Changes in the Bitbon System

News/Global News/Changes in the Bitbon System
04.04.2019 08:04
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As stated before, within the framework of the official cooperation with the National Academy of Legal Sciences of Ukraine, Simcord Company is currently working to introduce the concept of Digital Asset into the international legal field and to adjust components of the Bitbon System as a whole. To this end, the specialists of the Company and of the National Academy of Legal Sciences of Ukraine have jointly conducted a series of analytical studies, the results of which serve as the basis for the following scientific and legal expert opinions: “Digital Asset as an Object of Legal Regulation” and “Substantiation of the Definition of the Term “Digital Asset” in the Socio-Economic Aspect”. These documents are at the final stage of approval by experts in the fields of jurisprudence and economics, and in the near future, they will become publicly available.

Due to the fact that the concept “Digital Asset” in its substantiated interpretation is defined as an “information resource”, the use of which is directly related to the real sector of economy and was originally laid down into the basic functions of the Bitbon System, the specialists carried out additional detailed research of the integrated model of the Bitbon System.

The research results led Simcord specialists to the conclusion that the number of Bitbons in the System must remain unchanged. This will strengthen one of the basic properties of Bitbon as a unit for measuring the exchange value of all Digital Assets and ensuring their circulation in the Bitbon System.

In addition, the unchangeable number of Bitbons in the System will also allow satisfying demands of legal entities, banks and state financial organizations in terms of doing business in the status of a Bitbon System User.

Based on the results obtained in the process of working on the scientific and legal expert opinions in terms of international tax requirements, and understanding the necessity to consider them in the Bitbon System concept, Simcord has decided to completely exclude the possibility of issuing Bitbons previously allowed in accordance with Clause 40 of the Bitbon System Public Contract. Thus, the total number of Bitbons issued in the Bitbon System in accordance with Clause 3 of the Bitbon System Public Contract dated March 10, 2018 constitutes 100,000,000 Bitbons and shall remain unchanged.

Please note that, in the previous version of the Bitbon System Public Contract, the additional issue of Bitbons over 100,000,000 units was envisaged in Clause 40 for the purpose of participation of the Bitbon System Capitalization Fund in automatic Contributing. An additional detailed study of the integrated model of the Bitbon System showed appropriateness of redistributing commission for transferring Digital Assets in the Bitbon System in favor of the Bitbon System Capitalization Fund, which has now been considered in Clause 54 of the Bitbon System Public Contract.

Thus, guided by Clause 13 of the Bitbon System Public Contract, the Company has amended Clause 54 of the Bitbon System Public Contract, and Clause 40 has been amended and changed for Clause 4, which prohibits the additional issue of Bitbons.

Since publication of this news, the new version of the Bitbon System Public Contract with all mentioned changes comes into force.