Token whitepaper
Issuer: TENT Corporation SE
Expert guarantor: Altlift s.r.o.
Legal & Compliance guarantor: GPP advokátní kancelář s.r.o.
Version 2.23 – October 2022
This whitepaper is a working document that is subject to review and changes
Important consideration
The objective of this vision paper is for informational purposes only and to present TENT Ecosystem Token named INTENT to potential token holders. The information below may not be exhaustive and does not imply any elements of a contractual relationship. Its sole purpose is to provide relevant and reasonable information in order to determine a thorough analysis of the company, the proposed offer of INTENT’s. INTENT involves a high degree of risk and uncertainty, please see the risk section in the terms and explanatory notes of INTENT for more information.
This document is a marketing document and is not intended to be legally binding. Nothing in this document shall be deemed to constitute a prospectus of any sort or a solicitation for investment, nor does it in any way pertain to an offering or a solicitation of an offer to buy (or sell) any investments in any jurisdiction and should not be construed as such. The information in this document does not constitute a recommendation by any person to purchase INTENT.
Disclaimers
The information presented in this document may not be complete and does not constitute a contract of any kind between you and TENT.com. However, we shall make every effort to ensure that all information available is up to date:
or that any other available information moderated by TENT is up to date.
All available information given by TENT (hereinafter referred to as “Current Information”) is accurate and up to date and does not constitute professional, financial or investment advice.
Anyone intending to purchase INTENT should seek independent professional advice before acting on the basis of current information.
No Representation and No Warranty
Notwithstanding any other provision of this document or any statement made expressly or by implication in the current information, TENT makes no representations or warranties in the current information. TENT does not make or purport to make, and hereby disclaims, any representations, warranties or covenants in any form to any entity or person, including any representations, warranties, covenants or agreements as to the truthfulness, accuracy and completeness of any of the information contained in the current information.
User Declaration and Warranties
By accessing the current information or engaging in any purchase, investment, sale regarding TENT, you declare and warrant the following:
Risk factors
Analysing the market environment, as every project, also TENT (TENT Corporation SE, together with its subsidiary TENT Europe s.r.o., and TENT as project name, further in this document interchangeably referred to as ‘STAN’) bears a number of risks. We are conscious of significant regulatory (legislative, politic), technological, market, operational and many other risks associated with the successful execution of the project. We are convinced that the opportunities however prevail over the risks. The Crypto industry and its integration into our everyday lives has started its marathon run and is not yet really far distant from its starting line. The overall financial world as we know it is going to be disrupted. From our risk-management perspective, the counterweighting risks are not negligible, but identifiable, and most importantly manageable. The majority of risks (measured by their importance, i.e. probability x impact), are managed by their mitigation or transfer at a reasonable expense. Some of them remain retained (accepted), but closely observed and always backed with a backup emergency scenario.
Forward-looking statements
Certain statements contained in this document may constitute forward-looking statements or speak for future events or plans. Such forward-looking statements or information involve known and unknown risks and uncertainties, which may cause actual events to differ materially. No reliance should be placed on any such forward-looking statements or information.
Focus of this whitepaper
TENT company is a fintech developer and operator of TENT solutions helping to reach the TENT mission outlined below in this document. The first and foremost goal of this document is to properly describe how TENT token [INTENT] works, including its role within the overall vision. More specifically, this includes the role of the token and its contribution to the overall TENT ecosystem, including the design, principles of the tokenomics and other aspects with a primary focus on the TENT utility token. TENT utility token does not work as an isolated product for itself.
Detailed elaboration of TENT solutions including all business aspects of the mission is not a primary subject of this paper. TENT users can find all relevant information on publicly available sources, such as the TENT website and other marketing official communication channels. The investment-focused institutional audiences can obtain detailed business information on request.
Table of Contents
Executive summary 5
Mission & Vision 7
TENT Solutions 8
TENT Ecosystem 11
INTENT Token 14
5.1. Utility of INTENT token 16
5.2. Technical aspects 19
Tokenomics 21
6.1. Distribution of INTENTs 21
6.2. Modelling the tokenomics 24
6.3. Simulations 33
Partners 40
TENT Organization & Management 40
About us 41
1.1 Intro – a new era in the finance industry
With the beginning of the 21st century, the world has entered a new era in finance.
The massive trend of digitalization and technology adoption in finance – FinTech, together with the power of decentralised ledger technologies creating a decentralised finance phenomenon – De-Fi, together they are breaking existing paradigms in the finance sector.
Billions of unbanked people are getting banked within a few taps on their mobiles, while the banked part of the population can switch away from their traditional banks in a few seconds. Years of customer history track with existing banks have become worthless in the Open Banking and Open Finance world.
Moreover, the traditional fiat monetary systems – facing uncontrolled monetary easings and inflations – are facing a new, strong opponent. People can not only freely choose between banking providers, but also between currencies and monetary systems, meaning the traditional systems have less influence.
People start getting the option to freely choose ‘better money to live with’.
Financial assets, their storing, payments, investing, lending and other constants in the finance industry are getting reinvented.
1.2 TENT
“TENT is a cryptocurrency platform bringing the benefits of cryptocurrencies into everyday life, to both businesses and ordinary people“.
The TENT suite of Trad-Fi & De-Fi solutions address end-users across Europe with a wide variety of customers, who are adopting crypto either as individuals or as part of a business. Individual users are primarily seeking a seamless experience, free choice in payment methods, additional control over their assets and alternative investments. Businesses are seeking alternative methods to accept payments, attract customers and build loyalty.
To address this problem, in TENT we are operating a payment platform including TENT wallet – a mobile wallet directly communicating with users’ non-custodial wallets for receiving, swapping, secure saving, storing, sending or spending crypto. The wallet is by default connected to a Mastercard payment card with Apple and Google Pay (available to all KYC-ed users for free and in real-time), the TENT crypto payment gateway and our TENT crypto token. The latter is as a unique acquisition and retention financially backed crypto asset. Its tokenomics is based on the premise that the value of the INTENT token is derived from its real utility which can be calculated. Those products will be complemented by other practical finance-oriented components in the TENT ecosystem, utilizing the Open Finance resulting from partnerships with relevant companies, from both De-Fi and traditional finance to plug-in additional financial services.
The backbone of TENT solution stands on TENT robust technological payment platform, with 5 years track record in the payment cards business and a high level of both modularity and external useability, through APIs on the Plug’n’Play principle, to be opened for other business adopters.
1.3 Where the industry goes
In TENT, we recognize that the world of decentralised finance will not -in the long term- live separately from traditional finance. Both monetary systems will be merging together complementing each other. The overall crypto market size is predicted to reach anything from $ 5 to 100 trillion within the next decade.
Technology S-curve demonstrates the potential of cryptocurrencies adoption, compared to other technologies such as cell phone, electricity or color TV in the past.
Fig.1 Deep Resonance, Why Crypto is following the 1990 internet adoption curve; 2022; https://deep-resonance.org/
What we know with certainty, FinTech, Web 3 and De-Fi are here to stay in order to shape the future of global financial systems. They will become an integral part of our everyday lives, across societies and across continents.
We have created TENT to contribute to this fundamental shift in global traditional finance.
In TENT we believe that people should be able to freely choose between giving power over their money to third parties (such as banks) or controlling their money independently.
We believe that by accelerating the transition to adopting cryptocurrency, we can help people globally to increase the level of control over their digital money, whichever form they prefer.
Our mission is to bring crypto-assets into everyday life to ordinary people, by bridging the decentralised with traditional finance (De-Fi & Trad-Fi )
We want to fulfil our mission through creating high user-value, scalable and compliant finance-technology solutions bridging the Trad-Fi & De-Fi worlds. We seek to create efficient on/off ramps between fiat and crypto, to provide cryptocurrency to B2C and B2B users with unparalleled liquidity in terms of fiat-to-crypto, crypto-to-fiat, and crypto-to-crypto exchange.
We plan to offer products in three following main product verticals:
With the completion of all three verticals, the boundaries between Trad-Fi and De-Fi will be completely blurred, and eventually made redundant.
In TENT we build a crypto-fiat payment platform, bridging the two worlds of De-Fi and Trad-Fi and breaking the barriers for ordinary people to adopt crypto into their everyday lives. The overall solution is a complex set of features and functionalities, built around the core TENT authorization & clearing payment system, together creating a complex payment platform.
TENT WALLET is both a custodial wallet and non-custodial wallet, designed to make cryptocurrency more accessible for novice users with minimum compromises on privacy and security. In and out transfers (on/off-ramps) via bank transfers, card or crypto peer-to-peer, the possibility to use external cash bitcoin ATMs to cash in/out, as well as payment connectivity to provide global remittance are all a part of the wallet’s future function.
TENT CARD is a Mastercard card linked to TENT or any other external crypto wallets (B2B2C), allowing users to pay instantly in tens of millions of payment terminals across the world, or online in millions of e-shops wherever the Mastercard logo is present. The user chooses if they pay with a mobile card (Apple or Google Pay) or its physical version – a traditional plastic card. The first choice allows a fully digital journey to set up a new Mastercard card within a few minutes online from any of the EU countries.
TENT TOKEN – TENT token [ticker: INTENT] is a blockchain-based digital asset in form of a utility token, incentivizing TENT users to optionally lower or fully eliminate fees associated with using TENT infrastructure. As an asset with a substantial value backed by a money pool dedicated from each TENT transaction, it might also be treated as an independent digital asset with immediate liquidity on exchanges. Marketing-wise, the token fills primarily the user-activation and user-retention role.
TENT PAYMENT GATEWAY is a payment gateway with integrated KYC, KYT and settlement procedures, allowing to purchase crypto or fiat in e-shops interchangeably for both users and merchants.
OTHER products on the roadmap:
All products are designed for the B2C retail segment, as well as for B2B2C clients as-a-service (API or white label), generally in two forms:
Referral and Loyalty Programme
Our referral program provides a high level of incentivization to support acquisition, activation and retention of new customers. Not only do both referrers and their referred friends receive a EUR bonus (in INTENT) with each successful sign-up, but also the referrals are on an ongoing basis to incentivize B2B2C customers’ portfolios to make their mark on the crypto world.
Primarily, the INTENT token generates discounts (credits) for TENT users holding INTENT tokens. This gives a practical utility to the token, yet staying fully tradable at its market price. For a full description of the token, see chapters 5 and 6 of this Whitepaper.
TENT is primarily a money platform bridging two monetary worlds together and serving it to ordinary users. The core modular payment platform, together with external partners and services, retail and business customers as well as other stakeholders are creating a fully functioning ecosystem for whose use is incentivised through the TENT token.
Support of FIAT institutions
At TENT we see the future in maximal interoperability between finance worlds and user applications. To provide a seamless user experience to the customers, deep cooperation and connectivity to the fiat world is essential. Through PSD2 APIs, we can embed traditional bank account services, without entering the fiat banking world. Support and cooperation with FIAT institutions is essential and we take this approach seriously.
Security & Compliance
Building trust is the cornerstone of our commitment to our customers. We believe that security and compliance are the foundations of achieving mainstream cryptocurrency adoption. KYC and anti-money laundering rules cannot be bypassed, otherwise digital assets will remain an outsider in the shadow zone. At TENT we’ve adopted all KYC (KYB for the business customers) principles and AML checks to commit to holding the flag in widely accepted crypto adoption.
Plans for growth and Project Roadmap
TENT plans to grow in 3 main phases
Roadmap plan
We are aiming towards 3 major milestones on the road (see below), assuming two rounds of financing – Seed round (estimated closing Q4 2022) and Series A (estimated closing end of 2023).
The ultimate product vision should be accomplished in approximately 2 and 1/2 year, creating a huge variety of new opportunities along the way.
Note: As described further in this Whitepaper, the overall initial breath is given to the INTENT token in its birth phase in Q2 2022. This moment fixes the initial immutable conditions of the token for the next 5-8 year of the project. This fact explains why also the milestones on the project roadmap focus primarily on the business-oriented goals, not focusing on detailed token-related occasions.
The INTENT token is designed to enhance user experience with using TENT wallet and services, however, TENT app is fully operational without the token and is in no way reliant on the token. On the other hand, the INTENT token is intended to be used within the TENT app. It presents a liquid form of a smart loyalty program.
We studied major existing tokenomics solutions, drew inspiration from these and identified red flags so that we would avoid them. In particular, our design shall prevent the token from being falsely identified as scammy, speculative or conflicting with existing or expectable regulations in relevant markets. Also, we paid attention to scalability of the design which is crucial in DLT. To communicate the project’s vision clearly, openly and without the need for remaking of the tokenomics in the future, simulations of probable evolution of the ecosystem have been conducted using rigorous mathematics, namely SFC modelling.
For the STAN tokenomics design, we defined several must-have criteria, making the token truly useful for solving the customer problem, rather than relying on an ‘artificially native’ mandatory component with forced circulation and speculative fundamentals.
These forces will be keeping distribution of INTENT predictable and the overall ecosystem long-term sustainable, because {sum of unused Loyaltents} ≦ {current balance of the DISCOUNT POOL}. The DISCOUNT POOL turnover will be automatically reacting on all-users’ activity (both In- and Out-flows continually increasing when STAN services are more used). Together giving a long-term edge to STAN services and its attractiveness and competitiveness. The company sacrifices a part of its revenues to incentivise users’ activity. More activity brings more discounts, but also more revenues exceeding the discounts. It works as a customer acquisition, activisation and retention tool, all in one.
The token price predictions are thus corresponding with the long-term user satisfaction, the growth of the user base, and the overall growth and success of STAN services.
The logic of the token is transparent and synchronises incentives of all stakeholders of the ecosystem. Since the business of STAN is addressing two segments – end consumers B2C and business customers B2B – equally, the token is not distinguishing between those two and works for both segments equally too. This makes the overall STAN business much more scalable than if it was relying on one segment exclusively.
From the technological side, it was desirable to provide a high level of decentralisation on a well-proven blockchain with high transaction speed and scalability (capacity), while minimising blockchain network fees. INTENT chose Polygon, an Ethereum layer2 blockchain, with readiness to diversify into multichain in the near future utilizing Tatum’s unique solution to hedge against the exposition to a single DLT solution.
Finally, the token is closely following the latest development on the regulatory field and is putting its full regulatory compliance to the forefront of the priorities.
Token circulation
TENT to create an efficient payment gateway between fiat and crypto. Liquidity of crypto assets is limited due to the obstacles with transferring value between banks and cryptocurrency exchanges. TENT provides instant conversions from fiat to crypto and vice versa.
Any user of the STAN custodial wallet will be able to make cross payments from this wallet either via the STAN card or via the STAN application. STAN is cooperating with Mastercard and other partners to provide a quality service to STAN users. As this is not possible without paying fees to these third parties (details can be found in the section of Tokenomics), STAN wants to ease the fee burden at least partially using the INTENT token, which will reward holders of INTENTs with discounts.
Unlike in the previous cryptocurrency market cycle, crypto asset users are now accustomed to use stable coins for hedging against volatility of cryptocurrency prices. These stable coins are rarely used for payments directly; in case the users want to withdraw money from crypto to fiat, they must first sell the stable coin and then make a fiat transfer from an exchange to their bank. STAN seeks to address this nuisance by allowing direct payments (via the STAN app or the STAN payment card) in any supported currency. The exchange of a crypto asset to fiat happens seamlessly in the background via STAN and its partners. This way, the user can pay directly with stable coins and has no reason to withdraw their savings from crypto prematurely. Thanks to TENT, stable coins will become as liquid as their fiat equivalents. TENT card allows to link the payment card to any of the crypto assets stored
in the wallet, crypto, stable coin or hypothetically CBDCs in case of future market demand
Most of stable coins (all of the relevant ones) are denominated in USD. STAN’s primary market is the EU. Therefore, STAN seeks to create and issue a Euro denominated stable coin (the EURTENT) via its partner company.
Other major issue in today’s cryptocurrency sphere are not only secure, trustful, and user-friendly custody services, smooth user payment experience, or collateralizing crypto for interest yields, but also the liquidity between different blockchain layers – costly bridging between Ethereum and other platforms, including Ethereum’s own layer twos. Transactions on L2s (including Polygon) are reasonably cheap, however, interacting with Ethereum’s mainchain costs equivalents of hundreds of Dollars. As many decentralized apps and NFT/DLT games use L2s or even build their own L2s, an increasing demand for bridging can be foreseen. We also see an opportunity in addressing this issue. STAN wants to utilize the fact that it will hold tokens such as ETH on both the mainchain and the L2s and offer an option to the users to bridge the tokens via the STAN custodial wallet. In the same sense, STAN’s ecosystem can provide crypto2crypto exchange services.
Owning the INTENT token provides the following benefits to the user:
Ethereum is currently the arguably most popular DLT platform. That also means that it is facing ever growing traffic due to the increasing adoption of cryptocurrencies, NFTs, blockchain gaming and DeFi around the world. This leads to a network congestion causing much higher gas fees. To avoid the high fees and to save on costs for the users, the TENT token and TENT infrastructure as a whole will utilize the layer 2 solution of Polygon (MATIC) that aims to increase scalability without jeopardizing the security or decentralization of Ethereum.
To leverage advantages of other top chains, address wider customer communities, as well as mitigate technical risks, INTENT is prepared to run on multi-chains. Polygon is the first out of three underlying blockchain infrastructures. The overall INTENT token is designed to be migratable and possible to run on multiple chains in order to secure its durability and robustness for many unpredictable situations in the future. Polygon too might have issue as it services many dApps and some might eventually experience a skyrocketing demand for transactions leading to a rapid temporary increase of the gas fee price, therefore, STAN’s exposition must be mitigated.
Polygon shares the functionality of EVM (Ethereum Virtual Machine), it has Ethereum compatible addresses and offers significantly lower transaction fees. It belongs to the most popular blockchain platforms. Polygon is more efficient than Ethereum for several reasons:
Regardless our diversification strategy to deploy INTENT on multiple blockchains, we believe that pruning (using a service such as Arweave) can make Polygon operational and the best choice for a satisfactory long time.
Polygon network will be used mostly in the following ways:
Philosophy of the technical solution should be based on three propositions:
Blockchain entries:
*1) note: not all features will be available immediately with version 1, but in accordance with product roadmap
All users will be able to see transparently on STAN website and/or via STAN app (data will be calculated based on blockchain analytics):
INTENT and Loyaltent distribution equations data query*2):
*2) note: the equations read data from blockchain to be able to calculate the actual balance of Loyaltent to each user in real time
Tokenomics is divided into three parts – 6.1 Distribution, 6.2 Modelling the tokenomics, and 6.3 Simulations.
There is a fixed number of 2,000,000,000 INTENT tokens referred to as Maximum supply. There will be no ICO/IEO/IDO/STO. All tokens will be distributed gradually on a regular basis so that the number of tokens grows with the user base.
The distribution of not only the main 60%, but also these 30% will happen at a steady rate and will be completed after approximately 5 years from the launch. This gradual distribution stimulates the dedication of all the partners to the project. Also, it supports the utility value of the 60% distributed to the users.
Initial contract: 0x5918Fa85f0a3DdC00Ce145CBA21D5540d25c5cc7
Initial Polgyon wallets | Initial Holding |
0xcb6ed4666d0577b489f5c430dc0849ee6f96f518 | 1,200,000,000 |
0xd1c8e621ddea18e38c107fb1920c2f26bccc69c9 | 600,000,000 |
0xfa7165b9a727a549bd4c5f7574d710870a824b37 | 200,000,000 |
The Airdrops to active users will happen every week until all 60% of INTENTs is given out to the community. We set the parameters of distribution so that under the expected circumstances (the ‘default scenario’), the distribution will last approximately five years of growing business activities.
The Airdrops of INTENTs have two forms. The first form is a weekly reward with regards to the Tier of activity the user has achieved during that week (nulled and calculated again and again for every new week). The other is a reward for referring a friend. Tier of activity is measured in the amount of money the user has contributed to the DISCOUNT POOL. Only permanently active users are rewarded. For the referral to be successfully granted, the referee needs to be active at least one week (read: they must make at least one transaction each week to become eligible to gain weekly airdrop) and must pass the KYC. This results in the following table for Airdrops:
Airdrops for: | Rewards: |
Tier 1 = top 100 active users | 1000 INTENT tokens |
Tier 2 = top 10,000 active users | 100 INTENT tokens |
Tier 3 = Every active user | 2 INTENT tokens |
Referring an active user | 50 INTENT tokens for the referrer AND 50 for the referred user |
This overall INTENT mechanics is designed to be an effective tool aiming at user acquisition, as well as user activation.
We paid special attention to the tokenomics. Most crypto assets do not use rigorous modelling for determining parameters and systemic setup. This negligence might result (and often results) into a situation when the coin is hyperinflationary and must be burnt, or those parameters must be reset which always damages some stakeholders, or nodes are not motivated enough, and extra incentives must be added etc. Very commonly, the utility tokens are unluckily designed as mandatory-to-use, hoping to create an artificial or ‘forced’ demand. In a nutshell, if a rule of thumb is used instead of a sophisticated design, the project’s flask is leaking and hotfixes using a duct tape make it leak elsewhere. Or explode. Without naming any, there is a number of good projects with millions of users suffer from this.
We designed a stock-flow consistent model to test and parametrize our solution. Unlike the DSGE (dynamic stochastic general equilibrium) models, our model does not assume a general equilibrium. Therefore, it can be used to identify systemic failures and to prevent them. The model was programmed in Minsky (version 2.30), a software designed exactly for modelling flows of money, named after Hyman Minsky, an American economist who studied instability of financial markets. The software was created by Australian scientists Steve Keen and Russel Standish. Steve Keen won the Revere Award for the best prediction of the Credit Crunch in 2008 (the one ‘no-one could see’). Minsky works with a unique method of Godley Tables. Those force the user to comply with accounting rules so that faulty or unrealistic operations must be avoided. Minsky strictly distinguishes between stocks (of money, tokens, users…) and flows (of the same entities). Minsky also allows us to simulate the dynamics in the model. It operates in continuous time, using Runge Kutta and calculus to calculate values for all possible timeframes. It is very easy to design a model that crashes during the simulations. This helps to identify systemic flaws that could otherwise be overlooked.
The model should solve several tasks in order to design a suitable tokenomics for STAN:
Before we get to STAN’s userbase, we must define the size of the relevant market. As STAN’s services are meant mostly for the EU’s citizens, we must calculate with Europeans using crypto. (Note: to be precise, the STAN services will be fitting into non-European remittance and payments markets too, however due to our conservative approach, we decided not to reflect these markets in the existing mid-term outlook). Using data from 2020, the population of the 27 member states is approximately 447 mil. We use this as a parameter, not a variable, as we don’t expect the population growth/decline to be significant. We assume that 10% of the EU population has some experience with cryptocurrencies as of today. We concluded at 10%, as studies from Europe and USA suggested some 8% in 2020 and newer 2021 data from Australia suggest the suspected amount closes on 20% already. We expect that this percentage will grow relatively quickly due to high adoption rate in the past years mixed with the today’s state of world’s economy. We assume that the crypto share of population could double every five years. As we operate in continuous time, not discrete, the increase is also continuous. However, in order to make the growth more realistic, we assume that the growth slows down as more people get lured into crypto. If a crypto Jesus would walk the streets and told the good news to everyone he met, gradually he would meet more and more people who have already been converted. The maximum capacity thus works like some form of a repelling magnet that slows this growth as it approaches it (PP). The following formulas were used:
PP=11+Share of population×(52-1)
Share of populationddt=share of population ×ln (52×PP)
To facilitate the understanding, we offer a graphical approximation:
This results in the share of crypto population reaching 100% in roughly 75 years and doubling to 20% in some 5,8 years. The red line represents 100% of EU’s population, the green curve represents the share of crypto savvy people on it. Time in years is on the horizontal axis.
Next, we deal with already existing TENT users and TENT token holders. We assume that STAN will start with approximately 1,000 initial users (existing community of ex-Snowgem owners; Note: Snowgem project was formerly a joint-venture with TENT, terminated and forked in Q3 2021, gaining a user base of around 1,000 STAN wallet users). For the underlying basis, we assumed that the number of STAN users would quadruple every year (double every six months). To make a realistic estimate of growth, we created a similar limitation to the growth as in the share of population growth formula. We also assumed, that STAN cannot attract hypothetically in any distant future more than 1/3 of the potential (Total Addressable) market. The base formula than looks like this:
Crypto users=447m×Share of population
KK=Crypto usersCrypto users +(TENT users × 4-1×3)
TENT usersddt=TENT users × (4×KK)
So far, we have only covered organic growth in the formula. The organic growth is done via users referring the STAN application to their social bubble. In order to speed up the growth and reach the expected around 50 000 users after 1 year from full launch of the token, using the parameters presented, an initial (at least three-month long) marketing campaign is needed starting no later than three months after the launch, that could attract around 20,000 early users. This estimate is also supported by unique product design, allowing users to obtain regular payment card and use it via Apple/Google Pay as a full-regular payment card across EU literally in seconds. With this setup, the STAN application aspires to reach around 1,000,000 users some three years after the official launch (also called as SOM – Serviceable Obtainable Market). The next graph shows the same timeframe with nominal numbers of people (in hundreds of millions). The green curve is the entire crypto population again, the blue line represents STAN users. When modelling a 50-year predictions scenario, it will never surpass 1/3 of the crypto population (limited to ca 150mn users). In the language of start-ups ultimate market potential, this number would represent TAM (Total Addressable Market).
STAN chooses a transparent and straightforward fee policy. Every conversion (fiat2crypto, crypto2fiat, or crypto2crypto) is subject to a flat 5% fee on average, resulting from fees charged by providers of the critical components and existing on & off-ramps (such as payment gateway, Mastercard, crypto exchanges fees, KYC fees etc. With long-term growing maturity of the crypto industry and growing transaction volumes we expect these fees fiat-to-crypto payment fees to slowly, but constantly
decrease, however the model operates with 5% as a parameter). To follow the rule of making STAN services as accessible to wide market as possible, there are planned no other fees related to using STAN and there are other hidden fees – i.e., no ongoing card fees, no transaction fees, no monthly or yearly fees, no mandatory token buys etc., as users might know it from some other existing services. As payment transactions (in its general meaning) are getting commoditized, we predict that as such will not be subject any material senders’ fee in the future. Only specific events within TENT, such as card plastic printing and shipping, lost card reissuance etc. might will be subject to additional charge (covering the extra costs associated). In the total numbers, the significance of those extra-costs items is going to be from low to neglectable, due to focusing primarily on more secure and convenient digital form of cards not associating unnecessary costs (such as NFC Google and Apple Pay, making plastic cards soon a history etc).
The proposed 5% flat rate is competitive in the existing world today, when compared to fees paid in DeFi, typically at decentralized exchanges on Ethereum, even more so when compared to time costs and network fees connected to bridging tokens among layers and on&off ramps. Especially when the user does not perform transactions worth tens of thousands of Euros.
However, STAN aims at large users of crypto too and here is exactly where INTENT comes to play. INTENTs held in STAN custodial wallet or the user’s non-custodial wallet connected to their STAN wallet generate Loyaltent credits on a continual basis. Loyaltents are worth 1 Euro each and are automatically used to cover the user’s fees – Loyaltents are automatically written of and the user gets reimbursed in Euros/EURTENT stablecoins. INTENTs can be also understood as a prepaid membership with a very important difference:
This means that the user does not purchase special membership (=cost), they allocate money in it (=investment). Also, every user can buy the exact number of INTENTs they intent to.
Looking at the project economics, on average, out of the 5% flat fee, approximately 3% are paid to third parties. The third parties are payment providers (gateways, card schemes), card issuers, banks, custodians, DEX fees, CEX fees, network fees and other infrastructure providers. Also, on average another up to 1% card interchange fee enters the system which is not paid by the users, but by Mastercard who charges the merchants (depending on the card type and other factors exceeding scope of this document). Out of the remaining 3%, STAN shares half of their incomes with the users by allocating 1,5% back to the TENT infrastructure through the instrument called DISCOUNT POOL. The substantial long-term underlying value of liquid assets behind the INTENT token is of high importance in the overall token setup.
We assume that an average user turns 1,000 Euros per month using STAN wallet. As we have already calculated the user base in time, we can outline this formula:
Discount poolddt=Users ×0.8 ×avg payment×12× 6% overall fee-3% Third party costs×0.5 Revenueddt = Users ×0.8 ×avg payment×12× 6% overall fee-3% Third party costs ×0.5
The DISCOUNT POOL is a pool of money dedicated on a bank account (EURTENTs on a dedicated wallet, respectively), which is behaving according to given, immutably programmed rules. Every time a user makes a transaction from which a fee is deducted, the appropriate portion of the Euros or EURTENTs will be sent to the DISCOUNT POOL. At the same time, a message with the information of how many Euros have been allocated to the DISCOUNT POOL will be uploaded to the blockchain within minutes. This is crucial for having the Loyaltent distribution automated, transparent, and auditable.
For an easier comprehension of the relationship between the DISCOUNT POOL and a virtual pool of all Loyaltents held by users, see the image:
The two blue pools work like joined vessels. The rate at which INTENT holdings generate Loyaltents depends on the ratio between the two pools. There can never be more Loyaltents among users than there are Euros in the DISCOUNT POOL. The fact that the DISCOUNT POOL is growing by one quarter of the fees being allocated to it, speeds up the rate at which INTENTs generate Loyaltents. As Loyaltents are practically claims for Euros on the bank account referred to as the DISCOUNT POOL, the claim for discounts of every INTENT grows with STAN app being used (the more people use TENT, the more Discount Pool grows, the higher substantial value of INTENT’s underlying assets). This is the fundament of INTENT’s utility value, and its fair price can be derived from it (of course, we need to take into account that people have different, subjective valuations and budget restraints).
To be absolutely clear, INTENT is not an investment asset. It is a utility and a governance token. INTENT bears fruits, however, Loyaltents cannot be seen as dividends. They are not transferable. Loyaltents are credits fixed to individual user’s wallet. They are meaningful only for those, who want to use TENT.
We need to prevent the situation when a user buys INTENT producing Loyaltents and then stops using STAN for any reason. Loyaltents would become permanently locked in such user’s app and the corresponding Euros would be also locked in the DISCOUNT POOL forever. What is worse, these sank funds would decrease the rentability of holding INTENTs for everyone.
To solve this, we implement demurrage to all Loyaltent holdings. Demurrage is a time expiration – a continual decrease of the Loyaltent credit in each user’s wallet. We can say that Loyaltents melt down like an ice-cream. The half-life of one Loyaltent is one year. This means half of remaining (unused) balance expires every year, i.e. if the user decided to sell all their INTENTs, in a year, their Loyaltent credit would halve. As the demurrage is not being applied to the DISCOUNT POOL, the DISCOUNT POOL tends to exceed total Loyaltent holdings. This in turn causes that INTENTs generate new Loyaltents faster. Demurrage does not punish users who hold INTENTs then. In the equilibrium situation (which is purely hypothetical), demurraged Loyaltents are immediately replaced by newly generated Loyaltents and the homeostasis does not break. In reality, the demurrage transfers discounts over time from former INTENT holders to present INTENT holders. Demurrage and user’s Loyaltent balance are in every moment calculated by exact and immutable mathematical formulas, (not disclosed in public version of the Whitepaper), whereas:
In the long run, the total amount of Loyaltents of all users converges to the sum of money in the DISCOUNT POOL.
To calculate the Loyaltent balance for every user, the STAN wallet app or any B2B whitelabeled wallet or API service linked to STAN backend must read data from the blockchain, namely it must know the current size of the DISCOUNT POOL, the user’s balance of INTENT in both their STAN custodial wallet and in their connected wallet(s) and the total number of INTENTs in circulation. Also, the app must subtract the used Loyaltents from the user’s balance immediately when it happens. Every time any of the observed variables change, the equation must make a snapshot in time t0 and restart the calculation. Every block in the blockchain has a timestamp which will be compared to the moment t1 when the user checks their Loyaltent balance. In other words, Loyaltents are not tokens, they are merely calculated results.
INTENT token airdrops – The airdrop Tier system has already been described in Chapter 4) and stands as follows:
A user only falls under one Tier. We assume that approximately 80% of the STAN users will be active users (meaning they will do at least one transaction on the STAN wallet every week). Although the difference between Tier 2 and Tier 3 may seem large, the value every INTENT token generates via Loyaltents is dependent on the money in the DISCOUNT POOL and this Tier gamification encourages larger spending of users who want to ensure they rank for a higher Tier reward. Every user can also accumulate a substantial number of INTENTs by referring new users. Assuming the STAN user growth calculated in subchapter 5.1), the 1,200,000,000 INTENTs should be given out in approximately 5 years’ time. Then TENT ecosystem reaches its maturity.
INTENTs allocated for partners, investors and the team should also be released gradually in weekly tranches over the period of 5 years. This mechanism protects from supply shocks potentially negatively affecting the free float market (ensures certain level of price predictability).
INTENTs serve two purposes. The value of INTENT as a governance token cannot be calculated just like the value of a citizen’s vote in an election cannot. We know that it increases the tokens value, but we do not know by which magnitude. That is also why the value of the pure governance tokens such as Uniswap’s UNI is largely speculative.
Yet the value of INTENT as a utility token stands on a solid ground. In every moment of time, we can simply divide the flow of generated Loyaltents by total INTENTs in circulation. This ‘claim’ shows how many Loyaltents a single INTENT token generates in a year. Because of the demurrage, the yearly return of this claim varies between 1 EUR/Loyaltent and 0.5 EUR/Loyaltent (in case the user does not pay any fees within the next year). If the user expected for example an APY of 10%, the subjective value of 1 INTENT would be between ‘claim multiplied by 5’ and ‘claim multiplied by 10’.
In case the distribution schedule presented in Subchapter 5.4) holds and in case all the INTENTs are held in STAN custodial wallets or connected non-custodial wallets, the expected generated Loyaltents per INTENT in years 1-5 increase with time despite the continual predistribution of INTENTs. They can be seen in this table:
Year | 1 | 2 | 3 | 4 | 5 |
Expected annual generation of Loyaltent per 1 INTENT | 0.0395938 | 0.0713294 | 0.16538 | 0.349238 | 0.540822 |
The table demonstrates increasing estimated generation of Loyaltent over time, which is coming out from increasing DISCOUNT POOL year by year. Imagining 1 Loyaltent as the fixed discount of 1 EUR for STAN services, the increasing generation of Loylatents results in the increasing relative annual yield (APY) of 1 INTENT as the time goes.
To simulate the market forces, we divided TENT’s userbase into six groups. Each group decides whether they want to buy more INTENTs (Demand for INTENT) or sell their INTENTs (Supply of INTENT). Each group aggregates a certain proportion of fiat money that flows through their STAN account. The proportion is a randomly generated integer ranging between 5 and 25. The sum must give 100, of course. The proportion symbolizes two things. The market power of the group. And the group’s share on distributed tokens (the Tier system ensures that the users who spend more money will be rewarded with more predistributed INTENTs).
The dynamics of the INTENT distribution among the groups is simulated using a Godley table. All groups start the simulation with 0 INTENTs. Three flows are attached to the stock of each group’s INTENTs. This way, the proportion evolves in time. Flow 1 is the predistribution. Flow 2 is the group selling their INTENTs. Flow 3 is the group buying the INTENTs. The derivative of INTENTs in circulation is equal to the predistribution which means that Flows 2 and 3 must cancel each other out (every sold INTENT must be bought by another group). Altogether the groups always make 100% of the holders of INTENT.
The six different groups seek to buy more INTENTs from the market or are offering to sell their own INTENTs depending on the current Price of INTENT on the market and on the value that every INTENT generates at the given time. The groups are as follows:
Supply and demand meet in the market. To balance the supplied and the demanded quantities of the traded asset, a price that clears the market must be discovered. In any moment in the simulation, 4 out of the 6 groups decide whether they buy or sell INTENTs (Groups 1 and 6 don’t take the decision).
If a group sells INTENTs, the flow of supplied INTENTs equals the total number of INTENTs the group has. Which in the continuous time means, that their total stock would be depleted in a year, assuming there won’t be any inflows (such as the predistribution).
If a group buys INTENTs, the flow of demanded INTENTs equals the total INTENTs in circulation multiplied by the group’s proportion defined in Subchapter 5.5).
The disproportion between quantity demanded and quantity supplied forms ‘buy pressure’. The buy pressure is a simple QD/QS ratio. The actual number of INTENTs sold by the groups (Flow 2) equals their supply. The actual number of INTENTs bought by a group (Flow 3), though, equals the groups demand divided by the buy pressure. The initial Price of INTENT is set to 0.1 EUR. The dynamics is modelled as follows:
Priceddt=Price×(buypressure-1)
We conducted 20 simulations with the initial settings described in Chapter 5). Those simulations only varied in the randomly chosen sizes of the 6 made up groups of STAN users that are active in the market. As the groups move with demand and supply, their proportions affect the market price of the INTENT token on the market. We used the Monte Carlo method and generated random percentages ranging from 5 – 25 for each group. After having processed the 20 simulations, we get the following graph, showing the maximums, minimums and most importantly: the average INTENT price in time. As can be seen from the graph, the price will depend heavily on the size of every group as they represent the sentiment towards the INTENT token.
Disclaimer: all simulations in this chapter are calculated as theoretical mathematical concepts based on given formulas used or described in this document and are coming out from estimated input variables. Real results will be affected by number of circumstances including market, technological and other aspects, that is impossible to fully estimate upfront.
The following two graphs show the Median and Geometric mean interpretations of the trading price from the same 20 simulations.
We use this expected price evolution to verify the tokenomics. The airdrop schedule is designed to incentivize STAN users to make transactions via STAN frequently. If the price of the distributed INTENT tokens was too low, it might have a negative impact on the activity of the users. Which would lead to a spiral of smaller DISCOUNT POOL, fewer generated Loyaltents and lower price of INTENT.
What we can see is that one year after INTENT launched, the 100 Tier 1 users receive 1,000 INTENTs every week. That represents up to 390 EUR every week. Due to demurrage, the value drops up to a half in case the user does not use the Loyaltents, however, the very fact that the user ranks in Tier 1 implies that the discounts are being utilized frequently. 10,000 Tier 2 users receive 100 INTENTs representing 39 EUR. All other (Tier 3) active users (80% of total users) receive 2 INTENTs representing 0.78 EUR. This reward alone would hardly convince anyone to use the app. However, the total number of users in year 1 is expected to be around 50 000. With 20% of users counted as inactive, an active user has a ¼ chance to rank in Tier 2. This should be sufficiently stimulating to compete in the weekly race. Also, the referral reward of 50 INTENTs for both users offers the same 39 EUR as Tier 2 does. Therefore, we consider the airdrop schedule model reasonably stimulating.
Zooming out, the INTENT token represents a positive stimulation, creating primarily a competitive advantage for STAN wallet, card and STAN services, compared to other solutions solving liquidity and interoperability problems between TradFi and DeFi. It is positively incentivizing user acquisition, activation, as well as retention. As such it can be adopted by other related businesses or solutions.
We have also tried altering some important parameters from the initial settings to see how the project would be affected. First, we changed the growth speed of the user base of STAN application to half of the initial settings.
Most notable is that not all INTENT tokens were distributed within 5 years (they would be distributed after a few months into the 8th year). The much lower DISCOUNT POOL led to a lower trading price as the value that INTENT token generates is also lower.
This scenario can be compared to the situation, where the growth would remain the same, but the average monthly transaction would be reduced to a half instead. The result came out much better in this case as can be seen in the following graphs:
However, in a simulation where we decreased the average payment to mere 100 EUR, the result came out even worse with DISCOUNT POOL / Revenue reaching some 90,000,000 EUR in 5 years and the trading Price amounted to mere 0.73 EUR.
We have also run a simulation where the increase of new users simply stops at a given time. The demand and supply of the groups is not affected at all by this, and the price does not crash. The only thing that happens is that the value that every INTENT generates stabilizes around a certain value. This shows that the project isn’t running on a pyramid scheme, where once the influx of people stops, the project collapses. STAN project would only collapse if the current users stopped being active, meaning no retail customers (B2C) nor business clients (B2B) would be using the service. After the airdrop is over, such situation would have little to nothing to do with tokenomics.
In order for STAN project to succeed, it must have a steady growth of users and the users must be financially active with integrating crypto slowly but continuously into their everyday life and financial behaviour. In other words, the STAN application and its wallet and overall services must remain a competitive option even without INTENT as its extension (which is without any doubts affected by many external and internal factors). INTENT as an extension can, however, add rapidly on the attractiveness of the project. These Scenarios have also shown the importance of a successful initial marketing few months after the launch as the natural growth parameter shifts. Unlike the average payment size, the user growth speed can be pushed by STAN, and it should be.
In order to deliver our mission, we are partnering with household names from the fintech industry, from both fiat and crypto world. Key partners for the initial TENT setup are:
The TENT.com was founded by a team with a proven track record in the financial technology world. STAN is managed as a lean, flat organization (s.r.o.- Ltd. type). It develops extensive knowledge, such as existing card successful businesses track and complementing external experts. This occurs through both STAN vision and by the attractive ESOP program for the managers and employees. The organization structure secures, that the key core of the business solutions is developed in-house, while the specialized or replaceable components are being professionally outsourced. Filling all empty gaps in the organisational structure will be critical for desired growth and achieving set goals. The team is expected to grow from 10 up to ~ 30 core members fully dedicated to the TENT project in the next 2 years.
Jan Purkrabek ▶ex-Mastercard head of fintechs CZ, SK, AUT ▶ex-CreativeDock fintech venture ▶co-Founder of Fintech Hub CEE ▶ex-builder of crypto nation Liberland ▶ex-head of Treasury CZ Radiokomunikace | Rostislav Cendelin ▶ex-Prepaid Solutions-card issuing CTO ▶ex-MPU bank CTO ▶ex-MediaPort -an IT systems co. COO
| Zoltan Finta ▶Lemon Pay benefit cards program lead ▶ex-Landmark Payments CCO ▶ex-Premium Payments CEO
| Radek Hradil ▶ ex-Prepaid Solutions-card issuing COO ▶ ex-finance cooperative Unibon COO
| David Tacl ▶ ex-Prepaid Solutions-card issuing CEO ▶ ex-CEO online insurance broker Ceske Pojisteni ▶online comparator of energy services |
To support us on our path forward, we are open to inviting more industry-recognized leaders to join our Board of Advisers, to offer their expertise.
At this initial stage of project, we use:
More info on the TENT project can be found on www.tent.com. This whitepaper will be available on www.tent.com/INTENT/whitepaper.
Currently we are on LinkedIn and Discord, Twitter and Telegram planning to extend to YouTube and potentially other platforms in the future.