WhitePaper - weeMAT.io · 2018-10-29 · weeNexx AG ı WhitePaper ı Version 1.0 ... Retail banks...

Author: weeNexx AG

Copyright: © 2018 weeNexx AG

From cashback to a new era of financial possibilities – enhanced by

blockchain technology

wee starts its own cryptocurrency

WhitePaper

weeNexx AG ı WhitePaper ı Version 1.0 | October 2018

weeNexx AG ı WhitePaper ı Version 1.0 | October 2018 www.weecoin.io | 2

TABLE OF CONTENT

1 Preface of the Chairman 3

2 Abstract 4

3 Introduction 6

New Money 6

Problems to be solved 6

Why Move the Existing Business to Blockchain 7

Benefits of blockchain-based Cashbacks 7 High liquidity 7 Easy transfers and trading 7 Openness and compatibility with other programs 7

4 Market Overview 8

5 wee Ecosystem 10

weeMarketplace 10

Blockchain based Cashback 11

Stablecoin weePayCoin 11 The weePayCoin 11 Intermediaries 11

Building the future of financial services 11

Money and token flow between all parties 12 User story 1 - Customer purchase 12 User story 2 - Customer redeems WPC for fiat 12 User story 3 - Merchant redeems WPC for fiat 13 User story 4 - User/Merchant buys WPC 13

Use Cases 13 Use Case 1: User Engagement & Retention 13 Use Case 2: Great Community for personalized Marketing Communication 13 Use Case 3: Universal Currency (Marketplace) 13 Use Case 4: Crypto Card 13


6 Business Model 14

Cashback and exchange fees 14

Smart data monetization 14

Promotional material and marketing service offering 14

Partner and other network fees 14

Financial services 14

weePayCoin (WPC) 15 Audits 15 Fee structure 15 Minting and burning of WPC 15

7 Competitor Analysis 16

8 wee’s Token Model 17

weeICOToken (WIT) 17 Token incentives 17 weePayCoin (WPC) vs. weeICOToken (WIT) 18

9 Investment Case 19

Token Sale 19

Timeline, Discounts & Bonus 19

Token Distribution 20

Use of Funds 20

10 Roadmap 21

Status Quo 21

Our Roadmap 21 Phase 1 – Transition to blockchain 21 Phase 2 – Expansion to stable coin and financial services 21

Timeline 21

11 Team 22

Leadership 22

Advisory 23

Disclaimer 24


Dear community

We are thrilled to be able to share with you our exciting plans to expand and build upon our innovative brand through the use of blockchain technology.

We have deep dived and honed our understanding of what drives businesses to create customer loyalty programs and we thrive on designing great opportunities to reward shoppers in a meaningful way.

The next evolution of our community is the move to blockchain and to successfully expand our business into the financial ecosystem. There are tremendous benefits involved, in terms of expanding and growing our business across various jurisdictions.

In this whitepaper, we'll show you how our successful and established cashback business will be further enhanced by blockchain technology, to create a large scale, global marketplace. We have explained the economics of how the two wee tokens will work, the market analysis and our financial projections.

Please read on and join our thriving online community to ask questions, learn more, and take advantage of the unique opportunities that the wee marketplace opens.

Thank you for taking the time to read our whitepaper, and learn more about the unique wee

community.

Dr. Leo Thomas SchruttChairman


1 Preface of the Chairman


wee, the established digital cashback and loyalty solution, is merging its successful business with blockchain tech-nology to expand its offering and provide exciting new kinds of financial services.

Outdated models of retail banksRetail banks mostly follow old-fashioned models of onboard-ing customers that typically position themselves as favora-ble only to certain jurisdictions, and to individuals with higher income levels.

Regulators put in place multiple restrictions and laws, e.g. Know Your Customer (KYC) requirements, which have been integrated into the traditional banking systems. As a result, the financial services do not meet the requirements of to-day's customers, are clunky to use and uneconomical for in-cumbent banks.

Alternative solutions, such as cryptocurrencies, have been introduced to address the young generation, to cost effec-tively support international businesses and to help solve the considerable problems of individuals which are unbanked or who don’t wish to place their trust in the hands of intermedi-aries. Citizens from countries with political or economic in-stability are hesitant to entrust institutions to best represent public interests. In some cases, such institutions do not exist at all and to this day there is a large share of the worldwide population that remains unbanked, which creates road-blocks for wealth to efficiently circulate in many developing economies.

2 Abstract

Challenges using cryptocurrenciesCryptocurrency adoption still remains low today and its high volatility creates bottlenecks for adopting blockchain based tokens as valid payment alternatives. Even if people were to accept cryptocurrencies as an authentic payment substitute, they would need to constantly hedge themselves against vola-tility risks and potential devaluations. wee has cleverly identi-fied a market need to offer new financial services combined with a crypto payment solution that is innovative and not sub-ject to volatility. Thereby wee is on the way to create one, if not the first cryptocurrency for daily usage in real life. Additionally wee will be able to solve issues for the unbanked, with a cryp-tographically secure store of value within regions of the world where people do not have access to regular banking services, and for those who suffer from political and economic instabili-ty.

Turning today’s business into a provider of financial serviceswee begins its revolutionary journey by transferring its existing and successful cashback business, including a massive cus-tomer base of over *500’000 users, 30’000 traditional and 1’300 online retailers in 14 countries, onto the blockchain. For that purpose, wee will issue weeICOToken to drive the transi-tion to blockchain, and subsequently its own cryptocurrency, the weePayCoin, which will be the backbone of operations, act-ing as a stable coin fully backed and pegged to the euro.

*estimated figures 2018/2019

The revolution of the 21st century: 6 billion potential customers, more than 500 million shops, cashback up to 85%


To start building wee’s smart ecosystem and monetary re-serve, the company will incentivize existing and new users to use the weePayCoin on a daily basis when shopping in the existing wee partner network. Moreover, being an ERC20 To-ken, anyone using an ERC20 wallet will be able to accept the weePayCoin, even without being a member of the communi-ty. This is a positive move because weePayCoin can be ex-changed at any time 1 by 1 against the euro.

We envisage that weePayCoin will be one of, if not the only, real bridge between cryptocurrency and real world currency. To go further, it may well become the first and in future one of the few cryptocurrencies daily real life usage.

With this new and innovative global digital token, wee will lev-el the playing field with other Fintechs, such as Revolut and Transferwise, who are also currently entering the financial service industry. These startups have began their journey outside of banking, providing a solution to niche clientele such as digital nomads and remittance users. wee will take a similar approach and focus its go-to market strategy on cashback, loyalty and crypto-fiat payment services.

Unique opportunityFollowing the migration of the existing cashback customer to our blockchain based solution, all existing cashback re-wards will be locked and converted 1:1, whilst preserving the value to the new payment stable coin.

This transition will boost the velocity of the existing network of users allowing it to become highly fluid, decentralized and accepted amongst many retail locations worldwide. Instead of users needing costly POS terminals, the weePayCoin will be accepted within physical or digital stores that accept ERC-20 tokens, since there are no devaluation risks other

2 Abstract

than those bound to the euro (a very stable and widely accept-ed fiat currency). At the weeMarketplace users can convert their crypto and cashback savings into fiat. In the future, even an exchange of rewards from third party cashback systems or loyalty points (e.g. Miles and More) for weePayCoins will be possible in order to access their real value and have them stored in a digitally secure wallet. Once weePayCoin has been established as a global go-to payment solution amongst retail-ers and cashback providers, wee will further develop the ac-cessibility and issuing of weePayCoins to execute its plan to offer an extended list of financial services to everyone. wee todaywee provides online and offline shoppers with a very highly at-tractive platform to keep their cashback in real value. Soon our customers will benefit from a highly liquid coin, providing an exciting way to merge blockchain and cashback together.

wee in the futureIn the future through continued development and innovation, wee will enable retailers to accept cryptocurrencies as pay-ment solutions, benefiting from low fees and fast transactions without the worry of volatility.

wee intends to provide additional financial services, such as a credit card or lending, to become a safe haven for individuals holding a less stable fiat currency. Because the value of a fiat currency is backed by the government that issued it, an individ-ual living in a country with an unstable government will be able to hedge against potential (national) hyperinflation (where the value of a currency goes into free fall) and protecting their life savings with a euro pegged token.


We believe that a decentralized world where money flows freely, hands the user back control, giving them the confi-dence to know what's happening.

New Money

Blockchain issued cryptocurrencies or tokens are an inter-esting case of decentralized systems that function using economic incentivization to ensure the validity of the ledger. Blockchains use cryptocurrencies as consensus mecha-nisms, which at the same time acts as a store of value and can be traded and accepted as a payment solution.

There is a popular mindset that money will soon converge into a single all-purpose-currency, such as Bitcoin or Ether, but these predictions are most likely incorrect. Instead of re-lying on a single all-inclusive monetary system, it's more like-ly that digital economies will have a selection of high value and highly liquid currencies backed with a customer base, bringing value with specific and popular use cases, such as cashback system or loyalty programs.

Anyone can issue its own currency which represents the val-ue behind an object, an individual, a company, or a communi-ty. Instead of convergence, there will be divergence. Digital Money will become the preferred choice, as money still has to provide a means of exchange and store of value. Digital currency is interchangeable and each micro or macro eco-system will have its own currency with a specialized use case.

3 Introduction

Problems to be solved

Although a vision of a fully decentralized utopian future is something to keep in mind, in the meantime there are real fi-nancial roadblocks that need to be solved. Blockchain technol-ogy provides the perfect medium for financial disruption and innovation, in particular within those economies which suffer from frictions in national monetary policy.

Fiat money is exclusively under a tightly sealed control of gov-ernmental institutions. Issuing money requires trust in a third party to ensure the value of the currency. However, the last decade proved to be a pivotal shift for monetary evolution.1)

Blockchains don’t require intermediaries to ensure fair govern-ance structures. They are abstracted from national policies and sovereign governance structures. These reasons give the right basis to enable/reach to those, who remained unbanked or are affected by the monetary and economic instability of national currencies. Using blockchains and cryptocurrencies, individuals are able to store value and transfer value without geographic restrictions and remain independent of centralized intermediaries.

The potential of distributed ledgers and cryptocurrencies have not been fully utilized as payment solutions to date. This gap between crypto and fiat economies can be bridged with the right technology in place. Cryptocurrencies are a revolutionary concept taking the power back from an unaccountable and centrally controlled fiat system.

1) https://thenextweb.com/ insider/2015/03/29/a-brief-history-of-bitcoin-and-where-its-going-next/


wee aims to solve the major problems associated with fiat using the benefits of crypto with a fully transparent peer to peer (P2P) centric system using a combination of financial innovation and its existing cashback business. wee will be the one bridging the gap between crypto and fiat economy in many economic regions and ultimately connecting old and new financial structures. In order to tackle the described problems an initial user base is needed, as well as to launch the service on the basis of an available ecosystem. wee already has that ecosystem, which is built on top of the cashback and loyalty business. Within the ecosystem wee has been successfully used for pay-ments. wee plans to enhance the existing business with a completely new payment tool (i.e. weePayCoin) which com-bines properties of stable cryptocurrencies and blockchain based cashback incentivization mechanisms. The ultimate goal of this conversion is a liquid coin that serves as both a means of exchange and stable store of value (pegged to the euro value) which can replace fiat currencies for many users irrespective of their geo-politics.

Why Move the Existing Businessto Blockchain

The development and popularization of blockchain technolo-gy provides immense opportunity to find new ways of tack-ling old problems; creating a borderless transfer and store of value that is quasi-independent of intermediary control and much faster at the same time.

In the past wee had to rely on the complex and expensive traditional banking system to manage customer/user ac-counts and transactions, however these costly intermediar-ies won’t be necessary when the business and especially the accounts management and bookkeeping moves to block-chain. The shared ledger built on top of the Ethereum proto-col allows wee to benefit from the network effects of this growing platform and expand the payment solution to those users who are not yet wee customers, but current Ethereum wallet users.

By using the blockchain instead of traditional centralized IT systems, wee eliminates the inefficient and time consuming onboarding processes, whilst continuing to undertake all necessary compliance procedures. Operating via blockchain offers a global system that improves the user experience, whilst retaining an efficient and successful business. This epoch-making new model makes it significantly easier to ex-pand into new jurisdictions and win new customers, retailers and strategic partners, helping us to increase our reach and improve adoption and success rates.

Furthermore, in a time where consumers worldwide are be-coming increasingly aware of how their data is stored and used, the blockchain is the best choice in terms of offering a secure and transparent solution. Traditional methods of data security involve data stored centrally on a server - making it easier for hackers to break into, which is why we often hear of data breaches, even at globally renowned companies.

3 Introduction

Finally, the existing digital cashback “wee” being already in cir-culation within the ecosystem will be replaced by the weePay-Coin, a blockchain based payment coin. Putting the customer at the heart of the cashback and payment experience while creating an open and easy-to-use marketplace for collecting and redeeming rewards, wee is focused on its users and pro-viding exceptional customer service.

wee also creates a bridge between its community of token holders and external parties and merchants. Those who are not part of the wee ecosystem can easily accept the weePay-Coin as a regular payment method as long as they are set up to accept ERC-20 tokens. weePayCoin will be a stable coin ful-ly backed up and pegged to euro. So the value of 1 weePayCoin equals 1 euro.

The decision to transform the business to blockchain has been a well thought out process. After careful consideration the team and the board both agreed to this impressive new con-cept, which allows business to grow at a higher speed while entering new markets and service fields that wouldn’t have been accessible before.

Benefits of blockchain-based Cashbacks

High liquidityBy moving to blockchain, the groundbreaking new multi-part-ner cashback system will be built on tokens which are setup on the Ethereum network, while other single-partner loyalty pro-grams continue to be a hurdle for many customers who are not satisfied with storing segmented reward pools throughout various retailers. Although wee’s initial business was already on its way to solve this issue of segmentation and inefficien-cies, the new technologies on blockchain offer improvements in terms of efficiency and offer even more liquidity compared to wee’s original cashback model.

Easy transfers and tradingThe main properties of a blockchain based cashback business will be high liquidity and decentralization. The liquidity element is important for cashback users because they want to ensure their cashback points are easily transferable or tradable. In the consumers eyes, a highly liquid asset provides more utility, due to its ability to be redeemable everywhere.

Openness and compatibility with other programsThe goal of this building block is to offer users a practical wee-PayCoin and not just preach about its stability. Therefore un-locking the frozen value of many cashback systems and unit-ing them into a single tokenized reward pool means that the tokenization will not only be adopted into our existing network and partner retailers, but incentivize other reward programs such as widespread miles collection systems (e.g. Miles and More) to be a part of our cashback ecosystem, allowing their users to access a marketplace to sell, store and exchange dif-ferent programs. This future development will be highly appre-ciated by the owners of other programs as these companies have to reserve funds in their balance sheets for those billions of unused miles and points.


wee is a successful existing business which is currently operating in 14 European countries (i.e. Switzerland, Ger-many, Austria, Belgium, Poland, Czech Republic, France, United Kingdom, Croatia, Italy, Slovenia, Sweden, The Netherlands and Slovakia).

In addition, wee online already contains approx. 1,300 national and international online shops such as Lidl, Saturn, Doc Mor-ris, REWE, TripAdvisor and many more which are part of the wee ecosystem, putting wee in a fantastic position to confi-dently and successfully move forward with development.

Gateway to groundbreaking financial servicesWhilst most of wee’s potential competitors in the cryptocur-rency space are launching in Asia and the US, wee is in prime position to take a large share of the market in Europe and the surrounding countries. wee sees its cashback service as a means to an end: positioning the cashback platform as a launchpad for broader scope and to offer an extended list of trailblazing financial services in the near future.

As such, wee will focus on positioning services closer to those offered by other Fintech startups. wee has recognized the power of harnessing blockchain technology in combina-tion with smart data to become the ultimate leader in data driven digital marketing services for retailers. This allows wee the tokenization of customized solutions and products tailored to the user. Additionally, in the new sharing economy, the more the user shares, the more the user benefits.

Latest trends in FintechAlthough wee still considers cashback providers as core competitors, other Fintech startups in both blockchain and non blockchain ecosystems can also be regarded as future rivals. Most companies in this category saw spectacular growth in recent years 2) tackling untapped market needs.

4 Market Overview

The European Fintech sector has recently shown impressive growth . This expansion reflects the widespread consumer in-clination to move away from traditional forms of financial ser-vices in favor of quicker and simpler ways of dealing with fi-nancial affairs. The increasing interest in alternative kinds of finance and commerce attracts lots of potential customers, allowing wee to benefit greatly from the growth 3) of this indus-try. The largest disruptors of the banking sector include pro-jects like Transferwise and Revolut 4).

2) http://cashbackindustry.news/wheres-the-money/3) https://home.kpmg.com/xx/en/home/media/press-releases/2018/02/ global-fintech-funding-tops-us-31b-for-2017-fueled-by-us-in-q4-kpmg-pulse- of-fintech-report.html4) https://www.siliconrepublic.com/start-ups/fintech-startups-europe-2018

Some of the 1,300 shops which are part of the wee ecosystem.


Competitive advantagesIt is reasonable to expect intense competition in the Europe-an Fintech sector. However, wee has the convenient and strategic advantage of providing a very specific service -- dig-ital cashback combined with an own “stable currency” -- which is initially aimed to an existing customer base to kick-start the future growth. In other words, wee will start with a considerable market share which will quickly be leveraged and expanded into other financial services, helping wee to move forward rapidly and strongly with its expansion.

Revolut 5) and Transferwise 6) have successfully found their niche financial products and turned those customers into paying users. They started out with solutions such as mul-ti-currency exchanges and worldwide remittances. Both have not Revolut 5) and Transferwise 6) have successfully found their niche financial products and turned those cus-tomers into paying users. They started out with solutions such as multi-currency exchanges and worldwide remittanc-es. Both have not reinvented their services, but rather offered them at much lower costs than their predecessors. wee’s long-term goal is to leapfrog the trailblazers with the inter-section of innovative technologies that are currently availa-ble thanks to blockchain.

5) http://uk.businessinsider.com/ revolut-customers-breaks-even-transaction-volume-2018-26) http://uk.businessinsider.com/transferwise-revenue-profit-2017-5?IR=T

The electronic payment/transfer market has a large middle class 7), mainly composed of small to medium sized consum-ers. With these demographics, retaining customers is as im-portant - if not more important - than attracting new ones. The switching costs between digital services are at an all time low, meaning that it’s not enough for customers to sign up to your services, it’s crucial they come back and use the service frequently. It’s not uncommon to see young profes-sionals use several banking services at once, not pledging allegiance to a single company.

wee wants to position itself in a way that caters also to the most underserved audience so that hearts will be won within the short term. This market gap does in fact exist 8), and is seen most frequently in developing countries. As wee ex-pands into new jurisdictions, its spread will lead to a large spill over effect, where local and online partners will attract new users, and subsequently the new users will attract new partners, creating the famous viral loop.

This also reflects in the tendency of millennials 9) to adopt Fintech technology. A powerful combination of mobile life-style and general distrust towards large corporations has caused millennials to distance themselves from big banks 10)

and institutions.

7) http://offers.worldpayglobal.com/rs/850-JOA-856/images/GPR_Worldpay.pdf8) https://www.bnymellon.com/_global-assets/pdf/business-insights/ global-payments-2020-transformation-and-convergence.pdf 9) www.businessinsider.com/millennials-distrust-banks-new-startups?IR=T 10) www.fastcompany.com/3027197/sorry-banks-millennials-hate-you

4 Market Overview

Ultimately, wee’s advantage resulting of existing community, business model and infrastructure can kickstart the upcoming market entry leaving potential competitors behind. wee’s ad-vantage is additionally reinforced by two elements: the existing niche financial business and, even more important, a full force integration with blockchain technology.

Focus on local and global communitieswee believes in the importance of having all goals of the com-pany aligned with those of the customer, especially because wee also strongly supports independent local retailers and ser-vice providers as well as nationwide and even global online stores. One of the specialities is that cashback earned by shopping online (or offline) can only be spent at offline retail-ers. It’s an effective system to help regenerate towns and city centers which are increasingly challenged by large retail chains or online stores. This local component is lacking in many mod-ern Fintech providers who often disregard local communities in favor of more user expansion and higher growth independ-ent of the location. wee highlights the importance of remaining local and positions itself as a service that includes your next door retailer into the financial ecosystem and more important-ly into the new weeconomy.

Unlike traditional, isolated customer loyalty and reward pro-grams, wee creates an open marketplace for consumers. The next stage of development is to open the platform up further to third party loyalty programs such as airline frequent flyer miles or hotel loyalty points. wee can even include individuals who are not yet direct users of wee by offering solutions to their problems regarding the specific loyalty bonuses when not us-ing the respective services.

Finally wee will offer a payment method for customers and re-tailers that connects online and offline retailing with absolutely no hidden charges. The cashback collected in weePayCoin can either be redeemed when making a new purchase, exchanged or paid out to the customer's bank account. As ERC-20 will the protocol used for the weePayCoin, WPC will even be accepted outside of wee’s own community by anybody and any retailer simply having an ERC-20 wallet as WPC can be exchanged into Euro 1-by-1 at any time.

weePayCoin (WPC) will be accepted by anybody and any retailer simply having an ERC-20 wallet as WPC can be exchanged into Euro1-by-1 at any time.


WPC

EURO

EURO

WPC

BURNING

MINTING MARKETPLACE

MERCHANT 1

MERCHANT 2

Collect and pay with WPC

APP

CREATE NEW WPC WITH EURO

The wee financial ecosystem will be built using weePay-Coin, which includes two interdependent building blocks that reinforce each other and pave the way towards the fu-ture of wee:

• weeMarketplace • Blockchain-based cashback • Stablecoin weePayCoin

weeMarketplace

While the other two building blocks strengthen the wee eco-system and foster its development as a standalone financial provider, the weeMarketplace is the unique component that bridges the gap between the tokenized economy and exter-nal economies.

The marketplace will essentially promote two actions. First, it will act as a HQ exchange minting or burning the weePay-Coins for fiat and vice versa. Whenever someone is in pos-session of a weePayCoin, they can conveniently convert the token for fiat currency at the promised pegged exchange rate. Furthermore, it will be possible to create new tokens by paying for them with fiat currency. This mechanism ensures that network expansion of wee will be at maximum efficien-cy, as even individuals who are not part of the wee communi-

5 wee Ecosystem

ty can accept weePayCoins without worrying about fluctuating crypto markets. On the contrary, non-members will even be encouraged to ac-cept the weePayCoin, since it’s just like accepting fiat. This function also promotes the onboarding of new users who are not familiar with cryptocurrencies.

Secondly, the weeMarketplace will not only act as an advanta-geous online and offline shopping and cashback community. In the future, it will even serve as an exchange between differ-ent kinds of rewards and loyalty programs. This essentially al-lows the weePayCoin to become the de facto medium of ex-change for segmented reward pools and promote the open standard of this locked sector. Individuals find it frustrating that the collected points they have been accumulating in cer-tain retail stores or restaurants so far cannot be exchanged for other points but have to be spent internally. The aim of the weeMarketplace is to create a cutting-edge way to trade, ex-change and store such rewards in a centralized location, i.e. the wee app. Using its resources to create ways to exchange the rewards for wee users, it will be as simple as converting one currency for another. Other advantages of the wee ecosys-tem for retailers is a strong referral marketing engine that gen-erates traffic due to its platform that mutually benefits the user retailer and the end user.

Minting, burning and distribution of weePayCoins in the weeMarketplace


Blockchain based Cashback

Our cashback system will use innovative smart contracts to provide transparency of the rewards and commission struc-ture. A greater liquidity of rewards also means that all cash-back earned can be easily exchanged for other cryptocurren-cies, fiat currency or used to pay at the stores.

The blockchain will help wee to generate tremendous growth, thanks to some of its core characteristics such as:

• Global and open infrastructure • Seamless payments • Transparency and trust

The automation enabled by smart contracts will make the cashback system more cost effective and reliable. These ef-ficiencies will allow us to offer lower fees, whilst covering operational costs and making the system sustainable.

Stablecoin weePayCoin

Ordinary cryptocurrencies, such as Bitcoin and Ethereum, are susceptible to huge fluctuations in their prices. Stable-coins, such as Tether, bypass these problems by pegging their coin to a well-known and stable asset, such as fiat mon-ey; stablecoins control their own supply to keep their market price equal to that of the pegged asset.

Stablecoins have several advantages over normal cryptocur-rencies: they are expected not to be subject to high volatility, they inspire confidence and they are better stores of value. These favorable characteristics encourage the wider adop-tion of similar cryptocurrencies. In fact, stable coins will probably become an essential element of the digital econo-my in the near future because they enjoy all of the revolution-ary features of crypto coins while still maintaining a steady exchange level relative to most fiat currencies. This means that consumers can now endorse the blockchain in activities such as money-transfers, purchasing, and even lending

The weePayCoinThe weePayCoin will be used in digital and physical locations independent of sovereign borders. It will be the fuel that pow-ers the wee smart ecosystem and become the foundation on which the future unique financial infrastructure of wee will be built.

The stability mechanism of the weePayCoin is one of its most important features that also serves to incentivize cus-tomers to store the currency and use it as a medium of value transfer without having to worry about future devaluations. Furthermore, there will be an increasing demand for weePay-Coin at crypto exchanges as, contrary to most other crypto-currencies, it will be possible at any time to burn weePay-Coins and receive euro in exchange from weeMarketplace.

The design of tokens ensures wee the flexibility to use the token without the need of intermediation since the ERC-20

5 wee Ecosystem

protocol ensures the decentralization and the distribution of our value exchange mechanisms. Cross border payments be-come a breeze with blockchain technology and users will be able to transfer their coins from anywhere and to anywhere. Fur-thermore, weePayCoin will ensure that the coins belong to indi-viduals, with their digital wallets being the main repository of the tokens, removing the need to trust a centralized institution.

To ensure that the weePayCoin takes advantage from all of the benefits of blockchain without having to suffer from the draw-backs, wee has cleverly decided to follow the stablecoin route. This is to make sure there are no barriers to adoption, so that the coin will be used as a payment utility mechanism and wee will not need to solve speculative problems that come with the design of many cryptocurrencies.

weePayCoin will at all times be pegged 1:1 to euro. For exam-ple this means whenever there is 100,000 worth of weePay-Coins in circulation, there will be an equivalent of 100,000 eu-ros backing the weePayCoin. wee will have an infinite supply of tokens meaning that there will constantly be burning and mint-ing of the weePayCoin depending on the fiat money supply. This will ensure the velocity of the coin reaches high levels and the circulation within the wee network will promote a fast adoption and expansion of the wee ecosystem.

IntermediariesIt is clear that the whole process will still need banks and the wee platform as intermediaries. wee sees third-party presence as an opportunity to move beyond the purely speculative pur-pose of ordinary cryptocurrencies and in favor of a stable eco-system that could be central to the digital economy. Intermedi-ation is necessary to bring the crypto and non-crypto spheres together, which after all, is wee’s objective. However, the func-tion of traditional banks will be reduced to the utmost mini-mum which is to hold the fiat money equivalent to weePayCoin in their accounts.

Building the future of financial services

In 2020 wee plans to expand its scope geographically by reaching out to unbanked populations worldwide (of which there are 2 billion). By then, the liquidity and velocity of the wee-PayCoin is expected to be high enough to have a great starting point to offer these types of services globally. This could in-volve giving unbanked people access to a multi-currency-wal-let, which they can use to add stable coins and other crypto tokens for use in daily transactions. Access to digital curren-cies will be a revolutionary game changer in tackling a myriad of social issues, including supporting the ongoing fight against poverty.

Also by then wee’s ecosystem will still use weePayCoin as its main currency equivalent. Clients will be able to store, ex-change, and borrow weePayCoins much faster and easier than ordinary banks. The main advantage of wee, however, is that value transfers from account to account happen much quicker and require minimal fees – much lower than in traditional


banks. wee will move the crypto and fiat spheres closer to-gether and allow its token holders to benefit from the best of both the fiat and the crypto world.

The weeMarketplace will still remain the entry point where individuals can convert fiat into tokens and vice versa. The infrastructure and operations established to accommodate these features will be ready for multi currency operations.

If we are to believe that the future is currency frictionless, then the weeMarketplace will be able to operate across dif-ferent currencies allowing users to conduct their financial activity in one place without leaving the network.

5 wee Ecosystem

Money & token flow between all parties

We can identify three main types of actors in the ecosystem: Users - Everyday users who purchase goods and services, re-ceive cashback, payment between other users or redeem coins for cash.

Merchants - Registered and qualified businesses, participating in the program. They opt-in to receive WPC as payment, they pay WPC as cashback to Users and can also exchange their received WPC for fiat currency or buy WPC with another cur-rency.

Partner Banks - Receive and store euros, control the minting and burning process of weePayCoins, payout euros after re-demption and burning of weePayCoins. Token User Stories in our ecosystem.

The amounts, commissions and fees mentioned in the user stories below are provided as an example to illustrate the mechanism. The actual fees and commissions will be defined and announced after the ICO.

• Customer buys something at a participating merchant’s store for 125 euro and decides to pay with wee’s wallet. She is promised to receive 5 WPC as cashback.

• 125 euros are transferred to Merchant’s bank account and 125 WPCs are minted, 120 stays with the merchant as 5 WPC is transferred to the customer’s wallet.

• Marketplace fee of 0.25% (0.3125 WPC) is charged and transferred to wee’s marketplace wallet.

There are no restrictions on WPC redemption for customers and they can sell their WPC anytime.

• Customer decides to cash out of her WPC for fiat. She opens the wee app and transfers 5 WPC to the registered bank.

• Bank burns WPC and sends back 5 euros minus exchange fees of 0.25% (0.0125 euro).

User story 1 – Customer purchase

User story 2 – Customer redeems WPC for fiat

€125

€125

0.25%

5 WPC

120 WPC

5 WPC

€5 ( minus exchange fee 0.25%)


5 wee Ecosystem

Use cases

Use Case 1: User Engagement & RetentionAn explosion of cryptocurrencies has transformed the way we think about money and finance. Numerous current loyalty pro-grams are skewed towards the wealthy and are not accepted by many individuals. Loyalty program adoption slowed by 15% in the final quarter of 2016. We are convinced to change all of this with our ecosystem by merging its successful cashback loyalty scheme with blockchain technology.

Use Case 2: Great Community for personalized Marketing CommunicationweeMarketplace will offer fantastic possibilities for communi-cation between retailers and users within the community. There will be personalized individual real time offers not only online, but also from local retailers by using sophisticated geo-targeting mechanisms combined with high level algorithms which will be able to predict user needs, budget and wishes individually. Thereby wee will create a real win-win-situation for both its retailers and users as retailers will be able to save lots of ineffective marketing spendings on the one hand and users won’t be bothered any more with advertisement which does not meet their interests.

Merchants will be provided with a business interface where they can redeem WPC for euro. Some restrictions and limits on merchant’s redemptions will apply as merchants have to maintain a minimum deposit of WPC to risks and be able to provide cashback at any time.

• User or merchant can decide to buy WPC anytime, euro or equivalent needs to be transferred to the bank, bank mints equivalent in WPC.

• Fees of 0.25% are deducted from the transaction.

User story 3 – Merchant redeems WPC for fiat

User story 4 – User/Merchant buys WPC

Use Case 3: Universal Currency (Marketplace)For users shopping with a fiat currency, they will want to know that their rewards will retain their value. In most loyalty sys-tems users collect points and they don’t know what they will get for their points in the future. Our stable coin is pegged to the euro, which makes it much more solid than many other cryptocurrencies. What’s more, the WCT is accepted universal-ly at all partner sites around the world, meaning that users have more opportunities to earn coins. Use Case 4: Crypto CardThe weePayCoin is backed by a liquid, stable currency, which means users can easily trade their cryptocurrency for fiat cur-rency. The liquidity problem is one that has plagued many cryp-tocurrency initiatives. Many traditional reward programs, such as air miles, are lost if they are not used and they cannot be converted back to a fiat currency. The WCT coin is liquid, meaning that it can be used in a number of environments, whether the retailer accepts WCT or not.

In order to prosper from the current situation, wee will launch its own Crypto Card including app version very soon. By then, crypto and fiat will be fully integrated and it will be possible to seamlessly combine both WPC and euro within one Credit Card app.

0.25%

WPC

WPC


The weeMarketplace generates revenues in many different ways, outlined below.

Cashback and exchange fees

The cashback service will provide another level of revenue generation. wee receives a fee for each transaction to cover operational costs, while exchange fees earned when ex-changing weePayCoins for fiat will generate profit. The trans-action fee will, along with the exchange fees, will be deducted from payments and transfers on the weeMarketplace.

Smart data monetization

wee’s revenue will come from different business units gener-ating most of its revenue from analyzed consumer data, or what is frequently known as smart data. The platform al-ready offers profound insights into customer behavior and local markets by analyzing data on daily customer purchas-es. What may seem as mundane information to the average person is, in fact very valuable to companies wanting to fa-miliarize themselves better with their existing customers as well as companies selling products and searching for new customers. Allowing wee to provide personalized marketing opportunities to sellers based on buyers’ behavior, wee will be able to precisely predict consumer needs and buying be-havior by using so called buyer personas (analyzing and cat-egorizing anonymous customer data). In this way wee can form a cooperative relationship with many interested organi-zations, from which both parties benefit. As for concerns around the use of customer data, wee guarantees ethically correct treatment of all personal information to not violate the rights of its users.

Hereby wee is on the way to transfer from a sophisticated cashback program to become the recognised solution pro-vider for data driven digital marketing for retailers.

6 Business Model

Promotional material and marketing service offering

wee furthermore offers a wide range of promotional material to its partners and retailers on the platform and has plans to further promote and expand these activities. As wee is one of the very few companies in the market that are active both on-line and offline segments, it has great reach and promotion power which it already turned into sellable marketing services.

Partner and other network feesBy setting a small onboarding fee for new partners, along with buying and locking-up a certain amount of WIT's tokens, wee also intends to tap into another source of revenue. As the plat-form expands, a further increasing number of shops and on-line brands will become partners. wee will generate additional profits by introducing a setup fee for these new partners, which depends on the size and presence of the company in the mar-ket. Additionally, there will be a yearly management fee for these retailers on the platform.

Financial services

As the WPC reserves grow and adequate liquidity is achieved, additional financial products will be introduced by wee, which include savings, investments and lending products.


weePayCoin (WPC)

The WPC is a payment token based on the Ethereum block-chain which will be pegged 1-to-1 to the euro. As explained, the WPC will replace the digital cashback which is currently in place for wee customers. After its implementation, wee users will receive WPC as cashbacks and payments, instead of digital cashback.

Besides the option of exchanging WPC to euro through the weeMarketplace, the WPC can also be fully traded once it achieves adequate levels of reserve for any other Ethereum token on decentralized exchanges like Poloniex, Bitfinex or Coinbase within the Ethereum network. In addition, WPC will be available to be used as a direct medium of exchange to fiat currency in partner stores.

Audits An established independent auditing firm will regularly pub-lish audits to guarantee that the amount of euro is corre-sponding with the amount of WPC and is in a bank account. Thereby the euro amount has to be equal or higher than the total amount of WPC in circulation which is publicly visible on the blockchain. Hereby wee ensures that WPC is directly backed and 100% collateralized by the euro at any given time.

Fee structure The fees provided in the table are just for illustration and ini-tial calculations. As we develop our platform and migrate our existing customers and users the fees will be adjusted. The actual fees are likely to be different.

Minting and burning of WPCMinting and burning of coins will be strictly supervised by part-ner banks. Incoming fiat currency will be deposited and only then the equivalent amount in WPC will be minted. Exchange of WPC for fiat will transfer the deposited amount of fiat to the token holder and will burn the equivalent in WPC.

Transaction User Merchant

Cashback No Fee 0.25%

WPC Redemption 0.25% 0.25%

Peer to peer transfers 0.5 % 0.5 %

6 Business Model


7 Competitor Analysis

wee White Paper v1.0 38

7 ��CompeteCo Analysis

wee Loyalcoin Rewards

token Cashbag Pluscoin Fluz Fluz

Focus Digital

payment and cashback

Loyalty platform

Loyalty platform

Digital cashback

Digital cashback

Digital cashback

Hard cap $100m $19m 75,000 ETH 20,000 ETH NA $20m

Traction

500’000+ customers,

14 countries, 30,000

offline & 1’300 online merchants

2’000 merchants

7’000 merchants

150 active advertisers, 685 in the queue for

integration

1‘496 merchants

Unspecified

Blockchain Ethereum NEM Ethereum Ethereum Ethereum Ethereum

Offline and online integration

Third party loyalty programs

Redemption for fiat

Coin pegged to fiat

Euro

Cashback rewards

Convert crypto to fiat


*


weeICOToken (WIT)

The WIT is an utility token that will be issued only during wee’s Initial Coin Offering (ICO) to fund wee’s transformation to blockchain and kick start the further expansion of the wee-Marketplace. All participants will be incentivized to buy, hold and use WIT in order to grow the community and the net-work.

The utility of the WIT will be twofold: as an incentivization mechanism to grant its holders higher cashback rates as well as special VIP offers and also as exclusive membership access to the weeMarketplace. For those who plan to use the wee network over the long-term, WIT will provide sub-stantial access benefits in utilizing the platform to its user base.

8 wee's Token Model

Token incentivesThe table contains the initial WIT amounts required by the WIT holders to gain access to the marketplace, taking into account that a total of 10 bn WIT will be released at the starting price of 0.01€ per WIT.

Incentive Marketplace access

WIT Benefit Cashback

Example Benefit

WIT Benefit

Example Benefit

WIT Benefit

Example Benefit

Customer

100 WIT required

Cashback Reward

For each WPC spent at wee’s partners shops, the customers receives extra cashback or e.g. gets back some additional WIT as a cashback reward

Referral Bonus

If the customer refers a new userthey will both earn 1'000 WIT

Proof of Stake Reward

While staking WIT in their wallets customers will be rewarded with more WIT. The longer the coins are left in the wallet, the higherthe reward

Offline Merchant 5'000 WIT required

Fees will decrease when tokens are held in the wallet for a longer period

For every month that the WIT are held in the wallet, the feesdecrease by a small percentage. Alternatively exclusivemarketing campaigns are offered.

Promotion andAdditional Marketing

wee will have dedicated space on its website to promote theshops that have at least 1 Million WIT in their wallets.

Proof of Stake Reward

While staking WIT in their wallets merchants will be rewardedwith more WIT. The longer coins are left in the wallet, thehigher is the reward

Online Merchant 50'000 WIT required

New Customers


weeICOToken (WIT) vs. weePayCoin (WPC)

8 wee's Token Model

Purpose

Store of value

Stability

Cashback rewards

Risk

Demand

Price

Total supply

WIT

Fuels wee’s marketplace, brings incentives for growth and development of the platform towards blockchain

No

No

Yes

Potentially highly volatile

Created with growth of the marketplace, incentivesto hold and buy WIT to join the ecosystem

Driven by supply and demand

wee’s aim is to grow the demand for token andexpand the marketplace, which should lead toprice increase.

20,000,000,000 WIT

WPC Provides easy transactions, stable cryptocurrency

Yes

Yes

Min

Low, preserves capital

Created as a result of ease of use, incentives to use WPC as a cryptocurrency in real world

1 WPC = 1 euro

wee’s focus will be to increase the liquidityto keep the price stable at all times.

Equal to the euro reserves


9 Investment Case

Timeline, Discounts & Bonus

Phases Time Discounts

Private sale I & II 2018 starting Q2 Sold out

Presale Start 2018 mid Q4 50% Bonus«Family & Friends» (estimated)

Public presale Start 2018 late Q4 up to 40% Bonus (estimated) (time dependent)

Public sale Start 2019 Q1 up to 40% Bonus (estimated) (volume dependent)

Bonus token delivery during public presale (time dependet)

Week Bonus percentage

Week 1 40 %

Week 2 35 %

Week 3 25 %

Week 4 20 %

Week 5 15 %

Week 6 10 % Week 7 - 10 5 %

Bonus calculation example: In week 1 a registered user buys 500 euro worth of WIT tokens for the price of 0.01 euro per WIT, this user will receive the purchased amount of WIT (i.e. 50’000) plus 20’000 WIT, which is the bonus amount of tokens (i.e. 40% of 50’000)

wee group consists of established companies with a track record of several years and with existing revenues. Backed by a variety of investors whose ongoing and continuous support adds great value to the whole project and every new participating investor is welcome to further improve wee’s financial capabilities. Buyers of the WIT invest in the activities, growth and vision of the wee, especially into the transition of the business to blockchain and the implementa-tion of the weePayCoin (WPC).

Token Sale

The presale of weeICOTokens (WIT) is planned to start place in the second half of 2018.

The funds raised during the token sale will be used to trans-fer the current business onto the blockchain and to ensure announced milestones will be met. The WIT will be utilized for commerce and transactions with a limited supply, so its price can be subject to fluctuations. Investors will be able to buy and sell WIT shortly after the ICO ends as we plan to re-alize the listing on a variety of exchanges quickly.

Name Description Token name weeICOToken

Ticker symbol WIT

Platform Ethereum

Total supply 20,000,000,000 WIT

Hard cap approx. € 100,000,000

Soft cap approx. € 10,000,000

Public presale Start 2018 late Q4 (estimated)

Exchange rate €0.01 = 1 WIT

Min. purchase 50,000 WIT

Restrictions More information will be provided prior to the token sale.

Unsold tokens Remain in wee’s treasury

Bonus structure Exact bonus structure as shown below might be adjusted closer to the opening date of the token sale.


Use of Funds

Category In percent Note

Platform 15 % Decreasing with scale of Development investment

Marketing, Business 50 % Increasing with scale ofDevelopment investment Operations 30 % Decreasing due to economies of scale

Legal & Advisory 5 %

The revenues from the ICO are intended to finance invest-ments to transfer the IT platform onto the blockchain, to fur-ther develop the weeMarketplace as well as for the implemen-tation of an extended list of financial services in the longer term. These investments start to take place immediately after a successful closing of the ICO.

The development and transition of the existent solution onto the blockchain will be one of the first tasks in the pipeline. Im-plementing the full functionality of the weePayCoins is key to start the promoted blockchain-based operations.

Meanwhile the geographical expansion of the business and the acquisition of new shops and users will be a key focus.

Legal & Advisory 5%

Marketing &Business Development 50%

Operations30%

Platform development15%

9 Investment Case

Reserves 37%Public sale 25%Private presale «Family & Friends» 7%Public presale 7%Private sale I 5%Private sale II 5%Advisory 5%Team 3%Bounty 3%Airdrop/Incentive forexisting community 3%

Bonus token delivery during public sale (volume)

Investment Bonus percentage

€ 50.000 - € 100.000 10 %

€ 100.001 - € 150.000 15 %

€ 150.001 - € 200.000 20 %

€ 200.001 - € 300.000 25 %

€ 300.001 - € 400.000 30 %

€ 400.001 - € 500.000 35 %

Up to € 500.001 onwards 40 %

Token Distribution

More information on the token distribution will be provided prior to the token sale.

Category Amount (WIT)

Public sale 5,000,000,000

Presale «Family & Friends» 1,500,000,000

Public presale 1,500,000,000

Private sale I 1,000,000,000

Private sale II 1,000,000,000

Reserves 7,500,000,000

Advisory 1,000,000,000

Team 500,000,000

Bounty 500,000,000

Airdrop / Incentive for existing community 500,000,000

Total WIT 20,000,000,000


Status Quo

Unlike other tokens that are starting from scratch with devel-oping a user base, wee is an established and successful business. *Operating in 14 countries, wee has more than 30,000 partners, including 1,300 online businesses and 30,000 offline retailers. Around 500,000 people already use wee as their preferred cash back program. This is a very sig-nificant strategic advantage when entering the «blockchain world».


Our Roadmap

Phase 1 – Transition to blockchainThe first phase will focus on the transition of the current business and application onto the blockchain.

Phase 2 – Expansion to stable coin and financial servicesDevelopment of the stable coin, expansion of the user base and wee’s list of financial services.

10 Roadmap

Q1 2018Project Evaluation and Preparation

Q2 2018Private presale opensFinishing strategic and legal documents and technical setup for ICO

Q4 2018 (estimated)Private presale «Family & Friends»Public presale

Start Q1 2019 (estimated)Public sale

2019The current business model is planned to be fully migrated to the blockchain. weePayCoin will be implemented. WIT will be listed at most of the major exchanges. Significant expansion is planned in Western Europe and in other regions. Towards the end of 2019, the wee platform will become open to third party loyalty programs, where other types of rewards schemes such as frequent flyer miles can be traded. wee will apply for requested licenses to enable offering of various fi-nancial services.

2020wee will expand to Asia, the Americans and Africa. At this point, as a well-established payments solution, wee will aim to receive its own bank license to reach as many as possible of the world’s unbanked people, offering them the opportunity to participate in the financial ecosystem and opening doors for them that were previously impossible to reach. At the same time, wee will strongly focus on implementation and usage of Smart Data as a key driver for further business development.

Timeline


Leadership

We are thrilled to be able to share with you our exciting plans to expand and build upon our innovative brand through the use of blockchain technology.

Leo has more than 25 years of banking experience. The mile-stones of his career were Swiss National Bank (the Swiss Cen-tral Bank), Chief Analyst and chairman of the Global Invest-ment Committee at UBS, member of the Group Executive Board at Julius Baer with responsibility for the global institu-tional asset management. Today Leo has his own consulting company. He holds several board memberships, is a consult-ant to institutional clients and is coaching top managers worldwide. He holds a PHD from the University of Basel (Dr. rer. pol.) and speaks 7 languages

Working in Management for several internationally renowned companies, Tobias is a leading expert in the fields of IT and marketing with a concentration on mobile payment and cloud-based SaaS Solutions. After receiving his diploma in media and computer science he immediately began his career in management positions in the IT industry. Throughout the last 10 years he has been responsible for building several online businesses and SaaS business models.

11 Team

Daniel is a member of the board of directors. He is a serial entrepreneur in the IT, Marketing and Crypto industry since more than 20 years. After graduating as a marketing specialist and completing his diploma in economy computer science, Daniel founded several companies and was heading various projects. During the last years he was predominantly involved in large crowd transformation and digital projects which have further developed his leadership position in media and com-puter science sector. Moreover, Daniel realised the chances of crypto economy early on and founded and co-owns one of the first mining farms in Switzerland.


Daniel LindnerChief Information Officer

Tobias Engelsberger Chief Sales Officer


Advisory

Ewald Schmutz, CEO of weeMarketplace AG and CFO of the wee Group, has been a successful banker and management consultant for more than 30 years. His company is active worldwide in the banking and customer credit sector and pro-vides strategic consultancy regarding corporate management and turnarounds.Before his time at wee, he was Member of the Senior Manage-ment Team at SGB Zurich, Chief of Staff at Regiobank Solo-thurn and a Member of the Executive Board. Additionally, Ewald Schmutz is active as a Member of the Ad-ministrative Board in several industries.

Anders Mathis, Partner at Finaservices Ltd., acts as our finan-cial advisor. He is a Swiss Certified Public accountant with several years of auditing experience from a Big4 Audit firm. Additionally, he has profound experience in several IPO’s as well as similar capital market transactions. In the last months he was working with several companies on their ICO projects.

11 Team

Ewald SchmutzCEO weeMarketplace AGCFO weeGroup

Anders MathisFinancial and Business Planning Advisor

Jan Boluminski is the founder and managing director of the international management consultancy Envolved GmbH. As pioneer and long-lasting expert in the field of quantitative Mar-keting and Sales, CRM and Loyalty (including co-founder and managing director of Payback and member of the advisory board of Miles & More), Jan Boluminski has accompanied companies around the world to create unique customer expe-riences across the entire customer journey. With more than three decades of experience, he not only engages in interna-tional companies, as well as with Startups.

Jan BoluminskiOperational BusinessDevelopment Expert


Disclaimer

This paper is for information purposes only and no part of it is intended to create legal relations between a recipient of this paper or to be legally binding or enforceable by such recipient against the company that owns the project. An up-dated version of this paper may be published on a date to be determined and announced by the company that owns the project in course. Company that owns the project makes no warranties or representations as to the successful develop-ment or implementation of such technologies and innova-tions, or achievement of any other activities noted in the paper, and disclaims any warranties implied by law or other-wise, to the extent permitted by law.

WhitePaper - weeMAT.io · 2018-10-29 · weeNexx AG ı WhitePaper ı Version 1.0 ... Retail banks...

Documents

Transcript of WhitePaper - weeMAT.io · 2018-10-29 · weeNexx AG ı WhitePaper ı Version 1.0 ... Retail banks...