FAQs

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Here you will find answers to the most frequently asked questions received by our Customer Support. Our specialists have compiled exhaustive explanations that will help you to quickly understand processes that take place in the Bitbon System as well as peculiarities of using Bitbons in order to receive your own benefit at all stages of the Bitbon System development.
1.
What is the Bitbon System software?

During the first stage of its development, the Bitbon System[i] uses the Blockchain[i] architecture based on the modified Ethereum client with additional tools and utilities designed for vertical and horizontal scaling of the decentralized application network. This approach allowed achieving the Blockchain network performance of up to 1,000 transactions per second.

In addition, the Bitbon System software includes such a component as Bitbon Transfer as well as simple interfaces for Users[i] and APIs for integration of Partners.

Bitbon Transfer provides the ability to transfer Bitbons[i] to other Users by means of a protection code, which has an adjustable validity period; it also provides cold storage of Bitbons and additional protection of transfers between Assetboxes[i] by means of a four-digit PIN code — BTSC (Bitbon Transfer Security Code). When carrying out transactions, Bitbon Transfer uses several security systems built into the nodes of the Bitbon System Blockchain and implemented using the zero-knowledge proof algorithm (zk-SNARKs). The Bitbon Transfer component allows transferring Bitbons between Assetboxes without any commission charged.

Overall, the Bitbon System software provides ready-made and universal solutions for the activity of Users and Partners ensuring a high level of security and reliability due to the decentralized network infrastructure.

During the further stages of its development, the entire Bitbon System will be transferred to its own Simcord Blockchain, which will significantly increase the network scalability and, therefore, the performance and functionality of the Bitbon System as a whole.

You can get more information on the stages of the Bitbon System development in the Bitbon System White Paper.

2.
Who develops the Bitbon System software?

The Bitbon System[i] software is developed by Simcord Company, which specializes in developing and producing high-load software solutions based on the Blockchain[i] technology.

You can find all additional information on the strategy, area of expertise and much more on the Simcord official website by following the link www.simcord.com.

3.
Will the Bitbon System software be released under an open-source license?

During the second stage of the Bitbon System[i] development, in accordance with the information published in the Bitbon System White Paper, Simcord plans to release software under an open-source license in order to attract third-party developers and fully implement all Clauses of the Bitbon System Public Contract, which, in its turn, will mean the transition of the Bitbon System to the completely decentralized management by its Users[i] only, in accordance with Clause 55[i] of the Bitbon System Public Contract.

4.
Why does Simcord use a separate version of the Ethereum Blockchain?

The decision to use a separate version of the Ethereum Blockchain[i] during the early development stages of the Bitbon System[i] offers the following advantages:

  1. Such an approach allowed the Company to significantly shorten the terms for implementing the first stages of the Bitbon System development. Taking the most reliable and stable version of the Ethereum Blockchain as a basis, the Company was able to concentrate its efforts on improving the safety, speed and reliability of the Blockchain operation.
  2. It gave the Company an opportunity to significantly increase the development speed of new Bitbon System services due to maturity of the Ethereum technology, availability of many ready-made solutions and products, tools for development, and adoption of such standards as Enterprise Ethereum Client Specification.
  3. The Bitbon System Users[i] receive all the benefits of the Blockchain, which has already eliminated a number of drawbacks inherent in the original Ethereum version and other blockchain-based platforms of the 1st and 2nd generations.
  4. Development of technical solutions based on a separate version of the Ethereum Blockchain allowed maintaining the uniqueness of the Bitbon System and ensured integration of the best software and algorithmic solutions in accordance with the the Bitbon System development plan.
  5. The high level of information security in the Bitbon System reduces threats, which are typical for the original platform and makes attempts of theft, hacker and DDoS attacks pointless. The multi-level information security in the Bitbon System has been achieved through the development of additional modules and algorithms based on a separate version of the Ethereum Blockchain.
  6. Such an approach to creating the Bitbon System software components will allow the Company to use the knowledge and experience received by the entire Ethereum community in order to implement the best solutions when developing Simcord own Blockchain according to the Bitbon System development plan.
  7. The current level of technical implementation of the Bitbon System allows storing alias, icon and public service information in the Blockchain for Bitbon[i] transfers and other services in the Bitbon System, which is impossible in the original version of the Ethereum Blockchain and other similar platforms.
  8. In accordance with Clause 1[i] of the Bitbon System Public Contract, Simcord as the Bitbon System Operator[i] can effectively control and improve the Bitbon System, which allows ensuring its smooth operation, increasing the Bitbon System efficiency and functionality, responding to the most current challenges of the industry in a timely manner.
  9. At the same time, the Bitbon System transparency fully supports the philosophy of decentralization and publicity.

Based on the above-mentioned information, the decision to use a separate version of the Ethereum Blockchain is the most appropriate approach to implementing the Bitbon System development plan during the first stages described in the Bitbon System White Paper.

5.
As a Bitbon owner, can I download and keep the full version of the Bitbon System Blockchain?

Yes, you can. Taking into account the current trends and significance of the transparency policy in the decentralized Blockchain platforms, in accordance with Clause 36[i] of the Bitbon System Public Contract, we plan to launch a special Bitbon Blockchain Viewer application by March 2019 in order to increase the Users’[i] confidence in the Bitbon System[i] as a whole.

Features of the Bitbon Blockchain Viewer application:

  • downloading, storing and updating of the Bitbon System Blockchain[i] up to the latest version;
  • checking the integrity and accuracy of all records in the Blockchain;
  • counter of transactions and blocks;
  • viewing detailed information on blocks and transactions;
  • comparing two versions of the Blockchain by transactions and blocks;
  • building diagrams indicating the volume growth of downloaded Blockchain copies;
  • building diagrams indicating the amount of free space on the User’s disk;
  • tracking transactions between Assetboxes[i] provided that the recipient, sender and the number of transferred Bitbons[i] are known.

For the Users’ convenience, the Bitbon Blockchain Viewer will have an intuitive graphical interface.

The application is being developed for Windows, Linux and macOS operating systems under an open-source software license, which will be hosted on GitHub.

To find out the information on the launch of the Bitbon Blockchain Viewer as well as on other news about the Bitbon System, follow www.bitbon.space (official information resource) or use the Bitbon Space mobile app by downloading it for iOS or Android.

6.
What is Bitbon? What features, application fields and attributes does Bitbon have?

Bitbon[i] is a digital derivative financial instrument with unique attributes and properties, which make it a universal tool for successful application in any field. Bitbon favorably differs from crypto assets[i] by absolute reliability since it is fully backed by a certain part of property rights to Assets[i]. Bitbon is based on a core principle of its value formation regarding the cost of various types of Assets included in Bitbon via Projectbon Public Contracts[i] of various projects designated in Projectbons[i] and the prospects for their development. Using Bitbon is understandable and predictable, as it is predetermined by the terms and conditions of each Projectbon Public Contract of a specific project, which is an important element of an integral part of its capitalization. Any operations with Bitbon (Bitbon issuing, its transfer from one owner to another, splitting of nominal value and other operations) are recorded in the Blockchain[i] as data that cannot be deleted or modified.

7.
How was the value of Bitbon formed during the pre-sale and crowdsale stages until October 10, 2018?

Based on Clauses 3[i], 4[i] and 5[i] of the Bitbon System Public Contract, Simcord has chosen a strategy of the Bitbon System[i] development and Bitbon[i] distribution in order to organize and automate technological interaction between all Bitbon System Participants[i] 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 Exchange of Digital Assets launch (www.bit.trade) within the crowdsale. This means that during the second development stage of the Bit Trade Exchange of Digital Assets, starting from November 16, 2018, the market pricing principle is in effect.

Therefore, until October 10, 2018, it was possible to purchase 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.

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

In fact, the Bitbon cost was calculated at each price level depending on the total number of Bitbons purchased at all previous price levels.

8.
For what purpose was this method of Bitbon pricing selected during the pre-sale and crowdsale stages?

This pricing method was selected to provide Bitbon[i] with maximum stability and potential for more intensive growth using market methods during the second stage of Bitbon pricing. Another goal was to provide a sufficient period of time so that the people wishing to become the Bitbon System Users[i] could purchase Bitbons at the most optimal price. Later on, there may be a more intensive price increase due to the fact that the Bitbon System[i] prepares for the launch of Contributing[i] and, as a result, due to new Participants[i] joining the Bitbon System, who are interested in using the Bitbon System potential to finance their business projects in the real sector of economy.

9.
Based on what principle is Bitbon backing made for all Bitbon System Users?

According to Clause 27[i] of the Bitbon System Public Contract, the Bitbon[i] backing is made from the aggregate rights of the Bitbon System Users[i] to the Contractats’[i] Assets[i] as well as from the assets of the Bitbon Capitalization Fund[i] obtained in the process of automatic Contributing[i] and in accordance with Clause 5[i] of this Contract.

This means that the entire number of Bitbons and, therefore, Projectbons[i] available in Assetboxes[i] of the Bitbon System Users and the Bitbon Capitalization Fund is backed by Assets in the real sector of the economy.

10.
How many Bitbons were available for purchase by the Bitbon System Users during pre-sale and crowdsale stages?

In accordance with Clause 4[i] of the Bitbon System Public Contract, 70,000,000 Bitbons[i] were transferred by Simcord to the Assetbox[i] of the Bitbon Capitalization Fund[i] for further distribution during the pre-sale and crowdsale stages before October 10, 2018, in compliance with the Bitbon System White Paper.

11.
How can I participate in distribution of Bitbons and earn on it?

According to the Bitbon System White Paper, you can become a Bitbon Promoter and participate in the Affiliate Program by distributing Bitbons[i] and receiving 10% of the number of Bitbons sold before the end of the final crowdsale stage.

Starting from November 16, 2018, remuneration is credited in the amount of 10% of the number of Bitbons sold during open bidding on the Bit Trade Exchange of Digital Assets (www.bit.trade) at the expense of Bitbon seller in favor of the Bitbon Promoters.

Please note that a 10% commission for selling Bitbons will be valid until the launch of Consensus building mining in the Bitbon System[i].

12.
Are there any additional commissions and/or charges when transferring Bitbons to Assetboxes of other Bitbon System Users?

There are no additional commissions and/or charges when transferring Bitbons[i] between the Bitbon System Users[i], except for cases provided for by a special protection mechanism, whose purpose is to counter attempts to use the Bitbon Transfer Service inappropriately.

As part of this protection, for the most secure use of the Bitbon System[i], there are terms and conditions under which a commission may be charged in the amount of 3% when transferring Bitbons to Assetboxes[i] of other Users.

At the same time, it should be noted that the commission charged will be transferred to the Assetbox of the Bitbon Capitalization Fund[i] and constitutes its profit, which, in accordance with Clause 25[i] of the Bitbon System Public Contract, occurs in the interests of all Bitbon System Users.

13.
Why will demand for Bitbon keep growing?

According to the principles laid down in the Bitbon System[i], it is a global decentralized platform for providing all its Users[i] with liquid instruments for attracting financing and managing profit within the Contributing[i] framework.

Factors influencing formation of Bitbon demand:

  • You should buy Bitbons[i] and exchange them for Projectbons[i] of a specific project to participate in Contributing in the Bitbon System and to receive benefits;
  • The Contractat[i] should constantly purchase Bitbons to pay out income to Contributors[i];
  • You should buy Bitbons to become a Bitbon System User and get all the tools and benefits of the Bitbon System, including the Bitbon Transfer service, which ensures safe payment settlements among Users.

Factors influencing formation of Bitbon supply:

  • Contractats sell the Bitbons received from Contributors to fulfill obligations according to the implementation stages of their own business projects;
  • Contributors sell the Bitbons received during the Contributing process to record their income;
  • Within the Bitbon System, Users can pay for goods and services in the real sector of economy using Bitbons.

It should be also noted that most Projectbon Public Contracts[i] of specific projects will foresee Contributors’ share participation in the Contractat’s business, which means that Contributors will steadily receive their income. Such an approach will stimulate the long-term cyclical demand for Bitbons from Contractats in the process of fulfilling their obligations to Contributors under the Projectbon Public Contract of a specific project.

Thus, constant demand and supply for Bitbon is ensured, and optimal conditions for market-based pricing are created, which is a natural incentive for its value growth.

14.
What is the Bitbon System Public Contract?

The Bitbon System Public Contract is a document (an equivalent of articles of association), which consists of the Clauses based on which the development concept of the Bitbon System[i] is built, i.e. the principles of its functioning and interaction of all components.

In accordance with Clause 11[i], the Bitbon System Public Contract includes separate Appendices, which are an integral part of this Contract and regulate interaction of all Bitbon System Participants[i].

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

15.
What is the Bitbon Capitalization Fund?

Bitbon Capitalization Fund is a component of the Bitbon System[i], whose Assets[i] are designated in Bitbons[i] and Projectbons[i], and which, according to Clause 25[i] of the Bitbon System Public Contract, belongs to all Bitbon System Users[i] in parts equal to the Bitbon amount in the Assetboxes[i] of these Users.

The purpose of the Bitbon Capitalization Fund is to provide a mechanism that allows the Bitbon System Users to directly manage the Bitbon System in the interests of all its Participants[i] in order to increase the volume of the Bitbon Capitalization[i] that is generated through automatic Contributing[i] of the Bitbon Capitalization Fund.

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 receives, is used for the Fund’s participation in the implementation of other business projects by means of Projectbons.

Thus, the process of Bitbon Capitalization in Projectbons of specific projects is carried out based on their admission to the IBO[i] (Initial Business Offering) by Bitup-Agencies[i].

By means of automatic Contributing, the Bitbon Capitalization Fund must transfer Bitbons to the Masterbox of the Contractat’s[i] project in the amount corresponding to a certain number of declared Projectbons in order to start implementing the terms and conditions of the Projectbon Public Contract[i].

16.
What is Contributing in the Bitbon System?

Contributing is a type of activity of a Bitbon System User[i] 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. Participation in the implementation implies financing of business projects by exchanging the Bitbon System User’s Bitbons[i] for Projectbons[i], which is essentially an expression of the User’s share participation and is directly proportional to the possible future profit.

Contributing as an activity is possible only in the Bitbon System[i] and implies interaction of all parties to the Projectbon Public Contract (Contractat[i], Bitup-Agency[i], Contributor[i]) and the Bitbon Capitalization Fund[i], which is the Contributor by definition and acts in the interests of all Bitbon System Users.

You can learn more about Contributing, its stages and the principle of interaction of all Bitbon System Participants[i] in the Contributing process by following the link.

17.
What is IBO in the Bitbon System?

IBO[i] (Initial Business Offering) is a process in the Bitbon System[i], in which three parties take part: Contractat[i], Bitup-Agency[i] and Contributors[i].

During the IBO stage, the amount of Bitbons[i] necessary for implementation of the business project is raised from Contributors that in return receive Projectbons[i] (expression of the Contributor’s share participation in financing of a specific project).

The IBO process starts when the Bitup-Agency publishes the Projectbon Public Contract[i] of a specific project.

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

18.
What is the Bitbon amount allocated by the Bitbon Capitalization Fund during the IBO process?

The Bitbon Capitalization Fund[i] determines its share participation in Contractats’[i] business projects by means of automatic Contributing[i] based on a special procedure developed by Simcord for evaluating business projects by Bitup-Agencies[i].

This procedure allows the Bitbon System Participants[i] in the status of a Bitup-Agency to evaluate the level of the business project reliability and assign one of three categories of a certain class to this project based on backing of the Projectbon Public Contract[i] of the Contractat’s project by his/her Assets[i].

In other words, the level of backing of the Contractat’s business project by Assets influences the category and class of this project, and, accordingly, the amount of Bitbons[i] allocated by the Bitbon Capitalization Fund during the IBO[i] process for each project separately:

High level of backing (category A):

  • (AAA) 3rd class
    The Bitbon Capitalization Fund’s share constitutes 50% of the total number of Projectbons[i] of the project.
  • (AA) 2nd class
    The Bitbon Capitalization Fund’s share constitutes 45% of the total number of Projectbons of the project.
  • (A) 1st class
    The Bitbon Capitalization Fund’s share constitutes 40% of the total number of Projectbons of the project.

Medium level of backing (category B):

  • (BBB) 3rd class
    The Bitbon Capitalization Fund’s share constitutes 30% of the total number of Projectbons of the project.
  • (BB) 2nd class
    The Bitbon Capitalization Fund’s share constitutes 25% of the total number of Projectbons of the project project.
  • (B) 1st class
    The Bitbon Capitalization Fund’s share constitutes 20% of the total number of Projectbons of the project.

Low level of backing or no backing (category C):

  • (CCC) 3rd class
    The Bitbon Capitalization Fund’s share constitutes 10% of the total number of Projectbons of the project
  • (CC) 2nd class
    The Bitbon Capitalization Fund’s share constitutes 5% of the total number of Projectbons of the project.
  • (C) 1st class
    The Bitbon Capitalization Fund’s share constitutes 1% of the total number of Projectbons of the project.

In accordance with a certain class of the Projectbon Public Contract of a specific project, the ratio of share participation of the Bitbon System[i] Users[i] (Contributors[i]) and the Bitbon Capitalization Fund is established.

This means that the Bitbon Capitalization Fund automatically transfers Bitbons (equal to its share participation) to the Masterbox[i] of the Contractat’s project at the moment when Users determine their shares in the total amount indicated by the corresponding class of the Projectbon Public Contract of this project.

The procedure for evaluating business projects by Bitup-Agencies is scheduled to be published in 2019 in accordance with Clause 11[i] of the Bitbon System Public Contract in the Appendix “Rules of Contributing”.

19.
Why were Bitbons reserved for Simcord Company?

In accordance with Clause 6[i] of the Bitbon System Public Contract, as the founder of the Bitbon System, Simcord Company reserves 30,000,000 Bitbons[i] in its Assetbox[i] to use them as the Bitbon System User[i] for the creation and implementation of innovative solutions, as well as support, update and development of the intellectual, software and hardware infrastructure of the Bitbon System[i].

20.
How are the funds received from distributing Bitbons during the pre-sale and crowdsale stages spent?

The funds received from distributing Bitbons[i] are at the disposal of Simcord Company and are directed to implementing the Bitbon System[i] development stages, including the creation and implementation of innovative solutions, as well as support, update and development of the intellectual, software and hardware infrastructure of the Bitbon System.

21.
Why are the funds received from distributing Bitbons during the pre-sale and crowdsale stages not transferred to other non-profit organizations?

The Blockchain[i]-based solutions that use the Bitbon System[i] software do not need to attract third-party non-profit organizations that could contribute to the growth or maintenance of the network, since such blockchain-based solutions will be financed by Simcord Company itself. It is assumed that any blockchain-based solution on the Bitbon System software will generate a natural profit of the Bitbon Capitalization Fund[i].

22.
How was the rest of Bitbons distributed based on the results of the crowdsale stage?

Based on the public crowdsale results, Simcord Company, as the founder of the Bitbon System[i], has decided to redistribute the number of Bitbons[i] left in the Assetbox[i] of the Bitbon Capitalization Fund[i].

Thus, 30,000,000 Bitbons were transferred from the Assetbox of the Bitbon Capitalization Fund to the Assetbox of the Mining Fund[i] for further distribution among the Bitbon System Miners[i], based on the quantity and quality of the resources utilized by each Miner individually, according to Clause 49[i] of the Bitbon System Public Contract.

In accordance with Clause 5[i] of the Bitbon System Public Contract, the number of Bitbons remaining in the Assetbox of the Bitbon Capitalization Fund, will be used by the Bitbon Capitalization Fund for its automatic Contributing[i] in order for Bitbon to be backed by real Assets[i] for the benefit of all Bitbon System Users[i].

23.
How secure is the Bitbon System? Is it protected from hacking attempts?

The Bitbon System[i] has a multi-level system for protecting Users’[i] personal details. The Bitbon System Blockchain[i] excludes the possibility of modifying data by third-party nodes of the network, which completely prevents the possibility of data integrity violation.

24.
What function do the Bitbon System Operators perform and how can I get this status?

According to the concept of digital system decentralization based on the Blockchain[i] technology, Simcord Company has set the task to create the opportunity for Users[i] to manage the Bitbon System[i] in order to ensure safe development and smooth functioning of the Bitbon System independently of Simcord Company.

Thus, in accordance with Clause 55[i] of the Bitbon System Public Contract, the Simcord activity is based on the ideology laid down in the Bitbon System and in the main goal stated in the Company’s mission.

In accordance with Clause 1[i], in order to implement Clause 55, Simcord Company undertook the role of the first Bitbon System Operator[i] to perform a number of functions described in Clauses 36[i], 37[i], 38[i], 39[i], 40[i] of the Bitbon System Public Contract.

Also, in accordance with Clause 55, when the minimum number of Bitbon System Operators is reached, Simcord will make a decision to terminate the terms of transition period described in Clause 54[i], which will mean the transition of the Bitbon System to fully decentralized management by its Users only.

In accordance with Clause 11[i] of the Bitbon System Public Contract, the rules of obtaining the Bitbon System Operator status will be published in the Appendix “Bitbon System Operator”.

25.
How can I follow the latest news about the Bitbon System?

To receive up-to-date information on the development stages of the Bitbon System[i], we recommend you to download the Bitbon Space mobile app by following the links for iOS and Android.

26.
Is mining possible in the Bitbon System? What kind of remuneration do Miners receive?

The Bitbon System[i] foresees two mining methods:

Consensus building mining will be available in the current version of the Ethereum Blockchain[i] in April 2019.

Infrastructure building mining will be available after the Bitbon System is transferred to the Simcord Blockchain.

In accordance with Clause 49[i] of the Bitbon System Public Contract, Simcord Company, as the founder of the Bitbon System, establishes remuneration in favor of the Mining Fund[i] in the amount of 10% of the Bitbon Capitalization Fund’s[i] benefit obtained from Contributing[i] over a certain time period and designated exclusively in Bitbons[i].

Remuneration for mining is allocated from the Mining Fund and distributed among the Bitbon System Miners[i] based on the quantity and quality of the resources utilized by each Bitbon System Miner individually.

You can find more information about mining in the Appendix “Mining in the Bitbon System”, which is an integral part of the Bitbon System Public Contract.

27.
For what purpose does the temporary commission in the amount of 10% exist for the sale of Bitbons, which the seller should pay in favor of Exchanges and their affiliate programs?

As part of the strategy of the Bitbon System development set forth in the Bitbon System White Paper, to achieve the maximum popularity and distribution of Bitbons[i] in the world, Simcord has decided, before the launch of Contributing[i], to establish a 10% commission that the seller of Bitbons should pay in favor of the affiliate programs of the Exchanges, which are the Bitbon System Participants, at the level of the System[i] and relations with these Exchanges. The purpose of this commission is to provide remuneration for disseminating information on the Bitbon System advantages. In this case, the commission for purchasing Bitbons will be set by each Exchange independently.

Once again, we would like to focus your attention on the fact that, after Contributing starts, a temporary fixed commission of 10% on the Exchanges, which are the Bitbon System Participants, ceases to be effective and will be set by each Exchange separately in its minimum sizes conditioned by the demand and supply of the market.

This means that after Contributing starts, according to the Bitbon System White Paper, the opportunity to receive a new type of remuneration based on Contributing will be available for Exchanges and/or Promoters of Projectbon Public Contracts[i] and their affiliate programs separately. In accordance with Clause 48[i] of the Bitbon System Public Contract, this remuneration will be established by the Contractat[i] in favor of Exchanges and/or Promoters of Projectbon Public Contracts depending on the type of business for which the funds are raised in accordance with the class of the Projectbon Public Contract[i] of a specific project. The remuneration will constitute up to 30% of the amount of funds raised for implementing the business project by the Contractat.

28.
Will there be an additional issue of Bitbons in the future?

The Bitbon System[i] foresees processes, which ensure Bitbon[i] liquidity for the Contractats’[i] business projects. In accordance with Clause 29[i] of the Bitbon System Public Contract, the Bitbon issue is possible only in exchange for the backed Assets[i] of the Contractat in three cases:

  • IBO[i] (Initial Business Offering);
  • SFO[i] (Supplementary Financing Offering);
  • APG[i] (Automatic Project Grant).

This means that Bitbons are issued exclusively in favor of the Bitbon Capitalization Fund[i] for the purpose of its participation in automatic Contributing[i] based on the certain classes of Projectbon Public Contracts[i] of specific projects. The moment of Bitbon issuing comes when the Bitbon Capitalization Fund cannot serve its purpose in accordance with Clause 26[i] of the Bitbon System Public Contract. In case, when the Bitbon Capitalization Fund is able to serve the above-mentioned purpose, no need exists to issue Bitbons, since it means that the Fund has sufficient amount of Bitbons in its Assetboxes[i] to participate in automatic Contributing.

The Smart Contract[i] algorithm responsible for Bitbon issuing is performed automatically without the influence of the human factor in several stages:

  • The Bitbon Capitalization Fund within the framework of IBO, APG and SFO receives a request;
  • The Bitbon Capitalization Fund determines the number of available Bitbons in its Assetbox to transfer them to the Masterbox of the Contractat’s project based on the Projectbon Public Contract of a specific project;
  • If the Bitbon Capitalization Fund has insufficient Bitbon amount in its Assetbox, the Bitbon Capitalization Fund submits a request to the Smart Contract component to issue the required number of Bitbons;
  • Based on the request, Smart Contract issues Bitbons in the Assetbox of the Bitbon Capitalization Fund;
  • At the same moment, the Bitbon Capitalization Fund transfers Bitbons to the Masterbox[i]. Further, the Bitup-Agency[i] is responsible for their distribution according to the implementation stages of the Contractat’s project in compliance with the Projectbon Public Contract of a specific project.

In accordance with Clause 26[i] of the Bitbon System Public Contract, the Bitbon Capitalization Fund may adjust the amount of Bitbon issue if, at the time of the request, the Bitbon Capitalization Fund has received profit in its Assetbox.

The issue of Bitbons is considered backed, as it is made in exchange for the Contractat’s Assets.

Thus, the process of Bitbon backing takes place in the Bitbon System as part of the concept that contributes to the growth of the Bitbon cost, even with an increase in total Bitbon amount, due to real demand and supply determined by the economic model, which is laid down in the Bitbon System.

29.
Did the Company conduct pre-sale of Bitbons?

Taking into account the current trends and the pace of the digital economy development as well as enormous potential of the Bitbon System[i], we have developed a strategy for launching the Bitbon System in several stages.

This strategy has been developed taking into account various factors for its maximum efficiency and is conducted in three main stages:

  • Since March 13, 2017, within the pre-sale stage, the sale of electronic Bitbon Certificates stage, where Simcord Advanced Marketing Solutions LLP acted as the offeror.

The need to study the market and understand how interesting the innovative concept of the Bitbon System is for the business community was the purpose of the first stage. In addition, a special formula for Bitbon[i] pricing was determined to be used until the beginning of the period of the market price formation. Thus, the Company provided its Partners and Customers with the pre-emptive right to purchase electronic Bitbon Certificates of a certain nominal value.

  • On March 13, 2018, during the internal crowdsale stage, the Company implemented the possibility of registering electronic Bitbon Certificates in the Bitbon System Blockchain[i] on the Bit Trade Exchange of Digital Assets website (www.bit.trade). On April 14, 2018, Simcord provided the opportunity for Customers of the UBK Markets investment service to transfer their funds to Bitbons by taking advantage of its cost during the internal crowdsale stage.
  • Public crowdsale started on June 17, 2018. Since that moment, Bitbon was freely available for sale, and you could purchase it, according to the Bitbon System White Paper until October 10, 2018 by using popular and available services.

Thus, the Company’s strategy for selling Bitbons during pre-sale, internal crowdsale and public crowdsale stages contributes not only to the global popularization of the Bitbon System and the potential laid down in its economic model among the business-oriented community, but also to the planned, predictable growth of the Bitbon price.

30.
About the Bitbon System. Interview with Simcord CEO Alexander Kud.

At one of the business meetings, Simcord CEO Alexander Kud spoke about the Bitbon System[i] and gave comprehensive answers to the most relevant questions.

To read the text of the interview and find out more about the development history of the Bitbon System concept, its capabilities, prospects and potential for application in various fields, follow the link.

31.
Why are new terms used in the Bitbon System?

The mechanism of building economy based on the Blockchain[i] technology in the Bitbon System[i] assumes completely new forms of relations between its Participants[i]. Accordingly, when adapting the mechanisms laid down in the Bitbon System to the old economic model, we have encountered imperfect legislation in most countries of the world and the lack of analogs for defining specific concepts and processes. In turn, this makes it difficult to develop new types of activities using digital technologies and Blockchain in particular.

To solve the problem related to the lack of comprehensive legislative regulation of new forms of relations between the Bitbon System Participants at all levels as well as to protect their interests in the legal field, Simcord creates new terminology to be used in accordance with the norms of international law and regional legislation on the principle “everything which is not forbidden is allowed”.

Thus, by using new terms and their definitions within the Bitbon System, we solved the problem of adapting the mechanisms laid down in the Bitbon System to the old economy in countries whose legislation is still at the stage of transition to a new digital economy.

Since our method of conducting economic activity for a while will coexist with the old system, it has been adapted to it through the use of existing agreements that meet the requirements of international law as well as state legislation. Describing our method under the old principles of management, we can talk about it as a whole system or a chain of so-called multilevel related agreements. We gave names to some integral groups of such agreements (chain links) and introduced them into the Bitbon System as terms with corresponding definitions. This greatly simplifies understanding, since it is easier to use an existing term to describe the entire process.

This explains the need to create and introduce new terms into the Bitbon System and, as a consequence, into the crypto industry as a whole.

To read all terms and definitions, which are used in the Bitbon System, follow the link.

32.
Report on results of the Bitbon System crowdsale.
The crowdsale final stage ended on October 9, 2018. During the pre-sale, internal crowdsale and public crowdsale stages, 18,583,711 Bitbons[i] were distributed, and 28,998 Bitbon System Users[i] became Bitbon owners. You can find detailed information on the Bitbon System[i] crowdsale in the article published in the “Global News” section by following the link.