What Is the Projectbon Public Contract?

Projectbon Public Contract is a digital document of a certain class according to the classifier accepted in the Bitbon System, which defines and regulates: rights and obligations of the Contractat[1], Bitup-Agency[2] and Contributors[3] as well as the procedure, manner and conditions of their relations as three parties to the Projectbon Public Contract of a specific project; field of Projectbon[4] use, as well as all products and operations that may be applied to Projectbon. The Projectbon Public Contract of a specific project can define the terms and procedures for Projectbon issuing, Bitbon[5] and Projectbon transfer rules, procedure for repurchasing Projectbons from the Contributor as well as the reference to the procedure for evaluating Assets.

The Projectbon Public Contract regulates legal relations between the property owner (Asset owner) and the owner of right to acquire the right to this property (Bitbon or Projectbon owner) and serves as a type of digital contracts (using the Offer[6] as an example) allowed by all legal states. Such contractual relations are based on the moment of transfer of ownership right to the property, which does not occur in relation to Assets in the Bitbon System until the occurrence of a certain event if such is stipulated by the parties in the Projectbon Public Contract. In this case, the property itself remains in the ownership of its owner on the terms stipulated in the Projectbon Public Contract solely as an object of ensuring obligations of the property owner (Asset owner) to Bitbon owners.

Thus, the operation principle laid down in the Bitbon System allows property owners (Asset owners) and the System Users (Bitbon owners) to establish and to control their legal relations with the possibility of having in circulation only the right to acquire the property right to Assets.

Prior to the admission of each Projectbon Public Contract of a specific project to the Bitbon System, the conditions stated therein are digitized using special information conversion techniques resulting in the formation of a certain electronic algorithm — the Smart Contract[7], which is performed in a decentralized environment completely excluding the human factor and entails events in the real world or in digital systems.

The Projectbon Public Contract is a modern way of regulating legal relations between the Bitbon System Participants. This way allows off-line monitoring and executing conditions laid down by the parties and transferred to the Smart Contract form, which is implemented on the basis of the decentralized Blockchain environment.

The Projectbon Public Contract has an important process organization function, which is responsible for issuing new Bitbons and Projectbons, as well as for the Bitbon Capitalization[8] in general.

1 Contractat means 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, 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 admission to the IBO (Initial Business Offering) by the Bitup-Agency.

2 Bitup-Agency means a Bitbon System Participant, which has the right to make a decision on the admission of the Contractat’s project to the IBO (Initial Business Offering) 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.

3 Contributor means a Bitbon System User who, based on the obtained Projectbons, participates in the selected business project in order to receive a certain amount of benefit from its implementation.

4 Projectbon means a derivative instrument from a specific class of the Projectbon Public Contract intended for Contributing, which has unique attributes and properties with the ability to circulate only in the Bitbon System. Projectbon represents obligations of the Contractat to Contributors expressed in a legal form under the terms and conditions specified in the Projectbon Public Contract of a specific project.

5 Bitbon means a digital derivative financial instrument having an identifier and nominal value in the amount determined in accordance with the procedure stipulated by the Bitbon System Public Contract, which corresponds to a certain part of property rights to Assets designated in Bitbons or Projectbons. 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 as data that cannot be deleted or modified.

6 Offer means a proposal to close a transaction, in which the core terms of the contract are stated; it is addressed to a certain person, a limited or unrestricted circle of persons. If the recipient (addressee) accepts the offer (agrees to it), it means the proposed contract between the parties has been concluded on the terms stipulated in the offer.

7 Smart Contract means an electronic algorithm that describes a set of conditions, implementation of which entails some events in the real world or in digital systems. To implement the conditions specified in the Smart Contract, a decentralized environment completely excluding the human factor is needed.

8 Bitbon Capitalization means a self-regulatory process aimed at increasing the profit of the Bitbon Capitalization Fund designated in Bitbons and Projectbons of certain shares with the reference to the procedure for evaluating Assets in accordance with Projectbon Public Contracts of certain classes.