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DROPDECK
A​ ​royalty​ ​&​ ​debt​ ​financing​ ​platform​ ​for​ ​fast​ ​growing​ ​businesses
Pure​ ​smart-contract​ ​&​ ​token-incentivized​ ​mechanism​ ​to​ ​evaluate​ ​&​ ​fund​ ​businesses​ ​worldwide

Version​ ​3​ ​(November​ ​8th,​ ​2017)

Alon​ ​Vo,​ ​Michael​ ​Phan,​ ​George​ ​Popescu​ ​(alon,​ ​michael,​ ​george​ ​(at)​ ​dropdeck.io)

For​ ​a​ ​quicker​ ​look​ ​at​ ​the​ ​concept​ ​of​ ​DropDeck,​ ​please​ ​refer​ ​to​ h
​ ttps://DropDeck.IO

Disclaimer:​ ​This​ ​document​ ​is​ ​for​ ​informational​ ​purposes​ ​only​ ​and​ ​does​ ​not​ ​constitute​ ​an​ ​offer​ ​or
solicitation​ ​to​ ​sell​ ​shares​ ​or​ ​securities​ ​in​ ​DropDeck​ ​or​ ​any​ ​related​ ​or​ ​associated​ ​company.​ ​Any
such​ ​offer​ ​or​ ​solicitation​ ​will​ ​be​ ​made​ ​only​ ​by​ ​means​ ​of​ ​a​ ​confidential​ ​offering​ ​memorandum​ ​and
in​ ​accordance​ ​with​ ​the​ ​terms​ ​of​ ​all​ ​applicable​ ​securities​ ​and​ ​other​ ​laws.

Draft​ ​for​ ​open​ ​community​ ​review.​ ​Subject​ ​to​ ​change.

August​ ​2017
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EXECUTIVE​ ​SUMMARY

DropDeck​ ​is​ ​a​ ​funding​ ​platform​ ​that​ ​runs​ ​on​ ​the​ ​Ethereum​ ​blockchain​ ​because​ ​it​ ​requires​ ​this
blockchain's​ ​features​ ​such​ ​as​ ​smart​ ​contracts,​ ​payment,​ ​consensus​ ​mechanism​ ​and​ ​its​ ​own
digital​ ​token​ ​named​ ​DDD​​ ​(Decentralized​ ​DropDeck).

DropDeck​ ​is​ ​shaping​ ​the​ ​most​ ​innovative​ ​solution​ ​to​ ​address​​ ​all​ ​existing​ ​issues​ ​in
cross-border​ ​business​​ ​funding​ ​for​ ​startups​ ​and​ ​SMEs​,​ ​by​ ​issuing​ ​digital​ ​tokens​ ​and​ ​deploying
smart​ ​contracts​ ​to​ ​incentivize​ ​all​ ​token​ ​holders​ ​to​ ​collaborate​ ​with​ ​each​ ​other​ ​and​ c ​ omplement
the​ ​A.I.​ ​development​.​ ​The​ ​outcomes​ ​are​ ​1)​ ​fundraising​ ​companies​ ​are​ ​as​ ​accurately​ ​scored
and​ ​ranked​ ​as​ ​possible​ ​so​ ​that​ ​funders​ ​can​ ​put​ ​their​ ​money​ ​to​ ​optimal​ ​use,​ ​and​ ​2)​ ​all
participants​ ​in​ ​the​ ​ecosystem​ ​are​ ​financially​ ​incentivized​ ​to​ ​help​ ​funders​ ​get​ ​rewarded,​ ​so​ ​that
funders​ ​can​ ​keep​ ​funding​ ​and​ ​attract​ ​more​ ​funders​ ​to​ ​join​ ​the​ ​ecosystem.

Companies​ ​from​ ​all​ ​geographies​ ​can​ ​submit​ ​information​ ​to​ ​the​ ​platform​ ​according​ ​to
standardized​ ​funder-centric​ ​formats,​ ​or​ ​local​ ​agents​ ​called​ ​Hunters​ ​can​ ​help​ ​do​ ​so.

Funders​ ​screen​ ​fundraising​ ​companies​ ​based​ ​on​ ​scores,​ ​and​ ​can​ ​select​ ​local​ ​agents​ ​called
Delegates​ ​in​ ​the​ ​geography​ ​of​ ​the​ ​interested​ ​company​ ​to​ ​assist​ ​in​ ​further​ ​due​ ​diligence.​ ​After
conducting​ ​full​ ​due​ ​diligence,​ ​the​ ​funders​ ​are​ ​ready​ ​to​ ​make​ ​the​ ​loan.​ ​The​ ​Delegate​ ​is​ ​required
to​ ​enter​ ​into​ ​a​ ​legal​ ​arrangement​ ​with​ ​the​ ​funded​ ​company​ ​in​ ​order​ ​to​ ​enforce​ ​the​ ​repayment.
Funders​ ​then​ ​make​ ​a​ ​payment​ ​in​ ​DDD​ ​to​ ​a​ ​smart​ ​contract.​ ​This​ ​smart​ ​contract​ ​involves​ ​the
funders,​ ​the​ ​funded​ ​company,​ ​and​ ​the​ ​Delegate,​ ​so​ ​that​ ​the​ ​Delegate​ ​only​ ​gets​ ​paid​ ​if​ ​the
funded​ ​company​ ​pays​ ​back.​ ​The​ ​Delegate​ ​receives​ ​either​ ​a​ ​percentage​ ​of​ ​the​ ​repayment
amount,​ ​or​ ​a​ ​fixed​ ​amount​ ​held​ ​in​ ​escrow​ ​by​ ​the​ ​smart​ ​contract.

The​ ​loan​ ​can​ ​be​ ​paid​ ​back​ ​in​ ​the​ ​form​ ​of​ ​simple​ ​amortization​ ​with​ ​regular​ ​payments,​ ​or​ ​via
royalties​ ​or​ ​with​ ​other​ ​amortization​ ​schedules​ ​for​ ​companies​ ​who​ ​are​ ​not​ ​generating​ ​consistent
cash​ ​flow​ ​yet.​ ​The​ ​DropDeck​ ​reputation​ ​system​ ​encourages​ ​funded​ ​companies​ ​to​ ​pay​ ​back​ ​in
order​ ​to​ ​attract​ ​further​ ​funding​ ​in​ ​the​ ​future,​ ​and​ ​encourages​ ​Delegates​ ​to​ ​protect​ ​the​ ​funders’
interests​ ​in​ ​order​ ​to​ ​attract​ ​more​ ​clients.

The​ ​Decentralized​ ​DropDeck​ ​Token​​ ​(​DDD​)​ ​will​ ​be​ ​issued​ ​and​ ​distributed​ ​to​ ​serve​ ​as​ ​the
ultimate​ ​reward​ ​for​ ​all​ ​participants​ ​in​ ​the​ ​funding​ ​value​ ​chain​ ​(Delegates,​ ​Hunters,​ ​Evaluators,
etc.).​ ​Since​ ​DDD's​ ​value​ ​reflects​ ​the​ ​overall​ ​success​ ​of​ ​funders​ ​and​ ​fundraising​ ​companies​ ​on
DropDeck,​ ​every​ ​participant​ ​must​ ​collaborate​ ​in​ ​the​ ​best​ ​interests​ ​of​ ​each​ ​oth​er​ ​(e.g.
evaluate​ ​companies​ ​accurately,​ ​enforce​ ​repayment)​ ​and​ ​of​ ​DropDeck​ ​(e.g.​ ​contribute​ ​data​ ​to
make​ ​scoring​ ​algorithms​ ​smarter)​ ​in​ ​order​ ​to​ ​increase​ ​the​ ​value​ ​of​ ​their​ ​rewards.

DropDeck​ ​helps​ ​funders​ ​allocate​ ​capital​ ​to​ ​the​ ​most​ ​deserving​ ​companies​ ​while​ ​being​ ​informed
of​ ​these​ ​companies’​ ​“Potential​ ​scores”,​ ​which​ ​reflects​ ​the​ ​degree​ ​of​ ​risk​ ​and​ ​potential​ ​in​ ​terms​ ​of
profitability.​ ​For​ ​the​ ​underwriting​ ​part​ ​of​ ​the​ ​loan,​ ​the​ ​fundraising​ ​company​ ​and​ ​the​ ​funders​ ​can
propose​ ​the​ ​terms​ ​(interest​ ​rate,​ ​royalty,​ ​schedule,​ ​etc.).​ ​DropDeck​ ​also​ ​makes​ ​suggestions​ ​with
its​ ​A.I.​ ​algorithms.​ ​One​ ​or​ ​many​ ​Delegates​ ​consolidate​ ​information​ ​to​ ​make​ ​final​ ​proposals.​ ​The
funders​ ​and​ ​the​ ​funded​ ​company​ ​who​ ​have​ ​“skin​ ​in​ ​the​ ​game”​ ​will​ ​come​ ​to​ ​a​ ​consensus​ ​to
choose​ ​a​ ​proposal​ ​and​ ​the​ ​according​ ​Delegate​ ​to​ ​carry​ ​out​ ​the​ ​terms.

DDD​ ​does​ ​not​ ​constitute​ ​a​ ​security​​ ​because​ ​funders​ ​are​ ​entitled​ ​to​ ​rewards​ ​by​ ​doing​ ​work
and​ ​lending​ ​their​ ​DDD,​ ​not​ ​by​ ​holding​ ​DDD.​ ​Please​ ​refer​ ​to​ ​Legal​ ​Considerations​.
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There​ ​are​ ​10​ ​main​ ​stages​ ​in​ ​the​ ​funding​ ​process​ ​with​ ​6​ ​main​ ​participants:

Summary​ ​of​ ​DDD​ ​usage

Spend​ ​DDD Earn​ ​DDD

● Send​ ​DDD​ ​to​ ​a​ ​funding/repayment ● Get​ ​rewarded​ ​as​ ​a​ ​Hunter,​ ​Evaluator,
smart​ ​contract Delegate,​ ​or​ ​Funder
● Cast​ ​an​ ​evaluation ● Predict​ ​a​ ​company's​ ​funding​ ​outcome
● Pay​ ​for​ ​score​ ​verification accurately
● Pay​ ​for​ ​premium​ ​features ● Borrow​ ​DDD​ ​from​ ​Funders
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TABLE​ ​OF​ ​CONTENTS

EXECUTIVE​ ​SUMMARY 2

THE​ ​PROBLEMS 7

SOLUTION​ ​BACKGROUND 8

THE​ ​TEAM 10
Team​ ​&​ ​advisors 10
A.I.​ ​XPRIZE​ ​advisory​ ​board 11

PRODUCT​ ​DESIGN​ ​-​ ​AN​ ​“AMAZON​ ​FOR​ ​FUNDING” 12

USE​ ​OF​ ​TECHNOLOGIES​ ​TO​ ​CROWDSOURCE​ ​TRUTHFUL​ ​SCORING 14
Use​ ​of​ ​A.I.​ ​algorithms 14
Use​ ​of​ ​the​ ​blockchain​ ​technology 16
Use​ ​of​ ​an​ ​incentive​ ​mechanism 18

TYPES​ ​OF​ ​FUNDING 19
The​ ​benefits​ ​of​ ​funding​ ​with​ ​DDD 20
Contributing​ ​with​ ​DDD 21
Participants​ ​in​ ​the​ ​contributing​ ​process 21
The​ ​contribution​ ​flow 22
Lending​ ​with​ ​DDD 23
Participants​ ​in​ ​the​ ​lending​ ​process 25
The​ ​lending​ ​flow 25

A​ ​DECENTRALIZED,​ ​AUTONOMOUS​ ​INCENTIVE​ ​ECOSYSTEM 27
A​ ​self-interest-focused​ ​ecosystem 27
DDD​ ​as​ ​the​ ​ultimate​ ​reward 27
DDD​ ​vs.​ ​Fiat​ ​money 27
DDD​ ​vs.​ ​Other​ ​cryptocurrencies 28
A​ ​s​eamless​ ​value​ ​chain​ ​on​ ​blockchain 28
The​ ​voting​ ​mechanism 29

THE​ ​DDD​ ​TOKEN 30
Token​ ​distribution 30
Token​ ​allocation 30
Crowdsale​ ​-​ ​50% 30
Founders​ ​and​ ​Advisors​ ​-​ ​12% 30
Key​ ​Pool​ ​-​ ​7% 31
Early​ ​Contributors​ ​-​ ​1% 31
Crowdsale​ ​Rewards​ ​-​ ​5% 31
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Token​ ​Reserve​ ​-​ ​25% 31
DDD​ ​Liquidity 32

USE​ ​OF​ ​FUNDS 33
Product​ ​Development​ ​and​ ​R&D​ ​-​ ​55% 33
Marketing​ ​and​ ​business​ ​development​ ​-​ ​20% 33
Legal​ ​expenses​ ​-​ ​10% 33
Operations​ ​-​ ​10% 33
Buffer​ ​-​ ​5% 33

PRODUCT​ ​DEVELOPMENT 34

FINANCIAL​ ​PROJECTIONS 36
Revenue​ ​model 36
Revenue​ ​projections 36
Future​ ​plans 37

LEGAL​ ​CONSIDERATIONS 37

APPENDIXES 38
A.I.​ ​implementation 38
Trust​ ​scores 38
Topical​ ​Trust​ ​scores 39
Pipeline 40
Development​ ​roadmap 40
A.I.​ ​technologies 40
Validation 40
A.I.​ ​on​ ​and​ ​off​ ​chain 42
Scalability 42
Access​ ​Security​ ​and​ ​Data​ ​Privacy 43
Rules,​ ​Rationale,​ ​and​ ​Incentives​ ​in​ ​the​ ​Incentive​ ​Ecosystem 43
The​ ​mechanics​ ​of​ ​the​ ​Buyback​ ​Program 48
What​ ​smart​ ​contracts​ ​do 48
Stablecoin​ ​GDD 49
Market​ ​size 50
Competitive​ ​landscape 5​0
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“Investable​ ​capital​ ​[exceeds]​ ​the​ ​capital​ ​required​ ​to​ ​operate​ ​the​ ​economy​ ​by​ ​2x.​ ​[But]​ ​the​ ​overall
allocation​ ​of​ ​investible​ ​capital​ ​is​ ​still​ ​way​ ​off​.​ ​In​ ​particular,​ ​too​ ​much​ ​capital​ ​is​ ​allocated​ ​to
purely​ ​financial​ ​speculation​ ​such​ ​as​ ​high​ ​frequency​ ​trading​ ​and​ ​derivatives​ ​trades​ ​with​ ​a​ ​total
notional​ ​amount​ ​in​ ​excess​ ​of​ ​$500​ ​trillion​ ​for​ ​OTC​ ​alone.​ ​Why​ ​does​ ​this​ ​matter?​ ​Because​ ​these
types​ ​of​ ​financial​ ​trades​ ​are​ ​largely​​ ​zero​ ​sum​ ​trades​.​ ​They​ ​shuffle​ ​money​ ​around​ ​but​ ​they​ ​don’t
expand​ ​the​ ​technological​ ​capability​ ​set​ ​of​ ​humanity.​ ​Only​ ​investments​ ​in​ ​basic​ ​and​ ​applied
research​ ​and​ ​investments​ ​in​ ​the​ ​commercialization​ ​of​ ​new​ ​technologies​ ​do​ ​that.”
-​ ​Albert​ ​Wenger
Managing​ ​Partner​ ​at​ ​Union​ ​Square​ ​Ventures
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1. THE​ ​PROBLEMS

1.1. The​ ​big​ ​problem

One​ ​of​ ​the​ ​gravest​ ​problems​ ​of​ ​our​ ​generation​ ​is​ ​the​ ​global​​ ​misallocation​ ​of​ ​capital​.​ ​Currently,
out​ ​of​ ​$100​ ​trillion​ ​of​ ​global​ ​investible​ ​capital1,​ ​only​ ​1.4%​ ​is​ ​spent​ ​a​ ​year​ ​on​ ​facilitating
innovation2​ ​that​ ​is​ ​meant​ ​to​ ​improve​ ​the​ ​society's​ ​overall​ ​efficiency​ ​and​ ​future​ ​quality​ ​of​ ​life.
That​ ​problem​ ​is​ ​in​ ​turn​ ​caused​ ​by​ ​the​ ​global​ m​ isallocation​ ​of​ ​attention​,​ ​where​ ​information​ ​is
arranged​ ​in​ ​a​ ​way​ ​that​ ​people​ ​can​ ​no​ ​longer​ ​know​ ​what​ ​the​ ​most​ ​important​ ​things​ ​to​ ​invest
resources​ ​in​ ​are​ ​and​ ​why.​ ​Even​ ​Google​ ​who​ ​“organizes​ ​world's​ ​information"​ ​has​ ​not​ ​addressed
this​ ​problem.​ ​While​ ​these​ ​misallocations​ ​put​ ​our​ ​future​ ​in​ ​danger,​ ​only​ ​a​ ​handful​ ​of​ ​top​ ​minds
(e.g.​ ​Stephen​ ​Hawking3​ ​and​ ​Elon​ ​Musk4)​ ​have​ ​repeatedly​ ​voiced​ ​and​ ​taken​ ​action.

OUR​ ​MISSION​​ ​is​ ​to​ ​address​ ​the​ ​more​ ​direct​ ​problem​ ​-​ ​misallocation​ ​of​ ​capital​ ​-​ ​by​ a
​ ccelerating
capital​ ​flow​ ​into​ ​innovation​,​ ​or​ ​namely​​ ​guiding​ ​more​ ​capital​ ​to​ ​the​ ​most​ ​innovative​ ​and​ ​thriving
companies,​ ​instead​ ​of​ ​less​ ​efficient​ ​ones​ ​and​ ​zero-sum​ ​trades.

1.2. The​ ​narrower​ ​problems

Between​ ​funders​ ​and​ ​fast-growing​ ​businesses​ ​are​ ​obstacles​ ​that​ ​prevent​ ​them​ ​from
evaluating​ ​each​ ​other​ ​and​ ​funding​ ​in​ ​a​ ​fast,​ ​accurate​ ​and​ ​reliable​ ​way​.​ ​These​ ​obstacles
include​ ​geographical​ ​distance,​ ​complex​ ​legal​ ​and​ ​banking​ ​regulations​ ​among​ ​countries​ ​in
cross-border​ ​fund​ ​transfers,​ ​information​ ​overload/scarcity,​ ​and​ ​lack​ ​of​ ​means​ ​to​ ​verify​ ​facts​ ​and
build​ ​trust.​ ​Existing​ ​startup​ ​investment​ ​and​ ​SME​ ​lending​ ​platforms​ ​have​ ​not​ ​removed​ ​these
obstacles​ ​successfully,​ ​presenting​ ​a​ ​huge​ ​market​ ​of​ ​roughly​ ​$300​ ​billion​​ ​to​ ​disrupt​ ​(see
Appendix​).

Existing​ ​startup​ ​investment​ ​platforms​ ​have​ ​failed​ ​to​ ​serve​ ​VC​ ​funds​ ​(who​ ​barely​ ​make​ ​money,
according​ ​to​ ​HBR5​ ​and​ ​Kauffman​ ​Foundation6)​ ​and​ ​angels​ ​(whose​ ​typical​ ​return​ ​is​ ​atrocious7).
Most​ ​platforms​ ​(see​ ​Appendix​),​ ​even​ ​very​ ​popular​ ​ones,​ ​are​ ​plain​ ​listings,​ ​leaving​ ​the​ ​funders
with​ ​the​ ​hassle​ ​of​ ​finding​ ​the​ ​needles​ ​in​ ​the​ ​haystack​.​ ​A​ ​few​ ​platforms​ ​provide​ ​scores8​ ​but​ ​are
not​ ​major​ ​contributors​ ​to​ ​decision-making9​ ​because​ ​they​ ​neither​ ​factor​ ​in​ ​private​ ​information,​ ​nor
break​ ​down​ ​scores​ ​into​ ​verifiable​ ​components,​ ​nor​ ​prove​ ​their​ ​integrity.​ ​Those​ ​scores​ ​are
calculated​ ​by​ ​a​ ​finite​ ​number​ ​of​ ​people​ ​who​ ​may​ ​or​ ​may​ ​not​ ​have​ ​a​ ​direct​ ​relation​ ​with​ ​the
scored​ ​companies​ ​and​ ​the​ ​people​ ​behind​ ​them.

On​ ​the​ ​other​ ​hand,​ ​most​ ​SME​ ​lending​ ​platforms​ ​have​ ​to​ ​underwrite​ ​loans​ ​based​ ​on​ ​rudimentary
datasets,​ ​such​ ​as​ ​social​ ​data,​ ​that​ ​are​ ​non-proprietary,​ ​and​ ​rely​ ​on​ ​local​ ​data​ ​partners​ ​for
survival10,​ ​which​ ​barely​ ​enable​ ​them​ ​to​ ​scale​ ​globally.​ ​It's​ ​difficult​ ​for​ ​foreign​ ​data​ ​partners​ ​to

1
​ ​Global​ ​Invested​ ​Capital​ ​Market​ ​by​ ​Hewitt​ ​EnnisKnupp
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​ ​A​ ​Debate​ ​with​ ​Peter​ ​Thiel​ ​and​ ​Marc​ ​Andreessen
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​ ​Stephen​ ​Hawking​ ​warns​ ​the​ ​human​ ​race​ ​'has​ ​no​ ​future​ ​if​ ​it​ ​doesn't​ ​go​ ​to​ ​space'
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​ ​Elon​ ​Musk​ ​announces​ ​his​ ​plan​ ​to​ ​save​ ​humanity
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​ ​Venture​ ​capitalists​ ​get​ ​pay​ ​well​ ​to​ ​lose​ ​money
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​ ​Kauffman​ ​Foundation​ ​study​ ​“We​ ​have​ ​met​ ​the​ ​enemy​ ​and​ ​he​ ​is​ ​us"
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​W​ hy​ ​angel​ ​investors​ ​don't​ ​make​ ​money
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​ ​techinasia.com/oddup-startup-rating-tool
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​ ​techinasia.com/oddup-series-a-funding
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​ ​The​ ​future​ ​of​ ​alternative​ ​lending
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hand​ ​over​ ​data​ ​about​ ​their​ ​citizens​ ​because​ ​of​ ​local​ ​regulations​ ​and​ ​because​ ​they​ ​could​ ​have
handed​ ​them​ ​to​ ​other​ ​lending​ ​companies​ ​from​ ​their​ ​own​ ​country.

Furthermore,​ ​these​ ​platforms​ ​operate​ ​on​ ​siloed​ ​data​ ​and​ ​liquidity​ ​pools,​ ​have​ ​limited
accessibility,​ ​and​ ​are​ ​slow​ ​to​ ​bring​ ​new​ ​products​ ​to​ ​market.​ ​Additionally,​ ​with​ ​centralized
services,​ ​the​ ​user​ ​incurs​ ​additional​ ​risk​ ​such​ ​as​ ​theft​ ​or​ ​other​ ​failures,​ ​and​ ​unexpected​ ​issues
with​ ​payment​ ​processors.​ ​As​ ​a​ ​result,​ ​we​ ​set​ ​out​ ​to​ ​solve​ ​all​ ​these​ ​problems​ ​occurring​ ​when
funding​ ​startups​ ​and​ ​SMEs.

2. SOLUTION​ ​BACKGROUND

At​ ​first,​ ​we​ ​focused​ ​on​ ​providing​ ​the​ ​best​ ​rankings​​ ​of​ ​individuals​ ​in​ ​terms​ ​of​ ​trustworthiness​ ​and
of​ ​companies​ ​in​ ​terms​ ​of​ ​potential​ ​profitability.​ ​Our​ ​plan​ ​to​ ​use​ ​A.I.​ ​technologies​ ​for​ ​that​ ​purpose
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​ ​passed​ ​the​ ​1st​ ​round​ ​of​ ​4-year​ ​IBM​ ​Watson​ ​A.I.​ ​XPRIZE​ ​competition12​ ​to​ ​become​ ​1​ ​of​ ​146
official​ ​teams​ ​around​ ​the​ ​world​ ​to​ ​be
supported​ ​by​ ​IBM’s​ ​and​ ​XPRIZE's​ ​network
of​ ​mentors13.​ ​Since​ ​data​ ​is​ ​essential​ ​to
training​ ​A.I.​ ​algorithms,​ ​which​ ​can​ ​be​ ​built​ ​in
the​ ​absence​ ​of​ ​sufficient​ ​data​ ​but​ ​are​ ​prone
to​ ​changes​ ​in​ ​presence​ ​of​ ​more​ ​data,​ ​our
principle​ ​is​ ​to​ ​incorporate​​ ​exhaustively​ ​all
possible​ ​sources​ ​of​ ​data​,​ ​beyond​ ​just​ ​data
from​ ​human​ ​input,​ ​in​ ​scoring​ ​and​ ​ranking.

In​ ​order​ ​to​ ​make​ ​our​ ​system​ ​both​ ​scalable
and​ ​sustainable,​ ​we​ ​seek​ ​a​ ​constant​ ​and
active​ ​method​ ​to​ ​generate​ ​data​ ​and
jumpstart​ ​the​ ​positive​ ​feedback​ ​loop​ ​of
more​ ​data​ ​→​ ​smarter​ ​algorithms​ ​→​ ​better
products​ ​→​ ​more​ ​users​ ​→​ ​more​ ​data​ ​and
so​ ​on14.

So​ ​we​ ​began​ ​to​ ​explore​ ​different​ ​sources​ ​of
data​ ​that​ ​we​ ​can​ ​feed​ ​to​ ​our​ ​A.I.​ ​algorithms
and​ ​their​ ​pros​ ​and​ ​cons:

Types​ ​of​ ​data Pros Cons

1 Data​ ​from​ ​crawling​ ​all Abundant,​ ​free Noisy,​ ​unstructured,​ ​usually
corners​ ​of​ ​the​ ​Internet asymmetric,​ ​non-proprietary

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​ ​bit.ly/DDAIComPlanMar
12
​ ​ai.xprize.org/teams
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​ ​ai.xprize.org/mentors
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​ 1​ 0​ ​data​ ​acquisition​ ​strategies
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2 Data​ ​from​ ​data​ ​partnership Usually​ ​abundant, Dependent,​ ​costly​ ​or​ ​exclusive,​ ​local,
structured,​ ​accurate not​ ​always​ ​relevant/comprehensible

3 User’s​ ​behavioral​ ​metadata Free,​ ​uncovering Dependent​ ​on​ ​user’s​ ​level​ ​of​ ​activity​ ​,
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hidden​ ​patterns, speculative​ ​(usually​ ​weakly​ ​linked​ ​to
authentic qualities​ ​being​ ​measured)

4 User-contributed​ ​data Free,​ ​strongly​ ​linked Not/insufficiently​ ​incentivized​ ​for​ ​high
to​ ​qualities​ ​being quality/quantity,​ ​not​ ​immune​ ​to
measured manipulation

To​ ​overcome​ ​those​ ​shortcomings,​ ​also​ ​inspired​ ​by​ ​the​ ​blockchain​ ​reward​ ​system​ ​(contribute
computing​ ​power​ ​to​ ​earn​ ​coins),​ ​we​ ​designed​ ​an​ ​“i​ ncentive​ ​ecosystem​"​ ​where​ ​each​ ​type​ ​of
user​ ​must​ ​contribute​ ​expected​ ​data​ ​in​ ​order​ ​to​ ​satisfy​ ​their​ ​own​ ​needs​ ​(e.g.​ ​selecting​ ​trusted
people​ ​in​ ​order​ ​to​ ​see​ ​more​ ​accurate​ ​rankings)​ ​or​ ​even​ ​get​ ​rewarded.​ ​However,​ ​monetary
rewards​ ​of​ ​fixed​ ​value​ ​cannott​ ​encourage​ ​data​ ​contributors​ ​to​ ​serve​​ ​the​ ​long-term​ ​benefits​​ ​of
the​ ​data​ ​users.​ ​Most​ ​A.I.​ ​companies​ ​rely​ ​on​ ​either​ ​in-house​ ​hand​ ​labelers,​ ​which​ ​is​ ​not​ ​scalable,
or​ ​data​ ​crowdsourcing​ ​platforms​ ​such​ ​as​ ​Amazon​ ​Mechanical​ ​Turks.​ ​They​ ​pay​ ​contributors
based​ ​on​ ​data​ ​quantity​ ​instead​ ​of​ ​quality,​ ​which​ ​can​ ​only​ ​be​ ​measured​ ​by​ ​the​ ​financial​ ​success
of​ ​the​ ​data​ ​users​ ​after​ ​incorporating​ ​the​ ​contributed​ ​data​ ​in​ ​improving​ ​their​ ​algorithms.

To​ ​strengthen​ ​the​ ​incentive​ ​ecosystem,​ ​we​ ​need​ ​a​ ​reward​ ​beyond​ ​fixed​ ​monetary​ ​value.
Interestingly,​ ​the​ ​Ethereum​ ​blockchain​ ​enables​ ​us​ ​not​ ​only​ ​to​​ ​streamline​ ​funding​ ​at​ ​scale​ ​(with
instant​ ​cross-border​ ​payments​ ​enshrining​ ​transparency),​ ​but​ ​also​ ​disrupts​ ​lending​ ​(with​ ​forced
liquidation,​ ​monitored​ ​spending,​ ​crypto-credit​ ​history,​ ​etc.),​ ​and​ ​allows​ ​us​ ​to​ ​issue​ ​a​ ​digital​ ​token
that​ ​ties​ ​the​ ​long-term​ ​benefits​ ​of​ ​data​ ​contributors​ ​and​ ​data​ ​users​ ​together​.

Furthermore,​ ​with​ ​smart​ ​contracts,​ ​our​ ​token​ ​can​ ​even​ ​tightly​ ​knit​ ​the​ ​benefits​ ​of​ ​many​ ​different
participants​ ​along​ ​the​ ​funding​ ​value​ ​chain​ ​together,​ ​in​ ​order​ ​for​ ​them​ ​to​ ​not​ ​only​ ​contribute​ ​data
but​ ​also​ ​collaborate​ ​in​ ​each​ ​other’s​ ​best​ ​interests​ ​(e.g.​ ​get​ ​rewarded,​ ​hunters​ ​find​ ​and​ ​list
promising​ ​companies,​ ​evaluators​ ​investigate​ ​and​ ​predict​ ​winners,​ ​Delegates​ ​make​ ​sure
borrowing​ ​companies​ ​repay,​ ​etc.).​ ​Every​ ​process​ ​is​ ​transparent,​ ​decentralized​ ​and​ ​automated
with​ ​smart​ ​contracts,​ ​and​ ​is​ ​thus​ ​instant,​ ​readily​ ​trusted,​ ​and​ ​cost-effective.

This​ ​element​ ​of​ ​A.I.-human​ ​collaboration​​ ​is​ ​the​ ​holy​ ​grail​ ​in​ ​the​ ​A.I.​ ​field16​ ​and​ ​one​ ​of​ ​the​ ​main
criteria​ ​in​ ​determining​ ​the​ ​winner​ ​of​ ​the​ ​IBM​ ​Watson​ ​A.I.​ ​XPRIZE​ ​competition.​ ​By​ ​issuing​ ​tokens
and​ ​deploying​ ​smart​ ​contracts,​ ​we​ ​can​ ​finally​ ​perfect​ ​the​ ​incentive​ ​ecosystem​ ​that​ ​unleashes
the​ ​full​ ​power​ ​of​ ​A.I.-human​ ​collaboration,​ ​where​ ​every​ ​participant​ ​fills​ ​a​ ​role​ ​and​ ​abides​ ​by​ ​the
coded​ ​rules​ ​to​ ​make​ ​the​ ​A.I.​ ​engine​ ​smarter​ ​over​ ​time​ ​and​ ​bridge​ ​any
online-offline/man-machine​ ​gaps.

Now​ ​our​ ​vision​ ​of​ ​a​ ​perfect​ ​funding​ ​platform​ ​becomes​ ​one​ ​that​ d
​ oesn't​ ​need​ ​to
do​ ​everything​ ​on​ ​its​ ​own​​ ​(score​ ​people,​ ​evaluate​ ​deals,​ ​handle​ ​compliance,
etc.),​ ​but​ ​it​ ​should​ ​enable​ ​everyone​ ​to​ ​do​ ​everything,​ ​in​ ​everyone​ ​else's​ ​best
interests​​ ​(get​ ​evaluated,​ ​funded,​ ​rewarded,​ ​etc.).

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​ ​Data​ ​generated​ ​unknowingly​ ​through​ ​user’s​ ​activities
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​ f​ orbes.com/sites/ibm/2016/08/15/beyond-ai-human-machine-collaboration-for-the-advancement-of-humankind/#6e0263e67d61
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In​ ​addition,​ ​by​ ​delegating​ ​offline,​ ​manual,​ ​locally-specific​ ​operations​ ​and​ ​responsibilities​ ​to​ ​local
partners,​ ​we​ ​can​ ​scale​ ​globally​.​ ​For​ ​instance,​ ​our​ ​Swiss​ ​and​ ​Singaporean​ ​legal​ ​partners​ ​are
proposing​ ​possible​ ​legal​ ​structures​ ​for​ ​funded​ ​companies​ ​and​ ​countermeasures​ ​against​ ​loan
delinquency.​ ​When​ ​our​ ​incentive​ ​ecosystem​ ​is​ ​in​ ​place,​ ​they​ ​will​ ​participate​ ​and​ ​be​ ​rewarded​ ​for
their​ ​proposals​ ​or​ ​potentially​ ​have​ ​their​ ​proposals​ ​bid​ ​for​ ​the​ ​highest​ ​prices.

Furthermore,​ ​DropDeck’s​ ​principle​ ​is​ ​to​ ​integrate​ ​and​ ​partner​ ​with​ ​other​ ​DApps​ ​(Civic,​ ​Status,
Monaco,​ ​Steem,​ ​Gnosis,​ ​etc.)​ ​to​ ​exchange​ ​values​ ​and​ ​enrich​ ​the​ ​ecosystem.​ ​We​ ​also​ ​seek​ ​to
expand​ ​the​ ​ecosystem​ ​by​ ​providing​ ​a​ ​superior​ ​funding​ ​channel​ ​for​ ​the​ ​majority​ ​of​ ​companies
that​ ​can​ ​neither​ ​afford​ ​a​ ​token​ ​sale​ ​campaign​ ​nor​ ​meet​ ​a​ ​long​ ​list​ ​of​ ​requirements​ ​to​ ​run​ ​a
successful​ ​campaign.​ ​Most​ ​companies​ ​will​ ​need​ ​a​ ​less​ ​costly​ ​and​ ​less​ ​distracting​ ​funding
alternative​ ​than​ ​a​ ​token​ ​sale​ ​and​ ​DropDeck​ ​can​ ​become​ ​their​ ​very​ ​first​ ​choice.

3. THE​ ​TEAM

Our​ ​core​ ​team​ ​members​ ​have​ ​proven​ ​track​ ​records​ ​of​ ​entrepreneurial,​ ​technical​ ​skills​ ​and
speak​ ​multiple​ ​languages.​ ​The​ ​other​ ​team​ ​members​ ​have​ ​expertise​ ​in​ ​multiple​ ​areas​ ​including
fintech,​ ​A.I.,​ ​blockchain,​ ​investment​ ​and​ ​lending.​ ​In​ ​addition,​ ​all​ ​members​ ​have​ ​prior​ ​experience
in​ ​either​ ​founding​ ​or​ ​working​ ​for​ ​startup​ ​companies.

3.1. Team​ ​&​ ​advisors

a) Alon​ ​Vo​​ ​-​ ​Chief​ ​Product​ ​Designer
XPRIZE​ ​Vanguard,​ ​Epistemologist
Product​ ​Manager,​ ​A.I.​ ​and​ ​blockchain​ ​evangelist

b) Michael​ ​Phan​​ ​-​ ​Chief​ ​Hacker
Chief​ ​Hacker​ ​at​ ​John​ ​Galt​ ​Ventures,​ ​First​ ​Digital​ ​Finance,​ ​Loan​ ​Ranger
Data​ ​analyst​ ​at​ ​Maritime​ ​Bank,​ ​Founder​ ​at​ ​AZDigi
Project​ ​engineer​ ​at​ ​Google​ ​Singapore,​ ​Poloniex,​ ​McKinsey's

c) George​ ​Popescu​​ ​-​ ​President,​ ​Chair​ ​of​ ​Advisory​ ​Board
CEO​ ​and​ ​Cofounder​ ​at​ ​Lampix
Chairman​ ​of​ ​the​ ​Board​ ​of​ ​Advisors​ ​at​ ​Gatecoin
Founder​ ​and​ ​Editor​ ​in​ ​Chief​ ​at​ ​Lending​ ​Times
Founder​ ​of​ ​Boston​ ​Technologies,​ ​ranked​ ​#1​ ​fastest​ ​growing​ ​company​ ​in​ ​Boston​ ​(2011)
Head​ ​of​ ​Strategy​ ​at​ ​Currency​ ​Mountain
Founded​ ​10+​ ​companies​ ​in​ ​online​ ​lending,​ ​hedge​ ​funds,​ ​venture-debt​ ​fund,​ ​etc.

d) Anik​ ​Dang​​ ​-​ ​Advisor
Cofounder​ ​at​ ​FirstBlood,​ ​Engineer​ ​at​ ​Alt-Options
Builder​ ​of​ ​the​ ​matchmaking​ ​engine​ ​of​ ​Solome
Summa​ ​Cum​ ​Laude​ ​from​ ​Boston​ ​University​ ​(business​ ​and​ ​computer​ ​science)
Experienced​ ​in​ ​both​ ​investment​ ​and​ ​corporate​ ​finance

e) Robert​ ​Allen​​ ​-​ ​Fintech​ ​and​ ​Blockchain​ ​advisor
An​ ​accomplished​ ​leader,​ ​engineer​ ​&​ ​consultant​ ​with​ ​30​ ​years​ ​experience​ ​in​ ​the​ ​banking,
IT,​ ​engineering​ ​and​ ​military​ ​sectors.​ ​Expert​ ​in​ ​banking​ ​payments​ ​programmes​ ​and
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blockchain.​ ​Cofounder​ ​at​ ​PwC's​ ​Vulcan​ ​Digital​ ​Assets​ ​Services.​ ​Fintech​ ​National​ ​Leader
at​ ​PwC​ ​Australia.

f) Nagu​ ​Thogiti​​ ​-​ ​A.I.​ ​&​ ​Blockchain​ ​advisor
Founder​ ​at​ ​Programfy.com​ ​&​ ​314.A.I.;​ ​Certified​ ​Professional​ ​in​ ​Fintech,​ ​Big​ ​Data,
Cybersecurity,​ ​IoT​ ​at​ ​MIT;​ ​MS​ ​and​ ​PhD​ ​from​ ​University​ ​of​ ​Southern​ ​California.

g) Ketki​ ​Sen​​ ​-​ ​Fintech​ ​advisor
Co-founder​ ​&​ ​Partner​ ​at​ ​Spinta​ ​Global​ ​Accelerator,​ ​Singapore;​ ​Fintech​ ​exponent​ ​&
Mentor​ ​with​ ​cross​ ​industry​ ​experience​ ​in​ ​BFSI​ ​and​ ​ITES/BPO​ ​working​ ​with​ ​large​ ​scale
corporations​ ​and​ ​start-ups;​ ​Assistant​ ​Vice​ ​President​ ​at​ ​Citibank,​ ​India.

h) Hoang​ ​Nguyen​​ ​-​ ​Token​ ​sale​ ​and​ ​Blockchain​ ​advisor
Experienced​ ​Software​ ​Engineer​ ​with​ ​a​ ​demonstrated​ ​history​ ​of​ ​working​ ​in​ ​the​ ​online
payment​ ​industry​ ​and​ ​distributed​ ​apps​ ​on​ ​blockchains.​ ​Cofounder​ ​at​ ​WeTrust​ ​(raised​ ​1K
BTC​ ​&​ ​80K​ ​ETH).​ ​Senior​ ​Software​ ​Engineer​ ​at​ ​Paypal.

i) GheeHoe​ ​Cheng​​ ​-​ ​Venture​ ​Capital​ ​advisor
Chief​ ​Strategist​ ​&​ ​Partner​ ​at​ ​Perspectiv​ ​Ventures;​ ​Chairman​ ​at​ ​Emotiv​ ​Media;​ ​BS​ ​from
National​ ​University​ ​Singapore​ ​(A.I.​ ​&​ ​Robotics)​ ​and​ ​University​ ​of​ ​Southern​ ​California
(Systems​ ​Management)

j) Patrick​ ​Mansfield​​ ​-​ ​Advisor
Head​ ​of​ ​Marketing​ ​&​ ​Operations​ ​at​ ​Global​ ​Player​ ​(launching​ ​the​ ​world's​ ​1st​ ​blockchain
gradual​ ​convertible​ ​virtual​ ​bond),​ ​Chartered​ ​Management​ ​Accountant​ ​(CIMA)​ ​with​ ​over
15​ ​years​ ​at​ ​Quartz​ ​Capital​ ​Partners​ ​(Knight​ ​Trading​ ​Group),​ ​Barclays​ ​Bank,​ ​Credit
Suisse,​ ​Deutsche​ ​Bank,​ ​RBS/ABN​ ​AMRO,​ ​BSI​ ​SA,​ ​Morgan​ ​Stanley,​ ​Barclays​ ​Capital,
VinaCapital

3.2. A.I.​ ​XPRIZE​ ​advisory​ ​board

k) Dr.​ ​Amir​ ​Banifatemi​​ ​-​ ​A.I.​ ​XPRIZE​ ​Lead​ ​-​ ​"DropDeck​ ​has​ ​a​ ​good​ ​chance​ ​to​ ​win."

l) Herve​ ​Roussel​​ ​-​ ​Software​ ​Architect​ ​at​ ​Sentifi

m) Dr.​ ​Chris​ ​Marshall​​ ​-​ ​Analytics​ ​&​ ​Cognitive​ ​Specialist​ ​at​ ​IBM​ ​Watson

n) Dr.​ ​Jiamei​ ​Deng​​ ​-​ ​Professor​ ​of​ ​A.I.​ ​at​ ​Leeds​ ​Beckett​ ​University,​ ​UK

o) Barnabas​ ​Szilagyi​​ ​-​ ​Managing​ ​Principal,​ ​Director​ ​of​ ​Data​ ​at​ ​Analytics​ ​Capco

p) Gaye​ ​Soykok​​ ​-​ ​Architect,​ ​NTT​ ​DATA​ ​Corp.

q) Sivapriya​ ​Kaza​​ ​-​ ​Product​ ​Manager,​ ​Machine​ ​Learning,​ ​Fellow​ ​Robots

r) Angela​ ​Bates​​ ​-​ ​Programme​ ​Strategist​ ​at​ ​IBM​ ​UK
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4. PRODUCT​ ​DESIGN​ ​-​ ​AN​ ​“AMAZON​ ​FOR​ ​FUNDING”

Our​ ​principle​ ​in​ ​product​ ​design​ ​is​ ​to​ ​save​ ​funders’​ ​time​​ ​by​ ​always​​ ​bringing​​ ​what
matters​ ​the​ ​most​ ​to​ ​them​ ​first.

DropDeck​ ​scores,​ ​ranks​ ​and​ ​recommends​ ​trustworthy​ ​investors​ ​or​ ​entrepreneurs​ ​(with​ ​high
Trust​ ​scores)​ ​and​ ​potential​ ​companies​ ​(with​ ​high​ ​Potential​ ​scores)​ ​to​ ​one​ ​another.​ ​Breakdown
and​ ​evidence​ ​of​ ​these​ ​scores​ ​can​ ​also​ ​be​ ​seen​ ​on​ ​the​ ​payment​ ​of​ ​a​ ​fee.

With​ ​DropDeck,​ ​funders,​ ​incubators,​ ​competition​ ​judges,​ ​funds,​ ​etc.​ ​can​ ​source,​ ​screen,
evaluate,​ ​fund​ ​the​ ​most​ ​innovative​ ​and​ ​thriving​ ​companies​ ​in​ ​the​ ​fastest​ ​and​ ​most​ ​reliable​ ​ways.
The​ ​most​ ​suitable​ ​and​ ​potential​ ​companies​ ​are​ ​placed​ ​at​ ​the​ t​ op​​ ​of​ ​a​ ​funder’s​ ​home​ ​page.

With​ ​DropDeck,​ ​entrepreneurs​ ​can​ ​improve​ ​their​ ​chances​ ​of​ ​getting​ ​funded,​ ​selected,​ ​or
winning​ ​prizes.​ ​Most​ ​suitable​ ​and​ ​potential​ ​investors​ ​are​ ​recommended​ ​on​ ​demand​ ​on​ ​the
Recommendation​ ​page.

Each​ ​company​ ​is​ ​represented​ ​by​ ​a​ ​deck.​ ​ ​Each​ ​deck​ ​includes​ ​different​ ​claims​,​ ​and​ ​each​ ​claim
represents​ ​a​ ​different​ ​aspect​ ​of​ ​the​ ​company,​ ​such​ ​as​ b ​ usiness​ ​model​,​ ​team​,​ ​traction,​ ​ ​etc.​ ​In​ ​a
deck​ ​page,​ ​claims​ ​are​ ​arranged​ ​in​ ​layers,​ ​where​ ​each​ ​claim​ ​is​ ​supported​ ​by​ ​children​ ​claims​ ​on
the​ ​layer​ ​right​ ​beside​ ​it.​ ​A​ ​claim​ ​page​ ​contains​ ​a​ ​summary​ ​slide​ ​showing​ ​key​ ​points​ ​and​ ​all
details​ ​that​ ​support​ ​those​ ​key​ ​points.

A​ ​user​ ​can​ ​evaluate​ ​a​ ​claim​ ​favorably​ ​(​Approve​)​ ​or​ ​unfavorably​ ​(​Deny​).​ ​For​ ​each​ ​claim,
aggregated​ ​evaluation​ ​results​ ​are​ ​displayed​ ​as​ ​an​ e ​ valuation​ ​bar​.​ ​A​ ​deck​ ​with​ ​a​ ​high​ ​ratio​ ​of
Approvals-to-Denials​ ​among​ ​its​ ​claims​ ​would​ ​have​ ​a​ ​high​ ​Potential​ ​score,​ ​represented​ ​by​ ​a​ ​blue
evaluation​ ​bar,​ ​as​ ​opposed​ ​to​ ​a​ ​red​ ​one.​ ​The​ ​user​ ​can​ ​choose​ ​to​ ​view​ ​the​ ​evaluation​ ​bar​ ​by​ ​all
evaluators​ ​or​ ​by​ ​only​ ​trusted​ ​evaluators,​ ​which​ ​are​ ​collectively​ ​called​ ​a​ T ​ rust​ ​Circle​.

FUNNEL​ ​DESIGN

Information​ ​is​ ​arranged​ ​in​ ​order​ ​of​ ​importance,
into​ ​3​ ​layers​ ​of​ ​increasing​ ​details​ ​-​ ​Home,​ ​Deck,
and​ ​Claim,​ ​so​ ​that​ ​a​ ​funder​ ​can​ ​screen​ ​quickly
based​ ​on​ ​what​ ​matters​ ​the​ ​most​ ​first​​ ​before
deciding​ ​to​ ​spend​ ​time​ ​on​ ​more​ ​details​ ​or​ ​not.​ ​On
each​ ​layer,​ ​details​ ​are​ ​shown​ ​only​ ​when​ ​and
where​ ​needed​ ​to​ ​save​ ​time​ ​from​ ​information
overload.

a) Home​ ​page​:​ ​all​ ​decks​ ​can​ ​be​ ​filtered​ ​and
sorted​ ​instantly.​ ​Funders​ ​can​ ​preview​ ​the
most​ ​important​ ​information​ ​for​ ​each​ ​deck
to​ ​determine​ ​whether​ ​to​ ​look​ ​deeper​ ​or
not;

b) Deck​ ​page​:​ ​claims​ ​on​ ​different​ ​aspects​ ​of
a​ ​company​ ​are​ ​arranged​ ​in​ ​two​ ​dimensions.​ ​Each​ ​claim​ ​is​ ​supported​ ​by​ ​child​ ​claims​ ​on
the​ ​column​ ​immediately​ ​to​ ​its​ ​right.​ ​Here​ ​a​ ​funder​ ​can​ ​preview​ ​each​ ​claim's​ ​most
important​ ​information​ ​to​ ​determine​ ​whether​ ​to​ ​look​ ​deeper​ ​or​ ​not;
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c) Claim​ ​page​:​ ​all​ ​details​ ​on​ ​an​ ​aspect​ ​of​ ​the​ ​company​ ​are​ ​listed.​ ​Each​ ​claim​ ​has​ ​5
sections​ ​-​ ​“Slide,”​ ​“Supporting​ ​files,”​ ​“Evaluation,"​ ​“Detailed​ ​note,"​ ​and​ ​“Comment.”​ ​All
information​ ​on​ ​this​ ​page​ ​support​ ​the​ ​key​ ​points​ ​listed​ ​in​ ​the​ ​“Slide.”​ ​Funders​ ​can
evaluate​ ​this​ ​claim​ ​by​ ​choosing​ ​“Approve"​ ​or​ ​“Deny."

TRUST​ ​CIRCLE

Funders​ ​can​ ​always​ ​see​ ​each​ ​claim’s
evaluation​ ​result​ ​aggregated​ ​from​ ​the​ ​public,
including​ ​people​ ​you​ ​know,​ ​those​ ​you​ ​trust,
and​ ​total​ ​strangers.​ ​To​ ​see​ ​a​ ​more​ ​curated
version​ ​of​ ​these​ ​evaluation​ ​results​ ​aggregated
from​ ​only​ ​the​ ​people​ ​the​ ​funder​ ​trusts,​ ​the
funder​ ​must​ ​identify​ ​and​ ​add​ ​these​ ​trusted
people​ ​to​ ​their​ ​Trust​ ​Circle.​ ​The​ ​more
trustworthy​ ​people​ ​a​ ​funder​ ​can​ ​invite​ ​to
DropDeck​ ​and​ ​add​ ​to​ ​his/her​ ​Trust​ ​Circle,​ ​and
the​ ​more​ ​accurately​ ​a​ ​funder​ ​can​ ​rate​ ​their
level​ ​of​ ​trustworthiness​ ​(from​ ​1%​ ​to​ ​100%),​ ​the
more​ ​curated​ ​the​ ​evaluation​ ​results​ ​and
company​ ​rankings​ ​a​ ​funder​ ​can​ ​see.

FUNDING​ ​SUCCESS​ ​FORMULA

DropDeck​ ​builds​ ​in-house​ ​standardized​ ​deck​ ​templates​ ​which​ ​arrange​ ​information​ ​in​ ​the​ ​most
investor-centric​ ​way,​ ​in​ ​order​ ​of​ ​importance.​ ​If​ ​entrepreneurs​ ​choose​ ​to​ ​follow​ ​these​ ​templates,
they​ ​save​ ​time​ ​(which​ ​can​ ​otherwise​ ​be​ ​spent​ ​on​ ​more​ ​productive​ ​activities​ ​-​ ​interacting​ ​with
customers,​ ​building​ ​the​ ​product,​ ​bonding​ ​with​ ​teammates,​ ​etc.)​ ​and​ ​maximize​ ​the​ ​chances​ ​of
getting​ ​funded.​ ​Inexperienced​ ​funders​ ​can​ ​follow​ ​guidelines​ ​laid​ ​out​ ​in​ ​these​ ​templates​ ​to
screen​ ​companies​ ​quickly.​ ​These​ ​templates​ ​are​ ​built​ ​on​ ​the​ ​basis​ ​of​ ​“storyfunding”17,​ ​which​ ​are
tested,​ ​validated,​ ​and​ ​expected​ ​to​ ​improve​ ​over​ ​time.

5. USE​ ​OF​ ​TECHNOLOGIES​ ​TO​ ​CROWDSOURCE​ ​TRUTHFUL​ ​SCORING

5.1. Use​ ​of​ ​A.I.​ ​algorithms

Our​ ​final​ ​goal​ ​is​ ​to​ ​score,​ ​rank,​ ​and​ ​recommend​ ​companies​ ​in​ ​terms​ ​of​​ ​potential​ ​profitability​.
In​ ​order​ ​to​ ​approach​ ​the​ ​true​ ​measure​ ​of​ ​a​ ​company’s​ ​quality​ ​(called​ ​“Potential​ ​score"),​ ​our
principle​ ​is​ ​to​ ​incorporate​ ​all​ ​possible​ ​sources​ ​of​ ​data,​ ​including​ ​evaluation​ ​data​ ​from​ ​people​ ​on
DropDeck.​ ​A​ ​user's​ ​evaluation​ ​usually​ ​incorporates​ ​all​ ​the​ ​available​ p ​ rivate​ ​information​ ​about
the​ ​evaluated​ ​company​ ​(e.g.​ ​a​ ​funder​ ​may​ ​deny​ ​a​ ​deck's​ ​Team​ ​claim​ ​because​ ​the​ ​funder
knows​ ​the​ ​CTO​ ​of​ ​that​ ​company​ ​is,​ ​albeit​ ​talented,​ ​immature),​ ​which​ ​is​ o ​ therwise​ ​inaccessible
to​ ​any​ ​kind​ ​of​ ​data​ ​partners​ ​or​ ​crawlers.​ ​However,​ ​not​ ​everyone’s​ ​evaluation​ ​can​ ​be​ ​trusted.

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​ ​StoryFunding​ ​deck​ ​template
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Existing​ ​platforms​ ​operate​ ​on​ ​a​ ​one-user,​ ​one-vote​ ​principle.​ ​This​ ​creates​ ​an​ ​environment
where​ ​rankings​ ​can​ ​be​ ​manipulated​ ​by​ ​sybil​ ​attacks​ ​and​ ​the​ ​service​ ​providers​ ​such​ ​as​ ​Quora,
Reddit,​ ​Facebook,​ ​etc.​ ​must​ ​pro-actively​ ​identify​ ​and​ ​block​ ​abusers.​ ​On​ ​the​ ​other​ ​hand,​ ​Steem
operates​ ​on​ ​the​ ​basis​ ​of​ ​one-token,​ ​one-vote.​ ​Under​ ​these​ ​models,​ ​individuals​ ​who​ ​have
contributed​ ​the​ ​most​ ​to​ ​the​ ​platform,​ ​as​ ​measured​ ​by​ ​their​ ​account​ ​balance,​ ​instead​ ​of
individuals​ ​who​ ​have​ ​the​ ​most​ ​perceived​ ​credibility​ ​on​ ​the​ ​matter​ ​at​ ​hand,​ ​have​ ​the​ ​most
influence.

Therefore,​ ​we​ ​created​ ​another​ ​score​ ​to​ ​measure​ ​the​ ​level​ ​of​ ​trustworthiness​ ​of​ ​each​ ​user​ ​on
DropDeck​ ​(called​ ​“Trust​ ​score"),​ ​which​ ​would​ ​serve​ ​as​ ​the​ ​weight​ ​of​ ​that​ ​person's​ ​evaluation
when​ ​aggregated.

Both​ ​the​ ​Trust​ ​score​ ​and​ ​Potential​ ​score​ ​are​ ​essential​ ​to​ ​building​ ​a​ ​highly​ ​dynamic​ ​relational
graph​ ​where​ ​each​ ​entity​ ​can​ ​be​ ​a​ ​company​ ​or​ ​a​ ​person,​ ​and​ e​ ach​ ​entity's​ ​change​ ​in​ ​score
would​ ​have​ ​a​ ​ripple​​ ​effect​ ​on​ ​all​ ​associated​ ​entities​.

We​ ​hand-craft​ ​expert​ ​models​ ​with​ ​all​ ​feature​ ​weights​ ​determined​ ​by​ ​expert​ ​opinions​ ​collected
via​ ​surveys,​ ​and​ ​build​ ​reinforcement​ ​learning​ ​models​ ​to​ ​be​ ​trained​ ​from​ ​continuous​ ​labeled
data.​ ​Then​ ​we​ ​combine​ ​the​ ​scores​ ​from​ ​these​ ​models​ ​to​ ​obtain​ ​a​ ​final​ ​score​ ​for​ ​each​ ​user.​ ​The
more​ ​data​ ​available​ ​over​ ​time​ ​for​ ​training,​ ​the​ ​more​ ​scores​ ​from​ ​the​ ​trained​ ​models​ ​will
contribute​ ​to​ ​the​ ​final​ ​scores.

Ground​ ​truth​ ​data​ ​is​ ​generated​ ​from​ ​crowd​ ​evaluators​ ​(any​ ​user​ ​on​ ​the​ ​platform)​ ​and​ ​expert
evaluators​ ​(individuals​ ​appointed​ ​by​ ​DropDeck)​ ​through​ ​a​ ​feature​ ​called​ ​“Trust"​ ​on​ ​our​ ​website,
designed​ ​to​ ​collect​ ​labeled​ ​data.​ ​For​ ​generating​ ​this​ ​data,​ ​a​ ​“trustor"​ ​can​ ​assign​ ​a​ ​score​ ​that
indicates​ ​his​ ​level​ ​of​ ​trust​ ​to​ ​any​ ​“trustee"​ ​on​ ​the​ ​platform.​ ​Surveys​ ​are​ ​also​ ​designed​ ​to​ ​actively
collect​ ​labeled​ ​data,​ ​where​ ​evaluators​ ​are​ ​shown​ ​pairs​ ​of​ ​users​ ​who​ ​were​ ​known​ ​to​ ​them​ ​in​ ​their
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network,​ ​and​ ​are​ ​asked​ ​to​ ​identify​ ​the​ ​more​ ​trustworthy​ ​one​ ​in​ ​each​ ​pair.​ ​Each​ ​pair​ ​of​ ​users​ ​is
ranked​ ​by​ ​multiple​ ​users​ ​to​ ​reduce​ ​bias.​ ​The​ ​models​ ​are​ ​trained​ ​for​ ​these​ ​user​ ​ratings​ ​and
rankings​ ​in​ ​the​ ​ground​ ​truth​ ​training​ ​set,​ ​using​ ​reinforcement​ ​learning​ ​methods​ ​to​ ​generate​ ​a
weight​ ​associated​ ​with​ ​each​ ​feature.

After​ ​months​ ​of​ ​research​ ​and​ ​validation​ ​since​ ​February​ ​2017,​ ​we​ ​have​ ​selected​ ​the​ ​following
components​ ​for​ ​calculating​ ​the​ ​Trust​ ​score​ ​and​ ​Potential​ ​score,​ ​list​ ​them​ ​in​ ​order​ ​of​ ​weight
(importance)​ ​and​ ​will​ ​implement​ ​them​ ​one​ ​by​ ​one​ ​(not​ ​all​ ​at​ ​once).

A​ ​user's​ ​Trust​ ​score​ ​is​ ​based​ ​on​ ​the​ ​following​ ​components:

● Crowd​ ​evaluation:​ ​how​ ​people​ ​rate​ ​or​ ​vote​ ​for​ ​the​ ​trustworthiness​ ​on​ ​DropDeck
● On-site​ ​behavior:​ ​signs​ ​of​ ​spam,​ ​flip-flop,​ ​etc.​ ​(negative)​ ​or​ ​moderation,​ ​consistency,
etc.​ ​(positive)
● Crowd​ ​interaction:​ ​such​ ​as​ ​how​ ​strongly​ ​you​ ​spread​ ​and​ ​attract​ ​information
● Venture​ ​credentials:​ ​trustworthiness​ ​of​ ​co-investors/co-founders,​ ​potential​ ​of​ ​the
investment​ ​portfolio/companies​ ​founded
● Associated​ ​entities:​ ​trustworthiness​ ​of​ ​the​ ​people,​ ​potential​ ​of​ ​the​ ​companies​ ​related
to​ ​the​ ​user
● Ratings/rankings:​ ​the​ ​reputation​ ​on​ ​a​ ​set​ ​of​ ​reliable​ ​websites​ ​(Quora,​ ​MatterMark,​ ​CB
Insights,​ ​etc.)
● Social​ ​activity:​ ​your​ ​behavior,​ ​interaction​ ​on​ ​your​ ​social​ ​networks​ ​(Linkedin,​ ​Facebook,
Twitter,​ ​etc.)
● Linguistics:​ ​the​ ​use​ ​of​ ​the​ ​language​ ​and​ ​the​ ​people​ ​who​ ​interact​ ​with​ ​the​ ​user
● Digital​ ​footprints:​ ​the​ ​number​ ​of​ ​your​ ​identities​ ​on​ ​the​ ​web
● Identity​ ​consistency:​ ​consistency​ ​of​ ​your​ ​information​ ​across​ ​those​ ​identities

A​ ​company’s​ ​Potential​ ​score​ ​is​ ​based​ ​on​ ​the​ ​following​ ​components:

● Venture​ ​credentials:​ ​trustworthiness​ ​and​ ​amount​ ​invested​ ​of​ ​investors​ ​and​ ​cofounders
● On-site​ ​evaluation:​ ​evaluators’​ ​evaluation​ ​weighted​ ​by​ ​their​ ​trustworthiness​ ​index
● Suitability​ ​to​ ​a​ ​user:​ ​based​ ​on​ ​the​ ​preferences,​ ​achievements,​ ​expertise,​ ​and​ ​interests.
● Associated​ ​entities:​ ​trustworthiness​ ​of​ ​the​ ​people​ ​and​ ​potential​ ​of​ ​the​ ​companies
related​ ​to​ ​the​ ​user
● Ratings/rankings:​ ​reputation​ ​on​ ​a​ ​set​ ​of​ ​reliable​ ​websites​ ​(Quora,​ ​CB​ ​Insights,​ ​etc.)
● Social​ ​reception:​ ​reputation​ ​on​ ​social​ ​networks​ ​(LinkedIn,​ ​Facebook,​ ​etc.)
● Linguistics:​ ​the​ ​use​ ​of​ ​language​ ​of​ ​the​ ​company​ ​and​ ​of​ ​the​ ​people​ ​who​ ​interact​ ​with
the​ ​company
● Identity​ ​consistency:​ ​consistency​ ​of​ ​the​ ​company’s​ ​information​ ​across​ ​the​ ​web

Since​ ​the​ ​Trust​ ​score​ ​takes​ ​into​ ​account​ ​all​ ​user​ ​behavior​ ​and​ ​interaction​ ​with​ ​other​ ​users,​ ​it
represents​ ​a​ ​reputation​ ​system​​ ​to​ ​protect​ ​DropDeck​ ​users,​ ​restrict​ ​spammers/criminals,​ ​and
encourage​ ​healthy​ ​activity.​ ​This​ ​reputation​ ​system​ ​will​ ​be​ ​present​ ​in​ ​every​ ​aspect​ ​of​ ​the​ ​user
experience,​ ​from​ ​initial​ ​sign-ups​ ​to​ ​evaluation​ ​to​ ​comments,​ ​allowing​ ​users​ ​to​ ​easily​ ​identify
users​ ​who​ ​may​ ​have​ ​a​ ​history​ ​of​ ​misbehavior​ ​or​ ​spamming.​ ​Newly-joined​ ​users​ ​will​ ​have​ ​to
obviously​ ​improve​ ​their​ ​Trust​ ​scores​ ​to​ ​build​ ​trust​ ​in​ ​the​ ​community.​ ​This​ ​method​ ​could​ ​reduce
“Distrust"​ ​reports​ ​handled​ ​by​ ​oracles.​ ​Likewise,​ ​the​ ​reputation​ ​system​ ​will​ ​enhance​ ​the
competitive​ ​experience​ ​by​ ​encouraging​ ​users​ ​to​ ​behave​ ​with​ ​integrity,​ ​be​ ​active​ ​and​ ​build​ ​their
reputation.​ ​The​ ​platform’s​ ​oracle​ ​selection​ ​engine​ ​gives​ ​higher​ ​priority​ ​to​ ​users​ ​with​ ​higher​ ​Trust
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score.​ ​Each​ ​individual​ ​user​ ​will​ ​also​ ​have​ ​the​ ​ability​ ​to​ ​set​ ​the​ ​minimum​ ​Trust​ ​score​ ​threshold​ ​for
the​ ​deck’s​ ​or​ ​other​ ​information's​ ​visibility.​ ​Having​ ​a​ ​higher​ ​Trust​ ​score​ ​thus​ ​allows​ ​users​ ​to​ ​see
more​ ​private​ ​content​ ​on​ ​the​ ​platform.​ ​A​ ​global​ ​ranking​ ​system​ ​will​ ​be​ ​viewable​ ​on​ ​DropDeck​ ​to
encourage​ ​competition.​ ​Ranks​ ​will​ ​be​ ​rewarded​ ​with​ ​DropDeck​ ​subscription​ ​for​ ​premium
features​ ​or​ ​other​ ​promotions.

The​ ​challenge​ ​we​ ​faced​ ​is​ ​deriving​ ​algorithms​ ​for​ ​scoring​ ​that​ ​most​ ​people​ ​can​ ​consider​ ​to​ ​be​ ​a
fair​ ​assessment​ ​of​ ​the​ ​subjective​ ​qualities​ ​being​ ​scored.​ ​Moreover,​ ​there's​ ​basis​ ​to​ ​judge
whether​ ​a​ ​definite​ ​score​ ​is​ ​fair​ ​or​ ​not.​ ​Common​ ​questions​ ​might​ ​be​ ​“Why​ ​is​ ​this​ ​company​ ​70?​ ​70
to​ ​what?​ ​Which​ ​one​ ​is​ ​100?”​ ​Therefore,​ ​the​ ​definite​ ​Trust​ ​and​ ​Potential​ ​scores​ ​will​ ​be​ ​hidden
and​ ​replaced​ ​with​ ​percentile​ ​scores​.​ ​Now​ ​when​ ​you​ ​see​ ​a​ ​company​ ​with​ ​a​ ​score​ ​of​ ​70,​ ​any
one​ ​can​ ​know​ ​that​ ​company​ ​has​ ​more​ ​potential​ ​than​ ​70%​ ​of​ ​the​ ​other​ ​companies​ ​on​ ​DropDeck.
It​ ​requires​ ​further​ ​research​ ​and​ ​collaboration​ ​with​ ​reputable​ ​partners​ ​to​ ​establish​ ​scoring
standards​ ​before​ ​definite​ ​Trust​ ​and​ ​Potential​ ​scores​ ​make​ ​sense​ ​and​ ​are​ ​public.

For​ ​more​ ​details,​ ​please​ ​refer​ ​to​ ​the​ ​Appendix​.

5.2. Use​ ​of​ ​the​ ​blockchain​ ​technology

As​ ​mentioned,​ ​there​ ​are​ ​existing​ ​platforms​ ​that​ ​provide​ ​scores​ ​but​ ​cannot​ ​prove​ ​their​ ​integrity.
We​ ​claim​ ​to​ ​measure​ ​Trust​ ​scores,​ ​but​ ​how​ ​can​ ​we​ ​make​ ​people​ ​trust​ ​these​ ​Trust​ ​scores?
Contributors​ ​do​ ​not​ ​want​ ​one​ ​score​ ​to​ ​tell​ ​them​ ​whether​ ​a​ ​company​ ​is​ ​good​ ​or​ ​bad18.​ ​Common
questions​ ​are​ ​“How​ ​can​ ​I​ ​trust​ ​these​ ​scores?”,​ ​“How​ ​were​ ​they​ ​calculated?”,​ ​“Based​ ​on​ ​what?",
and​ ​“Who​ ​contributed​ ​to​ ​these​ ​scores?".​ ​We​ ​need​ ​a​ ​more​ ​decentralized​ ​method​ ​to​ ​store​ ​data​ ​to
ensure​ ​the​ ​integrity​ ​of​ ​the​ ​data​​ ​used​ ​for​ ​scoring,​ ​or​ ​“score​ ​evidence.”

Blockchain​ ​can​ ​solve​ ​this​ ​data​ ​integrity​ ​issue​ ​and,​ ​at​ ​the​ ​same​ ​time,​ ​solve​ ​the​ ​privacy​ ​issue​,
where​ ​evaluators​ ​want​ ​their​ ​evaluation​ ​data​ ​to​ ​be​ ​visible​ ​to​ ​only​ ​trusted​ ​parties.

Storing​ ​information​ ​directly​ ​on​ ​the​ ​blockchain​ ​ensures​ ​that​ ​the​ ​information​ ​is​ ​fully​ ​secured​ ​by​ ​the
blockchain’s​ ​properties​ ​and​ ​is​ ​immediately​ ​viewable​ ​to​ ​those​ ​permissioned​ ​to​ ​access​ ​the​ ​chain.
However,​ ​at​ ​the​ ​same​ ​time,​ ​storing​ ​large​ ​data​ ​files​ ​slows​ ​block​ ​processing​ ​speeds​ ​and​ ​presents
potential​ ​challenges​ ​to​ ​scaling​ ​the​ ​system.​ ​In​ ​contrast,​ ​encrypted​ ​links​ ​(pointers)​ ​are​ ​minimal​ ​in
size​ ​and​ ​are​ ​activated​ ​once​ ​a​ ​user​ ​with​ ​the​ ​correct​ ​private​ ​key​ ​accesses​ ​the​ ​block​ ​and​ ​follows
the​ ​encrypted​ ​link​ ​to​ ​a​ ​separate​ ​location​ ​containing​ ​the​ ​information.​ ​As​ ​an​ ​example,​ ​the
blockchain​ ​cannot​ ​directly​ ​store​ ​abstract​ ​data​ ​types​ ​such​ ​as​ ​scanned​ ​documents​ ​and​ ​images.

Therefore,​ ​our​ ​solution​ ​involves​ ​using​ ​the​ ​public​ ​blockchain​ ​as​ ​an​ ​access-control​ ​manager
to​ ​score​ ​evidence,​ ​which​ ​are​ ​stored​ ​off​ ​blockchain​.​ ​A​ ​specific​ ​set​ ​of​ ​standardized​ ​data​ ​were
to​ ​be​ ​stored​ ​directly​ ​on​ ​the​ ​blockchain​ ​for​ ​immediate,​ ​permissioned​ ​access,​ ​supplemented​ ​by
off-chain​ ​data​ ​links​ ​when​ ​necessary.

Our​ ​system​ ​tracks​ ​and​ ​updates​ ​an​ ​entity’s​ ​dataset​ ​each​ ​time​ ​an​ ​event​ ​happens.​ ​This
information​ ​includes​ ​standard​ ​data,​ ​such​ ​as​ ​an​ ​entity’s​ ​type​ ​(person,​ ​company),​ ​location,​ ​and
other​ ​notes.​ ​Traditionally,​ ​this​ ​information​ ​is​ ​tracked​ ​in​ ​a​ ​centralized​ ​database.​ ​A​ ​standardized
set​ ​of​ ​information​ ​from​ ​this​ ​flow​ ​of​ ​information​ ​originating​ ​from​ ​an​ ​entity​ ​would​ ​be​ ​directed​ ​to​ ​a

18
​ ​techinasia.com/oddup-series-a-funding
17

blockchain​ ​transaction​ ​layer.​ ​The​ ​surface​ ​information​ ​on​ ​this​ ​transaction​ ​layer​ ​would​ ​contain
public​ ​information​ ​such​ ​as​ ​the​ ​number​ ​of​ ​followers,​ ​date​ ​created,​ ​etc.​ ​Information​ ​stored​ ​on​ ​the
blockchain​ ​could​ ​be​ ​universally​ ​available​ ​to​ ​a​ ​specific​ ​individual​ ​through​ ​the​ ​blockchain​ ​private
key​ ​mechanisms,​ ​enabling​ ​people​ ​to​ ​share​ ​information​ ​with​ ​trusted​ ​parties​ ​more​ ​seamlessly.

The​ ​blockchain​ ​can​ ​strengthen​ ​data​ ​integrity​​ ​while​ ​better​ ​protecting​ ​entities'​ ​private
informati​on.​ ​The​ ​blockchain’s​ ​inherent​ ​properties​ ​of​ ​cryptographic​ ​public/private​ ​key​ ​access,
proof​ ​of​ ​work,​ ​and​ ​distributed​ ​data​ ​create​ ​a​ ​new​ ​level​ ​of​ ​information​ ​integrity.​ ​Each​ ​entity
connected​ ​to​ ​the​ ​blockchain​ ​network​ ​has​ ​a​ ​secret​ ​private​ ​key​ ​and​ ​a​ ​public​ ​key​ ​that​ ​acts​ ​as​ ​an
openly​ ​visible​ ​identifier.​ ​The​ ​pair​ ​is​ ​cryptographically​ ​linked​ ​such​ ​that​ ​identification​ ​is​ ​possible​ ​in
only​ ​one​ ​direction​ ​using​ ​the​ ​private​ ​key.​ ​As​ ​such,​ ​one​ ​must​ ​have​ ​the​ ​private​ ​key​ ​in​ ​order​ ​to
unlock​ ​an​ ​entity's​ ​identity​ ​to​ ​uncover​ ​what​ ​information​ ​on​ ​the​ ​blockchain​ ​is​ ​relevant​ ​to​ ​their
profile.​ ​Therefore,​ ​the​ ​blockchain​ ​public/private​ ​key​ ​encryption​ ​scheme​ ​creates​ ​identity
permission​ ​layers​ ​to​ ​allow​ ​people​ ​to​ ​share​ ​distinct​ ​identity​ ​attributes​ ​with​ ​trusted​ ​parties,
reducing​ ​vulnerabilities​ ​stemming​ ​from​ ​storing​ ​private​ ​information​ ​on​ ​all​ ​nodes.

On​ ​chain​ ​data Off​ ​chain​ ​data

Pros Data​ ​is​ ​immediately​ ​visible​ ​and Expansive​ ​score​ ​verification​ ​data​ ​and
ingestible​ ​to​ ​all​ ​connected​ ​people, abstract​ ​data​ ​types​ ​(e.g.​ ​scanned​ ​documents,
making​ ​blockchain​ ​the​ ​single​ ​source images)
of​ ​truth Storage​ ​of​ ​any​ ​format​ ​and​ ​size​ ​of​ ​data

Cons Constrained​ ​in​ ​the​ ​type​ ​and​ ​size​ ​of Data​ ​is​ ​not​ ​immediately​ ​visible​ ​or​ ​ingestible,
data​ ​that​ ​can​ ​be​ ​stored requiring​ ​access​ ​from​ ​related​ ​entities​ ​and
through​ ​a​ ​payment​ ​wall

For​ ​more​ ​details,​ ​please​ ​refer​ ​to​ ​the​ ​Appendix​.
18

5.3. Use​ ​of​ ​an​ ​incentive​ ​mechanism

Simply​ ​asking​ ​people​ ​to​ ​evaluate​ ​a​ ​company's​ ​(deck's)​ ​claim​ ​would​ ​neither​ ​guarantee​ ​their
honesty​ ​nor​ ​seriousness​ ​in​ ​incorporating​ ​all​ ​of​ ​their​ ​private​ ​information​ ​in​ ​evaluating.​ ​Moreover,
an​ ​evaluation​ ​is​ ​usually​ ​meant​ ​to​ ​only​ ​hold​ ​for​ ​a​ ​finite​ ​amount​ ​of​ ​time.​ ​Therefore,​ ​without​ ​an
expiry​ ​date​ ​specified,​ ​it's​ ​difficult​ ​or​ ​rather​ ​irresponsible​ ​to​ ​cast​ ​an​ ​evaluation​ ​anyway.

Inspired​ ​by​ ​decentralized​ ​prediction​ ​markets​ ​such​ ​as​ ​Augur​ ​and​ ​Gnosis,​ ​our​ ​solution​ ​capitalized
on​ ​their​ ​incentive​ ​mechanism,​ ​transparency,​ ​security,​ ​and​ ​ability​ ​to​ ​aggregate​ ​private
information,​ ​which​ ​is​ ​otherwise​ ​inaccessible.​ ​A​ ​prediction​ ​market​ ​is​ ​a​ ​place​ ​where​ ​individuals
can​ ​wager​ ​on​ ​the​ ​outcomes​ ​of​ ​future​ ​events.​ ​Those​ ​who​ ​forecast​ ​the​ ​outcome​ ​correctly​ ​get
rewarded,​ ​requiring​ ​people​ ​to​ ​effectively​ ​put​ ​their​ ​money​ ​where​ ​their​ ​mouth​ ​is.​ ​This​ ​is​ ​designed
to​ ​incentivize​ ​people​ ​to​ ​forecast​ ​outcomes​ ​as​ ​carefully​ ​as​ ​possible​ ​based​ ​on​ ​what​ ​they​ ​know.

On​ ​DropDeck,​ ​when​ ​a​ ​company
creates​ ​a​ ​deck,​ ​a​ ​deadline​ ​must
be​ ​specified​ ​for​ ​when​ ​that
company​ ​should​ ​be​ ​funded,
selected​ ​for​ ​a​ ​prize​ ​or​ ​support
program.​ ​Evaluators​ ​can
evaluate​ ​in​ ​a​ ​sense​ ​that​ ​they
predict​ ​whether​ ​the​ ​company’s
expected​ ​outcome​ ​would​ ​happen
before​ ​the​ ​deadline​ ​or​ ​not.​ ​Each
evaluation​ ​cast​ ​costs​ ​DDD.

The​ ​evidence​ ​for​ ​the​ ​desired
outcome​ ​can​ ​be​ ​submitted​ ​by
anyone​ ​and​ ​approved​ ​by​ ​one​ ​or
more​ ​oracles.​ ​Those​ ​who​ ​predict
correctly​ ​instantly​ ​claim​ ​a​ ​share​ ​of​ ​the​ ​pot​ ​money,​ ​while​ ​those​ ​who​ ​predicted​ ​incorrectly​ ​suffer​ ​a
financial​ ​loss.

Among​ ​the​ ​differences​ ​between​ ​claim​ ​evaluation​ ​and​ ​prediction​ ​market​ ​is​ ​that​ ​it​ ​costs​ ​a​ ​fixed
amount​ ​of​ ​DDD​ ​to​ ​cast​ ​an​ ​evaluation,​ ​as​ ​opposed​ ​to​ ​a​ ​varying​ ​amount​ ​of​ ​money​ ​to​ ​buy​ ​a​ ​share
in​ ​the​ ​market,​ ​so​ ​that​ ​evaluators​ ​feel​ ​less​ ​biased​ ​when​ ​casting​ ​evaluation.

Besides​ ​monetary-rewards,​ ​the​ ​incentive​ ​ecosystem​ ​does​ ​not​ ​always​ ​reward​ ​users​ ​with​ ​DDD,
but​ ​also​ ​satisfies​ ​users'​ ​needs​ ​in​ ​exchange​ ​for​ ​voluntary,​ ​unconscious,​ ​and​ ​incremental​ ​data
contribution​ ​in​ ​various​ ​forms​ ​(evaluation,​ ​users,​ ​relationships,​ ​etc.).​ ​The​ ​beauty​ ​of​ ​this​ ​incentive
ecosystem​ ​is​ ​that​ ​it​ ​makes​ ​people​ ​contribute​ ​data​ ​unknowingly,​ ​making​ ​their​ ​contribution​ ​less
susceptible​ ​to​ ​bias,​ ​manipulation​ ​or​ ​spam.​ ​Also,​ ​since​ ​people​ ​contribute​ ​data​ ​for​ ​their​ ​own​ ​sake,
they​ ​are​ ​incentivized​ ​to​ ​provide​ ​data​ ​with​ ​the​ ​highest​ ​possible​ ​quantity​ ​and​ ​quality.

For​ ​more​ ​details,​ ​please​ ​refer​ ​to​ ​the​ ​DropDeck​ ​Incentive​ ​Ecosystem​.
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6. TYPES​ ​OF​ ​FUNDING

There​ ​are​ ​two​ ​main​ ​types​ ​of​ ​funding​ ​called​ ​“c
​ ontribution​”​ ​(royalty​ ​financing)​ ​and​ ​“​lending​”
(debt​ ​financing).​ ​In​ ​both​ ​cases,​ ​you​ ​can​ ​fund​ ​a​ ​company’s​ ​whole​ ​amount​ ​being​ ​raised,​ ​or​ ​only​ ​a
percentage​ ​of​ ​the​ ​total​ ​amount​ ​being​ ​raised​ ​(crowdfunding).

Contribution Lending

Recipient Mostly​ ​technology​ ​startups​ ​- Mostly​ ​SMEs​ ​-​ ​small​ ​to​ ​medium
early-stage,​ ​fast​ ​growing​ ​companies companies​ ​in​ ​mostly​ ​traditional
without​ ​stable​ ​cash​ ​flows businesses​ ​with​ ​stable​ ​cash​ ​flows​ ​and
specific​ ​spending​ ​purposes

Main Funder​ ​=​ ​“contributor” Funder​ ​=​ ​“lender”
participants Company​ ​=​ ​“contributee” Company​ ​=​ ​“borrower”

Repayment Receive​ ​a​ ​percentage​ ​of​ ​the​ ​funded Receive​ ​a​ ​fixed​ ​amount​ ​(including
company's​ ​future​ ​revenues​ ​(​royalty​) interest​​ ​and​ ​principal​)​ ​on​ ​a​ ​regular
over​ ​a​ ​certain​ ​period​ ​of​ ​time,​ ​up​ ​to​ ​a (mostly​ ​monthly)​ ​basis​ ​over​ ​a​ ​certain
specific​ ​amount period​ ​of​ ​time

Pros Can​ ​send​ ​DDD​ ​in​ ​installments​​ ​to Entitled​ ​to​ ​a​ ​fixed​ ​regular​ ​payment
minimize​ ​risk

Cons Not​ ​premised​ ​on​ ​an​ ​expectation​ ​of Must​ ​send​ ​the​ ​total​ ​amount​ ​of​ ​DDD
profits immediately

To​ ​perfect​ ​these​ ​funding​ ​types,​ ​we​ ​capitalize​ ​on​ ​the​ ​blockchain​ ​advantages​ ​at​ ​all​ ​4​ ​levels:

a. The​ ​blockchain​:​ ​facilitates​ ​autonomous,​ ​decentralized,​ ​instant,​ ​secure,​ ​reliable,
transparent,​ ​cost-efficient,​ ​international,​ ​peer-to-peer​ ​transaction​ ​processing.

b. The​ ​consensus​​ ​mechanism​:​ ​allows​ ​oracles​ ​to​ ​submit​ ​information​ ​and​ ​cast​ ​votes​ ​to
arrive​ ​at​ ​fair​ ​and​ ​transparent​ ​decision-making.​ ​If​ ​a​ ​dispute​ ​arises​ ​that​ ​requires​ ​a​ ​higher
level​ ​of​ ​scrutiny,​ ​DropDeck's​ ​in-house​ ​jury​ ​system​ ​will​ ​be​ ​activated​ ​to​ ​adjudicate.

c. The​ ​token​:​ ​serves​ ​as​ ​the​ ​currency​ ​for​ ​all​ ​transactions​ ​and​ ​as​ ​the​ ​ultimate​ ​reward​ ​for
participants​ ​in​ ​the​ ​incentive​ ​ecosystem.

d. The​ ​smart​ ​contract​:​ ​governs​ ​the​ ​incentive​ ​ecosystem,​ ​protects​ ​and​ ​ties​ ​the​ ​benefits​ ​of
all​ ​participants​ ​to​ ​each​ ​other​ ​to​ ​incentivizes​ ​them​ ​to​ ​contribute​ ​data​ ​and​ ​collaborate​ ​in
the​ ​best​ ​interests​ ​of​ ​each​ ​other.

6.1. The​ ​benefits​ ​of​ ​funding​ ​with​ ​DDD

It​ ​is​ ​possible​ ​for​ ​both​ ​funders​ ​and​ ​fundraising​ ​companies​ ​(fundraisers)​ ​to​ ​make​ ​contact​ ​and​ ​fund
outside​ ​of​ ​DropDeck.​ ​Therefore,​ ​we​ ​must​ ​add​ ​more​ ​and​ ​more​ ​benefits​ ​of​ ​funding​ ​with​ ​DDD
20

instead​ ​of​ ​funding​ ​elsewhere​ ​in​ ​order​ ​to​ ​attract​ ​both​ ​funders​ ​and​ ​fundraisers​ ​to​ ​adopt​ ​DDD​ ​as
the​ ​must-have​ ​currency​ ​for​ ​funding.​ ​The​ ​current​ ​11​ ​benefits​ ​are:

a. Speed​:​ ​Instantly​ ​fund​ ​any​ ​company​ ​in​ ​urgent​ ​need,​ ​anywhere​ ​in​ ​the​ ​world.

b. Transparency​:​ ​When​ ​a​ ​funder​ ​funds​ ​a​ ​company​ ​on​ ​DropDeck,​ ​the​ ​funder​ ​sends​ ​DDD​ ​to
its​ ​cryptocurrency​ ​wallet,​ ​through​ ​which​ ​the​ ​funder​ ​can​ ​monitor​ ​its​ ​spending​ ​activities.

c. Portfolio​:​ ​Fund​ ​many​ ​different​ ​companies​ ​at​ ​the​ ​same​ ​time​ ​to​ ​minimize​ ​risk.

d. Installment​:​ ​Contribute​ ​in​ ​installments​ ​to​ ​minimize​ ​risk​ ​and​ ​encourage​ ​the​ ​funded
company​ ​to​ ​consistently​ ​deliver.

e. Buyback​:​ ​DropDeck's​ ​earnings​ ​will​ ​accrue​ ​in​ ​the​ ​DDD​ ​Smart​ ​Contract,​ ​a​ ​share​ ​of​ ​which
is​ ​used​ ​to​ ​buy​ ​back​ ​DDD​ ​tokens​ ​on​ ​exchanges,​ ​effectively​ ​increasing​ ​the​ ​token​ ​net
worth​ ​of​ ​all​ ​DDD​ ​holders.​ ​For​ ​more​ ​details,​ ​please​ ​refer​ ​to​ ​the​ A
​ ppendix​.

f. Ecosystem​:​ ​When​ ​a​ ​funder​ ​funds​ ​a​ ​company​ ​on​ ​DropDeck,​ ​every​ ​participant​ ​in​ ​the
ecosystem​ ​(hunter,​ ​evaluator,​ ​Delegate,​ ​etc.)​ ​receives​ ​value​ ​and​ ​is​ ​thus​ ​incentivized​ ​to
contribute​ ​more​ ​to​ ​the​ ​ecosystem​ ​and​ ​help​ ​minimize​ ​risk​ ​in​ ​future​ ​funding​ ​endeavors.

g. Reputation​:​ ​Funding​ ​innovative​ ​and​ ​thriving​ ​companies​ ​on​ ​DropDeck​ ​improves​ ​the
funder’s​ ​and​ ​all​ ​associated​ ​entities'​ ​scores;​ ​improves​ ​the​ ​funder’s​ ​global​ ​ranking​ ​to
attract​ ​more​ ​and​ ​better​ ​entities​ ​(entrepreneurs,​ ​investors,​ ​employees,​ ​service​ ​providers,
etc.);​ ​grants​ ​the​ ​access​ ​to​ ​private​ ​information;​ ​and​ ​increases​ ​the​ ​accessibility​ ​to
DropDeck​ ​services.

h. Escrow​:​ ​Funders’​ ​tokens​ ​are​ ​held​ ​until​ ​all​ ​smart​ ​contract​ ​requirements​ ​are​ ​met.

i. Leverage​:​ ​A​ ​funder​ ​might​ ​not​ ​have​ ​a​ ​lot​ ​of​ ​money​ ​to​ ​fund​ ​innovative​ ​and​ ​thriving
companies​ ​around​ ​the​ ​world.​ ​However,​ ​if​ ​a​ ​person​ ​gets​ ​DDD​ ​tokens​ ​at​ ​the​ ​highest
discount​ ​during​ ​the​ ​token​ ​generation​ ​event,​ ​later​ ​the​ ​person​ ​as​ ​a​ ​funder​ ​is​ ​likely​ ​to​ ​have
more​ ​value​ ​in​ ​DDD​ ​for​ ​funding.

j. Crypto-credit​:​ ​Cryptocurrency​ ​transaction​ ​improves​ ​funder’s,​ ​funded​ ​companies',​ ​and
all​ ​associated​ ​entities'​ ​crypto-credit​ ​rating,​ ​which​ ​improves​ ​one's​ ​chance​ ​to​ ​obtain​ ​loans
at​ ​good​ ​rates​ ​in​ ​the​ ​future.

6.2. Contributing​ ​with​ ​DDD

“It’s​ ​common​ ​to​ ​make​ ​more​ ​money​ ​from​ ​your​ ​single​ ​best​ ​angel​ ​investment​ ​than​ ​all​ ​the​ ​rest​ ​put
together.​ ​The​ ​consequence​ ​of​ ​this​ ​is​ ​that​ ​the​ ​real​ ​risk​ ​is​ ​missing​ ​out​ ​on​ ​that​ ​outstanding
investment.”​ ​-​ ​Sam​ ​Altman,​ ​President​ ​at​ ​Y​ ​Combinator,​ ​Co-chairman​ ​at​ ​OpenA.I..

There​ ​is​ ​little​ ​doubt​ ​that​ ​today’s​ ​most​ ​innovative​ ​and​ ​thriving​ ​startups​ ​might​ ​become​ ​huge
tomorrow.​ ​Looking​ ​backward,​ ​between​ ​1955​ ​and​ ​2005,​ ​88%​ ​of​ ​Fortune​ ​500​ ​companies​ ​have
disappeared19.​ ​Looking​ ​forward,​ ​50%​ ​of​ ​today's​ ​S&P​ ​500​ ​will​ ​be​ ​replaced​ ​in​ ​the​ ​next​ ​10​ ​years20.

19
​ ​Fortune​ ​500​ ​firms​ ​1955​ ​vs.​ ​2015
20
​ ​Innosight's​ ​2016​ ​study​ ​of​ ​turnover​ ​in​ ​the​ ​S&P​ ​500
21

Everyone​ ​is​ ​searching​ ​for​ ​the​ ​next​ ​Google.​ ​However,​ ​most​ ​startups​ ​have​ ​high​ ​risk,​ ​short
operation​ ​time,​ ​no​ ​collateral,​ ​and​ ​little​ ​or​ ​no​ ​cash​ ​flow,​ ​so​ ​most​ ​are​ ​not​ ​eligible​ ​for​ ​loans.
Funding​ ​such​ ​startups​ ​means​ ​the​ ​contributor​ ​taking​ ​a​ ​high​ ​level​ ​of​ ​risk.​ ​However,​ ​if​ ​only​ ​a
fraction​ ​of​ ​the​ ​funded​ ​startups​ ​succeed,​ ​they​ ​might​ ​pay​ ​back​ ​more​ ​than​ ​enough​ ​to​ ​the
community.

With​ ​DropDeck,​ ​we​ ​want​ ​to​ ​address​ ​the​ ​existing​ ​deficiencies​ ​in​ ​startup​ ​funding​ ​so​ ​that​ ​a
contributor​ ​can​ ​find​ ​the​ ​most​ ​potential​ ​startups​ ​faster,​ ​minimize​ ​risk​ ​and​ ​diversify,​ ​and​ ​make
sure​ ​successful​ ​startups​ ​give​ ​back​ ​to​ ​the​ ​community.

a) “All​ ​the​ ​good​ ​ones":​ ​Finding​ ​many​ ​great​ ​startups​ ​is​ ​not​ ​enough​ ​if​ ​there’s​ ​one​ ​startup​ ​out
there​ ​that​ ​might​ ​become​ ​the​ ​next​ ​Google,​ ​who​ ​might​ ​be​ ​too​ ​busy​ ​solving​ ​problems​ ​to
marketthemselves.​ ​“Hunters"​ ​in​ ​DropDeck's​ ​incentive​ ​ecosystem​ ​are​ ​tasked​ ​to​ ​smoke
out​ ​all​​ ​promising​ ​startups​.

b) Further​ ​minimization​ ​of​ ​risk:​ ​The​ ​tokens​ ​used​ ​for​ ​funding​ ​are​ ​held​ ​in​ ​an​ ​escrow​ ​smart
contract;​ ​the​ ​contributee​ ​that​ ​a​ ​contributor​ ​intends​ ​to​ ​fund​ ​must​ ​fulfill​ ​a​ ​local​ ​Delegate’s
requirements;​ ​a​ ​contributor​ ​can​ ​contribute​ ​to​ ​a​ ​portfolio​ ​of​ ​different​ ​startups​ ​and​ ​also​ ​can
contribute​ ​in​ ​installments​ ​to​ ​constantly​ ​motivate​ ​the​ ​contributee​ ​to​ ​achieve​ ​and​ ​deliver.

c) Reward​ ​the​ ​ecosystem:​ ​Without​ ​the​ ​ecosystem​ ​on​ ​DropDeck,​ ​no​ ​one​ ​would​ ​be​ ​funded​ ​in
the​ ​first​ ​place,​ ​Thus,​ ​it​ ​is​ ​necessary​ ​for​ ​the​ ​contributee​ ​to​ ​pay​ ​back,​ ​and​ ​incentivize​ ​all
participants​ ​to​ ​help​ ​fund​ ​more​ ​and​ ​more​ ​innovative​ ​and​ ​thriving​ ​startups.​ ​Local
“Delegates"​ ​are​ ​tasked​ ​to​ ​oversee​ ​this​ ​process.

6.2.1. Participants​ ​in​ ​the​ ​contributing​ ​process

a) Contributor:​ ​the​ ​funder​ ​who​ ​believes​ ​in​ ​the​ ​future​ ​of​ ​an​ ​innovative​ ​and​ ​fast-growing
startup.

b) Contributee:​ ​the​ ​funded​ ​company.

c) Hunter:​ ​the​ ​one​ ​who​ ​searches​ ​for​ ​promising​ ​startups,​ ​reaches​ ​out​ ​to​ ​get​ ​their​ ​approval
and​ ​consolidate​ ​their​ ​information​ ​to​ ​publish​ ​on​ ​DropDeck.​ ​A​ ​Hunter​ ​is​ ​automatically
rewarded​ ​when​ ​the​ ​hunted​ ​startup​ ​is​ ​funded.

d) Referrer:​ ​not​ ​all​ ​Hunters​ ​are​ ​allowed​ ​to​ ​or​ ​have​ ​enough​ ​information​ ​to​ ​publish​ ​a​ ​deck,​ ​so
they​ ​can​ ​only​ ​refer​ ​a​ ​promising​ ​startup​ ​and​ ​a​ ​suitable​ ​contributor​ ​to​ ​each​ ​other.

e) Evaluator:​ ​people​ ​who​ ​evaluate​ ​a​ ​startup's​ ​claims​ ​for​ ​a​ ​chance​ ​to​ ​get​ ​rewarded​ ​(for​ ​how
this​ ​works,​ ​see​ ​Appendix​)

f) Delegate:​ ​a​ ​professional​ ​or​ ​company​ ​local​ ​to​ ​the​ ​contributee​ ​who​ ​submits​ ​proposals​ ​of
legal​ ​arrangement​ ​with​ ​the​ ​contributee​ ​(in​ ​the​ ​best​ ​interests​ ​of​ ​all​ ​parties)​ ​to​ ​bid​ ​approval
from​ ​both​ ​the​ ​contributor(s)​ ​and​ ​contributee.

6.2.2. The​ ​contribution​ ​flow

a) A​ ​contributor​ ​can​ ​contribute​ ​DDD​ ​to​ ​one​ ​or​ ​many​ ​companies​ ​on​ ​DropDeck.

​ wnership​.
b) A​ ​contributee​ ​can​ ​only​ ​be​ ​funded​ ​after​ ​all​ ​founders​ ​have​ ​verified​ ​their​ o
22

c) When​ ​contributor​ ​decides​ ​to​ ​fund​ ​a​ ​contributee​ ​on​ ​DropDeck,​ ​the​ ​contributor​ ​sends​ ​an
amount​ ​of​ ​DDD​ ​from​ ​his/her​ ​wallet​ ​on​ ​DropDeck​ ​to​ ​a​ s​ mart​ ​contract​ ​address​.​ ​The​ ​DDD
will​ ​be​ ​held​ ​in​ ​escrow​ ​in​ ​that​ ​smart​ ​contract.

d) A​ ​contributee​ ​can​ ​configure​ ​its​ ​funding​ ​campaign​ ​to​ ​accept​ ​contribution​ ​from​ ​only​ ​one​ ​or
many​ ​contributors​ ​(​crowdfunding​).

e) In​ ​case​ ​of​ ​crowdfunding,​ ​contributee​ ​must​ ​set​ ​a​ ​consensus​ ​threshold​,​ ​which​ ​is​ ​the​ ​ratio
of​ ​the​ ​weighted​ ​net​ ​votes​ ​to​ ​the​ ​weighted​ ​total​ ​possible​ ​votes​ ​at​ ​which​ ​a​ ​decision​ ​is
passed.​ ​The​ ​default​ ​consensus​ ​threshold​ ​is​ ​10%.

f) The​ ​contributee​ ​must​ ​set​ ​the​ ​number​ ​of​ ​installments​ ​that​ ​the​ ​total​ ​contribution​ ​will​ ​be
divided​ ​into,​ ​the​ ​time​ ​interval​ ​between​ ​installments,​ ​and​ ​the​ r​ oyalty​ ​term​,​ ​which​ ​is​ ​the
percentage​ ​of​ ​the​ ​contributee's​ ​profit​ ​that​ ​it​ ​pledges​ ​to​ ​pay​ ​back​ ​to​ ​the​ ​DropDeck
ecosystem.​ ​The​ ​higher​ ​these​ ​numbers​ ​are,​ ​the​ ​more​ ​likely​ ​that​ ​company​ ​is​ ​funded.

g) When​ ​a​ ​contributor​ ​wants​ ​to​ ​fund​ ​a​ ​company​ ​that​ ​has​ ​already​ ​been​ ​contributed​ ​to​ ​by
many​ ​contributors,​ ​the​ ​contributor​ ​can​ ​contribute​ ​any​ ​amount​ ​of​ ​DDD,​ ​or​ ​pay​ ​a​ b
​ uyout
amount​ ​to​ ​remove​ ​all​ ​existing​ ​contributors,​ ​effectively​ ​end​ ​the​ ​funding​ ​campaign​ ​and
fulfill​ ​solo.

h) When​ ​the​ ​funding​ ​campaign​ ​ends​ ​and​ ​all​ ​KYC/AML​ o ​ bligations​ ​are​ ​fulfilled​ ​by​ ​the
company​ ​(including​ ​choosing​ ​a​ ​Delegate,​ ​approving​ ​that​ ​Delegate's​ ​proposal​ ​of​ ​legal
arrangement,​ ​and​ ​fulfilling​ ​the​ ​Delegate's​ ​requirements),​ ​all​ ​contributed​ ​tokens​ ​in​ ​its
escrow​ ​smart​ ​contract​ ​would​ ​be​ ​equally​ ​divided​ ​into​ ​the​ ​number​ ​of​ ​installments,​ ​and​ ​the
first​ ​installment​ ​sent​ ​to​ ​the​ ​contributee’s​ ​wallet​ ​on​ ​DropDeck.

i) To​ ​be​ ​chosen,​ ​each​ ​Delegate​ ​submits​ ​their​ ​proposal​ ​of​ ​legal​ ​arrangement,​ ​and​ ​expected
fee​ ​in​ ​terms​ ​of​ ​a​ ​percentage​ ​of​ ​the​ ​future​ ​royalty​ ​from​ ​the​ ​contributee.

j) A​ ​Delegate​ ​(and​ ​its​ ​proposal​ ​of​ ​legal​ ​arrangement)​ ​must​ ​be​ ​approved​ ​by​ ​all​ ​founder(s)​ ​of
contributee​ ​and​ ​by​ ​the​ ​contributor(s)​ ​(according​ ​to​ ​the​ ​consensus​ ​threshold).

k) If​ ​no​ ​Delegate​ ​is​ ​chosen,​ ​the​ ​funding​ ​process​ ​pauses​.​ ​So​ ​it's​ ​the​ ​responsibility​ ​of​ ​both
the​ ​contributor(s)​ ​and​ ​contributee​ ​to​ ​find​ ​a​ ​Delegate​ ​from​ ​the​ ​beginning.

l) The​ ​Delegate​ ​might​ ​be​ ​a​ ​contributor,​ ​and​ ​is​ ​granted​ ​access​ ​to​ ​monitor​ ​the​ ​contributee’s
business​ ​bank​ ​accounts'​ ​balance​ ​and/or​ ​cryptocurrency​ ​wallet​ ​addresses.

m) According​ ​to​ ​the​ ​Delegate’s​ ​proposal,​ ​it​ ​then​ ​may​ ​or​ ​may​ ​not​ ​enter​ ​into​ ​a​ l​ egal
arrangement​ ​with​ ​the​ ​contributee​ ​to​ ​make​ ​sure​ ​the​ ​contributee​ ​will​ ​pay​ ​back​ ​to​ ​the
ecosystem​ ​per​ ​its​ ​royalty​ ​term​ ​when​ ​it​ ​turns​ ​profitable.

n) When​ ​the​ ​date​ ​of​ ​the​ ​next​ ​installment​ ​is​ ​reached,​ ​all​ ​contributor(s)​ ​will​ ​vote​ ​on​ ​whether
the​ ​installment​ ​will​ ​be​ ​sent​ ​or​ ​not.​ ​In​ ​case​ ​of​ ​many​ ​contributors,​ ​the​ ​consensus​ ​threshold
must​ ​be​ ​reached​ ​for​ ​the​ ​installment​ ​to​ ​be​ ​sent.​ ​Before​ ​this​ ​date,​ ​the​ ​contributee​ ​can
submit​ ​their​ ​evidence​ ​of​ ​achievements​ ​to​ ​serve​ ​as​ ​reference​ ​for​ ​the​ ​contributor(s).

o) The​ ​contributee​ ​will​ ​pay​ ​back​ ​to​ ​the​ ​ecosystem​ ​per​ ​the​ ​terms​ ​legally​ ​agreed​ ​upon​ ​and
signed​ ​with​ ​the​ ​Delegate​ ​that​ ​involve​ ​a​ ​royalty​ ​smart​ ​contract​ ​address​ ​issued​ ​by
DropDeck.​ ​When​ ​that​ ​happens,​ ​it​ ​sends​ ​an​ ​amount​ ​of​ ​DDD​ ​from​ ​its​ ​wallet​ ​on​ ​DropDeck
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to​ ​that​ ​smart​ ​contract​ ​address,​ ​which​ ​will​ ​be​ ​distributed​ ​to​ ​all​ ​participants​ ​involved​ ​in​ ​the
funding​ ​process,​ ​according​ ​to​ ​proportions​ ​pre-determined​ ​by​ ​DropDeck.

p) At​ ​any​ ​time,​ ​anyone​ ​can​ ​send​ ​a​ ​report​ ​to​ ​the​ ​contributor(s)​ ​about​ ​anything​ ​related​ ​to​ ​the
contributee​ ​or​ ​Delegate​ ​or​ ​anyone​ ​else​ ​that​ ​might​ ​jeopardize​ ​the​ ​benefits​ ​of​ ​the​ ​funding
ecosystem,​ ​so​ ​that​ ​the​ ​contributor(s)​ ​can​ ​take​ ​actions​ ​accordingly​ ​(e.g.​ ​replace​ ​the
Delegate,​ ​pause​ ​funding)

6.3. Lending​ ​with​ ​DDD

Out​ ​of​ ​Asia’s​ ​top​ ​7​ ​invested​ ​companies​ ​in​ ​2016,​ ​whose​ ​capital​ ​invested​ ​accounts​ ​for​ ​78%​ ​of​ ​all
invested​ ​capital​ ​in​ ​Asia21,​ ​all​ ​7​ ​of​ ​them​ ​operate​ ​in​ ​the​ ​lending​ ​sector.​ ​The​ ​online​ ​lending​ ​market
is​ ​huge​ ​(more​ ​than​ ​$2​ ​trillion),​ ​out​ ​of​ ​which​ ​the​ ​addressable​ ​market​ ​for​ ​business​ ​lending​ ​is​ ​$284
billion22.​ ​This​ ​market​ ​is​ ​extremely​ ​crowded​ ​too,​ ​but​ ​the​ ​challenges​ ​faced​ ​by​ ​most​ ​of​ ​them​ ​are
almost​ ​the​ ​same.​ ​Despite​ ​advantages​ ​compared​ ​to​ ​banks​ ​such​ ​as​ ​no​ ​excessive​ ​overhead​ ​costs
(e.g.,​ ​an​ ​outdated​ ​network​ ​of​ ​branches)​ ​and​ ​operational​ ​efficiency​ ​(e.g.,​ ​quick​ ​turnaround​ ​times
for​ ​credit​ ​decisioning),​ ​online​ ​lenders​ ​still​ ​suffer​ ​from​ ​high​ ​APR​ ​for​ ​borrowers​ ​(stuck​ ​with​ ​“cream
of​ ​the​ ​crap”​ ​who​ ​are​ ​rejected​ ​by​ ​major​ ​retail​ ​banks),​ ​low​ ​scalability​ ​(because​ ​of​ ​dependence​ ​on
local​ ​data​ ​partners),​ ​and​ ​macro-sensitivity​ ​(e.g.​ ​cannot​ ​predict​ ​nor​ ​avoid​ ​macroeconomic​ ​effects
such​ ​as​ ​a​ ​national​ ​rate​ ​hike),​ ​among​ ​others.

On​ ​the​ ​other​ ​hand,​ ​big​ ​banks​ ​are​ ​sitting​ ​on​ ​troves​ ​of​ ​data​ ​(i.e.​ ​account​ ​balances,​ ​inflows,
outflows),​ ​spending​ ​(i.e.​ ​transaction-level​ ​purchases),​ ​and​ ​risk​ ​(i.e.​ ​delinquency,​ ​write-off)​ ​data,
and​ ​are​ ​thus​ ​able​ ​to​ ​assess​ ​a​ ​single​ ​borrower’s​ ​creditworthiness​ ​based​ ​on​ ​metrics​ ​captured
from​ ​a​ ​variety​ ​of​ ​bank-offered​ ​products,​ ​underwrite​ ​credit​ ​with​ ​more​ ​predictive​ ​certainty​ ​and
confidence,​ ​and​ ​price​ ​products​ ​a​ ​lot​ ​more​ ​competitively​ ​(i.e.​ ​avoid​ ​having​ ​to​ ​tack​ ​on​ ​an
excessive​ ​“uncertainty​ ​premium”).​ ​These​ ​advantages​ ​ultimately​ ​lead​ ​to​ ​better​ ​unit​ ​economics​ ​to
borrowers,​ ​allowing​ ​banks​ ​to​ ​cherry-pick​ ​the​ ​most​ ​creditworthy​ ​borrowers​ ​within​ ​each​ ​risk​ ​band.

Despite​ ​these​ ​setbacks,​ ​for​ ​the​ ​first​ ​time​ ​ever​ ​with​ ​our​ ​incentive​ ​ecosystem​ ​that​ ​combines​ ​A.I.’s
predictive​ ​capabilities​ ​with​ ​the​ ​blockchain's​ ​features​ ​(payment,​ ​consensus​ ​mechanism,​ ​app
token,​ ​and​ ​smart​ ​contract),​ ​DropDeck​ ​can​ ​aggregate​ ​as​ ​much​ ​quality​ ​data​ ​as​ ​possible​ ​to
perform​ ​creditscoring​ ​and​ ​suggest​ ​more​ ​competitive​ ​interest​ ​rates​ ​over​ ​time,​ ​attract​ ​more
creditworthy​ ​borrowers,​ ​scale​ ​globally​ ​and​ ​offset​ ​local​ ​macroeconomic​ ​effects,​ ​and​ ​ultimately
plug​ ​financial​ ​institutions​ ​into​ ​the​ ​ecosystem.

Other​ ​deficiencies​ ​in​ ​business​ ​crypto-lending​ ​we​ ​want​ ​to​ ​address​ ​are:

a) Thin​ ​credit​ ​file:​ ​not​ ​everyone​ ​has​ ​a​ ​credit​ ​history​ ​with​ ​banks

i) Backers:​ ​a​ ​borrower​ ​(borrowing​ ​company)​ ​can​ ​ask​ ​trustful​ ​users​ ​to​ ​become
Backers,​ ​who​ ​will​ ​have​ ​a​ ​part​ ​of​ ​their​ ​DDD​ ​balance​ ​frozen,​ ​and​ ​force-liquidated​ ​in
case​ ​the​ ​borrower​ ​fails​ ​to​ ​make​ ​a​ ​payment​ ​for​ ​a​ ​period​ ​of​ ​10​ ​grace​ ​days.

21
​ ​Life.SREDA's​ ​Money​ ​Of​ ​The​ ​Future​ ​2016-17
22
​ ​EY's​ ​Alternative​ ​Lending​ ​report
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ii) Blockchain-based​ ​credit​ ​history:​ ​A​ ​borrower​ ​can​ ​submit​ ​one​ ​or​ ​many
cryptocurrency​ ​wallets​ ​and​ ​verify​ ​the​ ​ownership​ ​of​ ​these​ ​wallets​ ​to​ ​improves​ ​its
creditworthiness​ ​and​ ​Trust​ ​score.

b) Minimize​ ​risk:​ ​similar​ ​to​ ​contributing​ ​with​ ​DDD,​ ​both​ ​the​ ​lender​ ​and​ ​borrower​ ​must
choose​ ​and​ ​approve​ ​a​ ​Delegate's​ ​proposal​ ​of​ ​legal​ ​arrangement​ ​to​ ​prevent​ ​loan
delinquency.

c) Enforce​ ​repayment:​ ​an​ ​Insurer​ ​can​ ​see​ ​all​ ​loans​ ​made​ ​(from​ ​the​ ​newest)​ ​and​ ​bid​ ​to​ ​offer
insurance​ ​to​ ​lenders.​ ​Likewise,​ ​a​ ​Collector​ ​can​ ​see​ ​all​ ​loans​ ​made​ ​(from​ ​the​ ​oldest)​ ​and
bid​ ​to​ ​offer​ ​collection​ ​services​ ​to​ ​lenders.

d) Pressure​ ​to​ ​underwrite​ ​loan​ ​correctly:​ ​in​ ​the​ ​absence​ ​of​ ​sufficient​ ​data​ ​to​ ​calculate
interest​ ​rates,​ ​DropDeck​ ​can​ ​allow​ ​the​ ​borrower​ ​to​ ​ask​ ​and​ ​potential​ ​lenders​ ​to​ ​bid​ ​(in​ ​a
Poloniex-like​ ​fashion)

e) Token​ ​volatility:​ ​a​ ​borrower​ ​must​ ​repay​ ​with​ ​the​ ​same​ ​denomination​ ​it​ ​was​ ​funded​ ​with,
which​ ​is​ ​DDD​ ​in​ ​this​ ​case.​ ​The​ ​token​ ​price​ ​may​ ​rise​ ​to​ ​the​ ​point​ ​the​ ​borrower​ ​can​ ​no
longer​ ​afford​ ​repayment.​ ​Solutions​ ​include:

i) Ignore​ ​rate:​ ​the​ ​lender​ ​and​ ​borrower​ ​agree​ ​upon​ ​a​ ​fixed​ ​monthly​ ​payment
amount​ ​instead​ ​of​ ​applying​ ​the​ ​interest​ ​rate​ ​suggested​ ​by​ ​DropDeck.

ii) Buy​ ​option:​ ​the​ ​borrower​ ​can​ ​buy​ ​an​ ​option​ ​to​ ​buy​ ​DDD​ ​from​ ​DropDeck​ ​at​ ​a
predetermined​ ​price​ ​within​ ​7​ ​days​ ​before​ ​the​ ​loan​ ​matures​ ​in​ ​the​ ​future.

iii) Pawn​ ​token:​ ​the​ ​borrower​ ​can​ ​pawn​ ​the​ ​amount​ ​of​ ​tokens​ ​received​ ​from​ ​lenders
on​ ​DropDeck​ ​and​ ​pay​ ​a​ ​fixed​ ​fee​ ​in​ ​order​ ​to​ ​receive​ ​that​ ​same​ ​amount​ ​of​ ​tokens
when​ ​the​ ​loan​ ​matures.

iv) Issue​ ​stablecoin:​ ​we​ ​can​ ​create​ ​a​ ​seigniorage​ ​modeled​ ​coin,​ ​say​ ​‘USDCoin’​ ​that
maintains​ ​its​ ​value​ ​with​ ​respect​ ​to​ ​the​ ​US​ ​Dollar,​ ​and​ ​put​ ​them​ ​on​ ​ ​exchanges​ ​to
be​ ​traded.​ ​If​ ​the​ ​price​ ​were​ ​above​ ​one​ ​dollar,​ ​the​ ​coin​ ​algorithm​ ​would​ ​print​ ​more
coins;​ ​if​ ​below​ ​a​ ​dollar,​ ​the​ ​algorithm​ ​would​ ​discontinue​ ​printing.​ ​This​ ​allows​ ​the
price​ ​of​ ​the​ ​coin​ ​to​ ​stay​ ​relatively​ ​close​ ​to​ ​parity​ ​with​ ​the​ ​dollar.​ ​These​ ​coins​ ​have
the​ ​transactional​ ​qualities​ ​of​ ​cryptocurrencies​ ​and​ ​are​ ​critical​ ​for​ ​mass​ ​adoption
as​ ​they​ ​are​ ​pegged​ ​one​ ​to​ ​one​ ​with​ ​fiat​ ​currencies​ ​and​ ​resistant​ ​to​ ​day-to-day
volatility.​ ​For​ ​more​ ​details,​ ​please​ ​refer​ ​to​ ​the​ ​Appendix​.

6.3.1. Participants​ ​in​ ​the​ ​lending​ ​process

a) Lender:​ ​the​ ​funder​ ​who​ ​believes​ ​the​ ​borrower​ ​will​ ​thrive​ ​for​ ​as​ ​long​ ​as​ ​the​ ​loan​ ​maturity.

b) Borrower:​ ​the​ ​borrowing​ ​company​ ​that​ ​needs​ ​immediate​ ​funding​ ​for​ ​specific​ ​purposes.

c) Backer:​ ​trustworthy​ ​users​ ​with​ ​a​ ​positive​ ​balance​ ​in​ ​DDD,​ ​who​ ​serve​ ​as​ ​collateral​ ​to​ ​the
loan.

d) Evaluators:​ ​people​ ​who​ ​evaluate​ ​a​ ​startup's​ ​claims​ ​for​ ​a​ ​chance​ ​to​ ​get​ ​rewarded.

e) Insurer:​ ​a​ ​professional​ ​or​ ​company​ ​willing​ ​to​ ​insure​ ​the​ ​loan.
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f) Collector:​ ​a​ ​professional​ ​or​ ​company​ ​specialized​ ​in​ ​collecting​ ​debt.

g) Delegate:​ ​a​ ​professional​ ​or​ ​company​ ​local​ ​to​ ​the​ ​borrower​ ​who​ ​submits​ ​proposals​ ​of​ ​the
legal​ ​arrangement​ ​with​ ​the​ ​borrower​ ​(in​ ​the​ ​best​ ​interests​ ​of​ ​all​ ​parties)​ ​to​ ​bid​ ​approval
from​ ​both​ ​the​ ​lender(s)​ ​and​ ​borrower.​ ​The​ ​Delegate​ ​can​ ​also​ ​be​ ​the​ ​Insurer.

6.3.2. The​ ​lending​ ​flow

a) A​ ​lender​ ​can​ ​lend​ ​DDD​ ​to​ ​one​ ​or​ ​many​ ​companies​ ​on​ ​DropDeck.

b) A​ ​company​ ​can​ ​only​ ​be​ ​funded​ ​after​ ​their​ ​one​ ​or​ ​many​ ​founders​ ​have​ ​verified​ ​their
ownership​.

c) When​ ​a​ ​lender​ ​lends​ ​DDD​ ​to​ ​a​ ​company​ ​on​ ​DropDeck,​ ​the​ ​lender​ ​sends​ ​an​ ​amount​ ​of
DDD​ ​from​ ​your​ ​wallet​ ​on​ ​DropDeck​ ​to​ ​a​ ​smart​ ​contract​ ​address.​ ​The​ ​DDD​ ​is​ ​held​ ​in
escrow​ ​in​ ​that​ ​smart​ ​contract.

d) Many​ ​lenders​ ​can​ ​lend​ ​to​ ​the​ ​same​ ​borrower,​ ​which​ ​is​ ​recommended​ ​to​ ​minimize​ ​risk​ ​for
lenders.

e) The​ ​borrower​ ​must​ ​set​ ​a​ ​consensus​ ​threshold​,​ ​which​ ​is​ ​the​ ​ratio​ ​of​ ​the​ ​weighted​ ​net
votes​ ​to​ ​the​ ​weighted​ ​total​ ​possible​ ​votes​ ​at​ ​which​ ​a​ ​decision​ ​is​ ​passed.​ ​The​ ​default
consensus​ ​threshold​ ​is​ ​10%.

f) After​ ​DropDeck​ ​has​ ​aggregated​ ​sufficient​ ​data,​ ​it​ ​would​ ​suggest​ ​an​ ​interest​ ​rate​ ​for​ ​the
loan,​ ​which​ ​is​ ​subject​ ​to​ ​change.

g) The​ ​borrower​ ​itself​ ​can​ ​propose​ ​a​ ​different​ ​interest​ ​rate.​ ​At​ ​the​ ​same​ ​time,​ ​any​ ​lender
who​ ​has​ ​sent​ ​DDD​ ​can​ ​also​ ​propose​ ​a​ ​different​ ​interest​ ​rate.

h) When​ ​the​ ​funding​ ​campaign​ ​ends​ ​and​ ​all​ ​KYC/AML​ ​obligations​ ​are​ ​fulfilled​ ​by​ ​the
borrower​ ​(including​ ​approving​ ​an​ ​interest​ ​rate,​ ​choosing​ ​a​ ​Delegate,​ ​approving​ ​that
Delegate's​ ​proposal​ ​of​ ​legal​ ​arrangement,​ ​and​ ​fulfilling​ ​this​ ​Delegate's​ ​requirements),​ ​all
lent​ ​tokens​ ​in​ ​its​ ​escrow​ ​smart​ ​contract​ ​would​ ​be​ ​sent​ ​to​ ​the​ ​company’s​ ​wallet​ ​on
DropDeck.

i) To​ ​be​ ​chosen,​ ​each​ ​Delegate​ ​submits​ ​their​ ​proposal​ ​of​ ​legal​ ​arrangement,​ ​and​ ​expected
share​ ​of​ ​the​ ​future​ ​repayment​ ​from​ ​the​ ​borrower.

j) A​ ​Delegate​ ​(and​ ​its​ ​proposal​ ​of​ ​legal​ ​arrangement)​ ​must​ ​be​ ​approved​ ​by​ ​all​ ​founder(s)​ ​of
borrower​ ​and​ ​by​ ​the​ ​lender(s)​ ​(according​ ​to​ ​the​ ​consensus​ ​threshold).

k) An​ ​interest​ ​rate​ ​(or​ ​an​ ​“ignore​ ​rate"​ ​fixed​ ​monthly​ ​payment)​ ​must​ ​be​ ​approved​ ​by​ ​all
founder(s)​ ​of​ ​borrower​ ​and​ ​by​ ​the​ ​lender(s)​ ​(according​ ​to​ ​the​ ​consensus​ ​threshold).

l) If​ ​neither​ ​a​ ​Delegate​ ​nor​ ​an​ ​interest​ ​rate​ ​is​ ​chosen,​ ​the​ ​funding​ ​process​ ​pauses.

m) The​ ​Delegate​ ​might​ ​be​ ​one​ ​of​ ​the​ ​lenders,​ ​and​ ​is​ ​granted​ ​access​ ​to​ ​monitor​ ​the
borrower’s​ ​business​ ​bank​ ​accounts'​ ​balance​ ​and/or​ ​cryptocurrency​ ​wallet​ ​addresses.
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n) The​ ​Delegate​ ​then​ ​must​ ​enter​ ​into​ ​a​ ​legal​ ​arrangement​ ​with​ ​the​ ​borrower​ ​to​ ​prevent​ ​loan
delinquency.

o) The​ ​borrower​ ​will​ ​make​ ​a​ ​repayment​ ​on​ ​a​ ​monthly​ ​basis​ ​per​ ​the​ ​terms​ ​legally​ ​agreed
upon​ ​and​ ​signed​ ​with​ ​the​ ​Delegate​ ​that​ ​involve​ ​a​ r​ epayment​ ​smart​ ​contract​ ​address
issued​ ​by​ ​DropDeck.​ ​This​ ​amount​ ​will​ ​be​ ​fixed​ ​every​ ​month​ ​and​ ​includes​ ​a​ ​portion​ ​of
both​ ​the​ ​principal​ ​(which​ ​increases​ ​every​ ​month)​ ​and​ ​the​ ​interest​ ​(which​ ​decreases
every​ ​month).​ ​When​ ​that​ ​happens,​ ​it​ ​sends​ ​an​ ​amount​ ​of​ ​DDD​ ​from​ ​its​ ​wallet​ ​on
DropDeck​ ​to​ ​that​ ​smart​ ​contract​ ​address,​ ​which​ ​will​ ​be​ ​distributed​ ​as​ ​to​ ​all​ ​participants
involved​ ​in​ ​the​ ​lending​ ​process,​ ​according​ ​to​ ​proportions​ ​pre-determined​ ​by​ ​DropDeck.

p) Lender(s)​ ​can​ ​buy​ ​an​ ​insurance​ ​from​ ​an​ ​Insurer​ ​any​ ​time,​ ​which​ ​must​ ​be​ ​approved​ ​by
the​ ​lender(s)​ ​(according​ ​to​ ​the​ ​consensus​ ​threshold).​ ​The​ ​Insurer​ ​must​ ​either​ ​enter​ ​into​ ​a
legal​ ​arrangement​ ​with​ ​the​ ​Delegate,​ ​or​ ​have​ ​a​ ​sufficient​ ​amount​ ​of​ ​DDD​ ​in​ ​its​ ​wallet​ ​on
DropDeck,​ ​which​ ​will​ ​be​ ​locked​ ​upon​ ​the​ ​approval​ ​of​ ​all​ ​parties.

q) At​ ​any​ ​time,​ ​anyone​ ​can​ ​send​ ​a​ ​report​ ​to​ ​the​ ​lender(s)​ ​about​ ​anything​ ​related​ ​to​ ​the
contributee​ ​or​ ​Delegate​ ​or​ ​anyone​ ​else​ ​that​ ​might​ ​jeopardize​ ​the​ ​benefits​ ​of​ ​the​ ​funding
ecosystem,​ ​so​ ​that​ ​the​ ​lender(s)​ ​can​ ​take​ ​actions​ ​accordingly​ ​(e.g.​ ​replace​ ​the​ ​Delegate)

r) When​ ​the​ ​borrower​ ​fails​ ​to​ ​make​ ​a​ ​repayment,​ ​after​ ​10​ ​grace​ ​days,

i) If​ ​there​ ​is​ ​an​ ​Insurer,​ ​the​ ​amount​ ​locked​ ​in​ ​its​ ​wallet​ ​will​ ​be​ ​force-liquidated,​ ​or
the​ ​Delegate​ ​will​ ​work​ ​with​ ​the​ ​Insurer​ ​per​ ​their​ ​legal​ ​arrangement​ ​to​ ​make​ ​sure
the​ ​Insurer​ ​deposits​ ​a​ ​sufficient​ ​amount​ ​of​ ​DDD​ ​and​ ​sends​ ​it​ ​to​ ​the​ ​repayment
smart​ ​contract​ ​address.

ii) If​ ​not​ ​then,​ ​if​ ​there​ ​is​ ​at​ ​least​ ​a​ ​Backer,​ ​the​ ​amount​ ​locked​ ​in​ ​wallet(s)​ ​of​ ​the
Backer(s)​ ​will​ ​be​ ​force-liquidated.

iii) If​ ​not​ ​then,​ ​Delegate​ ​will​ ​work​ ​with​ ​the​ ​borrower​ ​per​ ​their​ ​legal​ ​arrangement​ ​to
make​ ​sure​ ​the​ ​borrower​ ​deposits​ ​a​ ​sufficient​ ​amount​ ​of​ ​DDD​ ​and​ ​sends​ ​it​ ​to​ ​the
repayment​ ​smart​ ​contract​ ​address.​ ​The​ ​Delegate​ ​can​ ​also​ ​contract​ ​a​ ​Collector.

7. A​ ​DECENTRALIZED,​ ​AUTONOMOUS​ ​INCENTIVE​ ​ECOSYSTEM

7.1. A​ ​self-interest-focused​ ​ecosystem

Our​ ​principle​ ​is​ ​to​ ​create​ ​an​ ​ecosystem​ ​where​ ​everyone​ ​simply​ ​does​ ​the​ ​best​ ​for​ ​each
other​ ​for​ ​their​ ​own​ ​sake​,​ ​and​ ​anyone​ ​who​ ​goes​ ​against​ ​that​ ​simply​ ​finds​ ​oneself
detached.​ ​Since​ ​everyone​ ​can​ ​only​ ​benefit​ ​from​ ​benefiting​ ​everyone​ ​else,​ ​it's​ ​predictable
that​ ​everyone​ ​would​ ​do​ ​their​ ​best.

Our​ ​process​ ​of​ ​constructing​ ​the​ ​laws​ ​for​ ​such​ ​an​ ​ecosystem,​ ​called​ ​the​ ​“incentive​ ​ecosystem",
was​ ​fairly​ ​straightforward.​ ​We​ ​simply​ ​listed​ ​all​ ​types​ ​of​ ​people​ ​we​ ​want​ ​to​ ​serve​ ​(a.k.a.
customers),​ ​and​ ​all​ ​types​ ​of​ ​people​ ​who​ ​can​ ​support​ ​them​ ​besides​ ​us.​ ​For​ ​each​ ​type,​ ​we
identified​ ​what​ ​they​ ​need​ ​the​ ​most​ ​(e.g.​ ​accuracy,​ ​safety).​ ​Then​ ​we​ ​identified​ ​what​ ​we​ ​need​ ​the
most​ ​to​ ​serve​ ​our​ ​customers​ ​the​ ​best​ ​(e.g.​ ​data,​ ​physical​ ​operation).​ ​Then​ ​we​ ​tried​ ​to​ l​ ink
inputs​ ​and​ ​outputs​​ ​to​ ​each​ ​other,​ ​and​ ​designed​ ​our​ ​product​ ​accordingly​ ​to​ ​incentivize
27

everyone​ ​to​ ​do​ ​something​ ​we​ ​or​ ​someone​ ​else​ ​needs​ ​the​ ​most​ ​with​ ​something​ ​that​ ​we​ ​or
someone​ ​else​ ​can​ ​provide.

To​ ​top​ ​it​ ​off,​ ​besides​ ​aforementioned​ ​non-monetary​ ​incentives,​ ​our​ ​principle​ ​is​ ​to​ ​provide​ ​an
incentive​ ​of​ ​highest​ ​possible​ ​value​ ​to​ ​make​ ​sure​ ​everyone​ ​does​ ​their​ ​best​.

7.2. DDD​ ​as​ ​the​ ​ultimate​ ​reward

A​ ​company​ ​that​ ​sells​ ​tokens​ ​to​ ​its​ ​customers​ ​ensures​ ​those​ ​customers​ ​are​ ​better​ ​aligned​ ​with
the​ ​company’s​ ​success.​ ​If​ ​a​ ​participant​ ​is​ ​buying​ ​a​ ​token,​ ​the​ ​participant​ ​is​ ​incentivized​ ​to​ ​help
the​ ​company’s​ ​product​ ​and​ ​ecosystem​ ​expand,​ ​bring​ ​in​ ​other​ ​users,​ ​maximize​ ​the​ ​tokens’​ ​utility,
and​ ​we​ ​hope​ ​that​ ​demand​ ​for​ ​the​ ​token​ ​will​ ​increase​ ​and​ ​it​ ​may​ ​become​ ​more​ ​valuable.​ ​We​ ​are
creating​ ​the​ ​network​ ​and​ ​the​ ​virality​ ​effect​ ​with​ ​these​ ​monetary​ ​incentives.

Therefore,​ ​in​ ​whatever​ ​a​ ​DDD​ ​holder​ ​does,​ ​be​ ​it​ ​data​ ​contribution​ ​or​ ​legal​ ​arrangements,​ ​that
person​ ​is​ ​incentivized​ ​to​ ​prioritize​ ​DropDeck's​ ​long​ ​term​ ​success.​ ​This​ ​incentive​ ​is​ ​as​ ​strong​ ​as
the​ ​value​ ​of​ ​DDD,​ ​which​ ​is,​ ​as​ ​an​ ​app​ ​token,​ ​higher​ ​than​ ​fiat​ ​money​ ​and​ ​potentially​ ​even
cryptocurrency.

7.2.1. DDD​ ​vs.​ ​Fiat​ ​money

a) Value:​ ​DDD​ ​increases​ ​in​ ​value​ ​to​ ​reflect​ ​all​ ​users'​ ​contribution​ ​to​ ​the​ ​ecosystem.

b) Voting:​ ​When​ ​we​ ​survey​ ​for​ ​the​ ​future​ ​implementation​ ​of​ ​new​ ​features,​ ​DDD​ ​holders​ ​can
vote​ ​for​ ​features​ ​they​ ​need​ ​the​ ​most.​ ​They​ ​get​ ​the​ ​features​ ​and​ ​we​ ​get​ ​their​ ​satisfaction.

c) Liquidity:​ ​As​ ​soon​ ​as​ ​DDD​ ​is​ ​listed​ ​on​ ​exchanges​ ​after​ ​the​ ​token,​ ​it​ ​can​ ​be​ ​freely
exchanged.

d) Utilities:​ ​DDD​ ​tokens​ ​can​ ​be​ ​used​ ​to

i) Fund​ ​innovative​ ​and​ ​thriving​ ​companies​ ​on​ ​DropDeck

ii) Pay​ ​to​ ​find​ ​companies​ ​to​ ​lend​ ​to

iii) Pay​ ​other​ ​people​ ​in​ ​the​ ​ecosystem​ ​to​ ​incentivize​ ​them​ ​to​ ​help​ ​you
(Delegates/Enforcers,​ ​etc.)

iv) Pay​ ​for​ ​premium​ ​features​ ​to​ ​achieve​ ​goals​ ​faster

7.2.2. DDD​ ​vs.​ ​Other​ ​cryptocurrencies

a) DDD​ ​is​ ​backed​ ​by​ ​the​ ​collective​ ​brainpower​ ​behind​ ​Ethereum​ ​and​ ​all​ ​DApps​ ​built​ ​on​ ​it.

b) DDD​ ​is​ ​backed​ ​by​ ​the​ ​active​ ​value​ ​generation​ ​from​ ​the​ ​utilities​ ​of​ ​the​ ​token​ ​rather​ ​than
just​ ​its​ ​passive​ ​appreciation.
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7.3. A​ ​seamless​ ​value​ ​chain​ ​on​ ​blockchain

If​ ​DDD​ ​can​ ​tie​ ​the​ ​benefit​ ​of​ ​token​ ​holders​ ​to​ ​that​ ​of​ ​DropDeck,​ ​then​ ​smart​ ​contracts​ ​can​ ​tie​ ​the
benefits​ ​of​ ​different​ ​participants​ ​in​ ​the​ ​funding​ ​ecosystem​ ​to​ ​each​ ​other.​ ​Simply​ ​put,​ ​the
conditions​ ​for​ ​someone​ ​to​ ​receive​ ​DDD​ ​include​ ​one​ ​or​ ​many​ ​others​ ​receiving​ ​DDD.​ ​The​ ​result​ ​is
everyone’s​ ​effort​ ​is​ ​rewarded,​ ​almost​ ​instantly​ ​after​ ​all​ ​conditions​ ​are​ ​fulfilled,​ ​growing​ ​the
awareness​ ​and​ ​appreciation​ ​of​ ​everyone’s​ ​efforts​ ​behind​ ​those​ ​conditions​ ​and​ ​encouraging
future​ ​efforts.

Since​ ​the​ ​“incentive​ ​ecosystem”​ ​based​ ​on​ ​smart
contracts​ ​can​ ​influence​ ​the​ ​real-life​ ​behaviors​ ​of
people​ ​behind​ ​the​ ​DDD​ ​wallet​ ​addresses,​ ​it
enables​ ​a​ ​perfect​ ​combination​ ​of​ ​Online​ ​-​ ​Offline,
Onchain​ ​-​ ​Offchain,​ ​Machine​ ​-​ ​Man​ ​elements​ ​to
break​ ​all​ ​barriers​ ​in-between,​ ​minimize​ ​risk,​ ​and
maximize​ ​benefits​ ​for​ ​all​ ​token​ ​holders.

a) Online​ ​-​ ​Offline:​ ​DropDeck​ ​collects​ ​and
processes​ ​not​ ​only​ ​online​ ​data​ ​but​ ​also​ ​private
information​ ​submitted​ ​by​ ​real​ ​life​ ​people​ ​or
incorporated​ ​in​ ​their​ ​evaluations.

b) Onchain​ ​-​ ​Offchain:​ ​normally​ ​what
happens​ ​on​ ​blockchain​ ​does​ ​not​ ​have​ ​legal
implications​ ​to​ ​penalize​ ​participants​ ​who​ ​violate
agreements​ ​or​ ​act​ ​against​ ​the​ ​benefits​ ​of​ ​others.
However,​ ​here,​ ​the​ ​blockchain's​ ​effects​ ​extend​ ​to
the​ ​real​ ​world.

c) Machine​ ​-​ ​Man:​ ​for​ ​the​ ​first​ ​time​ ​ever,
humans​ ​contribute​ ​not​ ​only​ ​data​ ​but​ ​also​ ​efforts
to​ ​make​ ​A.I.​ ​algorithms​ ​smarter​ ​and​ ​accomplish
more.​ ​Humans​ ​are​ ​not​ ​just​ ​volunteering​ ​or​ ​tasked
but​ ​actually​ ​incentivized​ ​to​ ​act​ ​in​ ​the​ ​best​ ​long-term​ ​interests​ ​of​ ​the​ ​machine.

d) A​ ​global​ ​ecosystem:​ ​there​ ​is​ ​no​ ​longer​ ​a​ ​barrier​ ​between​ ​funders​ ​and​ ​fundraising
companies​ ​from​ ​different​ ​countries​ ​since​ ​there​ ​will​ ​always​ ​be​ ​local​ ​stakeholders​ ​to​ ​take
care​ ​of​ ​physical​ ​and​ ​local-specific​ ​operations.

Since​ ​every​ ​token​ ​holder​ ​holds​ ​tokens,​ ​DropDeck​ ​can​ ​effectively​ ​enforce​ ​a​ ​state​ ​of​ c
​ ommunity
policing​,​ ​where​ ​each​ ​token​ ​holder​ ​look​ ​out​ ​for​ ​any​ ​Hunter,​ ​Delegate,​ ​or​ ​funded​ ​company​ ​who
collude​ ​against​ ​the​ ​benefits​ ​of​ ​the​ ​funding​ ​ecosystem.​ ​This​ ​solves​ ​the​ ​“who​ ​watches​ ​the
watcher”​ ​problem.

As​ ​long​ ​as​ ​DDD​ ​holders​ ​collaborate​ ​in​ ​the​ ​best​ ​interests​ ​of​ ​each​ ​other

→​ ​Contributors​ ​and​ ​lenders​ ​would​ ​see​ ​positive​ ​results​ ​from​ ​their​ ​funding​ ​and​ ​repeat​ ​funding.

→​ ​DDD’s​ ​demand​ ​would​ ​increase​ ​and​ ​more​ ​tokens​ ​would​ ​be​ ​traded.
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→​ ​DDD​ ​holders​ ​would​ ​continue​ ​to​ ​get​ ​rewarded​ ​with​ ​DDD​ ​for​ ​any​ ​kind​ ​of​ ​collaboration​ ​and
increase​ ​their​ ​token​ ​net​ ​worth​ ​over​ ​time.

For​ ​more​ ​details,​ ​please​ ​refer​ ​to​ ​the​ ​Appendix​.

7.4. The​ ​voting​ ​mechanism

Voting​ ​is​ ​common​ ​on​ ​DropDeck​ ​and​ ​on​ ​each​ ​instance​ ​of​ ​voting​ ​a​ ​different​ ​number​ ​of​ ​people​ ​will
be​ ​chosen​ ​from​ ​a​ ​different​ ​pool​ ​of​ ​possible​ ​voters​ ​by​ ​a​ ​weighted​ ​random​ ​selection​ ​process.​ ​If
chosen,​ ​a​ ​voter​ ​will​ ​be​ ​notified​ ​and​ ​may​ ​submit​ ​one​ ​vote​ ​to​ ​influence​ ​the​ ​outcome​ ​of​ ​the
decision-making.​ ​Once​ ​the​ ​desired​ ​quorum​ ​has​ ​been​ ​reached,​ ​a​ ​decision​ ​will​ ​be​ ​made.

A​ ​voter’s​ ​probability​ ​of​ ​being​ ​selected​ ​will​ ​be​ ​proportional​ ​to​ ​his​ ​or​ ​her​ ​DDD​ ​share​ ​of​ ​the​ ​total
DDD​ ​supply​ ​of​ ​the​ ​pool​ ​of​ ​possible​ ​voters.​ ​Specifically,​ ​DDD​ ​share​ ​is​ ​calculated​ ​as​ ​(user​ ​DDD
balance)​ ​/​ ​(total​ ​DDD​ ​supply).​ ​In​ ​order​ ​to​ ​do​ ​the​ ​random​ ​selection,​ ​the​ ​smart​ ​contract​ ​will
provide​ ​a​ ​function​ ​that​ ​hashes​ ​a​ ​random​ ​seed​ ​provided​ ​by​ ​DropDeck,​ ​the​ ​user’s​ ​address,​ ​and
the​ ​block​ ​number.​ ​The​ ​smart​ ​contract​ ​will​ ​use​ ​this​ ​hash​ ​to​ ​extract​ ​a​ ​random​ ​number​ ​from​ ​0​ ​to​ ​1.
The​ ​random​ ​number​ ​will​ ​then​ ​be​ ​scaled​ ​by​ ​the​ ​desired​ ​number​ ​of​ ​possible​ ​voters.​ ​Finally,​ ​the
random​ ​number​ ​will​ ​be​ ​compared​ ​to​ ​the​ ​user’s​ ​DDD​ ​share.​ ​If​ ​the​ ​random​ ​number​ ​is​ ​less​ ​than
the​ ​DDD​ ​share,​ ​then​ ​the​ ​user​ ​is​ ​chosen​ ​as​ ​a​ ​voter.

Cases​ ​of​ ​voting​ ​include:

a) Verifying​ ​a​ ​company​ ​ownership​ ​of​ ​its​ ​founder(s)

b) Approving​ ​a​ ​change​ ​of​ ​the​ ​funding​ ​deadline​ ​made​ ​by​ ​the​ ​deck's​ ​founder(s)

c) Approving​ ​a​ ​user’s​ ​report​ ​(and​ ​evidence)​ ​of​ ​another​ ​user

d) Verifying​ ​evidence​ ​of​ ​funding

e) Verifying​ ​conditions​ ​before​ ​installment​ ​payment

f) Verifying​ ​the​ ​repayment​ ​amount​ ​from​ ​a​ ​contributee

g) Voting​ ​for​ ​new​ ​features

h) Voting​ ​for​ ​removing​ ​a​ ​Hunter

8. THE​ ​DDD​ ​TOKEN

8.1. Token​ ​distribution

The​ ​launch​ ​of​ ​DropDeck,​ ​and​ ​the​ ​corresponding​ ​Token​ ​Generation​ ​Event​ ​(TGE),​ ​are​ ​organized
around​ ​smart​ ​contracts​ ​running​ ​on​ ​Ethereum.​ ​The​ ​TGE​ ​will​ ​commence​ ​at​ 1
​ 3:00​​ ​(Greenwich
Time),​ ​on​ ​November​ ​21th,​ ​2017​:

● Only​ ​ETH​​ ​and​​ ​BTC​​ ​can​ ​be​ ​contributed​ ​and​ ​turned​ ​into​ ​DDD.
30

● The​ ​TGE​ ​will​ ​be​ ​soft-capped​ ​upon​ ​receipt​ ​of​ ​29,999​ ​ETH​.

● 50%​​ ​of​ ​all​ ​tokens​ ​to​ ​be​ ​sold​ ​during​ ​the​ ​TGE.

● The​ ​TGE​ ​will​ ​last​ ​30​ ​days​.

● The​ ​tokens​ ​will​ ​be​ ​sold​ ​at​ ​a​ ​discount​ ​to​ ​early​ ​buyers​ ​at​ ​a​ ​sliding​ ​rate,​ ​starting​ ​at​ 1
​ 5,000
DDD:​ ​1​ ​ETH​​ ​(​50%​ ​bonus​,​ ​during​ ​the​ ​Power​ ​Hour​​ ​-​ ​first​ ​hour​ ​of​ ​the​ ​sale),​ ​1​ ​ETH​ ​=
14,000​ ​DDD​ ​(​40%​ ​bonus​​ ​-​ ​Day​ ​1),​ ​1​ ​ETH​ ​=​ ​13,000​ ​DDD​ ​(​30%​ ​bonus​​ ​-​ ​Week​ ​1),​ ​1​ ​ETH
=​ ​12,000​ ​DDD​ ​(​20%​ ​bonus​​ ​-​ ​Week​ ​2),​ ​1​ ​ETH​ ​=​ ​11,000​ ​DDD​ ​(​10%​ ​bonus​​ ​-​ ​Week​ ​3),​ ​1
ETH​ ​=​ ​10,000​ ​DDD​ ​(no​ ​bonus​ ​-​ ​Week​ ​4).

● If​ ​the​ ​soft-cap​ ​is​ ​reached​ ​before​ ​the​ ​end​ ​of​ ​the​ ​30​ ​days,​ ​we​ ​will​ ​continue​ ​to​ ​sell​ ​and
create​ ​DDD​ ​for​ ​7​ ​days​.​ ​This​ ​will​ ​protect​ ​those​ ​who​ ​wish​ ​to​ ​participate​ ​in​ ​the​ ​event​ ​if​ ​all
tokens​ ​sell​ ​out​ ​quickly.

● The​ ​DDD​ ​smart​ ​contract​ ​will​ ​stop​ ​accepting​ ​contributions​ ​at​ 9
​ 9,999​ ​ETH​​ ​hard​ ​cap.

● DDD​ ​tokens​ ​are​ ​expected​ ​to​ ​be​ ​distributed​ ​at​ ​most​ ​31​ ​days​​ ​after​ ​the​ ​TGE,​ ​and
transferable​ ​at​ ​least​ ​7​ ​days​​ ​after​ ​the​ ​end​ ​of​ ​the​ ​TGE.

8.2. Token​ ​allocation

8.2.1. Crowdsale​ ​-​ ​50%

50%​​ ​of​ ​DDD​ ​created​ ​during​ ​the​ ​TGE​ ​will​ ​be​ ​allocated​ ​to​ ​the​ ​public​ ​contributors​ ​who​ ​send​ ​ETH
and​ ​BTC​ ​to​ ​the​ ​smart​ ​contract​ ​address.​ ​This​ ​amount​ ​is​ ​DDD​ ​is​ ​non-transferable​ ​for​ ​7​ ​days​ ​after
the​ ​TGE​ ​ends.

8.2.2. Founders​ ​and​ ​Advisors​ ​-​ ​12%

12%​​ ​of​ ​DDD​ ​created​ ​during​ ​the​ ​TGE​ ​will​ ​be​ ​allocated​ ​to​ ​Founders​ ​and​ ​Advisors,​ ​with​ ​a
36-month​ ​vesting​ ​period,​ ​and​ ​a​ ​6-month​ ​cliff​​ ​as​ ​follows:

- 25%​ ​of​ ​DDD​ ​allocated​ ​will​ ​be​ ​transferrable​ ​at​ ​the​ ​same​ ​time​ ​as​ ​for​ ​the​ ​public;
- 25%​ ​of​ ​them​ ​will​ ​be​ ​locked​ ​for​ ​12​ ​months;
- 25%​ ​of​ ​them​ ​will​ ​be​ ​locked​ ​for​ ​24​ ​months;
- 25%​ ​of​ ​them​ ​will​ ​be​ ​locked​ ​for​ ​36​ ​months.

When​ ​someone​ ​leaves,​ ​his/her​ ​unvested​ ​DDD​ ​will​ ​be​ ​distributed​ ​proportionally​ ​to​ ​the​ ​remaining
balance​ ​of​ ​the​ ​others.

8.2.3. Key​ ​Pool​ ​-​ ​7%

7%​​ ​of​ ​DDD​ ​created​ ​during​ ​the​ ​TGE​ ​will​ ​be​ ​allocated​ ​to​ ​a​ ​pool​ ​reserved​ ​for​ ​future​ ​key​ ​hires​ ​and
advisors.​ ​DDD​ ​in​ ​this​ ​pool​ ​will​ ​be​ ​allocated​ ​later​ ​when​ ​a​ ​key​ ​hire/advisor​ ​is​ ​confirmed​ ​and​ ​will​ ​be
activated​ ​with​ ​the​ ​same​ ​36-month​ ​vesting​ ​period,​ ​and​ ​the​ ​6-month​ ​cliff​​ ​as​ ​above.
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8.2.4. Early​ ​Contributors​ ​-​ ​1%

1%​​ ​of​ ​DDD​ ​created​ ​during​ ​the​ ​TGE​ ​will​ ​be​ ​allocated​ ​to​ ​early​ ​contributors​ ​according​ ​to​ ​a​ ​list​ ​of
weighted​ ​contributions​ ​(including​ ​referring​ ​advisors,​ ​investors​ ​or​ ​key​ ​members,​ ​helping​ ​with​ ​the
smart​ ​contracts,​ ​helping​ ​with​ ​legal​ ​arrangements,​ ​helping​ ​with​ ​the​ ​marketing​ ​campaign,​ ​etc.),
and​ ​will​ ​be​ ​transferrable​ ​at​ ​the​ ​same​ ​time​ ​as​ ​for​ ​the​ ​public.​ ​After​ ​allocation,​ ​the​ ​remaining
amount​ ​of​ ​DDD​ ​will​ ​be​ ​added​ ​to​ ​the​ ​Reserve.

8.2.5. Crowdsale​ ​Rewards​ ​-​ ​5%

5%​ ​of​ ​DDD​ ​created​ ​during​ ​the​ ​TGE​ ​will​ ​be​ ​allocated​ ​to​ ​pre-TGE​ ​marketing​ ​and​ ​referrals​ ​during
the​ ​TGE​ ​(5%​ ​referral​ ​commission).​ ​After​ ​allocation,​ ​the​ ​remaining​ ​amount​ ​of​ ​DDD​ ​will​ ​be​ ​added
to​ ​the​ ​Reserve.

8.2.6. Reserve​ ​-​ ​25%

25%​​ ​of​ ​DDD​ ​created​ ​during​ ​the​ ​TGE​ ​will​ ​be​ ​allocated​ ​to​ ​a​ ​Reserve,​ ​locked​ ​and​ ​released
according​ ​to​ ​the​ ​following​ ​rules:

- 25%​ ​will​ ​be​ ​locked​ ​for​ ​12​ ​months;
- 25%​ ​will​ ​be​ ​locked​ ​for​ ​24​ ​months;
- 25%​ ​will​ ​be​ ​locked​ ​for​ ​36​ ​months;
- 25%​ ​will​ ​be​ ​locked​ ​for​ ​48​ ​months.

At​ ​each​ ​release​ ​of​ ​the​ ​Reserve:

- 35%​ ​will​ ​be​ ​allocated​ ​for​ ​data​ ​acquisition​ ​costs,​ ​development,​ ​marketing,​ ​promotions​ ​for
new​ ​features,​ ​rewards​ ​for​ ​prominent​ ​users,​ ​and​ ​other​ ​corporate​ ​needs.
- 45%​ ​will​ ​be​ ​allocated​ ​to​ ​acquire​ ​other​ ​companies,​ ​patent​ ​needs​ ​and​ ​IP​ ​needs;
- 10%​ ​will​ ​be​ ​allocated​ ​to​ ​external​ ​partners​ ​and​ ​bug​ ​bounties,​ ​if​ ​needed;
- 10%​ ​will​ ​be​ ​allocated​ ​to​ ​a​ ​DropDeck​ ​fund​ ​dedicated​ ​for​ ​funding​ ​the​ ​most​ ​innovative​ ​and
thriving​ ​companies​ ​on​ ​DropDeck​ ​that​ ​fall​ ​short​ ​of​ ​their​ ​funding​ ​goals.​ ​DropDeck​ ​will​ ​use
its​ ​own​ ​resources​ ​to​ ​evaluate​ ​these​ ​companies,​ ​and​ ​will​ ​also​ ​co-fund​ ​together​ ​with​ ​other
funders​ ​in​ ​order​ ​for​ ​them​ ​to​ ​be​ ​assured​ ​DropDeck​ ​also​ ​has​ ​its​ ​skin​ ​in​ ​the​ ​game.

8.3. DDD​ ​Liquidity

As​ ​the​ ​cryptocurrency​ ​ecosystem​ ​evolves​ ​in​ ​the​ ​coming​ ​year,​ ​there​ ​is​ ​no​ ​doubt​ ​that​ ​DDD​ ​tokens
will​ ​be​ ​easily​ ​traded​ ​and​ ​spent​ ​by​ ​both​ ​the​ ​funders​ ​and​ ​the​ ​funded​ ​companies.

● DropDeck​ ​has​ ​plans​ ​to​ ​get​ ​DDD​ ​listed​ ​on​ ​major​ ​exchanges​ ​with​ ​help​ ​from​ ​our​ ​advisors.

● It​ ​will​ ​be​ ​possible​ ​to​ ​integrate​ ​through​ ​APIs​ ​with​ ​Monaco​ ​Card​ ​and​ ​TenX​ ​Card,​ ​which​ ​can
be​ ​topped​ ​up​ ​with​ ​ERC​ ​tokens,​ ​such​ ​as​ ​DDD.

● Companies​ ​funded​ ​in​ ​DDD​ ​will​ ​have​ ​access​ ​to​ ​more​ ​and​ ​more​ ​online​ ​service​ ​providers
which​ ​accept​ ​payment​ ​in​ ​cryptocurrencies​ ​as​ ​more​ ​advanced​ ​and​ ​user​ ​friendly
cryptocurrency​ ​payment​ ​gateways​ ​become​ ​more​ ​available.
32

9. USE​ ​OF​ ​FUNDS

Funds​ ​raised​ ​during​ ​the​ ​TGE​ ​will​ ​be​ ​used​ ​solely​ ​for​ ​the​ ​development​ ​and​ ​benefit​ ​of​ ​the
DropDeck​ ​Ecosystem.​ ​DropDeck​ ​is​ ​the​ ​first​ ​ever​ ​funding​ ​platforms​ ​to​ ​prioritize​ ​scalability​ ​and
sustainability​ ​in​ ​business​ ​funding,​ ​and​ ​capitalize​ ​on​ ​the​ ​synergy​ ​between​ ​A.I.​ ​and​ ​blockchain
implementations,​ ​and​ ​should​ ​be​ ​considered​ ​an​ ​R&D​ ​project​ ​involving​ ​bleeding-edge​ ​protocols.

9.1.1. Product​ ​Development​ ​and​ ​R&D​ ​-​ ​55%

Product​ ​development​ ​includes​ ​improving​ ​the​ ​end-user​ ​experience,​ ​ease​ ​of​ ​inputting​ ​data,
building​ ​the​ ​A.I.​ ​engines,​ ​and​ ​creating​ ​smart​ ​contracts.​ ​The​ ​budget​ ​is​ ​spent​ ​on​ ​hiring​ ​full​ ​stack
developers,​ ​A.I.​ ​researchers,​ ​data​ ​scientists,​ ​smart​ ​contract​ ​engineers,​ ​financial​ ​specialists,​ ​risk
analysts,​ ​marketing​ ​managers,​ ​security​ ​specialists,​ ​etc.​ ​and​ ​building​ ​the​ ​technological
infrastructure.

Since​ ​we​ ​posted​ ​our​ ​jobs​ ​on​ ​AngelList​,​ ​we​ ​have​ ​received​ ​more​ ​than​ ​300​ ​applications​ ​as​ ​of
August​ ​30,​ ​2017.​ ​Depending​ ​on​ ​the​ ​demography​ ​of​ ​the​ ​applicant​ ​pool​ ​following​ ​our​ ​serious
hiring​ ​campaigns,​ ​we​ ​will​ ​decide​ ​to​ ​form​ ​a​ ​Product​ ​team​ ​in​ ​Singapore,​ ​Switzerland,​ ​Silicon
Valley,​ ​or​ ​Shenzhen​ ​with​ ​approximately​ ​10-20​ ​engineers.

9.1.2. Marketing​ ​and​ ​business​ ​development​ ​-​ ​20%

The​ ​marketing​ ​budget​ ​is​ ​not​ ​significant​ ​compared​ ​to​ ​the​ ​target​ ​number​ ​of​ ​customers​ ​we​ ​intend
to​ ​acquire.​ ​The​ ​key​ ​source​ ​of​ ​new​ ​customers​ ​is​ ​going​ ​to​ ​be​ ​word-of-mouth,​ ​as​ ​the​ ​product​ ​gives
users​ ​a​ ​very​ ​strong​ ​commercial​ ​incentive​ ​to​ ​invite​ ​others.​ ​There​ ​are​ ​natural​ ​network​ ​effects​ ​built
into​ ​the​ ​product​ ​which​ ​will​ ​lower​ ​the​ ​average​ ​customer​ ​acquisition​ ​cost​ ​(CAC)​ ​substantially.

Before​ ​DropDeck​ ​reaches​ ​the​ ​critical​ ​mass​ ​and​ ​the​ ​incentive​ ​ecosystem​ ​is​ ​in​ ​full​ ​power​ ​to
significantly​ ​reduce​ ​CAC​ ​and​ ​bring​ ​our​ ​business​ ​development​ ​efforts​ ​strictly​ ​online,​ ​it's​ ​still
essential​ ​to​ ​spend​ ​on​ ​spreading​ ​words​ ​about​ ​DropDeck​ ​as​ ​widely​ ​as​ ​possible​ ​and​ ​conducting
physical​ ​business​ ​development​ ​processes​ ​with​ ​customers​ ​and​ ​partners​ ​in​ ​each​ ​foreign​ ​country.

9.1.3. Legal​ ​expenses​ ​-​ ​10%

Compliance​ ​is​ ​key​ ​to​ ​the​ ​long​ ​term​ ​success​ ​of​ ​the​ ​DropDeck​ ​Ecosystem,​ ​and​ ​our​ ​budget
allocated​ ​to​ ​legal​ ​costs​ ​ensures​ ​that​ ​we​ ​fit​ ​within​ ​regulatory​ ​parameters​ ​in​ ​any​ ​new​ ​markets​ ​we
enter.​ ​There​ ​is​ ​a​ ​substantial​ ​cost​ ​associated​ ​with​ ​integrating​ ​all​ ​of​ ​those​ ​partners,​ ​acquiring​ ​all
the​ ​necessary​ ​licenses​ ​across​ ​multiple​ ​jurisdictions,​ ​building​ ​out​ ​compliance​ ​teams,​ ​legal​ ​fees
and​ ​general​ ​technical​ ​architecture​ ​setup.

9.1.4. Operations​ ​-​ ​10%

To​ ​ensure​ ​that​ ​day-to-day​ ​operations​ ​continue​ ​running​ ​smoothly​ ​as​ ​the​ ​organization​ ​expands,​ ​a
greater​ ​focus​ ​will​ ​be​ ​placed​ ​upon​ ​processes,​ ​and​ ​the​ ​hiring​ ​of​ ​additional​ ​operations​ ​managers.

9.1.5. Buffer​ ​-​ ​5%
33

10. PRODUCT​ ​DEVELOPMENT

DropDeck​ ​has​ ​been​ ​under​ ​development​ ​for​ ​8​ ​months​ ​starting​ ​at​ ​the​ ​beginning​ ​of​ ​January​ ​2017.
Since​ ​then​ ​there​ ​have​ ​been​ ​multiple​ ​iterations​ ​of​ ​the​ ​business​ ​model,​ ​A.I.​ ​models,​ ​and​ ​user
experience​ ​of​ ​DropDeck.​ ​Our​ ​principle​ ​is​ ​each​ ​implement​ ​should​ ​feed​ ​to,​ ​support,​ ​lay​ ​the
foundation​ ​for,​ ​lend​ ​its​ ​impact​ ​to​ ​the​ ​next​ ​implementations.​ ​Some​ ​specific​ ​strategies​ ​are:

a) The​ ​DDD​ ​token​ ​sale​ ​helps​ ​us​ ​acquire​ ​funders,​ ​who​ ​are​ ​token​ ​holders.​ ​This​ ​jumpstarts
the​ ​whole​ ​holy​ ​positive​ ​feedback​ ​loop.​ ​This​ ​initial​ ​amount​ ​of​ ​funders​ ​should​ ​attract​ ​an
exponential​ ​amount​ ​of​ ​fundraisers​ ​(fundraising​ ​companies)​ ​onto​ ​DropDeck.

b) Since​ ​funders​ ​would​ ​be​ ​already​ ​on​ ​the​ ​platform,​ ​fundraisers​ ​would​ ​be​ ​attracted​ ​next​ ​and
we​ ​would​ ​focus​ ​on​ ​creating​ ​premium​ ​features​ ​to​ ​serve​ ​fundraisers​ ​first,​ ​who​ ​are​ ​the​ ​very
reason​ ​that​ ​funders​ ​join​ ​in​ ​the​ ​first​ ​place.

c) There​ ​are​ ​many​ ​premium​ ​features​ ​that​ ​are​ ​planned​ ​and​ ​have​ ​been​ ​validated,​ ​but​ ​we​ ​will
roll​ ​them​ ​out​ ​one​ ​by​ ​one,​ ​not​ ​all​ ​at​ ​once.​ ​At​ ​each​ ​step,​ ​we​ ​would​ ​survey​ ​token​ ​holders,
who​ ​can​ ​vote​ ​for​ ​features​ ​they​ ​want​ ​the​ ​most.​ ​By​ ​building​ ​features​ ​that​ ​token​ ​holders
want​ ​the​ ​most,​ ​we​ ​can​ ​put​ ​resources​ ​to​ ​optimal​ ​use​ ​and​ ​serve​ ​token​ ​holders​ ​better​ ​at
the​ ​same​ ​time.​ ​The​ ​subscription​ ​price​ ​for​ ​these​ ​features​ ​would​ ​increase​ ​accordingly.

d) There​ ​will​ ​be​ ​a​ ​lot​ ​of​ ​functionalities​ ​being​ ​planned,​ ​but​ ​only​ ​TWO​ ​at​ ​max​ ​will​ ​be
developed​ ​at​ ​the​ ​same​ ​time​ ​in​ ​order​ ​to​ ​guarantee​ ​our​ ​focus​ ​and​ ​product​ ​quality.

e) Our​ ​principle​ ​is​ ​each​ ​implementation​ ​should​ ​feed​ ​to,​ ​support,​ ​lay​ ​the​ ​foundation​ ​for,​ ​lend
its​ ​impact​ ​to​ ​the​ ​next​ ​implementation.

f) It's​ ​difficult​ ​and​ ​disadvantageous​ ​to​ ​pursue​ ​big​ ​data​ ​partners​ ​(big​ ​banks,​ ​Apple,​ ​Google,
Facebook,​ ​Amazon,​ ​AngelList,​ ​Crunchbase,​ ​MatterMark,​ ​etc.)​ ​right​ ​from​ ​the​ ​beginning,
so​ ​we​ ​must​ ​pursue​ ​small​ ​data​ ​partners​ ​first,​ ​who​ ​have​ ​data​ ​with​ ​higher​ ​resolution​ ​on
regional​ ​scale.

g) Even​ ​though​ ​more​ ​revenue​ ​will​ ​come​ ​from​ ​lending​ ​than​ ​contribution​ ​in​ ​the​ ​long​ ​run,
“Lending​ ​with​ ​DDD”​ ​will​ ​be​ ​launched​ ​after​ ​“Contributing​ ​with​ ​DDD"​ ​for​ ​the​ ​following
reasons:

i) Contributing​ ​to​ ​the​ ​most​ ​innovative​ ​and​ ​thriving​ ​companies​ ​without​ ​seriously
expecting​ ​a​ ​return​ ​has​ ​been​ ​part​ ​of​ ​the​ ​ideology​ ​of​ ​the​ ​cryptocurrency
community,​ ​evidenced​ ​by​ ​the​ ​adoption​ ​of​ ​TheDAO​ ​and​ ​DASH.​ ​We​ ​want​ ​to​ ​offer
that​ ​opportunity​ ​to​ ​the​ ​community​ ​ASAP,​ ​while​ ​minimizing​ ​the​ ​risk​ ​of​ ​contributing
to​ ​the​ ​wrong​ ​companies​ ​with​ ​our​ ​technologies​ ​and​ ​ideas.

ii) In​ ​order​ ​to​ ​calculate​ ​and​ ​propose​ ​accurate​ ​interest​ ​rates​ ​of​ ​borrowers​ ​for​ ​lenders,
to​ ​minimize​ ​default​ ​rate​ ​and​ ​protect​ ​the​ ​benefits​ ​of​ ​lenders,​ ​it​ ​requires​ ​a​ ​higher
level​ ​of​ ​precision​ ​and​ ​much​ ​more​ ​data,​ ​which​ ​takes​ ​more​ ​time​ ​to​ ​accumulate.

iii) After​ ​the​ ​token​ ​sale,​ ​DDD​ ​price​ ​may​ ​fluctuate​ ​more​ ​than​ ​expected,​ ​rendering
DDD​ ​not​ ​suitable​ ​for​ ​lending​ ​yet.​ ​“Lending​ ​with​ ​DDD”​ ​should​ ​be​ ​launched​ ​when
its​ ​price​ ​and​ ​the​ ​public​ ​expectation​ ​of​ ​DropDeck​ ​have​ ​stabilized,​ ​or​ ​solutions
such​ ​as​ ​stablecoin​ ​GDD,​ ​“ignore​ ​rate",​ ​“buy​ ​option",​ ​or​ ​“pawn​ ​token"​ ​is​ ​ready.
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35

11. FINANCIAL​ ​PROJECTIONS

We​ ​have​ ​a​ ​short​ ​operating​ ​history​ ​and​ ​a​ ​new​ ​business​ ​model,​ ​which​ ​makes​ ​it​ ​difficult​ ​to
evaluate​ ​with​ ​accuracy​ ​our​ ​prospects​ ​and​ ​future​ ​financial​ ​results.​ ​Despite​ ​the​ ​risks​ ​and
uncertainties​ ​frequently​ ​encountered​ ​by​ ​companies​ ​in​ ​rapidly​ ​evolving​ ​markets,​ ​we​ ​are​ ​offering
a​ ​likely​ ​scenario​ ​to​ ​help​ ​those​ ​participating​ ​in​ ​the​ ​TGE​ ​to​ ​anticipate​ ​different​ ​levers​ ​and​ ​possible
outcomes​ ​for​ ​the​ ​project.

11.1. Revenue​ ​model

Our​ ​revenue​ ​will​ ​include​ ​the​ ​following​ ​recurring​ ​and​ ​nonrecurring​ ​streams:

a. Premium​ ​subscription​ ​packages​:​ ​provide​ ​premium​ ​features​ ​for​ ​investors​ ​and
fundraising​ ​companies​ ​to​ ​achieve​ ​their​ ​goals​ ​faster.​ ​Later​ ​introduce​ ​features​ ​for
agencies,​ ​insurers,​ ​etc.
b. Score​ ​verification​ ​fees​:​ ​investors​ ​pay​ ​to​ ​see​ ​the​ ​evidence​ ​of​ ​scores​ ​-​ ​data​ ​used​ ​for
scoring​ ​people​ ​and​ ​companies​ ​on​ ​DropDeck.
c. Commissions​ ​on​ ​contribution​:​ ​2%​ ​of​ ​the​ ​contribution​ ​amount.
d. Lending​ ​service​ ​fees​:​ ​4%​ ​from​ ​lenders'​ ​annual​ ​rate​ ​of​ ​return​ ​and​ ​varying​ ​origination​ ​fee
from​ ​borrowers.
e. Agency​ ​commissions​:​ ​commission​ ​from​ ​service​ ​providers​ ​(IT​ ​outsourcing,​ ​legal,
accounting,​ ​HR,​ ​marketing,​ ​etc.)​ ​to​ ​investors​ ​and​ ​companies​ ​on​ ​DropDeck.
f. Trustscoring​ ​integration​ ​fees​:​ ​integration​ ​of​ ​our​ ​trustscoring​ ​engine​ ​to​ ​other
commercial​ ​platforms​ ​(e-commerce,​ ​HR,​ ​education,​ ​etc.).

DropDeck​ ​intends​ ​to​ ​add​ ​additional​ ​recurring​ ​revenue​ ​streams​ ​according​ ​to​ ​the​ ​roadmap​ ​chart
above​ ​within​ ​the​ ​next​ ​30​ ​months.

Additionally,​ ​we​ ​will​ ​partner​ ​with​ ​innovative​ ​legal​ ​companies​ ​and​ ​data​ ​partners​ ​around​ ​the​ ​world
to​ ​provide​ ​customers​ ​with​ ​the​ ​best​ ​services​ ​and​ ​most​ ​accurate​ ​scores.

11.2. Revenue​ ​projections

Since​ ​January​ ​2017,​ ​Ethereum​ ​and​ ​the​ ​Token​ ​market​ ​have​ ​grown​ ​at​ ​a​ ​value-weighted​ ​average
of​ ​about​ ​300,000%​ ​annually​ ​(or​ ​6.7x​ ​per​ ​three​ ​months).​ ​We​ ​do​ ​not​ ​believe​ ​this​ ​growth​ ​rate​ ​will
continue​ ​over​ ​the​ ​next​ ​five​ ​years.​ ​We​ ​have​ ​therefore​ ​taken​ ​a​ ​range​ ​of​ ​growth​ ​from​ ​40%​ ​to​ ​100%
per​ ​year​ ​as​ ​our​ ​range​ ​for
projections.​ ​For​ ​each​ ​scenario,
we​ ​also​ ​assume​ ​that​ ​the
Ethereum​ ​economy​ ​grows​ ​-​ ​by
around​ ​5%​ ​monthly​ ​for​ ​the
next​ ​5​ ​years,​ ​which​ ​equates​ ​to
around​ ​a​ ​60%​ ​annual​ ​growth​ ​in
assets​ ​backing​ ​DDD.​ ​Our
revenue​ ​forecast​ ​is​ ​as​ ​follows
and​ ​subject​ ​to​ ​an​ ​exponential
learning​ ​curve​​ ​after​ ​3​ ​years
when​ ​the​ ​product​ ​is​ ​almost
fully​ ​developed:
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11.3. Future​ ​plans

The​ ​future​ ​plans​ ​for​ ​the​ ​DropDeck​ ​Ecosystem​ ​extends​ ​far​ ​beyond​ ​our​ ​incentive​ ​mechanism.​ ​Our
principle​ ​is​ ​to​ ​make​ ​the​ ​DDD​ ​token​ ​redeemable​ ​for​ ​goods​ ​and​ ​services​ ​within​ ​a​ ​partnered
network​ ​of​ ​retailers,​ ​DApps,​ ​and​ ​other​ ​participants​ ​associated​ ​with​ ​DropDeck.​ ​The​ ​team​ ​aims​ ​to
be​ ​proactive​ ​in​ ​scouting​ ​synergetic​ ​projects​ ​that​ ​share​ ​the​ ​same​ ​values​ ​of​ ​funding​ ​innovation.​ ​In
forming​ ​more​ ​partnerships,​ ​we​ ​also​ ​collect​ ​more​ ​diversified​ ​data​ ​to​ ​refine​ ​our​ ​A.I.​ ​algorithms.

Integration​ ​and​ ​partnership​ ​with​ ​other​ ​DApps:​ ​Status,​ ​Civic,​ ​Monaco,​ ​TenX,​ ​Gnosis,​ ​Augur,​ ​etc.
Customers​ ​will​ ​be​ ​allowed​ ​to​ ​top-up​ ​their​ ​Monaco​ ​Card​ ​or​ ​TenX​ ​Card​ ​with​ ​DDD.​ ​DropDeck​ ​will
depend​ ​on​ ​uPort​ ​for​ ​KYC/AML​ ​requirements​ ​where​ ​required,​ ​as​ ​a​ ​completely​ ​optional​ ​step,​ ​for
users​ ​who​ ​wish​ ​to​ ​interact​ ​with​ ​regulated​ ​financial​ ​tools​ ​and​ ​DApps​ ​within​ ​the​ ​application.
Oraclize​ ​will​ ​be​ ​an​ ​external​ ​oracle​ ​provider​ ​to​ ​be​ ​integrated​ ​into​ ​DropDeck.​ ​Oraclize​ ​aims​ ​to​ ​be
the​ ​privileged​ ​data​ ​gateway​ ​between​ ​blockchain​ ​protocols​ ​and​ ​the​ ​world​ ​wide​ ​web.​ ​Oraclize’s
main​ ​goal​ ​is​ ​to​ ​provide​ ​a​ ​way​ ​for​ ​smart​ ​contracts​ ​to​ ​break​ ​free​ ​of​ ​their​ ​constraints​ ​and​ ​provide
them​ ​with​ ​the​ ​ability​ ​to​ ​access​ ​all​ ​the​ ​data​ ​they​ ​need​ ​from​ ​the​ ​web​ ​without​ ​compromising​ ​their
trustless​ ​nature.

12. LEGAL​ ​CONSIDERATIONS

DDD​ ​tokens​ ​are​ ​functional​ ​utility​ ​tokens​ ​within​ ​the​ ​DDD​ ​platform.​ ​DDD​ ​tokens​ ​are​ ​not​ ​securities.
DDD​ ​tokens​ ​are​ ​non-refundable.​ ​DDD​ ​tokens​ ​are​ ​not​ ​for​ ​speculative​ ​investment.​ ​No​ ​promises​ ​of
future​ ​performance​ ​or​ ​value​ ​are​ ​or​ ​will​ ​be​ ​made​ ​with​ ​respect​ ​to​ ​DDD,​ ​including​ ​no​ ​promise​ ​of
inherent​ ​value,​ ​no​ ​promise​ ​of​ ​continuing​ ​payments,​ ​and​ ​no​ ​guarantee​ ​that​ ​DDD​ ​will​ ​hold​ ​any
particular​ ​value.​ ​DDD​ ​tokens​ ​are​ ​not​ ​participation​ ​in​ ​the​ ​Company​ ​and​ ​DDD​ ​tokens​ ​hold​ ​no
rights​ ​in​ ​said​ ​company.​ ​DDD​ ​tokens​ ​are​ ​sold​ ​as​ ​a​ ​functional​ ​good​ ​and​ ​all​ ​proceeds​ ​received​ ​by
Company​ ​may​ ​be​ ​spent​ ​freely​ ​by​ ​Company​ ​absent​ ​any​ ​conditions.​ ​DDD​ ​tokens​ ​are​ ​intended​ ​for
experts​ ​in​ ​dealing​ ​with​ ​cryptographic​ ​tokens​ ​and​ ​blockchain-based​ ​software​ ​systems.

When​ ​funding​ ​a​ ​company,​ ​the​ ​funder​ ​sends​ ​DDD​ ​to​ ​a​ ​smart​ ​contract​ ​-​ ​not​ ​receive​ ​DDD​ ​in
return.​ ​Other​ ​participants​ ​in​ ​the​ ​incentive​ ​ecosystem​ ​are​ ​incentivized​ ​to​ ​make​ ​sure​ ​the​ ​funded
company​ ​sends​ ​back​ ​DDD​ ​to​ ​a​ ​smart​ ​contract,​ ​which​ ​distributes​ ​DDD​ ​to​ ​all​ ​involved​ ​participants
including​ ​the​ ​funder.​ ​Therefore,​ ​funders​ ​are​ ​entitled​ ​to​ ​rewards​ ​by​ ​involvement​ ​in​ ​a​ ​smart
contract,​ ​not​ ​by​ ​holding​ ​DDD​.​ ​In​ ​order​ ​to​ ​get​ ​rewarded,​ ​a​ ​funder’s​ ​work​ ​includes​ ​filtering
companies,​ ​inviting​ ​trusted​ ​people​ ​to​ ​cast​ ​evaluation,​ ​building​ ​a​ ​Trust​ ​Circle​ ​to​ ​see​ ​more
curated​ ​evaluation​ ​results,​ ​building​ ​reputation​ ​to​ ​attract​ ​private​ ​deals​ ​and​ ​to​ ​be​ ​added​ ​others'
Trust​ ​Circle,​ ​voting​ ​on​ ​several​ ​occasions​ ​during​ ​the​ ​funding​ ​process​ ​to​ ​ensure​ ​its​ ​success,​ ​etc.
The​ ​Overall​ ​Risk​ ​Score​ ​(likelihood​ ​of​ ​being​ ​security)​ ​of​ ​DDD​ ​is​ ​10​ ​(unlikely)23.

Due​ ​to​ ​our​ ​aspirations​ ​for​ ​what​ ​DropDeck​ ​may​ ​one​ ​day​ ​become,​ ​the​ ​DropDeck​ ​Core​ ​Team​ ​have
exercised​ ​legal​ ​diligence​ ​in​ ​the​ ​lead-up​ ​to​ ​our​ ​token​ ​sale,​ ​involving​ ​consultation​ ​with​ ​our
advisors,​ ​and​ ​legal​ ​experts​ ​in​ ​Singapore,​ ​Switzerland,​ ​China,​ ​and​ ​more.

Due​ ​to​ ​the​ ​retrospective​ ​nature​ ​of​ ​regulatory​ ​action,​ ​the​ ​DropDeck​ ​team​ ​can​ ​make​ ​no
guarantees​ ​regarding​ ​the​ ​legality​ ​of​ ​the​ ​platform​ ​or​ ​launch​ ​in​ ​any​ ​given​ ​jurisdiction.​ ​Regardless,
we​ ​are​ ​confident​ ​in,​ ​and​ ​proud​ ​of,​ ​the​ ​work​ ​we​ ​have​ ​done​ ​to​ ​shape​ ​DropDeck​ ​into​ ​what​ ​we

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hope​ ​is​ ​a​ ​model​ ​of​ ​regulatory​ ​compliance​ ​for​ ​decentralized​ ​applications​ ​and​ ​token​ ​sale.​ ​We​ ​will
be​ ​responsive​ ​and​ ​collaborative​ ​with​ ​any​ ​regulators​ ​as​ ​necessary​ ​going​ ​forward.

Additionally,​ ​in​ ​response​ ​to​ ​SEC's​ ​conclusion​ ​on​ ​Ethereum​ ​tokens24,​ ​we​ ​have​ ​remodeled​ ​our
business​ ​concepts​ ​and​ ​disclaim​ ​that​ ​we​ ​do​ ​not​ ​promise​ ​return,​ ​while​ ​maintaining​ ​the​ ​benefits​ ​for
token​ ​holders.​ ​Specifically,​ ​we​ ​can​ ​shift​ ​the​ ​"rights​ ​to​ ​return"​ ​of​ ​funders​ ​to​ ​the​ ​"rights​ ​to
commission"​ ​of​ ​intermediaries​ ​so​ ​that​ ​intermediaries​ ​must​ ​benefit​ ​funders​ ​in​ ​order​ ​to​ ​earn
commission.​ ​Contributors​ ​may​ ​or​ ​may​ ​not​ ​get​ ​rewarded​ ​a​ ​result​ ​of​ ​the​ ​rules​ ​coded​ ​in​ ​smart
contracts​ ​that​ ​drive​ ​other​ ​people​ ​in​ ​the​ ​ecosystem​ ​to​ ​make​ ​the​ ​funded​ ​companies​ ​give​ ​back​ ​to
the​ ​ecosystem.​ ​So,​ ​in​ ​effect,​ ​there​ ​is​ ​no​ ​promise​ ​of​ ​a​ ​return,​ ​rather​ ​incentivization​ ​for​ ​people​ ​to
work​ ​towards​ ​rewarding​ ​all​ ​participants​ ​in​ ​the​ ​ecosystem​ ​in​ ​order​ ​to​ ​grow​ ​it​ ​stronger.

13. APPENDIXES

13.1. A.I.​ ​implementation

13.1.1. Trust​ ​scores

While​ ​trustworthiness​ ​is​ ​a​ ​broad​ ​and​ ​subjective​ ​concept,​ ​we​ ​can​ ​quantitatively​ ​describe​ ​it​ ​in
terms​ ​of​ ​observable​ ​behaviors​.​ ​In​ ​particular,​ ​we​ ​look​ ​for​ ​signals​ ​that​ ​exhibit​ ​signs​ ​of​ ​cheat,
spam,​ ​doubt,​ ​uncertainty,​ ​hesitation,​ ​rhetoric,​ ​contrivance,​ ​impulsivity,​ ​thoughtlessness,
contradiction,​ ​etc.​ ​which​ ​correspond​ ​to​ ​a​ ​low​ ​Trust​ ​score​ ​and,​ ​on​ ​the​ ​opposite,​ ​signs​ ​of
decisiveness,​ ​conciseness,​ ​consistency,​ ​etc.​ ​which​ ​correspond​ ​to​ ​a​ ​high​ ​Trust​ ​score.​ ​In​ ​our
definition,​ ​one’s​ ​Trust​ ​score​ ​is​ ​a​ ​predictive​ ​score​ ​that​ ​measures​ ​one's​ ​probability​ ​to​ ​make
or​ ​back​ ​claims​ ​that​ ​would​ ​be​ ​true​ ​or​ ​accurate​ ​above​ ​a​ ​certain​ ​threshold​.

Personalized​ ​recommendations​ ​for​ ​investors,​ ​entrepreneurs,​ ​and​ ​service​ ​agencies​ ​would​ ​be
derived​ ​from​ ​users'​ ​Trust​ ​scores​ ​generated​ ​using​ ​machine​ ​learning​ ​models​ ​trained​ ​with​ ​1000+
features.​ ​These​ ​features​ ​also​ ​incorporate​ ​factors​ ​that​ ​provide​ ​a​ ​proxy​ ​for​ ​real​ ​world​ ​or​ ​offline
trustworthiness​ ​such​ ​as​ ​the​ ​ability​ ​to​ ​attract​ ​information​ ​(and​ ​resources)​ ​from​ ​other​ ​people.​ ​For
example,​ ​the​ ​most​ ​trustworthy​ ​venture​ ​capitalists​ ​usually​ ​get​ ​connected​ ​to​ ​the​ ​best​ ​deals
by​ ​entrepreneurs​ ​and​ ​other​ ​investors​ ​who​ ​trust​ ​them.

So,​ ​for​ ​a​ ​person​ ​with​ ​high​ ​Trust​ ​score:

1) information​ ​propagated​ ​by​ ​that​ ​person​ ​has​ ​a​ ​high​ ​accuracy​ ​or​ ​probability​ ​of​ ​being​ ​true​ ​of
accurate

2) it's​ ​more​ ​likely​ ​for​ ​people​ ​to​ ​share​ ​information​ ​with​ ​that​ ​person

A​ ​user​ ​A's​ ​Trust​ ​score​​ ​(TS)​ ​includes​ ​the​ ​following​ ​components

● Absolute​ ​TS​ ​(ATS​ ​-​ ​indicates​ ​user's​ ​objective​ ​level​ ​of​ ​trustworthiness),​ ​incorporates:

○ Permanent​ ​TS​ ​(based​ ​on​ ​personal​ ​information,​ ​behaviors​ ​that​ ​indicate​ ​long
lasting​ ​traits)

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​ ​sec.gov/news/press-release/2017-131
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○ Dynamic​ ​TS​ ​(based​ ​on​ ​behaviors​ ​that​ ​indicate​ ​temporary​ ​traits​ ​within​ ​90​ ​days)

○ Scalable​ ​TS​ ​(based​ ​on​ ​variables​ ​that​ ​scale​ ​with​ ​the​ ​number​ ​of​ ​selected​ ​“Dow
Jones​ ​decks”)

○ Attractive​ ​TS​ ​(based​ ​on​ ​user​ ​A's​ ​ability​ ​to​ ​attract​ ​information)

● Relative​ ​TS​ ​(RTS​ ​-​ ​indicates​ ​your​ ​subjective​ ​level​ ​of​ ​trust​ ​placed​ ​in​ ​user​ ​A)25
incorporates:

○ Conversational​ ​TS​ ​(based​ ​on​ ​conversations​ ​between​ ​you​ ​and​ ​user​ ​A)

○ Propagational​ ​TS​ ​(based​ ​on​ ​your​ ​acts​ ​of​ ​propagating​ ​user​ ​A's​ ​information​ ​or
sending​ ​information​ ​to​ ​user​ ​A)

User​ ​A​ ​also​ ​has​ ​many​ ​Topical​ ​TSs​​ ​(TTSs)​ ​each​ ​of​ ​which​ ​indicates​ ​user​ ​A's​ ​trustworthiness​ ​or
expertise​ ​level​ ​on​ ​one​ ​of​ ​many​ ​predefined​ ​topics​ ​(e.g.​ ​industries,​ ​funding​ ​stages,​ ​locations).

13.1.2. Topical​ ​Trust​ ​scores

To​ ​generate​ ​one's​ ​TTS​ ​on​ ​a​ ​topic,​ ​we​ ​must​ ​predict​ ​one's​ ​expertise​ ​level​ ​on​ ​that​ ​topic,​ ​based​ ​on
one’s​ ​biography​ ​texts​ ​from​ ​DropDeck,​ ​Twitter,​ ​Quora,​ ​and​ ​tuple​ ​(Company​ ​name,​ ​Job​ ​title)​ ​from
Linkedin​ ​and​ ​AngelList.​ ​We​ ​use​ ​multi-class​ ​classification,​ ​with​ ​each​ ​class​ ​being​ ​a​ ​bucket​ ​on​ ​the
expertise​ ​spectrum.​ ​We​ ​use​ ​learning​ ​models​ ​such​ ​as​ ​logistic​ ​regression,​ ​random​ ​forests,​ ​and
gradient​ ​boosted​ ​decision​ ​trees;​ ​features​ ​such​ ​as​ ​n-grams,​ ​list​ ​of​ ​named​ ​entities,​ ​cosine
similarity​ ​between​ ​topic​ ​name​ ​and​ ​biography​ ​text.​ ​Training​ ​data​ ​sources​ ​include​ ​hand​ ​labeled
data​ ​and​ ​label​ ​propagation.​ ​After​ ​generating​ ​a​ ​TTS​ ​for​ ​every​ ​topic​ ​for​ ​each​ ​user,​ ​we​ ​can​ ​further
refine​ ​them​ ​with​ ​the​ ​following​ ​insight:​ ​since​ ​trust​ ​in​ ​expertise​ ​is​ ​transitive​ ​(A→B,​ ​B→C,​ ​then
A→C),​ ​it​ ​propagates​ ​through​ ​the​ ​network.Therefore,​ ​we​ ​create​ ​a​ ​graph​ ​where​ ​each​ ​node​ ​is​ ​a
user​ ​and​ ​its​ ​TTSs,​ ​each​ ​edge​ ​is​ ​a​ ​user-trusts-user​ ​relationship​ ​weighted​ ​with​ ​the​ ​value​ ​which
the​ ​trustor​ ​has​ ​assigned​ ​to​ ​the​ ​trustee.​ ​Then​ ​we​ ​apply​ ​graph​ ​algorithms​ ​like​ ​PageRank​ ​to
update​ ​all​ ​TTSs​ ​at​ ​each​ ​node.

13.1.3. Pipeline

When​ ​a​ ​user​ ​registers​ ​on​ ​goDropDeck.com,​ ​he​ ​associates​ ​his​ ​identities​ ​on​ ​different​ ​social
networks​ ​with​ ​his​ ​DropDeck​ ​profile.​ ​For​ ​Twitter,​ ​public​ ​data​ ​is​ ​collected​ ​via​ ​the​ ​Mention​ ​Stream,
and​ ​data​ ​for​ ​other​ ​social​ ​networks​ ​is​ ​collected​ ​via​ ​REST​ ​APIs​ ​on​ ​the​ ​user’s​ ​behalf,​ ​based​ ​on​ ​the
granted​ ​permissions.​ ​All​ ​collected​ ​data​ ​is​ ​parsed​ ​and​ ​normalized​ ​to​ ​protocol​ ​buffers​ ​that​ ​encode
user​ ​interactions,​ ​graph,​ ​and​ ​profile​ ​information.​ ​Data​ ​is​ ​continuously​ ​collected​ ​from​ ​interactions
in​ ​a​ ​trailing​ ​window​ ​of​ ​90​ ​days​ ​using​ ​Django,​ ​Celery,​ ​Redis,​ ​etc.​ ​The​ ​collected​ ​data​ ​is​ ​written​ ​out
to​ ​a​ ​distributed​ ​file​ ​system.​ ​The​ ​batch​ ​processing​ ​pipeline​ ​derives​ ​features​ ​for​ ​each​ ​user,
normalized​ ​against​ ​the​ ​global​ ​population.​ ​Feature​ ​weights​ ​from​ ​the​ ​reinforcement​ ​models​ ​built
using​ ​ground​ ​truth​ ​data​ ​are​ ​then​ ​applied​ ​to​ ​generate​ ​scores.

13.1.4. Development​ ​roadmap

Because​ ​the​ ​system​ ​was​ ​built​ ​to​ ​be​ ​extensible​ ​and​ ​flexible,​ ​the​ ​Trust​ ​score​ ​will​ ​evolve​ ​to
improve​ ​granularity​ ​and​ ​incorporate​ ​new​ ​sources​ ​of​ ​information,​ ​growing​ ​more​ ​accurate​ ​over

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39

time.​ ​Since​ ​a​ ​user’s​ ​online​ ​persona​ ​typically​ ​spans​ ​multiple​ ​social​ ​and​ ​professional​ ​networks,
the​ ​Trust​ ​scoring​ ​engine​ ​must​ ​be​ ​able​ ​to​ ​scale​ ​across​ ​these​ ​different​ ​networks​ ​to​ ​unify​ ​the
available​ ​information​ ​for​ ​a​ ​user.

Our​ ​product​ ​development​ ​plan​ ​foresees​ ​6​ ​overlapping​ ​phases:

1) Phase​ ​1:​​ ​generate​ ​a​ ​Trust​ ​score​ ​for​ ​each​ ​user​ ​on​ ​our​ ​platform​ ​as​ ​a​ ​reference​ ​of
trustworthiness​ ​for​ ​investors​ ​and​ ​entrepreneurs​ ​to​ ​choose​ ​the​ ​right​ ​partners.

2) Phase​ ​2:​​ ​generate​ ​a​ ​Potential​ ​score​ ​for​ ​each​ ​deck​ ​on​ ​our​ ​platform​ ​as​ ​a​ ​reference​ ​of
evaluation​ ​results​ ​for​ ​investors​ ​to​ ​fund​ ​the​ ​highest​ ​potential​ ​companies.

3) Phase​ ​3:​​ ​recommend​ ​potential,​ ​suitable​ ​startups​ ​and​ ​investors​ ​to​ ​each​ ​other.

4) Phase​ ​4​:​ ​automate​ ​contribution​ ​and​ ​lending.

5) Phase​ ​5:​​ ​integrate​ ​with​ ​other​ ​technologies​ ​and​ ​systems​ ​to​ ​apply​ ​our​ ​trust​ ​scoring​ ​engine
to​ ​businesses​ ​in​ ​other​ ​domains​ ​and​ ​refine​ ​our​ ​own​ ​results.

6) Phase​ ​6:​​ ​create​ ​an​ ​interface​ ​for​ ​businesses​ ​to​ ​integrate​ ​with​ ​our​ ​engine​ ​on​ ​demand.

13.1.5. A.I.​ ​technologies

A.I.​ ​technologies​ ​are​ ​used​ ​in​ ​order​ ​to​ ​increase​ ​the​ ​degree​ ​of​ ​convenience,​ ​speed,​ ​and​ ​accuracy
of​ ​our​ ​scoring​ ​engine​ ​and​ ​recommendation​ ​system,​ ​which​ ​will​ ​be​ ​used​ ​to​ ​optimize​ ​the​ ​decision
making​ ​process​ ​in​ ​venture​ ​investment.​ ​Our​ ​technology​ ​of​ ​choice​ ​is​ ​deep​ ​reinforcement​ ​learning.
We​ ​use​ ​ElasticSearch​ ​as​ ​a​ ​search​ ​engine​ ​for​ ​indexing,​ ​search,​ ​and​ ​quick​ ​analytics.​ ​Languages
and​ ​frameworks​ ​include​ ​Python,​ ​Scikit-learn,​ ​TensorFlow,​ ​Theano,​ ​and​ ​Keras.​ ​Learning​ ​models
include​ ​recurrent,​ ​convolutional​ ​neural​ ​networks​ ​for​ ​text​ ​classification,​ ​recurrent​ ​Neural
Networks​ ​for​ ​time​ ​series​ ​analysis,​ ​and​ ​deep​ ​Boltzmann​ ​Machines​ ​for​ ​recommendation​ ​system.

13.1.6. Validation

In​ ​order​ ​to​ ​evaluate​ ​success,​ ​we​ ​have​ ​to​ ​validate​ ​that​ ​users​ ​with​ ​higher​ ​Trust​ ​scores​ ​are​ ​able​ ​to
predict​ ​good​ ​investments​ ​more​ ​accurately​ ​and​ ​attract​ ​more​ ​information​ ​in​ ​a​ ​network.​ ​Then,​ ​we
compare​ ​the​ ​performance​ ​of​ ​the​ ​score​ ​against​ ​other​ ​scoring/ranking​ ​systems​ ​and​ ​also​ ​analyze
the​ ​dynamic​ ​nature​ ​of​ ​the​ ​score.​ ​We​ ​examine​ ​different​ ​topical​ ​domains​ ​and​ ​find​ ​that
highly-trustworthy​ ​users​ ​are​ ​correctly​ ​identified​ ​within​ ​these​ ​domains​ ​through​ ​their​ ​high​ ​scores.
Below,​ ​we​ ​examine​ ​the​ ​Trust​ ​Score​ ​from​ ​5​ ​different​ ​aspects​ ​to​ ​illustrate​ ​its​ ​correctness​ ​and
usefulness.

A.​ ​Accuracy​ ​of​ ​judgement

Each​ ​user​ ​can​ ​evaluate​ ​favorably​ ​(“Approve")​ ​or​ ​unfavorably​ ​(“Deny")​ ​a​ ​claim.​ ​For​ ​each​ ​deck,
we​ ​divide​ ​users​ ​who​ ​have​ ​evaluated​ ​its​ ​claims​ ​into​ ​those​ ​with​ ​high​ ​Trust​ ​scores​ ​(for​ ​example,
above​ ​80%)​ ​or​ ​“High​ ​group”​ ​and​ ​those​ ​with​ ​low​ ​ones​ ​or​ ​“Low​ ​group.”​ ​We​ ​aggregate​ ​evaluations
(weighted​ ​by​ ​each​ ​evaluator's​ ​Trust​ ​score)​ ​by​ ​High​ ​group​ ​to​ ​obtain​ ​a​ ​High​ ​score​ ​and​ ​those​ ​by
Low​ ​group​ ​to​ ​obtain​ ​a​ ​Low​ ​score.​ ​In​ ​parallel,​ ​we​ ​allow​ ​entrepreneurs​ ​to​ ​report​ ​their​ ​verified
achievements​ ​(investment,​ ​admission​ ​to​ ​incubators​ ​or​ ​accelerators,​ ​won​ ​prizes,​ ​etc.)​ ​and​ ​build​ ​a
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learning​ ​model​ ​to​ ​score​ ​them​ ​(in​ ​the​ ​same​ ​way​ ​as​ ​generating​ ​TTS)​ ​and​ ​generate​ ​a​ ​Success
score​ ​for​ ​each​ ​deck.

After​ ​one​ ​year,​ ​we​ ​run​ ​an​ ​experiment:​ ​for​ ​each​ ​deck,​ ​we​ ​compare​ ​its​ ​High​ ​score​ ​(HS)​ ​and​ ​its
Low​ ​score​ ​(LS)​ ​to​ ​its​ ​Success​ ​score​ ​(SS).​ ​A​ ​higher​ ​similarity​ ​between​ ​the​ ​HS​ ​and​ ​the​ ​SS​ ​than
that​ ​between​ ​LS​ ​and​ ​SS​ ​would​ ​indicate​ ​a​ ​higher​ ​accuracy​ ​of​ ​judgement​ ​by​ ​users​ ​with​ ​high​ ​Trust
scores.

B.​ ​Attraction​ ​of​ ​Information

To​ ​validate​ ​the​ ​effectiveness​ ​of​ ​the​ ​Trust​ ​score,​ ​we​ ​will​ ​run​ ​an​ ​experiment​ ​to​ ​measure​ ​the
attraction​ ​of​ ​information​ ​with​ ​respect​ ​to​ ​the​ ​user​ ​scores.​ ​Users​ ​with​ ​varied​ ​Trust​ ​scores​ ​will​ ​be
targeted​ ​with​ ​perks,​ ​which​ ​are​ ​premium​ ​data​ ​that​ ​can​ ​only​ ​be​ ​claimed​ ​under​ ​a​ ​condition​ ​-​ ​the
users​ ​will​ ​be​ ​required​ ​to​ ​send​ ​the​ ​perks​ ​to​ ​at​ ​least​ ​one​ ​other​ ​user,​ ​so​ ​that​ ​both​ ​can​ ​claim​ ​the
perks.​ ​A​ ​higher​ ​number​ ​of​ ​perks​ ​received​ ​indicates​ ​a​ ​greater​ ​attraction​ ​of​ ​information.

C.​ ​Comparisons​ ​with​ ​Other​ ​Systems

Real-World​ ​Rankings:​ ​We​ ​can​ ​compare​ ​the​ ​Topical​ ​Trust​ ​score​ ​with​ ​other​ ​rankings​ ​that​ ​indicate
trustworthiness,​ ​such​ ​as​ ​Quora's​ ​topical​ ​rankings​ ​for​ ​top​ ​viewed​ ​writers​ ​on​ ​venture​ ​capital26.​ ​To
measure​ ​the​ ​ranking​ ​quality​ ​of​ ​TTS,​ ​we​ ​adopt​ ​the​ ​normalized​ ​Discounted​ ​Cumulative​ ​Gain
(nDCG)​ ​metric,​ ​defined​ ​in​ ​Eq.​ ​4.​ ​The​ ​Discounted​ ​Cumulative​ ​Gain​ ​upto​ ​position​ ​p​ ​(DCGp)​ ​is
calculated​ ​as​ ​in​ ​Eq.5,​ ​and​ ​the​ ​ideal​ ​DCG​ ​for​ ​p​ ​is​ ​denoted​ ​by​ ​IDCGp.
p
DCGp (2reli − 1)
nDCGp​ ​=​ ​ IDCGp ​ ​(4) DCGp​ ​=​ ​ ∑ log 2 (i+1) (5)
i=1

We​ ​calculate​ ​the​ ​IDCGp​ ​by​ ​using​ ​the​ ​Quora’s​ ​topical​ ​rankings​ ​as​ ​the​ ​ideal​ ​ordering​ ​of​ ​users.
We​ ​set​ ​the​ ​relevance​ ​rel​ ​of​ ​a​ ​person​ ​as​ ​p/ rank ideal ,​ ​where​ ​the​ ​ rank ideal ​ ​is​ ​his/her​ ​position​ ​in​ ​the
ideal​ ​ranking.​ ​With​ ​this​ ​setting,​ ​a​ ​high​ ​nDCG,​ ​for​ ​example​ ​p​ ​=​ ​10​ ​(higher​ ​than​ ​0.7),​ ​would
demonstrate​ ​that​ ​the​ ​TTS​ ​is​ ​able​ ​to​ ​capture​ ​online​ ​reputation​ ​to​ ​a​ ​high​ ​degree​ ​for​ ​these
examples.

D.​ ​Trustworthiness​ ​by​ ​topic

Since​ ​trust​ ​is​ ​typically​ ​contextual,​ ​we​ ​explore​ ​the​ ​effectiveness​ ​of​ ​the​ ​Trust​ ​score​ ​across
different​ ​topical​ ​domains.​ ​Users​ ​in​ ​topical​ ​domains​ ​are​ ​ranked​ ​by​ ​their​ ​TTSs​ ​within​ ​their
respective​ ​domains.​ ​After​ ​one​ ​year,​ ​we​ ​will​ ​take​ ​note​ ​of​ ​rankings​ ​in​ ​a​ ​few​ ​selected​ ​topics​ ​such
as​ ​Fintech,​ ​Healthcare,​ ​and​ ​Robotics.​ ​For​ ​a​ ​topic​ ​such​ ​as​ ​robotics,​ ​we​ ​should​ ​see,​ ​for​ ​example,
that​ ​Elon​ ​Musk​ ​(founder​ ​of​ ​Tesla)​ ​has​ ​a​ ​higher​ ​TTS​ ​than​ ​Evan​ ​Spiegel​ ​(founder​ ​of​ ​Snapchat)​ ​in
order​ ​to​ ​validate​ ​that​ ​TTS​ ​can​ ​correctly​ ​identify​ ​the​ ​reputed​ ​figures​ ​in​ ​a​ ​variety​ ​of​ ​domains.

E.​ ​Accuracy​ ​of​ ​recommendation​ ​rankings

Every​ ​day,​ ​for​ ​each​ ​user,​ ​we​ ​recommend​ ​5​ ​ranked​ ​trustworthy​ ​people,​ ​and​ ​record​ ​which​ ​of
them​ ​would​ ​be​ ​added​ ​in​ ​which​ ​order​ ​after​ ​24​ ​hours.​ ​In​ ​the​ ​order​ ​of​ ​the​ ​ranking,​ ​at​ ​every​ ​user​ ​we
compute​ ​the​ ​precision​ ​(the​ ​number​ ​of​ ​added​ ​users​ ​up​ ​to​ ​and​ ​including​ ​that​ ​user,​ ​divided​ ​by​ ​the
total​ ​number​ ​of​ ​users​ ​up​ ​to​ ​that​ ​user),​ ​and​ ​then​ ​take​ ​the​ ​average​ ​(AP​ ​score).​ ​Then​ ​we​ ​calculate

26
​ ​Most​ ​Viewed​ ​Writers​ ​in​ ​Venture​ ​Capital
41

the​ ​Mean​ ​Average​ ​Precision​ ​(MAP)​ ​across​ ​all​ ​AP​ ​scores​ ​for​ ​all​ ​queries.​ ​We​ ​check​ ​whether​ ​our
MAP​ ​is​ ​higher​ ​than​ ​0.5.

13.2. A.I.​ ​on​ ​and​ ​off​ ​chain

13.2.1. Scalability

For​ ​us​ ​to​ ​realize​ ​benefits​ ​from​ ​blockchain,​ ​the​ ​blockchain​ ​would​ ​need​ ​to​ ​function​ ​as​ ​an
access-control​ ​manager​ ​for​ ​score​ ​evidence​ ​records​ ​and​ ​data.​ ​The​ ​information​ ​contained​ ​in
blockchain​ ​would​ ​be​ ​an​ ​index,​ ​a​ ​list​ ​of​ ​all​ ​the​ ​score​ ​verification​ ​data.​ ​The​ ​index​ ​is​ ​similar​ ​to​ ​a
card​ ​catalog​ ​in​ ​a​ ​library.​ ​The​ ​card​ ​catalog​ ​contains​ ​metadata​ ​about​ ​the​ ​book​ ​and​ ​a​ ​location
where​ ​the​ ​book​ ​can​ ​be​ ​found.​ ​The​ ​score​ ​verification​ ​blockchain​ ​would​ ​work​ ​the​ ​same​ ​way.
Transactions​ ​in​ ​the​ ​blocks​ ​would​ ​contain​ ​a​ ​user’s​ ​unique​ ​identifier,​ ​an​ ​encrypted​ ​link​ ​to​ ​the
score​ ​verification​ ​record​ ​and​ ​a​ ​timestamp​ ​for​ ​when​ ​the​ ​transaction​ ​was​ ​created.

To​ ​improve​ ​data​ ​access​ ​efficiency,​ ​the​ ​transaction​ ​would​ ​contain​ ​the​ ​type​ ​of​ ​data​ ​contained​ ​in
the​ ​score​ ​verification​ ​and​ ​any​ ​other​ ​metadata​ ​that​ ​would​ ​facilitate​ ​frequently​ ​used​ ​queries​ ​(the
metadata​ ​could​ ​be​ ​added​ ​as​ ​tags).​ ​The​ ​score​ ​verification​ ​blockchain​ ​would​ ​contain​ ​a​ ​complete
indexed​ ​history​ ​of​ ​all​ ​score​ ​verification​ ​data,​ ​including​ ​all​ ​data​ ​collected​ ​on​ ​DropDeck​ ​platform​ ​or
crawled​ ​from​ ​corners​ ​of​ ​the​ ​Internet.

All​ ​score​ ​verification​ ​data​ ​would​ ​be​ ​stored​ ​off​ ​blockchain​ ​in​ ​a​ ​data​ ​repository​ ​called​ ​a​ d
​ ata​ ​lake​.
Data​ ​lakes​ ​are​ ​highly​ ​scalable​ ​and​ ​can​ ​store​ ​a​ ​wide​ ​variety​ ​of​ ​data,​ ​from​ ​images​ ​to​ ​documents
to​ ​keyvalue​ ​stores.​ ​Data​ ​lakes​ ​would​ ​be​ ​valuable​ ​tools​ ​for​ ​research​ ​and​ ​would​ ​be​ ​used​ ​for​ ​a
variety​ ​of​ ​analysis​ ​including​ ​mining​ ​for​ ​factors​ ​that​ ​predict​ ​outcomes.​ ​Data​ ​lakes​ ​support
interactive​ ​queries,​ ​text​ ​mining,​ ​text​ ​analytics​ ​and​ ​machine​ ​learning.​ ​All​ ​information​ ​stored​ ​in​ ​the
data​ ​lake​ ​would​ ​be​ ​encrypted​ ​and​ ​digitally​ ​signed​ ​to​ ​ensure​ ​privacy​ ​and​ ​authenticity​ ​of​ ​the
information.

When​ ​the​ ​DropDeck​ ​system​ ​creates​ ​a​ ​new​ ​score​ ​component​ ​for​ ​a​ ​user​ ​or​ ​company,​ ​a​ ​digital
signature​ ​would​ ​be​ ​created​ ​to​ ​verify​ ​authenticity​ ​of​ ​the​ ​document​ ​or​ ​image.​ ​The​ ​score
verification​ ​data​ ​would​ ​be​ ​encrypted​ ​and​ ​sent​ ​to​ ​the​ ​data​ ​lake​ ​for​ ​storage.​ ​Every​ ​time
information​ ​is​ ​saved​ ​to​ ​the​ ​data​ ​lake​ ​a​ ​pointer​ ​to​ ​the​ ​score​ ​verification​ ​record​ ​is​ ​registered​ ​in​ ​the
blockchain​ ​along​ ​with​ ​the​ ​user’s​ ​unique​ ​identifier.​ ​The​ ​entity​ ​is​ ​notified​ ​that​ ​score​ ​verification
data​ ​was​ ​added​ ​to​ ​his​ ​blockchain.

13.2.2. Access​ ​Security​ ​and​ ​Data​ ​Privacy

A​ ​user​ ​(individual​ ​or​ ​representing​ ​a​ ​company)​ ​would​ ​have​ ​full​ ​access​ ​to​ ​his​ ​data​ ​and​ ​control
over​ ​how​ ​his​ ​data​ ​would​ ​be​ ​shared.​ ​DropDeck​ ​web​ ​interface​ ​would​ ​allow​ ​the​ ​user​ ​to​ ​grant
permission​ ​to​ ​access​ ​his​ ​data​ ​(by​ ​Trusting).​ ​The​ ​user​ ​would​ ​also​ ​be​ ​able​ ​to​ ​view​ ​an​ ​audit​ ​log​ ​of
who​ ​accessed​ ​his​ ​blockchain,​ ​including​ ​when​ ​and​ ​what​ ​data​ ​was​ ​accessed.

After​ ​a​ ​Trusted​ ​user​ ​is​ ​granted​ ​access​ ​to​ ​a​ ​user’s​ ​score​ ​verification​ ​information,​ ​they​ ​can​ ​query
the​ ​blockchain​ ​for​ ​the​ ​user’s​ ​data​ ​and​ ​utilize​ ​the​ ​digital​ ​signature​ ​to​ ​verify​ ​the​ ​scores.
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Score​ ​verification​ ​would​ ​follow​ ​the​ ​best​ ​practices​ ​established​ ​by​ ​financial​ ​institutions​ ​and
regulators.​ ​Given​ ​this​ ​model,​ ​the​ ​user​ ​has​ ​singular​ ​control​ ​over​ ​his​ ​data​ ​and​ ​the​ ​power​ ​to​ ​grant
access​ ​to​ ​specific​ ​entities​ ​(funders,​ ​Delegates,​ ​etc.)​ ​for​ ​communication​ ​and​ ​collaboration​ ​in
funding.​ ​The​ ​decentralized​ ​nature​ ​of​ ​the​ ​blockchain​ ​combined​ ​with​ ​digitally​ ​signed​ ​transactions
ensures​ ​that​ ​an​ ​adversary​ ​cannot​ ​pose​ ​as​ ​the​ ​user​ ​or​ ​corrupt​ ​the​ ​network​ ​as​ ​that​ ​would​ ​imply
the​ ​adversary​ ​forged​ ​a​ ​digital​ ​signature​ ​or​ ​gained​ ​control​ ​over​ ​the​ ​majority​ ​of​ ​the​ ​network’s
resources.​ ​Similarly,​ ​an​ ​adversary​ ​would​ ​not​ ​be​ ​able​ ​to​ ​learn​ ​anything​ ​from​ ​the​ ​shared​ ​public
ledger​ ​as​ ​only​ ​hashed​ ​pointers​ ​and​ ​encrypted​ ​information​ ​would​ ​be​ ​contained​ ​within​ ​the
transactions.

13.3. Rules,​ ​Rationale,​ ​and​ ​Incentives​ ​in​ ​the​ ​Incentive​ ​Ecosystem

Contributing​ ​with​ ​DDD Lending​ ​with​ ​DDD

Contributor​ ​(funder) x

Contributee​ ​(the​ ​funded) x

Hunter x

Evaluator x x

Referrer x x

Lender​ ​(funder) x

Borrower​ ​(the​ ​funded) x

Backer x

Insurer x

Delegate x x

13.3.1. Operating​ ​Rules

1)​ ​Trust:​ ​When​ ​a​ ​user​ ​clicks​ ​"Trust"​ ​on​ ​one's​ ​profile​ ​and​ ​assigns​ ​a​ ​trust​ ​index​ ​to​ ​that​ ​person,​ ​the
user​ ​will:
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● Add​ ​that​ ​person​ ​into​ ​their​ ​own​ ​Trust​ ​Circle

● Allow​ ​that​ ​person​ ​to​ ​see​ ​the​ ​user’s​ ​evaluation​ ​to​ ​any​ ​claim

● Incorporate​ ​that​ ​person's​ ​evaluation​ ​into​ ​the​ ​evaluation​ ​bar​ ​of​ ​any​ ​claim​ ​the​ ​user​ ​sees
and​ ​into​ ​the​ ​D-rankings​ ​of​ ​decks​ ​on​ ​your​ ​Home​ ​page

2)​ ​Funding​ ​deadline:

● When​ ​a​ ​user​ ​creates​ ​a​ ​deck,​ ​the​ ​user​ ​can​ ​set​ ​the​ ​Funding​ ​deadline.

● When​ ​the​ ​deck​ ​is​ ​published​ ​(the​ ​user​ ​clicks​ ​on​ ​"Publish"​ ​and​ ​the​ ​admin​ ​approves),​ ​if
the​ ​"Funding​ ​deadline"​ ​is​ ​not​ ​set​ ​yet,​ ​it​ ​will​ ​be​ ​automatically​ ​set​ ​to​ ​99​ ​days​ ​after​ ​that
point​ ​in​ ​time.

● When​ ​a​ ​user​ ​wants​ ​to​ ​Clear​ ​or​ ​Edit​ ​your​ ​Funding​ ​deadline,​ ​the​ ​user​ ​must​ ​provide​ ​an
explanation​ ​and​ ​convincing​ ​rationale​ ​to​ ​be​ ​approved​ ​by​ ​the​ ​admin.

● If​ ​the​ ​user​ ​clears​ ​the​ ​funding​ ​deadline,​ ​all​ ​pot​ ​money​ ​in​ ​your​ ​claims​ ​will​ ​be​ ​returned​ ​to
evaluators.

● If​ ​the​ ​user​ ​edits​ ​the​ ​funding​ ​deadline,​ ​all​ ​evaluators​ ​will​ ​be​ ​notified.

● A​ ​fixed​ ​amount​ ​of​ ​time​ ​(e.g.​ ​1​ ​week)​ ​before​ ​the​ ​funding​ ​deadline​ ​or​ ​when​ ​the​ ​user
lets​ ​the​ ​admin​ ​know​ ​about​ ​the​ ​funding​ ​outcome​ ​(the​ ​user​ ​clicks​ ​on​ ​"Report​ ​outcome"
and​ ​sends​ ​evidence​ ​for​ ​the​ ​admin​ ​to​ ​approve),​ ​no​ ​one​ ​can​ ​further​ ​evaluate​ ​on​ ​the
deck​ ​(evaluation​ ​is​ ​locked​ ​for​ ​the​ ​deck)​ ​and​ ​the​ ​user​ ​cannot​ ​clear/edit​ ​the​ ​funding
deadline.

● When​ ​a​ ​user​ ​reports​ ​a​ ​successful​ ​funding​ ​event,​ ​it​ ​must​ ​meet​ ​a​ ​few​ ​requirements​ ​to
be​ ​legitimate,​ ​e.g.​ ​the​ ​amount​ ​of​ ​funding​ ​must​ ​exceed​ ​or​ ​be​ ​equal​ ​to​ ​$10,000.

● The​ ​funding​ ​deadline​ ​can​ ​be​ ​the​ ​result​ ​of​ ​an​ ​announcement​ ​date​ ​of​ ​a​ ​competition,
incubator,​ ​accelerator,​ ​or​ ​other​ ​funding​ ​program.

3)​ ​Evaluation:

● When​ ​a​ ​user​ ​evaluates​ ​the​ ​Top​ ​Claim​ ​("the​ ​user​ ​should​ ​invest​ ​in​ ​[company​ ​name]"),
the​ ​user​ ​wagers​ ​an​ ​amount​ ​of​ ​DDD,​ ​which​ ​is​ ​added​ ​the​ ​pot​ ​value​ ​of​ ​the​ ​Top​ ​Claim.
When​ ​a​ ​user​ ​changes​ ​the​ ​evaluation,​ ​the​ ​user​ ​wagers​ ​an​ ​additional​ ​and​ ​equal
amount​ ​of​ ​DDD,​ ​which​ ​is​ ​also​ ​added​ ​to​ ​the​ ​pot​ ​value.

● When​ ​a​ ​user​ ​evaluate​ ​a​ ​child​ ​claim​ ​(any​ ​claim​ ​other​ ​than​ ​the​ ​Top​ ​Claim)​ ​or​ ​change
your​ ​evaluation,​ ​the​ ​user​ ​wagers​ ​an​ ​amount​ ​of​ ​DDD,​ ​which​ ​is​ ​added​ ​the​ ​pot​ ​value​ ​of
that​ ​claim.

● When​ ​you​ ​evaluate​ ​the​ ​Top​ ​Claim​ ​correctly​ ​(e.g.​ ​you​ ​"Approve"​ ​it​ ​and​ ​then​ ​that​ ​deck
succeeds​ ​in​ ​fundraising)​ ​then:
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a)​ ​the​ ​user​ ​gets​ ​a​ ​share​ ​of​ ​the​ ​pot​ ​value​ ​of​ ​the​ ​Top​ ​Claim​ ​(divided​ ​equally​ ​among
correct​ ​evaluators).

b)​ ​the​ ​user​ ​gets​ ​your​ ​wager​ ​in​ ​all​ ​child​ ​claims​ ​back​ ​(no​ ​loss).

● When​ ​a​ ​user​ ​evaluates​ ​the​ ​Top​ ​Claim​ ​incorrectly​ ​(e.g.​ ​you​ ​"Approve"​ ​it​ ​and​ ​then​ ​that
deck​ ​fails​ ​in​ ​fundraising)​ ​then

a)​ ​the​ ​user​ ​loses​ ​their​ ​wager​ ​in​ ​the​ ​Top​ ​Claim

b)​ ​the​ ​user​ ​gets​ ​a​ ​share​ ​of​ ​the​ ​pot​ ​value​ ​of​ ​the​ ​claims​ ​that​ ​the​ ​user​ ​evaluates
opposite​ ​to​ ​your​ ​Top​ ​Claim​ ​evaluation​ ​(e.g.​ ​you​ ​"Approve"​ ​the​ ​Top​ ​Claim​ ​but
"Deny"​ ​a​ ​child​ ​claim).

● If​ ​a​ ​user​ ​does​ ​not​ ​evaluate​ ​the​ ​Top​ ​Claim​ ​then​ ​all​ ​the​ ​wagers​ ​in​ ​child​ ​claims​ ​will​ ​be
returned​ ​to​ ​you.

● Each​ ​user's​ ​evaluation​ ​data​ ​is​ ​used​ ​in​ ​calculating​ ​one​ ​or​ ​many​ ​components​ ​in​ ​one​ ​of
many​ ​Trust​ ​and​ ​Potential​ ​scores.​ ​When​ ​a​ ​user​ ​pays​ ​in​ ​DDD​ ​to​ ​look​ ​inside​ ​one​ ​of
these​ ​components​ ​that​ ​include​ ​your​ ​evaluation​ ​data,​ ​the​ ​user​ ​claims​ ​a​ ​percentage​ ​of
that​ ​payment,​ ​which​ ​is​ ​instantly​ ​processed​ ​by​ ​a​ ​smart​ ​contract.

4)​ ​Hunting:

● The​ ​first​ ​person​ ​who​ ​publishes​ ​a​ ​deck​ ​(click​ ​"Publish"​ ​and​ ​is​ ​approved​ ​by​ ​the​ ​admin)
will​ ​become​ ​the​ ​"Hunter"​ ​of​ ​that​ ​deck.

● If​ ​there​ ​are​ ​duplicate​ ​decks,​ ​or​ ​if​ ​the​ ​real​ ​owner​ ​of​ ​the​ ​company​ ​reports​ ​a​ ​deck​ ​(and
shows​ ​evidence),​ ​the​ ​admin​ ​will​ ​contact​ ​the​ ​deck's​ ​creators​ ​to​ ​resolve​ ​the​ ​dispute​ ​and
delete​ ​the​ ​less​ ​legitimate​ ​ones.

● The​ ​Hunter​ ​of​ ​a​ ​deck​ ​gets​ ​a​ ​share​ ​(e.g.​ ​1%)​ ​of​ ​all​ ​pot​ ​value​ ​won​ ​in​ ​that​ ​deck​ ​for​ ​a
fixed​ ​amount​ ​of​ ​time​ ​(e.g.​ ​2​ ​years).

● The​ ​owner​ ​of​ ​the​ ​company​ ​can​ ​claim​ ​their​ ​deck​ ​(click​ ​"Claim​ ​deck",​ ​submit​ ​evidence,
and​ ​get​ ​approved​ ​by​ ​the​ ​admin)​ ​and​ ​request​ ​to​ ​remove​ ​the​ ​Hunter's​ ​deck
permissions.

● If​ ​the​ ​Hunter​ ​misbehaves​ ​or​ ​abuses​ ​the​ ​deck​ ​permissions,​ ​Founders​ ​can​ ​submit
evidence​ ​to​ ​remove​ ​the​ ​Hunter.

5)​ ​Delegate:​ ​Each​ ​funder​ ​before​ ​funding​ ​a​ ​company​ ​must​ ​approve​ ​a​ ​local​ ​Delegate​ ​who​ ​will:

● Be​ ​authorized​ ​to​ ​make​ ​sure​ ​that​ ​the​ ​funded​ ​pay​ ​an​ ​accurate​ ​amount.

● Handle​ ​or​ ​assist​ ​both​ ​the​ ​funders​ ​and​ ​the​ ​funded​ ​in​ ​all​ ​legal​ ​processes​ ​per​ ​request.

● Devise​ ​countermeasures​ ​against​ ​loan​ ​delinquency.

● Receive​ ​payment​ ​or​ ​a​ ​share​ ​of​ ​the​ ​reward​ ​or​ ​interest.
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13.3.2. Rationale

1)​ ​Trust:

● This​ ​compels​ ​each​ ​person​ ​to​ ​really​ ​pick​ ​the​ ​people​ ​he/she​ ​trusts.

● You​ ​can​ ​hide​ ​your​ ​evaluation​ ​from​ ​the​ ​people​ ​you​ ​do​ ​not​ ​trust.

2)​ ​Funding​ ​deadline:

● There​ ​is​ ​always​ ​a​ ​goal​ ​for​ ​the​ ​deck​ ​owner​ ​to​ ​achieve.

● There​ ​is​ ​always​ ​a​ ​date​ ​to​ ​conclude​ ​the​ ​result​ ​of​ ​a​ ​bet,​ ​compelling​ ​people​ ​to​ ​wager.

● If​ ​you​ ​indefinitely​ ​evaluate​ ​a​ ​claim​ ​of​ ​a​ ​deck​ ​and​ ​there's​ ​no​ ​"result​ ​date"​ ​then​ ​it​ ​is​ ​hard
and​ ​even​ ​nonsensical​ ​to​ ​evaluate.​ ​But​ ​if​ ​there's​ ​a​ ​result​ ​date​ ​to​ ​look​ ​forward​ ​to,​ ​so
that​ ​an​ ​"Approve"​ ​means​ ​"Yes​ ​this​ ​is​ ​valid​ ​or​ ​this​ ​company's​ ​gonna​ ​make​ ​it​ ​by​ ​this
date!"​ ​and​ ​a​ ​"Deny"​ ​means​ ​otherwise,​ ​then​ ​it​ ​is​ ​easy​ ​to​ ​determine​ ​an​ ​evaluation.

● We​ ​incentivize​ ​the​ ​deck​ ​owner​ ​to​ ​report​ ​the​ ​outcome​ ​to​ ​us​ ​as​ ​soon​ ​as​ ​possible,​ ​and
NOT​ ​to​ ​inform​ ​evaluators​ ​to​ ​change​ ​their​ ​evaluation​ ​to​ ​win​ ​the​ ​pot​ ​value.​ ​If​ ​he
succeeds​ ​in​ ​fundraising​ ​and​ ​fails​ ​to​ ​report,​ ​his​ ​Approvers​ ​will​ ​probably​ ​blame​ ​him​ ​for
their​ ​loss​ ​(and​ ​probably​ ​cease​ ​to​ ​support​ ​him).​ ​If​ ​he​ ​succeeds,​ ​there's​ ​no​ ​reason​ ​to
inform/help​ ​those​ ​who​ ​"Deny"​ ​him.​ ​If​ ​fails​ ​to​ ​raise​ ​fund,​ ​there's​ ​little​ ​reason​ ​to
inform/help​ ​those​ ​who​ ​"Approve"​ ​him​ ​because​ ​it​ ​harms​ ​his​ ​deck's​ ​rating​ ​and​ ​may
affect​ ​future​ ​funding​ ​campaigns.

3)​ ​Evaluation:

● We​ ​compel​ ​users​ ​to​ ​evaluate​ ​BOTH​ ​the​ ​Top​ ​Claim​ ​and​ ​child​ ​claims​ ​correctly.

● For​ ​the​ ​Top​ ​Claim,​ ​a​ ​user​ ​must​ ​evaluate​ ​based​ ​on​ ​whether​ ​the​ ​user​ ​really​ ​thinks​ ​the
company​ ​can​ ​raise​ ​funds​ ​or​ ​not,​ ​so​ ​that​ ​the​ ​user​ ​can​ ​get​ ​rewarded.

● Besides,​ ​even​ ​if​ ​a​ ​user​ ​believes​ ​in​ ​the​ ​Top​ ​Claim​ ​evaluation​ ​(e.g.​ ​the​ ​user​ ​"Approve"
and​ ​really​ ​thinks​ ​this​ ​company​ ​can​ ​raise​ ​fund),​ ​the​ ​user​ ​can​ ​also​ ​think​ ​differently
about​ ​a​ ​child​ ​claim​ ​and​ ​evaluate​ ​opposite​ ​to​ ​the​ ​Top​ ​Claim​ ​(e.g.​ ​the​ ​user​ ​"Approve"
the​ ​Top​ ​Claim,​ ​but​ ​think​ ​the​ ​product​ ​of​ ​the​ ​company​ ​is​ ​not​ ​strong​ ​yet,​ ​so​ ​the​ ​user
"Denies"​ ​the​ ​[Product]​ ​claim)​ ​and​ ​STILL​ ​gets​ ​rewarded​ ​for​ ​that​ ​honest​ ​evaluation.

● So,​ ​even​ ​if​ ​a​ ​user​ ​evaluates​ ​the​ ​Top​ ​Claim​ ​incorrectly,​ ​the​ ​user​ ​can​ ​still​ ​get​ ​rewarded
for​ ​every​ ​child​ ​claim​ ​that​ ​the​ ​user​ ​has​ ​evaluated​ ​honestly.​ ​That​ ​means,​ ​the​ ​user​ ​can
HEDGE​ ​a​ ​Top​ ​Claim​ ​evaluation​ ​by​ ​evaluating​ ​child​ ​claims​ ​honestly.

4)​ ​Hunting:​ ​Similar​ ​to​ ​hunters​ ​on​ ​Product​ ​Hunt,​ ​hunters​ ​on​ ​DropDeck​ ​will​ ​go​ ​out​ ​and​ ​hunt​ ​down
the​ ​highest​ ​potential​ ​companies​ ​even​ ​before​ ​their​ ​founders​ ​think​ ​of​ ​fundraising​ ​themselves.

5)​ ​Delegate:​ ​This​ ​should​ ​be​ ​a​ ​respected​ ​figure​ ​that​ ​serves​ ​as​ ​the​ ​only​ ​offline​ ​link​ ​between​ ​the
funder​ ​and​ ​the​ ​funded.​ ​The​ ​Delegate​ ​may​ ​advise​ ​the​ ​funded​ ​or​ ​assist​ ​the​ ​funder​ ​when​ ​needed.
46

13.3.3. Incentives

I)​ ​For​ ​entrepreneur​:​ ​In​ ​order​ ​to​ ​improve​ ​the​ ​rating​ ​of​ ​the​ ​deck,​ ​the​ ​entrepreneur​ ​must​ ​invite​ ​all
supporters​ ​and​ ​related​ ​users​ ​to​ ​evaluate​ ​different​ ​aspects​ ​of​ ​the​ ​entrepreneur’s​ ​company.

II)​ ​For​ ​funders​:​ ​In​ ​order​ ​to​ ​see​ ​accurate​ ​deck​ ​ranking​ ​and​ ​evaluation​ ​(free​ ​of​ ​bias​ ​from
spammers),​ ​the​ ​investor​ ​must​ ​invite​ ​or​ ​add​ ​the​ ​right​ ​(trustworthy)​ ​people​ ​into​ ​your​ ​Trust​ ​Circle
and​ ​rate​ ​each​ ​person's​ ​trustworthiness​ ​as​ ​accurately​ ​as​ ​possible.

III)​ ​For​ ​funders​:​ ​Also,​ ​in​ ​order​ ​to​ ​see​ ​more​ ​people's​ ​evaluation​ ​on​ ​a​ ​deck,​ ​a​ ​funder​ ​must​ ​improve
the​ ​credibility​ ​to​ ​be​ ​Trusted​ ​or​ ​invite​ ​that​ ​person​ ​to​ ​add​ ​you​ ​to​ ​their​ ​Trust​ ​circle,​ ​by​ ​behaving
properly​ ​and​ ​evaluating​ ​decks​ ​honestly​ ​over​ ​time​ ​on​ ​our​ ​platform.

IV)​ ​For​ ​evaluators​:​ ​In​ ​order​ ​to​ ​be​ ​rewarded​ ​with​ ​money,​ ​a​ ​user​ ​can​ ​evaluate,​ ​vote​ ​and
contribute​ ​data​ ​in​ ​many​ ​ways.​ ​When​ ​someone​ ​pays​ ​to​ ​view​ ​data​ ​attributed​ ​to​ ​the​ ​scores
calculated​ ​on​ ​our​ ​platform,​ ​all​ ​evaluators​ ​who​ ​contribute​ ​such​ ​data​ ​will​ ​be​ ​rewarded​ ​instantly.
The​ ​more​ ​accurate​ ​the​ ​evaluation​ ​is,​ ​the​ ​more​ ​successful​ ​the​ ​funders​ ​will​ ​become,​ ​and​ ​the
more​ ​DDD​ ​evaluators​ ​can​ ​earn​ ​in​ ​the​ ​long​ ​term.

V)​ ​For​ ​evaluators​:​ ​In​ ​order​ ​to​ ​win​ ​a​ ​pot​ ​money​ ​on​ ​whether​ ​a​ ​deck​ ​would​ ​be​ ​invested​ ​or​ ​not​ ​by​ ​a
certain​ ​deadline,​ ​a​ ​user​ ​must​ ​predict​ ​and​ ​evaluate​ ​that​ ​deck​ ​honestly.​ ​When​ ​a​ ​user​ ​evaluates,
vote​ ​and​ ​contribute​ ​data​ ​in​ ​many​ ​ways,​ ​the​ ​user​ ​must​ ​chip​ ​in​ ​a​ ​certain​ ​amount​ ​of​ ​DDD​ ​(which​ ​is
slightly​ ​replenished​ ​every​ ​day​ ​but​ ​capped).​ ​The​ ​final​ ​decision​ ​of​ ​investment​ ​belongs​ ​to​ ​the​ ​real
investors.​ ​Those​ ​who​ ​make​ ​the​ ​right​ ​bet​ ​(invest/not​ ​invest)​ ​get​ ​a​ ​share​ ​of​ ​the​ ​the​ ​pot​ ​money.

VI)​ ​For​ ​evaluators​:​ ​In​ ​order​ ​to​ ​hedge​ ​the​ ​risk​ ​of​ ​evaluating​ ​the​ ​Top​ ​Claim​ ​incorrectly,​ ​the​ ​user
must​ ​evaluate​ ​the​ ​child​ ​claims​ ​correctly.

VII)​ ​For​ ​Hunters​:​ ​In​ ​order​ ​to​ ​get​ ​rewarded​ ​for​ ​finding​ ​a​ ​cool​ ​investments,​ ​a​ ​Hunter​ ​goes​ ​out​ ​and
looks​ ​for​ ​potential​ ​companies​ ​and​ ​present​ ​their​ ​information​ ​in​ ​the​ ​most​ ​exciting​ ​way​ ​to​ ​put​ ​on
DropDeck.​ ​Also,​ ​within​ ​the​ ​hunter​ ​reward​ ​period,​ ​the​ ​Hunter​ ​must​ ​attract​ ​as​ ​many​ ​investors​ ​and
trustworthy​ ​evaluators​ ​to​ ​your​ ​deck​ ​as​ ​possible.

VIII)​ ​For​ ​Delegates​:​ ​In​ ​order​ ​to​ ​get​ ​a​ ​share​ ​of​ ​an​ ​investor's​ ​profit,​ ​the​ ​Delegate​ ​must​ ​do
everything​ ​within​ ​capabilities​ ​to​ ​make​ ​sure​ ​the​ ​contributee/borrower​ ​pays​ ​back​ ​a​ ​correct​ ​amount
(instead​ ​of​ ​an​ ​amount​ ​lower​ ​than​ ​per​ ​specified​ ​in​ ​the​ ​terms).​ ​In​ ​order​ ​to​ ​have​ ​a​ ​reputation​ ​and
attract​ ​more​ ​funders​ ​and​ ​funded​ ​companies​ ​as​ ​clients​ ​in​ ​the​ ​future,​ ​the​ ​Delegate​ ​must
collaborate​ ​in​ ​the​ ​best​ ​interests​ ​of​ ​both​ ​parties​ ​instead​ ​colluding​ ​with​ ​one​ ​of​ ​them.

13.4. The​ ​mechanics​ ​of​ ​the​ ​Buyback​ ​Program

A​ ​buyback​ ​program​ ​will​ ​be​ ​performed​ ​in​ ​a​ ​predetermined​ ​manner​ ​as​ ​follows:

1.​ ​50%​ ​of​ ​all​ ​profit​ ​in​ ​ETH​ ​accrued​ ​in​ ​DDD​ ​smart​ ​contract​ ​will​ ​be​ ​used​ ​to​ ​purchase​ ​DDD​ ​in​ ​a​ ​90
day​ ​period.

2.​ ​Purchases​ ​will​ ​be​ ​made​ ​on​ ​a​ ​weekly​ ​basis.

3.​ ​All​ ​token​ ​repurchases​ ​will​ ​be​ ​performed​ ​on​ ​open​ ​markets.
47

4.​ ​DDD​ ​tokens​ ​will​ ​be​ ​repurchased​ ​at​ ​a​ ​price​ ​that​ ​does​ ​not​ ​exceed​ ​the​ ​highest​ ​independent​ ​bid
or​ ​the​ ​last​ ​quoted​ ​transaction​ ​price.​ ​This​ ​should​ ​not​ ​inflate​ ​the​ ​market​ ​price​ ​and​ ​rather​ ​serves​ ​as
a​ ​price​ ​support.

5.​ ​Purchase​ ​volume​ ​should​ ​never​ ​reach​ ​more​ ​than​ ​20%​ ​of​ ​total​ ​DDD​ ​volume​ ​traded​ ​in​ ​the​ ​last
24​ ​hours.

6.​ ​All​ ​tokens​ ​purchased​ ​will​ ​be​ ​added​ ​to​ ​DropDeck​ ​Reserve​ ​and​ ​locked​ ​for​ 1
​ 2​ ​months​.

7.​ ​DropDeck​ ​will​ ​not​ ​buy​ ​back​ ​more​ ​than​ ​10%​ ​of​ ​all​ ​tokens​ ​in​ ​circulation.​ ​If​ ​the​ ​amount​ ​of​ ​fund
allocated​ ​to​ ​buy​ ​back​ ​tokens​ ​remains​ ​after​ ​buying​ ​10%​ ​of​ ​all​ ​tokens​ ​in​ ​circulation,​ ​then
remaining​ ​fund​ ​will​ ​be​ ​converted​ ​to​ ​USD/EUR/CHF​ ​to​ ​be​ ​distributed​ ​to​ ​the​ ​Company's​ ​stock
holders.

8.​ ​DropDeck​ ​will​ ​disclose​ ​its​ ​DDD​ ​purchases​ ​i.e.​ ​total​ ​number​ ​of​ ​tokens​ ​purchased​ ​and​ ​the
average​ ​price​ ​paid​ ​per​ ​token​ ​in​ ​a​ ​quarterly​ ​report.

13.5. What​ ​smart​ ​contracts​ ​do

a) Buyback:​ ​DropDeck's​ ​earnings​ ​will​ ​accrue​ ​in​ ​the​ ​DDD​ ​smart​ ​contract,​ ​a​ ​share​ ​of​ ​which​ ​is
used​ ​to​ ​buy​ ​back​ ​DDD​ ​tokens​ ​on​ ​exchanges,​ ​effectively​ ​increasing​ ​the​ ​token​ ​net​ ​worth
of​ ​all​ ​DDD​ ​holders.​ ​For​ ​more​ ​details,​ ​please​ ​refer​ ​to​ ​the​ A
​ ppendix​.

b) Reputation:​ ​Funding​ ​innovative​ ​and​ ​thriving​ ​companies​ ​on​ ​DropDeck​ ​improves​ ​your​ ​and
all​ ​of​ ​your​ ​associated​ ​entities'​ ​scores,​ ​improves​ ​your​ ​global​ ​ranking​ ​to​ ​attract​ ​more​ ​and
better​ ​entities​ ​(entrepreneurs,​ ​investors,​ ​employees,​ ​service​ ​providers,​ ​etc.),​ ​grants​ ​your
access​ ​to​ ​private​ ​information,​ ​and​ ​increases​ ​your​ ​limits​ ​on​ ​DropDeck​ ​services.

c) Escrow:​ ​DropDeck​ ​optionally​ ​holds​ ​your​ ​tokens​ ​until​ ​all​ ​smart​ ​contract​ ​requirements​ ​are
met.

d) Evaluate:​ ​when​ ​someone​ ​evaluates,​ ​token​ ​is​ ​subtracted​ ​from​ ​that​ ​person's​ ​wallet​ ​and
accrued​ ​in​ ​a​ ​smart​ ​contract.

e) Reward​ ​based​ ​on​ ​evaluation:​ ​Tokens​ ​accrued​ ​in​ ​smart​ ​contract​ ​are​ ​distributed​ ​to​ ​correct
evaluators​ ​after​ ​funding​ ​evidence​ ​is​ ​approved​ ​before​ ​funding​ ​deadline​ ​(similar​ ​to
prediction​ ​markets​ ​such​ ​as​ ​Augur/Gnosis)

f) Other​ ​roles:​ ​Other​ ​users​ ​on​ ​the​ ​platforms​ ​can​ ​join​ ​various​ ​roles​ ​to​ ​support
investors/companies​ ​and​ ​rewarded​ ​along​ ​the​ ​way.​ ​E.g.​ ​a​ ​"Hunter"​ ​is​ ​immediately
rewarded​ ​when​ ​the​ ​company​ ​that​ ​person​ ​hunted​ ​as​ ​been​ ​successfully​ ​funded.

g) Score​ ​verification:​ ​When​ ​someone​ ​pays​ ​for​ ​data​ ​contributed​ ​by​ ​evaluators,​ ​these
evaluators​ ​get​ ​rewarded​ ​immediately.

h) Investment​ ​(crowdfunding):​ ​Investors​ ​can​ ​contribute​ ​part​ ​of​ ​the​ ​investment​ ​amount​ ​or
pay​ ​a​ ​buyout​ ​price​ ​to​ ​invest​ ​in​ ​a​ ​company

i) Verifying​ ​evidence​ ​of​ ​funding:​ ​Whenever​ ​a​ ​company​ ​submits​ ​its​ ​funding​ ​evidence,​ ​a
panel​ ​will​ ​be​ ​selected​ ​to​ ​vote​ ​for​ ​the​ ​validity​ ​of​ ​that​ ​evidence.
48

j) Verifying​ ​conditions​ ​before​ ​installment​ ​payment:​ ​Whenever​ ​you​ ​contribute​ ​in
installments,​ ​the​ ​payment​ ​of​ ​each​ ​installment​ ​must​ ​be​ ​approved.

k) Approving​ ​Delegates:​ ​The​ ​funder(s)​ ​and​ ​funded​ ​company​ ​approve​ ​a​ ​proposal​ ​of​ ​terms
and​ ​the​ ​according​ ​Delegate​ ​to​ ​carry​ ​out​ ​those​ ​terms.

l) Others:​ ​Approving​ ​each​ ​installment​ ​of​ ​contribution,​ ​approve​ ​deck​ ​deletion,​ ​feature
voting,​ ​etc.

13.6. Stablecoin​ ​GDD

The​ ​token​ ​sold​ ​during​ ​the​ ​token​ ​sale​ ​is​ ​known​ ​as​ ​the​ ​Decentralized​ ​DropDeck​ ​Token​ ​(DDD).
This​ ​is​ ​the​ ​only​ ​time​ ​these​ ​tokens​ ​can​ ​be​ ​created,​ ​and​ ​therefore​ ​the​ ​total​ ​supply​ ​of​ ​DDD​ ​is​ ​fixed.

Fees​ ​will​ ​be​ ​charged​ ​to​ ​participants​ ​for​ ​services​ ​such​ ​as​ ​premium​ ​features​ ​and​ ​score
verification.​ ​These​ ​fees​ ​will​ ​initially​ ​be​ ​denominated​ ​in​ ​ETH​ ​and​ ​DDD.​ ​DropDeck​ ​seeks​ ​to​ ​not
only​ ​create​ ​interesting​ ​software,​ ​but​ ​also​ ​a​ ​community​ ​of​ ​those​ ​interested​ ​in​ ​fostering​ ​innovation
through​ ​funding​ ​companies​ ​on​ ​DropDeck.​ ​To​ ​do​ ​this,​ ​we​ ​needed​ ​to​ ​create​ ​a​ ​model​ ​that​ ​lowers
the​ ​barrier​ ​to​ ​entry​ ​for​ ​repeat​ ​users​ ​(e.g.​ ​having​ ​to​ ​pay​ ​ETH​ ​or​ ​DDD​ ​repeatedly).

GoDropDeck​ ​(GDD)​ ​can​ ​be​ ​used​ ​to​ ​pay​ ​fees​ ​for​ ​services​ ​or​ ​subsidize​ ​the​ ​fees​ ​of​ ​other
participants.​ ​GDD​ ​will​ ​be​ ​pegged​ ​to​ ​$1​ ​USD​ ​worth​ ​of​ ​fees.​ ​In​ ​this​ ​way,​ ​GDD​ ​acts​ ​as​ ​a​ ​coupon
for​ ​$1​ ​of​ ​use​ ​within​ ​DropDeck.

DDD​ ​tokens​ ​are​ ​the​ ​generator​ ​for​ ​GDD​ ​creation.​ ​GDD​ ​can​ ​only​ ​be​ ​created​ ​via​ ​activating​ ​the
utility​ ​of​ ​the​ ​DDD​ ​tokens.​ ​This​ ​is​ ​done​ ​via​ ​a​ ​smart​ ​contract​ ​system.​ ​The​ ​smart​ ​contract​ ​works​ ​as
follows:​ ​DDD​ ​token​ ​holders​ ​agree​ ​to​ ​“lock”​ ​their​ ​tokens​ ​in​ ​a​ ​smart​ ​contract​ ​(30-365​ ​days).​ ​A
multiplier​ ​is​ ​added​ ​for​ ​longer​ ​lock​ ​durations.​ ​The​ ​smart​ ​contract​ ​determines​ ​the​ ​user​ ​selected
lock​ ​duration​ ​and​ ​applies​ ​that​ ​duration​ ​to​ ​a​ ​formula​ ​that​ ​is​ ​designed​ ​to​ ​regulate​ ​the​ ​supply​ ​of
GDD​ ​tokens​ ​currently​ ​in​ ​use.​ ​Prior​ ​to​ ​locking​ ​their​ ​DDD​ ​tokens​ ​in​ ​the​ ​smart​ ​contract,​ ​users​ ​will
be​ ​able​ ​to​ ​see​ ​exactly​ ​how​ ​many​ ​GDD​ ​they​ ​will​ ​receive​ ​as​ ​a​ ​result​ ​of​ ​executing​ ​the​ ​smart
contract.​ ​Once​ ​users​ ​execute​ ​the​ ​contract,​ ​30%​ ​of​ ​their​ ​GDD​ ​will​ ​be​ ​distributed​ ​for​ ​immediate
use,​ ​and​ ​the​ ​remaining​ ​70%​ ​will​ ​be​ ​distributed​ ​proportionally​ ​over​ ​the​ ​locked​ ​duration.​ ​Once​ ​the
lock​ ​duration​ ​expires,​ ​the​ ​locked​ ​DDD​ ​ceases​ ​to​ ​generate​ ​GDD​ ​and​ ​the​ ​DDD​ ​becomes​ ​freely
transferable​ ​by​ ​the​ ​holder.​ ​There​ ​is​ ​no​ ​limit​ ​(other​ ​than​ ​duration)​ ​for​ ​how​ ​many​ ​times​ ​DDD
tokens​ ​may​ ​be​ ​used​ ​to​ ​create​ ​GDD.

13.7. Market​ ​size

13.7.1. Startup​ ​funding

Problems​ ​between​ ​startups​ ​and​ ​funders​ ​in​ ​finding​ ​and​ ​evaluating​ ​each​ ​other​ ​cost​ ​them​ ​billions
of​ ​dollars,​ ​part​ ​of​ ​which​ ​DropDeck​ ​can​ ​save​ ​for​ ​them​ ​and​ ​turn​ ​into​ ​revenue.​ ​The​ ​addressable
market​ ​size​ ​is​ ​roughly​ ​$33​ ​billion.​ ​Please​ ​refer​ ​to​ ​more​ ​details​ ​below:

Startups'​ ​expenses​ ​on​ ​deck​ ​building​ ​&​ ​finding​ ​investors:​​ ​$4​ ​billion
Investors'​ ​expenses​ ​on​ ​startup​ ​discovery​ ​&​ ​screening:​​ ​$1​ ​billion
Time​ ​spent​ ​on​ ​discovery​ ​&​ ​screening:​​ ​$2.4​ ​billion​ ​(dollar​ ​equivalent)
Time​ ​wasted​ ​on​ ​losers:​​ ​$1.9​ ​billion​ ​(dollar​ ​equivalent)
49

Opportunity​ ​costs​ ​of​ ​losers:​​ ​$24​ ​billion
Total​ ​addressable​ ​market​ ​size​ ​=​ ​$33.3​ ​billion.

13.7.2. SME​ ​Lending

Besides​ ​“Contributing​ ​with​ ​DDD,”​ ​the​ ​option​ ​for​ ​“Lending​ ​with​ ​DDD"​ ​will​ ​allow​ ​companies​ ​to
instantly​ ​raise​ ​a​ ​needed​ ​amount​ ​of​ ​money​ ​without​ ​waiting​ ​for​ ​installments,​ ​and​ ​allow​ ​funders​ ​to
lend​ ​money​ ​to​ ​earn​ ​monthly​ ​interest.​ ​The​ ​addressable​ ​market​ ​of​ ​SME​ ​alternative​ ​lending​ ​is
worth​ ​$284​ ​billion.27

Regarding​ ​Asian​ ​Top​ ​7​ ​financing​ ​deals​ ​in​ ​2016,​ ​capital​ ​invested​ ​in​ ​7​ ​companies​ ​accounts​ ​for
78%​ ​of​ ​all​ ​invested​ ​capital​ ​in​ ​Asia​ ​($7,6B​ ​=78%).​ ​Data​ ​from​ ​Life.SREDA’s​ ​Money​ ​Of​ ​The​ ​Future
2016-17​ ​report​ ​is​ ​as​ ​follows:

Name Sector Amount Stage Country
Ant​ ​Financial Lending​+ $4500Mil. Series​ ​B China
Lufax​ ​(lu.com) Lending $1200Mil. Series​ ​B China
JD.com​ ​(e-commerce) Lending $1000Mil. N/A China
Qufenqi Lending $449Mil. Late China
WeLab Lending $160Mil. Series​ ​B Hong​ ​Kong
Weidai Lending $153Mil. Series​ ​C China
HeroFinCorp Lending $150Mil. N/A India
For​ ​more​ ​details,​ ​please​ ​refer​ ​to​ ​this​ ​DropDeck​ ​report​.

13.8. Competitive​ ​landscape

13.8.1. Existing​ ​investment​ ​platforms

APPLY
DATA FUNDING SCORING
*
Crunchbase o
Mattermark o o
CBInsights o o
PitchBook o
AngelList o o
Funderbeam o o o
CrowdCube o
Seedrs o
SyndicateRoom o
FundersClub o
CircleUp o
Seedinvest o
Bnktothefuture o
DealMatrix o o

27
​ ​Peter​ ​Renton,​ ​“Global​ ​Overview​ ​of​ ​Online​ ​Lending,”​ ​presented​ ​at​ ​2016​ ​Lend​ ​Academy,​ ​SF,​ ​US.
50

OddUp o o
F6S o
Gust o
Venture360 o
DROPDECK o o o o
*refers​ ​to​ ​functions​ ​that​ ​allow​ ​startups​ ​to​ ​apply​ ​to​ ​startup​ ​programs,​ ​competitions

13.8.2. Existing​ ​lending​ ​platforms

Business Non- Innovative Retail
Cryptocurrency
loan collateral creditscoring** investors
Banks o
LendingClub o o o o
Upstart o o
Funding​ ​Circle o o
Lufax o o o o
FundingSocieties o o o o
InnovenCapital o o
Crowdo o o o o
HeroFinCorp o
Prosper o o
WeLend o o
ChinaRapidFinance o o o
Loanranger o o
Finaccel o o
Avant o
Poloniex​ ​Lending o o o o
DROPDECK o o o o o
**refers​ ​to​ ​methods​ ​that​ ​incorporate​ ​unconventional​ ​data​ ​to​ ​determine​ ​a​ ​company's​ ​quality​ ​(as​ ​opposed​ ​to
traditional​ ​data​ ​on​ ​credit​ ​history)
51

DropDeck​ ​White​ ​Paper​ ​Disclaimers
IMPORTANT​ ​NOTICES
The DDD tokens are not securities as defined under Singapore’s Securities and Futures Act (Cap. 289)
(“​SFA​”). Accordingly, the SFA does not apply to the issuance of the DDD tokens. For the avoidance of
doubt, the offering of DDD tokens need not be accompanied by any prospectus or profile statement
and no prospectus or profile statement needs to be lodged with the Monetary Authority of Singapore
(“​MAS​”).
This White Paper does not constitute an offer of, or an invitation to purchase, the DDD tokens in any
jurisdiction in which such offer or sale would be unlawful. No regulatory authority in Singapore,
including the MAS, has reviewed or approved or disapproved of the DDD tokens or this White Paper.
This White Paper and any part hereof may not be distributed or otherwise disseminated in any
jurisdiction​ ​where​ ​offering​ ​tokens​ ​in​ ​the​ ​manner​ ​set​ ​out​ ​this​ ​White​ ​Paper​ ​is​ ​regulated​ ​or​ ​prohibited.
The information in this White Paper is current only as of the date on the cover hereof. For any time
after the cover date of this White Paper, the information, including information concerning DropDeck’s
business operations and financial condition may have changed. Neither the delivery of this White
Paper nor any sale made in the related token offering shall, under any circumstances, constitute a
representation that no such changes have occurred. DropDeck does not make or purport to make, and
hereby disclaims, any representation, warranty, undertaking, or other assurance in any form
whatsoever to any person, including any representations, warranties, undertakings, or other
assurances in relation to the truth, accuracy, or completeness of any part of the information in this
White​ ​Paper.
Whether taken as a whole or read in part, this White Paper is not, and should not be regarded as, any
form of legal, financial, tax, or other professional advice. You should seek independent professional
advice before making your own decision as to whether or not to receive any DDD tokens. You are
responsible for any and all evaluations, assessments, and decisions you make in relation to investing
in the DDD tokens. You may request for additional information from DropDeck in relation to this offer of
the DDD tokens. DropDeck may, but is not obliged to, disclose such information depending on whether
(i) it is legal to do so and (ii) the requested information is reasonably necessary to verify the information
contained​ ​in​ ​this​ ​White​ ​Paper.
DropDeck is not responsible for compelling any person to accept DDD tokens and disclaims, to the
fullest extent permitted by law, all liability for any adverse consequences arising out of or in relation to
such​ ​rejections​ ​of​ ​the​ ​DDD​ ​tokens.
Upon receiving any DDD tokens, you will be deemed to have reviewed this White Paper (and any
information requested and obtained from DropDeck) in full and to have agreed to the terms of this
offering of the DDD tokens, including to the fact that this offering does not fall within the scope of any
securities laws in Singapore and is not regulated by the MAS. You further acknowledge and agree that
the​ ​DDD​ ​tokens​ ​are​ ​not​ ​securities​ ​and​ ​are​ ​not​ ​meant​ ​to​ ​generate​ ​any​ ​form​ ​of​ ​investment​ ​return.
The DDD tokens and related services provided by DropDeck (if any) are provided on an “as is” and “as
available” basis. DropDeck does not grant any warranties or make any representation, express or
implied or otherwise, as to the accessibility, quality, suitability, accuracy, adequacy, or completeness of
the DDD tokens or any related services provided by DropDeck, and expressly disclaims any liability for
errors, delays, or omissions in, or for any action taken in reliance on, the DDD tokens and related
services provided by DropDeck. No warranty, including the warranties of non-infringement of third party
rights, title, merchantability, satisfactory quality, or fitness for a particular purpose, is given in
conjunction​ ​with​ ​the​ ​DDD​ ​tokens​ ​and​ ​any​ ​related​ ​services​ ​provided​ ​by​ ​DropDeck.
52

RISK​ ​FACTORS
Regulatory​ ​risks
The regulation of tokens such as the DDD tokens is still in a very nascent stage of development in
Singapore. A high degree of uncertainty as to how tokens and token-related activities are to be treated
exists. The applicable legal and regulatory framework may change subsequent to the date of issuance
of this White Paper. Such change may be very rapid and it is not possible to anticipate with any degree
of certainty the nature of such regulatory evolution. DropDeck does not, in any way, represent that the
regulatory status of the DDD tokens will remain unaffected by any regulatory changes that arise at any
point​ ​in​ ​time​ ​before,​ ​during,​ ​and​ ​after​ ​this​ ​offering.

No​ ​regulatory​ ​supervision
None of DropDeck or its affiliates is currently regulated or subject to the supervision of any regulatory
body in Singapore. In particular, DropDeck and its affiliates are not registered with MAS in Singapore
as any type of regulated financial institution or financial advisor and are not subject to the standards
imposed upon such persons under the Securities and Futures Act, Financial Advisors Act, and other
related regulatory instruments. Such persons are required to comply with a variety of requirements and
standards concerning disclosures, reporting, compliance, and conduct of their operations for purposes
or maximising investor protections. Since DropDeck is not subject to such requirements or standards, it
will make decisions on those issues at its own discretion. While DropDeck will have regard to best
practices on these issues, holders of DDD tokens may not necessarily enjoy the same extent and
degree​ ​of​ ​investor​ ​protections​ ​as​ ​would​ ​be​ ​the​ ​case​ ​should​ ​they​ ​invest​ ​with​ ​regulated​ ​entities​ ​instead.

No​ ​fiduciary​ ​duties​ ​owed
As DropDeck is not a regulated financial institution, it does not owe investors in DDD tokens any
fiduciary duties. This means that DropDeck has no legal obligation to always act in good faith in the
best interests of holders of DDD tokens. While DropDeck will have regard to the interests of holders of
DDD tokens, it is also permitted to consider the interests of other key stakeholders and to prefer these
interests over the interests of DDD token holders. This may mean that DropDeck is permitted to make
decisions that conflict with the interests of DDD token holders. Not owing any fiduciary duties to
holders of DDD tokens also means that holders of DDD tokens may have limited rights of recourse
against​ ​DropDeck​ ​and​ ​its​ ​affiliates​ ​in​ ​the​ ​event​ ​of​ ​disputes.

Tax​ ​risks
The tax characterization of DDD tokens is unclear. Accordingly, the tax treatment to which they will be
subject is uncertain. All persons who wish to receive DDD tokens should seek independent tax advice
prior to deciding whether to receive any DDD tokens. DropDeck does not make any representation as
to​ ​whether​ ​any​ ​tax​ ​consequences​ ​may​ ​arise​ ​from​ ​purchasing​ ​or​ ​holding​ ​DDD​ ​tokens.
53

Risks​ ​from​ ​third​ ​parties
The tokenised nature of DDD tokens means that they are a blockchain-based asset. The security,
transferability, storage, and accessibility of blockchain assets depends on factors outside of
DropDeck’s control, such as the security, stability, and suitability of the underlying blockchain (in this
case, the Ethereum blockchain), mining attacks, and who has access to the smart contract where the
DDD tokens are stored. DropDeck is unable to assure that it can prevent such external factors from
having any direct or indirect adverse impact on any of the DDD tokens. Persons intending to receive
the DDD tokens should note that adverse events caused by such external factors may results in the
loss of some or all of the DDD tokens. Such loss may be irreversible. DropDeck is not responsible for
taking​ ​steps​ ​to​ ​retrieve​ ​DDD​ ​tokens​ ​lost​ ​in​ ​this​ ​manner.

Risks​ ​in​ ​receiving​ ​the​ ​DDD​ ​tokens
DropDeck cannot and does not guarantee or otherwise assure that there are no risks in relation to the
issuance of the DDD tokens. The DDD tokens may, depending on the manner in which the relevant
issuance is effected, involve third parties or external platforms (e.g., wallets). The involvement of such
parties or platforms may introduce risks that would not otherwise be present, such as misconduct or
fraud by the third party, or your failure to receive the DDD tokens upon duly making payment because
of a third-party wallet’s incompatibility with the DDD tokens. DropDeck is not responsible for any risks
arising due to the involvement of third parties, including the risk of not receiving (or subsequently
losing)​ ​any​ ​or​ ​all​ ​DDD​ ​tokens​ ​issued​ ​to​ ​you.