GMS（GPU Mining Shares）

- An Ethereum Protocol-based Cryptocurrency Mining

Project

1. Mining Market Environment

Cryptocurrency Development

Bitcoin was initially introduced by Satoshi Nakamoto in 2009. It is a

peer-to-peer digital cash system. It’s foundation is the blockchain

technology which provides a decentralized system to fundamentally

overturn the existing financial systems. Cryptocurrency has seen fast

development with growing popularity of Bitcoin and continuous

exploration from global geeks. A lot more altcoins such as Litecoin,

Ethereum, Ripple, Zcash come to the market and bring in more

innovations in the decentralized technology. Market caps of altcoins

have rocketed in the past few years and their trading volume keeps

growing as they have more application scenarios and function (smart

contracts for example). The latest 24-hour trading volume of ETH has

once surpassed BTC and its market value accounts for about 80% BTC.

GPU Mining Definition

The core mechanism of cryptocurrency is to sort out sophisticated

mathematical problems and find answers for certain algorithm. Mining

is to find those answers with enormous hashrate and follows a POW

(Proof of Work) mechanism. The first Bitcoins were mine with CPU. In

January 2009, Satoshi himself mined the first Bitcoin block with his CPU.

With the increasing hashrate, CPU mining was then replaced by GPU

mining. Early in 2013, GPU mining became outdated and the first FPGA

miner was born. And in July 2013, the professional ASIC miner was

introduced to mine Bitcoin. Its chips have evolved from 110nm, 55nm,

28nm to 16nm now. Professional mining hardware led to capital

competition between a minority group. The emerging of competing

coins avoid the monopoly of ASIC hashrate by altering mining

algorithm. Take ETH for example, it only supports GPU mining. And it

drives forth the development of GPU-integrated miners which support

mining of multiple competing coins. Superior to normal graphics card,

GPU-integrated miners assembled multiple high-configuration graphics

cards in a tailored and highly compatible case, with optimized design

for the maximum mining performance. GPU-integrated miners are very

flexible and are applicable for mining most competing coins.

Mining Investment Environment

1) Hard entrance: Individual investors have almost no bargaining

power over production factors such as mining hardware, electricity

cost, maintenance cost, mining facility etc.

2) Undersupplied miners: Graphics cards are out of supply globally,

and it costs too much to wait for the futures.

3) Speculation risks: Most cryptocurrency are easy for trading and

individual investors tend to fall into a distribution of “1:2:7” for

those who make profits, break even and get loss. Most of them will

drop out due to price fluctuations and cannot maximize their

interests. In the long run, keeping your coins in your wallet will be

the best option as the industry will continue to grow.

4) Hard exit: hashrate and duration determine your mining income.

There’s no need to exit when you can enjoy a high mining income.

But when the mining income becomes extremely low, miners will

have no efficient way to exit and their investment will shrink. Heavy

investment in mining makes it hard to make shift.

Theoretic Mining Yield

Miner parameters (for ETH mining)

PandaMiner RX460 PandaMiner RX 470

Power Consumption±10% 800 W 1350 W

Hashrate（MHS）±10% 110 230

Exp. Price(CNY)±10% 12500 CNY 20000 CNY

Network Hashrate 60T

24 Hours Mining Income

（2017/7/2 According To Current

Mining Difficulty）

0.0462 ETH 0.0966 ETH

Mining Profit When Price at 2000

CNY 92.4 CNY 193.2 CNY

0.45 CNY/kW

(24 Hours Electricity Fee)

8.64 CNY 14.58 CNY

ROI 149 Days 111 Days

Theoretical ROI term against current mining difficulty and ETH price

(take PandaMiner RX 470 for example)

ETH Price ROI

ETH=￥1500 153 Days

ETH=￥2000 111 Days

ETH=￥2500 88 Days

ETH=￥3000 72 Days

(Note: The calculation is based on current power cost and operational costs. The

actual ROI should consider the real conditions.)

Now the ETH hashrate growth curve is like:

(Source: https://etherscan.io/chart/hashrate)

On July 2nd 2017, the total hashrate has reached 60 Th/s.

If the price keeps an up trend, the total hashrate for ETH (almost all GPU

mining power is targeting ETH) will probably rise to 200 Th/s by the end

of this year, considering the market and the supply of available graphics

cards. The mining yields at the end of the year will decline the 1/3 of

the current amount.

Optimistically, if the price rises, despite the declining mining yields, the

ROI term will be shorter. But if it goes to the opposite and the price

drops, at the year end, the average ROI term will be around 10 months.

And if the price sinks to the bottom, the ROI term will be as long as

over 1 year.

2. ICO Proposal

GMS (GPU Mining Shares) is a cryptocurrency mining project based on

Ethereum’s decentralized protocols. GMS project will introduce the

token “GMS” for secondary market and is equipped with liquidity,

decentralization and transparency. ICO participants will get the tokens

in the way of crowdfunding and enjoy ROI in the form of GMS.

With the development of large-scale clustered mining, huge capital

inflows and rising mining difficulty make it even harder for individuals

to participate in mining. Individuals have smaller mining share and the

traditional joint mining model lacks liquidity, leading to higher cost for

investors to join in or exit. GMS will resolve the financing and liquidity

issues in the primary market.

Purpose of GMS Project

1) To provide shared mining yields for investors who are not able to

participate in mining due to hard entrance and undersupplied

miners;

2) From the long run, the future prosperity and value of

cryptocurrency is much larger than the speculative profits.

Preserving the tokens means the ownership of miners and the long-

term mining yields. This will encourage investors to hold their coins;

3) Pooling users and encouraging them to hold their coins will form a

miner (hashrate) community with consensus and therefore stabilize

the value of cryptocurrency such as ETH. Also it will guarantee a

bigger say in decision-making on major issues such as the DAO,

block scaling, SegWit etc.

GMS Project Procedure

1) Secure crowdfunding

2) Purchase GPU miners

3) Deploy GPU miners

4) Get mining yields in the form of GMS

3. Project Development Plan

GMS Timetable

June 28th - July 8th 2017: Seed ICO

July 8th - July 18th 2017: Pre-ICO

July 18th - August 15th 2017: Official ICO

August 2017: Purchase GPU miners and release a trading platform with

the funds raised through ICO with certain ratio

Q3 2017: Complete deployment of miners

Regular disclosure of project funds

Project Milestones

1) Fast yields: Mining will start in Q3 2017 with the closure of ICO

2) Rapid expansion of hashrate: Mining yields will be reinvested in

large-scale production

3) Building of miner (hashrate) community: GMS holders will stabilize

its price and exert influence on the cryptocurrency community.

Applications such as wallet services and exchanges will be improved

so as to provide services for GMS/hashrate holders and ensure

safety (wallet) and liquidity (market maker).

4. Value of GMS and Redemption

The value of GMS includes:

Mining yields and the market value of GMS: GMS project will

purchase and deploy miners as soon as the funds are raised.

Value of miners: The market price of miners are affected by coin

price, mining difficulty, supply of graphics cards.

Extension besides mining: The mid and long-term project will extend

R&D on wallet, exchange and value added services in the community

to enhance the liquidity and influence of GMS.

Theoretically, any complicated financial activities and transactions

can become available on Ethereum network by coding. Besides the

financial field, any applications that require trust, safety and

persistence such as asset registration, vote, management and IOT

can realize on Ethereum platform. GMS is an Ethereum decentralized

platform based cryptocurrency mining project, which makes it much

easier for individual investors to participate in mining. The essence

of mining is to ensure the functioning of cryptocurrency system. The

GMS project can be compared to a clustered miner group who will

have bigger say in the cryptocurrency community. When we have a

bigger share of mining power on GMS, we can directly participate in

major decision making on the development of cryptocurrency and

maximize the interests of the investors as both miner and token

holders.

Redemption Mechanism

The company will keep the reserves in the long term and decide on the

best timing to redeem GMS and ensure investors’ interest.

The company will place orders on the exchange to guarantee floor

price. Order Price = (Net asset+Reserves)/GMS Total Volume

The company will disclose its asset status every week on its official

website.

5. Crowdsale Details

Coin supported: BTC/ETH

Maximum: 210 Million CNY

Minimum: 50 Million CNY

GMS Total Volume: 300 Million

ICO Volume: 210 Million

Start Time: 18:00 June 28th 2017

End Time: 18:00 July 28th 2017 (or when the maximum funds are raised)

Effective amount: 1 BTC - 100 BTC, 10 ETH - 1000 ETH

GMS Exchange

Project Seed-ICO Pre-ICO Official-ICO

Beijing Time 6/28 18:00 - 7/08

18:00

7/08 18:00 - 7/18

18:00

7/18 18:00 - 8/15

18:00

1 BTC 22000 21000 20000

1 ETH 2200 2100 2000

a = 1st round (Seed-ICO) BTC/ETH average price (refer to okcoin.cn)

b = 2nd round (Pre-ICO) BTC/ETH average price (refer to okcoin.cn)

c = 3rd round (Official-ICO) BTC/ETH average price (refer to okcoin.cn)

n = The round you join

When ICO completed, the extra amount for investors will be, GMS

Amount = The current round you get * ((n round average price) / min(a,

b, c))-1)

GMS Allocation

Ratio Distribution Plan Description

20% Founding Team

Assign to the founding

team for their human,

material, resource and

technical contributions

during project

development. The

freezing period is 2 years,

unlock 25% every six

months

70% Crowdsale

All the crowsale income of

GMS will be used for the

purchase of miners

10% Cooperative Partner

Assign to the cooperative

partner for their human,

material, resource and

technical contributions

during project

development.

6. Use of Funds

1) Funds raised from ICO will be used to purchase PandaMiner

2) Mining yields (maintenance fee deducted) will be allocated as

follows:

Condition

（Mining ROI）

Reserves Purchase Miners Project Operation

And R&D Cost

≤ 3 Months 30% 60% 10%

3 - 6 Months 40% 50% 10%

6 - 9 Months 50% 40% 10%

9 - 12 Months 60% 30% 10%

≥ 12 Months 85% 5% 10%

≥ 18 Months 90% 0% 10%

Definition:

Reserves: Reserves will be kept in BTC, ETH and ZEC in the ratio of

BTC:ETH:ZEC = 4:3:3.

Purchase Miners: Funds with specific ratio will be used to buy new

miners.

Operation and R&D Cost: 10% of the funds will used for operation

of the project and future R&D costs.

When the crowdfunding is completed, all assets will be invested in

mining in August and the deployment will be completed in 90 days.

7. Team Introduction

GMS realize the application scenario of Ethereum network with the

mining project and combine the two to enhance the usability of

blockchain technology. The initiation of GMS project will contribute

to the running of Ethereum network and introduce the token

generated by Ethereum blockchain.

1) The initiator of the project - GUO Weicheng is an experienced

miner in the industry. He started cryptocurrency mining business in

2014 and has a deep understanding on mining farm deployment,

management and power channel negotiations. He is the founder of

PandaMiner - the world’s first GPU-integrated miner, OXBTC - a cloud

mining platform and HalleyBTC - an investment platform.

2) The team is running 3 large-scale mining farms in Inner Mongolia,

Sichuan and Xinjiang, each of them covering over 3000 square meters.

The farms are well equipped with the best ventilation systems and

devices. A professional maintenance team are working 24/7 to

guarantee perfect operation.

3) GMS will establish a strategic partnership with PandaMiner, which

will give away 50% of its production capacity to invest in GMS project

and provide sufficient supply of miners. PandaMiner will work closely

with AMD and its distributors and make the most of AMD graphic cards

which are so far the best hardware for mining ETH.

8. Risks

GMS is a shared mining project for cryptocurrency enthusiasts. The

ownership of GMS project belongs to all GMS holders. According to

related laws and regulations in China, GMS and other tokens such as

BTC, ETH are not fiat money. The information provided in this

document will provide no investment advices. All participants should be

aware of the following risks (including but are not limited to):

1) Loss of GMS

2) Risks from the core Ethereum protocols;

3) Regulation risks;

4) GMS liquidity risks;

5) Hacker/Stolen/Attack risks;

6) Price fluctuations

7) Force majeure

Official Website:

www.gmsico.com