbon System key components has started
      • Practical task implementation has started

      The works on this stage have been completed.

    • 2018 Launch of the Bitbon System

      The main objective of this development stage is to implement basic rules and mechanisms of the Bitbon System as well as to apply them as a basis for creating a transactional environment in the shortest time frames.

      • 1st stage of the Bit Trade Exchange of Digital Assets launch. Purchasing Bitbons according to rules of primary issue (limited issue)
      • The Bitbon Space mobile app launch (global and technical news)
      • 2nd stage of the Bit Trade Exchange of Digital Assets development (free Bitbon purchase and sale)

      At this stage, according to Clause 3 of the Bitbon System Public Contract, primary issue of Bitbons will occur aimed at creating the primary liquidity market, which will allow the first interaction with the real sector of economy. All transactions with Bitbons will be executed with zero commission. The network decentralization will increase through hosting of the Bitbon System nodes on the platforms of trusted partners and the first Bitup-Agencies on the basis of existing financial institutions (banks, exchanges, large brokers and audit companies). The initial Bitbon offering will result in sharp growth and high volatility, which will give way to moderate growth after the issue of first Projectbons.

    • 2019 Infrastructure Development

      The main objective of this stage is a mass distribution of Contributing as an investment practice. We envisage achieving this ambitious goal by forming a community of investors and creating a network of Bitup-Agencies all around the world; after that, we can provide them with guidance and technical support, training and certification.

      • Managing your Bitbons from the Bitbon Space mobile app
      • Launching the system for preparation and licensing of Bitup-Agencies
      • Electronic Accounts for Bitup-Agencies and Contractats
      • First Projectbon Public Contracts (first steps in interacting with the real sector of economy)
      • Expanding functionality of the Bitbon Space mobile app in terms of business project management using Projectbons

      The development of technical infrastructure will ensure a high level of reliability due to higher degree of decentralization achieved by increasing the number of the Bitbon System nodes up to 1,000 and more. Higher level of data availability will lead to a higher trust in the System and, as a result, will serve as an additional driving force responsible for expansion of the Contributing practice. The increase in the Contributing volumes will result in an increased demand for Bitbons and previously issued Projectbons, thus leading to a rise in their value.

    • 2020 Infrastructure Expansion

      The objective of this stage is expansion of the Bitbon System into all branches of economy and development of the Smart Community of investors and Bitbon System Operators.

      • Directing the Bitbon System infrastructure from the private Ethereum Blockchain to the public Simcord Blockchain with the possibility of individual mining
      • Integrating commercial networks into the Bitbon System
      • Launch of the global discount system on the basis of the Bitbon Space mobile app, which unites different spheres of business into one common system of cumulative discounts and bonuses
      • The complete Bitbon System decentralization, which will be achieved through individual mining by the Bitbon System Participants — through their use of computing resources, Internet bandwidth and dedicated disk space for storing information in the Simcord Blockchain

      The growth of Bitbon quotes, decentralization, transparent model, availability of centers responsible for liability and protection of the Bitbon System Participants will lead to the expansion of both the Community and the network of Bitup-Agencies as well as the development of technical infrastructure through individual mining by means of the Users’ free resources. In order to store confidential and protected information, private subnetworks of nodes will be created. In 2020, the profits from Contributing will start to grow rapidly and, as a result, the Bitbon capitalization in general will rise as well.

    • 2021–2025 Globalization

      This stage will be characterized by integration of the Bitbon System into existing systems and products at all levels as well as by entering new and developing markets.

      • Integrating all Bitbon System Participants into a single next generation business network
      • Launching social savings programs to ensure a decent standard of living with a guaranteed income
      • Creating a unified global system for purchase and sale of goods and services on the basis of the Simcord blockchain
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    GLOBAL PROSPECTS OF THE BITBON SYSTEM

    Eventually, the Bitbon System will be used as:

    • Financing and investment platform with variety of different derivative financial instruments (bons, derivatives, indices) and trading venues (including decentralized ones).
    • System of cumulative and insurance investments.
    • Global system for macro- and micropayments as well as mutual settlements.
    • Distributed accounting system for various statistical indices and distributed computing of metrics.
    • Global system of discounts and bonuses.
    • Platform for issuing local crypto currencies (for communities, companies, corporations, regions, countries).
    • Secure messenger with the possibility of exchanging messages.
    • Business-oriented social network.
    • Adjustable and moderated information pool.
    • Continuously operating highly reliable distributed storage of private and public information.
    • Constantly accessible identification and authorization server.
    • Global rating of Users and their competencies.
    • Platform where the Bitbon System Users can host commercial and free services.
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    SIMCORD COMPANY — CREATOR OF THE BITBON SYSTEM

    Simcord is a company with history (https://www.simcord.com/en/history/) and reputation. Today, it can be said that the concept of applying a scientific approach to trading in financial markets has ensured proper development of the Company. Basic objectives and principles of democratization of instruments for trading in financial markets allowed going all the way from having ideas about financial strategies to creating a holding that develops its own software solutions and uses its own infrastructure for financial products while sharing the profits with the Company’s Customers.

    The use of the social engineering component and the network of Information and Training Centers allowed creating the Company’s own market niches instead of competing in crowded segments of financial markets.

    Natural development of the product line in accordance with the Company’s principles of democratization and liberalization of financial instruments involved development of the Bitbon System concept. For its implementation, the Company plans to use new versions of existing products as well as to develop a new-generation Blockchain.

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    COMPANY’S TECHNOLOGICAL DIRECTIONS

    The Company has quite an extensive expertise, which includes the following technological directions:

    • Collection, consolidation and processing of big data in real time.
    • Multivariate data analysis using samples of various depths and generation of fact fields for decision-making systems.
    • Functional and intelligent decision-making systems and generation of control signals.
    • Distributed computing systems and networks.
    • High-load systems.
    • Data protection and fraud prevention systems (fraud detection, IPS).
    • Client and client–server multi-platform applications.
    • JS web applications.
    • User authorization and authentication systems, including personal data storages.
    • Applications facilitating trading in crypto and financial markets.
    • Applications for investment portfolio management.
    • Automated reporting systems for regulating authorities.
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    LEGALITY OF THE BITBON SYSTEM USE

    Simcord has also made significant progress in the field of organizing software operation and legal investment activity based on its software in various jurisdictions.

    The Company employees have gained invaluable experience in introducing financial products to regional markets and organizing Customers’ activity in such a way that fiscal authorities of respective jurisdictions would not have any objections. The Company is fully transparent to state authorities and local market regulators. Multiple audits completed with the help of such partners as Deloitte, KPMG and PWC, compliance with MiFID II (ESMA) criteria, organization of daily reporting on executed trades via EMIR reporting (ESMA) as well as valid licenses allow us to state that the Company has enough experience to ensure legality of the Bitbon System use.

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    COMPANY’S MAIN PRODUCTS

    iPro Marketplace trading and analytical platform

    iPro Marketplace is a trading and analytical platform characterized by its flexible and intuitive interface comprising complex functionality and unique solutions. The platform includes a set of program components (market analysis; trading statements; development, testing and launch of trading strategies), which make trading in financial markets as easy and efficient as possible, using both computers and mobile devices.

    Financial Control and Management System

    The Financial Control and Management System (FCMS) provides the possibility of depositing and transferring the Customers’ funds through international payment systems. The application functionality allows processing financial transactions, monitoring the flow of funds, tracking suspicious financial activity and generating financial statements for regulating authorities.

    Account Management System

    The Account Management System is an adaptive system for Customer verification, which allows automation of data processing. The main function of the system is storage and management of accounts with guaranteed security of executed operations and support of international AML (anti-money laundering) standards.

    SSO System (SUPPORT SYSTEM OPERATOR workplace)

    The SSO System allows automating business processes in customer support services and call centers. The software is designed to communicate effectively with Customers as well as to provide them with information and consulting support.

    Liquidity Management System

    The Liquidity Management System (LMS) is intended to aggregate liquidity in the financial and crypto currency markets. This is a high-tech system designed to collect information on prices and volumes of the trade from different liquidity providers, such as crypto currency exchanges or brokers and banks of the foreign exchange market, as well as to make decisions on the transmission of trading orders to a certain provider with minimum delays.

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    BITBON SYSTEM PUBLIC CONTRACT

    The tasks and objectives established by Simcord in order to build a modern Smart Community according to the principles of technological and social progress required creation of a document that would envisage the main vector of the Bitbon System development. The Bitbon System Public Contract has become this document.

    Basically, the Bitbon System Public Contract is the founding document, which has the highest legal effect and regulates the relations between the Bitbon System Participants.

    The Bitbon System Public Contract identifies the tasks and objectives of the Bitbon System, defines and establishes the basis for its development as well as stipulates the rules and conditions of interaction between all Bitbon System Participants, which are provided in the form of Clauses and separate Appendices that are an integral part of this Contract.

    The Bitbon System Public Contract is available at the following link: https://www.bitbon.space/en/bitbon-system-public-contract

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    BITBON PRICING POLICY
    (first stage of the Bit Trade Exchange of Digital Assets launch)

    Based on Clauses 3[i], 4[i] и 5[i] of the Bitbon System Public Contract, Simcord has chosen a strategy of the Bitbon System development and Bitbon distribution in order to organize and automate technological interaction between all Bitbon System Participants by providing them with access to the single digital space and making available all the tools necessary for conducting activity within the Bitbon System. Thus, Simcord has determined the Bitbon pricing policy for the first stage of the Bit Trade launch. This means that, starting from October 10, 2018, the market pricing principle will come into effect.

    Therefore, during the first stage of the Bit Trade launch (www.bit.trade), until October 10, 2018, it will be possible to buy Bitbons at the price determined by a special formula and calculated online based on the number of purchased Bitbons:

    where:
    S1 — base number of Bitbons for the first level if 1 Bitbon = 1 USD,
    N — level of Bitbon pricing,
    SN — number of Bitbons of the N level,
    S — current number of all purchased Bitbons,
    P — current price of Bitbon,
    PN — base price of the N level.

    For each subsequent level, the number of Bitbons that will be distributed at this level is equal to the number of Bitbons purchased at all previous levels. For example, for the second level this number will be 800,000, for the third level — 1,600,000, for the fourth level — 3,200,000 and so on.

    At each level, the price of Bitbon increases linearly from the base price of said level (for the first level, the base price will be 1 USD, for the second level — 2 USD and so on) up to the base price of the next level, depending on the number of Bitbons distributed at that time.

    Such approach to determining the Bitbon price during the first stage of the Bitbon System launch is based on the desire to provide it with maximum stability and growth potential using market methods during the second stage of Bitbon pricing.

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    GLOBAL MARKETING STRATEGY

    One of the main goals set by Simcord Company for the period immediately after the Bitbon System launch is to create the first Smart Community of the Bitbon System. The Company takes this task very seriously, since the area of expertise of the Smart Community in the Bitbon System comprises essential functions, such as financing projects important to the Community and introducing new or modifying existing rules of interaction between the Bitbon System Participants for their improvement. Thus, for the above-mentioned period, the Company plans to unite over 100,000,000 Bitbon System Users into the first Smart Community that will use the Bitbon System applying provided mechanisms and services in various areas of activity — from exchanging payment means to a next-generation business-oriented social network to Contributing.

    To create a favorable environment for building an autonomous Smart Community of Users and to promote the Bitbon System as a whole, Simcord has developed a large-scale world-class advertising strategy consisting of three main stages; the first stage will be conducted in Russian and English from June to October 2018 on more than 10 large advertising platforms dedicated to crypto industry.

    First stage

    In view of the above, during the first stage, it is planned to attract from 100,000 to 300,000 active Users into the Bitbon System. Accordingly, the offer to pay Bitbon Promoters remuneration in the amount of 10% to 15% from Bitbon sales will be valid until and including October 10, 2018. This remuneration will be available only when using the mechanisms provided by the Bit Trade Exchange of Digital Assets (www.bit.trade). During the first stage of implementation of the global marketing strategy, the Company reserves the right to determine the methods and criteria for calculating the remuneration.

    Please note that the commission of up to 15% will be used until the beginning of the second stage.

    Second stage

    During the second stage, starting from October 10, 2018, the remuneration in the amount of 10% from Bitbon sales will be established in favor of Bitbon Promoters that should be paid by the Bitbon seller. At the same time, the Bitbon Capitalization Fund will not allocate any more Bitbons according to Clause 5[i] of the Bitbon System Public Contract, which basically means that the Bitbon amount circulating in the System will be the same as the one determined during the first stage of the global marketing strategy according to Clause 4[i] of the Bitbon System Public Contract.

    In order to expand the Smart Community up to 10,000,000 Bitbon System Users, the second stage of the global marketing strategy envisages the following:

    • Translation of all official information resources of the Bitbon System into the English, German, French, Spanish, Ukrainian and Kazakh languages.
    • Increase in the number of large advertising platforms dedicated to crypto industry (up to 50).
    • Connection of various exchange platforms using APIs (Application Programming Interfaces) and creation of new ones.

    To maintain intensive development of the Bitbon System for the entire second stage of the global marketing strategy, the Bitbon System Participants in the status of a Bitbon Promoter (exchange platforms) will charge Bitbon sellers the commission of at least 10%, which should be paid in the process of public sale in favor of Bitbon Promoters or their partnership programs.

    Please note that the commission of at least 10% will be used until the beginning of the third stage, which will be announced in the news published on the official information resources of the Bitbon System.

    Third stage

    In order to expand the Smart Community up to 100,000,000 Bitbon System Users, the third stage of the global marketing strategy envisages the following:

    • Beginning of Contributing in the Bitbon System according to Clause 23[i] of the Bitbon System Public Contract.
    • Translation of all official information resources of the Bitbon System into the Polish, Romanian, Hungarian, Chinese, Malay, Indonesian, Japanese, Arabic and Korean languages, which overall will cover 4,831,000,000 (4 billion 831 million) speakers from 16 main language groups.
    • Increase in the total number of advertising platforms dedicated to crypto industry and to Contributing in general to 10,000 or more due to direct advertising and natural expansion based on the strategy of Promoters of Projectbon Public Contracts according to Clause 47[i] of the Bitbon System Public Contract.
    • Expansion of complex software solutions based on APIs (Application Programming Interfaces), which will open up the possibility of connecting banks for acquiring payments, expand the capabilities of exchanges and trading institutions with regard to participation in the process of Contributing and IBO (Initial Business Offering) by using all the advantages of the Blockchain technology in the new digital economy.

    Thus, during the third stage of the global marketing strategy and throughout the entire period of the Bitbon System development in general, Exchanges and/or Promoters of Projectbon Public Contracts and their partnership programs will be able to receive separately a new type of remuneration on the basis of Contributing. The Contractat[i] will establish such remuneration in favor of Exchanges and/or Promoters of Projectbon Public Contracts according to Clause 48[i] of the Bitbon System Public Contract, depending on the type of business for which funds are raised in accordance with the class of the Projectbon Public Contract of a specific project. Remuneration will equal up to 30% from the amount of funds raised for implementation of the business project by the Contractat.

    Global Prospects

    Main stages of the global marketing strategy laid down in the Bitbon System define the enormous technological and social potential, which makes Simcord confident that it will be able to implement the following goals:

    • Self-organization of the Smart Community, the goal of which will be to achieve better utilization of resources.
    • Progressive tools and mechanisms ensuring complete transparency of processes in the Bitbon System.
    • Continuously operating and highly reliable distributed storage of private and public information.
    • Integration of sales networks into the Bitbon System and creation of a unified global system for purchase and sale of goods and services on the basis of the Simcord blockchain.
    • Launch of the global discount system on the basis of the Bitbon Space mobile app, which unites different spheres of business into one common system of cumulative discounts and bonuses.
    • Launch of social savings programs to ensure a decent standard of living with a guaranteed income.
    • Launch of a secure messenger with elements of a social network on the basis of the Bitbon Space mobile app with the possibility of exchanging messages.
    • Infrastructure development due to expansion of the Bitbon System into all branches of economy.

    At the moment, the Bitbon System development is characterized by extraordinary intensity and potential for growth provided by support in many countries on different continents. More and more like-minded people are constantly joining the Bitbon System. These people realize actual advantages of the solutions provided by Simcord and implemented using the Blockchain technology and the Bitbon System capabilities.