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TokenLaunchWhitePaper
May2017
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TableofContents LegalDisclaimer………………………………………………………………………………. 3 TokenLaunchSummary………………………………………………………………….. 4 OverviewoftheGigaWattProject………………………………………………….. 5
SubstanceoftheGigaWattProject………………………………………. 5 ProjectHistory………………………………………………………………………. 6 GigaWatt’sPricing………………………………………………………………… 6 MarketOverview………………………………………………………………….. 8 GigaWattTechnology…………………………………………………………… 9
TokenLaunchDetails………………………………………………………………………. 12 TokenLaunchOverview………………………………………………………… 12 TokenLaunchPlatform…………………………………………………………. 16 WTTSmartContract……………………………………………………………… 16 PaymentTerms…………………………………………………………………….. 17 DistributionandRates…………………………………………………………… 19
ProjectedTimeline………………………………………………………………………….. 20 Team………………………………………………………………………………………………. 22
GigaWattProjectTeam……………………………………………………….. 22 CryptonomosTokenLaunchTeam………………………………………… 23
RiskFactors…………………………………………………………………………………….. 25
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LegalDisclaimer
ThepurposeofthisWhitePaperistopresenttheGigaWattprojecttopotentialtokenholdersinconnectionwiththeproposedTokenLaunch.Theinformationsetforthbelowmaynotbeexhaustiveanddoesnotimplyanyelementsofacontractualrelationship.ItssolepurposeistoproviderelevantandreasonableinformationtopotentialtokenholdersinorderforthemtodeterminewhethertoundertakeathoroughanalysisofthecompanywiththeintentofacquiringWTTtokens.
Nothing in thisWhite Paper shall be deemed to constitute a prospectus of any sort or asolicitationforinvestment,nordoesitinanywaypertaintoanofferingorasolicitationofanoffertobuyanysecuritiesinanyjurisdiction.Thisdocumentisnotcomposedinaccordancewith, and is not subject to, laws or regulations of any jurisdictionwhich are designed toprotectinvestors.
Certain statements, estimates and financial information contained in this White Paperconstituteforward-lookingstatementsor information.Suchforward-lookingstatementsorinformation involve known and unknown risks and uncertainties whichmay cause actualeventsorresultstodiffermateriallyfromtheestimatesortheresultsimpliedorexpressedinsuchforward-lookingstatements.
ThisEnglishlanguageWhitePaperistheprimaryofficialsourceofinformationabouttheWTTTokenLaunch.Theinformationcontainedhereinmayfromtimetotimebetranslatedintootherlanguagesorusedinthecourseofwrittenorverbalcommunicationswithexistingandprospectivecustomers,partnersetc.Inthecourseofsuchtranslationorcommunicationsomeoftheinformationcontainedhereinmaybelost,corrupted,ormisrepresented.Theaccuracyofsuchalternativecommunicationscannotbeguaranteed.Intheeventofanyconflictsorinconsistencies between such translations and communications and this official EnglishlanguageWhitePaper,theprovisionsofthisEnglishlanguageoriginaldocumentshallprevail.
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TokenLaunchSummary
WTT token is an Ethereum token representing the right to use theGigaWatt processingcenter's capacity, rent-free for 50 years, to accommodate 1 Watt's worth of miningequipmentpowerconsumption.
TokenLaunchmeanstheinitialsaletothepublicofWTTtokens.
TokenIssuemeansareleaseofaspecificbatchofWTTtokens.
Tokenswillbeofferedfor60daysstartingonJune2,2017andendingonJuly31,2017.
Theofferingwillbeopentothepublicglobally.
TokenSaleVolume: 30millionWTT
TokenIssueVolume: 34.5millionWTT1
DistributionofTokens: Forevery100tokenssoldinthisoffering15additionaltokenswillbeissuedandretainedfortheteammembers,partnersandadvisors2
TokenPriceatIssue: EquivalentofUSD1-1.2,dependingonthedateoftheacquisition
Websitelink: https://cryptonomos.com/wtt/
Acceptedformsofpayment:
Bitcoin(“BTC”),Ether(“ETH”),wiretransfer
PresaleStartDate:PresaleEndDate:
May19,2017,12:00PMPDT June2,2017,12:00PMPDT
TokenLaunchStartDate: TokenLaunchEndDate:
June2,2017,12:00PMPDT July31,2017,12:00PMPDT
InitialTokenIssueDate: August7,2017,12:00PMPDT
1TheWTTtokenswillonlybeissuedbasedonactualexistingfacilitycapacity.MoreWTTtokenswillbeissuedasthefacilitycapacityisincreasedthroughfuturebuildouts.2SeeSection‘DistributionandRates’fordetails.
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OverviewoftheGigaWattProject SubstanceoftheGigaWattProject TheGigaWattProjectisbuiltinpartnershipbetweenGigaWatt,Inc.aU.S.company(“GigaWatt”or“Company”),whichoffersmininghostingservicesatitsWenatchee,WAfacilities,andGigaWattPte.Ltd.,aSingaporecompany(“Partner”),whichsellsminingequipmenttocustomersworldwide.
GigaWattisafull-serviceminingsolutionprovider.GigaWattoffersturnkeyminingservicesor custompackages tailored to clients’ needs: full range ofmining services fromhosting,maintenanceandrepairtoprivateblockchainservicing.ThePartneroffersequipmentsalesthroughGigaWatt’swebsite3.
GigaWatt’sstandardturnkeysolutionincludespurchaseanddeliveryofminingequipmentthrough its Partner with its subsequent setup and hosting at Giga Watt’s facilities inWenatchee,WA,withhostingfeesstartingaslowas7.5USDcents/kW/hour4,zerosetupfees(forequipmentpurchasedthroughitsPartner)anduniquelylowminimumfacilityentrancethresholdof1minerofanymodel.
GigaWattcanhostawiderangeofminingequipmentmodelscommonlyusedbyminers;manypopularmodelsareofferedforsalebyitsPartner.
GigaWattalsooffersavarietyofcustompackagesandservices,sothatclientswhoowntheirminingequipment,includingthemodelsnotdistributedbyGigaWatt’sPartner,canstillhostitatGigaWatt’sfacility:GigaWattcanaccommodateanyASICorGPU-basedminers5.
GigaWattminesallscalablecryptocurrencies.Thedecisiononwhatcurrencytomineismadeby thecustomerswhoown theminingequipment.However,at this stage it is technicallyimpossibleforGigaWatttoofferallavailableoptionstoretailcustomers.Currently, retailcustomerscanmineonlyBTC,ETH,andLTC6.
Yourchoiceofequipmentalsodetermineswhichminingpoolyoucanuse.ThefollowingthreepoolsareavailabletoGigaWatt’sclients:SlushPooltominebitcoins,NanoPoolforEthereumandLitecoinPoolforLTC7.
3 ThesalesanddeliveryofequipmentisofferedthroughthePartner'ssalesmoduleonGigaWatt’swebsite.4 SeedetailsinGigaWatt’sPricingsectionbelow. 5 ASIC-basedminersareusedtominebitcoinorlitecoin,GPU-basedequipmentisusedtomineotheraltcoins.6GigaWattisworkingonexpandingthislistofcurrenciesinthefuture. 7Listofminingpoolsmayberevisedinthefuture.
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Aminerisapieceofequipmentoperating24/7underextremelyhighload,sofailuresandbreakdownsarequite common.Minershave tobe shipped to service centers for repairs,whichtakestime,especiallyifaservicecenterislocatedabroad,andeverydayofdowntimemeansa lossofminingprofit.GigaWatt’son-site servicecenterminimizes thedowntime(93.5%minimumuptime),therebyachievingmoreefficientmining.
Althoughitiscommonpracticeintheindustrynottodisclosethedetailsofminingfacilities,including their locations, in order to preserve trade secrets and shut competitors out ofinexpensive power locations, Giga Watt believes in complete transparency. Years ofexperience intheminingbusinessdemonstratethatrunningacompetitivecompanytakesmorethantheabilitytocopy.ThisiswhyeverytwoweeksGigaWattwelcomesvisitorstoitsOpenHouseinWenatcheetopersonallytourtheminingfacility.
ProjectHistory In2010,a softwareengineerand10-yearveteranstartupentrepreneurDaveCarlson firstcame across Bitcoin. He's been innovating in the space ever since. In 2012 he foundedMegaBigPower with the goal of building the world’s first megawatt-scale Bitcoin miningcenter and identifying the key design parameters required to successfully scale up thebusiness of Blockchain transaction processing. Soon it became one of the largest single-operatorminesintheworld.
Now,MegaBigPower has re-branded as GigaWatt, which completed the construction of3 mining facilities designed by the original MegaBigPower team and built under theirsupervision(250kW,1MWand1MW).Theopportunitytousethesefacilities isnowbeingoffered for tokenization.All three facilitiesare inoperationandmostly rentedout (actualnumbersareplacedandupdatedregularlyhere-https://cryptonomos.com/wtt/#/capacity).GigaWattcontinuestobuildnewunitswithitsownresources8.
GigaWatt’sPricing
GigaWatt’spricingstructureforstandardturnkeysolutionconsistsofaone-timechargeforthepurchaseofminersanddailychargesforhostingservices,whichinclude:
- effectiveelectricitycost; - maintenancefee;and
8 SeedetailsintheTimelineSection.Tokensareissuedonlywhennewprocessingcentercapacitybecomesavailablefortheuseofthetokenholders.
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- facilityrentalfee. MinersPurchase:Four models of mining equipment9 are currently available for purchase through Giga-Watt.com:
Current prices and specifications are regularly published and updated at https://giga-watt.com/promo/prices. Hostingfees10:
9Thelistofmodelsmayberevisedinthefuture.Equipment'sdescriptionmayberevisedatanytimetoreflectthemanufacturer’sspecifications.10Hostingfeesmayberevisedinthefuture.
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Paymentsforhostingservices(electricity,maintenance,rentalfees)arededucteddailyfrom
themining rewards.GigaWattdoesnot chargeany fees for transfersandwithdrawalsof
funds;however,thirdpartiesmaychargefeestotransferfundsorwithdrawthemfromthe
accountonGigaWatt’splatform).
ClientswhohavetheirownminingequipmentcanhostitatGigaWattatthesamehostingprices,withtheonlydifferenceofpayingthefollowingsetupfees:USD20perASIC-basedminer,USD40perGPU-basedminer11.
GigaWatt's service center also provides an add-on paid option of emergency equipment
repairs.Thecostofservicedependsonthenatureofperformedrepairs.
MarketOverview Generally,onlyfouroptionsexistonthemarketforcryptomining.Theseare:(i)tooperate
minersfromhome;(ii)tousecloudmining;(iii)tohostyourownminersatthird-partyhosting
facilities;or(iiii)tobuildproprietaryminingfacilities.Thefirsttwooptionsareintendedfor
privatepartymining,andthelattertwoaredesignedforbusinesses.Now,however,through
itslowfeesandextremelylowminimumentrancethreshold,GigaWattisabletoofferafifth
option:competitiveserviceswhichcouldbeusednotonlybytheclientsofhostingcompanies
butalsoserveasanalternativetohomemining,cloudminingandself-builtfacilities.
11Setupfeesmayberevisedinthefuture.
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Aside from the numbers, homemining is both expensive and demanding: it requires the
owner'sconstantattention,andminersarequitenoisy,whichmanyfindobjectionable.Cloud
miningisextremelyopaque:Asarule,usershavenoknowledgeoftheirequipment’sbrand
name,modelnumber,serialnumber,powerefficiencyandconsumption,breakdownofcosts,
miningpoolnameoreventhelocationofthefacility.Self-builtfarmsrequireexpertsandfull-
fledgedbusinessoperations,whichisrisky:anymistakemaycostmillions.Third-partyhosting
provides a viable alternative but there is currently a dire shortage of these services: the
demandgreatlyexceedsthesupply.
What’smore,effectiveelectricitycostofferedbyGigaWatt iscurrentlyamongthe lowest
feasible,andeventakentogetherwithotherfeesitisstillcomparabletoaverageelectricity
ratesworldwide.
Electricityratesworldwide(USDcentsperkW/h)
AllofthismakesGigaWatt’sexpansionextremelytimelyandrelevant.
GigaWattTechnology Inthepast4years,GigaWatt’steambuilt5air-cooledminingfacilities.Thisexperiencegavethemtheexpertisetoselect,buildandemploythebesttechnologiesformining.FromtheirexperienceDaveCarlsonandhisteamdiscoveredthat largemonolithicprocessingcentersarenotoptimalformining.
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ThelatesttechnologyembodyingthisknowledgeatGigaWatt’sfacilityinWenatchee,WAistheproprietaryGigaPodssolutionwhichtakesadvantageofthemininghardware'sextremelyhighpowerdensity,avoidsactivecoolingconsumption,andsavespowerforhigh-efficiencymining, thus minimizing costs in every aspect of mining operations. Giga Pods canaccommodate any type of miners. This model will be the cornerstone of Giga Watt’sexpansion12.
GigaWatt'sdistinctiveinfrastructureconsistsofnumerousautonomousunits.Thisapproachoffersflexibilityintheprocessingcenter’sdesignandrecord-fastexpansionofitscapacity.Italsominimizesconstructioncostsandallowstoutilizefirstunitswhilenewunitsarebeingbuilt.
ThefinalGigaPodmodelwillbecompletedbeforetheendoftheTokenLaunch.Statusoftheconstructioncanbecheckedhere-https://cryptonomos.com/wtt/#/capacity.
12Actualdimensions,processingpowerandothercharacteristicsmayvaryslightly.
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Size:12'x48'
Independentfiber-opticInternetconnection
High-pressure fans constantly circulate fresh air through the pod. Filtered air intakes arepositionedononeside,withexhaustfansontheother.Rainandsnow“falloutarea”providescoolshadeatintake.Shadeplacementoftransformersensureshigherefficiencyandbetterlongevity.
Single “mining wall” inside the pod ensures cool air circulation around miners. All heat-producingequipmentisarrangednexttoexhaustfans.
Grass-covered campus reduces dust, cutting down on intake filters maintenance costs.ArrangementofPodswithexhaustfansfacingeachother(“hotaisle-coldaisle”),in-linewithprevailingwindaircurrents,clearswarmairefficiently.Networkautonomyminimizesoutagerisksfortheentireoperation.
MinimumprocessingpowerofeachGigaPodis750kW.ProcessingpowerdependsontheequipmenteachPodisdesignedtoaccommodate.APoddesignedtoaccommodatebitcoinminersandGPUs13oronlyGPUscanhaveminimumprocessingpower.APoddesignedtoaccommodateonlybitcoinminerscanhouseupto1.75MW,butrequiresmoreventsandheavier-dutyinsidewiringandequipment,whichwillproportionallyincreasetheconstructioncosts.
The choice of the required processing power is determined by themarket demand. GigaWatt’steamchoosesthemostsuitablePodoutfitoptionbasedontheagreementswithitscurrentandpotentialcustomersandtheirequipmenthostingneeds.
13GPUisagraphicsprocessingunitwhichcanbeusedtomineEthereumandcertainothercryptocurrencies.
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TokenLaunchDetails TokenLaunchOverview
Ourgoalistoofferthetokenholdersaccesstobothanexcitingnewworldoftechnologyandthe cryptocurrency mining business. Generally, mining turnover is comprised of threecomponents:(i)electricitycost;(ii)mininghostingcost;and(iii)miningnetprofits.Netprofitscanvarygreatlydependingonminingequipment,whilecostsareconstantandpredictableandconsumethelion’sshareofthepotentialprofits.
ThisinfographicisanexamplebasedonthecalculationsfromApril28,2017.Thenumbersmayvarysignificantlyduetotheratefluctuations,miningdifficultyincrease,andotherfactors.
UndertheexistingpartnershiparrangementsbetweenGigaWattanditsPartner,thePartneris offered access to Giga Watt's facility at an unprecedentedly low hosting rate, whichsignificantly increases mining rewards. Now, through the tokenization process, this lowhostingratecanbepassedtoalltokenholders.
EachGigaWattProjectToken(WTT)representstherighttousetheGigaWattprocessingcenter's capacity, rent-free for 50 years, to accommodate 1 Watt's worth of miningequipmentpowerconsumption.Sotoprovisionanduseyourminingequipmentrent-free,you will need to purchase the number of tokens equal to your equipment's powerconsumption:
Tokenownerscanusethiscapacitytoaccommodatetheirownminersortorent itouttootherusers.Essentially, this isaccess toprofessionalmining–withanextraordinarily low
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entrancethreshold.Infact,itcouldbecomparedtomembershipinaneliteprivateminingclub.
GigaWatt'shostingfeetypicallyconsistsofeffectiveelectricitycost,maintenancefeeandrentalfee.Tokenownerspayzerorent,whichdrasticallyreducestheirongoingcosts:theirhostingfeeiscomprisedonlyofeffectiveelectricitycostandmaintenancefee.
Tobeused,tokensshouldbedepositedinthetokenholder’saccountwithPartnerplacedon
GigaWatt’swebsite14.WhentokenholdersbuyminersfromthePartnerthroughGigaWatt’s
website, miners available to them will be automatically displayed in their accounts and
matchedwith their tokens. If at the timeof tokenpurchasea tokenholder alreadyowns
miners,theycanbematchedwithtokensmanually15.
Tokenholderscanalsorentouttheirextratokensiftheyhavemoretokensthantheyneed
toaccommodatetheirminers.
14 TokenholdersmanagetheirtokensthroughthePartner'stokenholderaccountmoduleonGigaWatt’swebsite. 15Pleasecontactthesupportteamformanualmatching.
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RentingTokens
Tokenholderswhoarenotpersonallyinterestedinminingorhavesparetokenscanrentthem
outviathePartner'srentalmoduleonGigaWatt’sweb-site16,choosingoneoftherentalfees
setbyGigaWatt.TokenrentalfeesarethesameastheGigaWatt'sfacilityrentalfees,which
are4.20,4.95,5.7and6.45UScents/kW/h,dependingonthenumberofminershosted(see
Section"GigaWatt'spricing"). It translates intodailyrental incomeof¢0.1-0.15pertoken
(¢37-57peryear).
Totakeadvantageofthisoption,GigaWatt’sclientswhodonothavetheirowntokensand
token holderswho need additional tokens or have spare tokens, place orders seeking or
offeringtokensforrentonthePartner'srentalmoduleonGigaWatt’swebsite.Eachorder
specifiesthenumberoftokens,therentalfeewhichthetokenholderislookingtoreceiveor
whichtheclienthastopayaccordingtotheapplicablepricingplan.Tokenholdersandclients
canviewthelistsoftheseorders,sortedbytheirvaluetotheviewer,andchooseasuitable
optionorplacetheirownorder.
AfterthecompletionoftheTokenLaunch,hostingofminerswillonlybeavailabletoretail
clientsthroughtokens.Consequently,theclientswhodonotowntokenswillhavetorent
themfromtheirowners.CustomerswhohadtheirminershostedwithGigaWattbeforethe
startoftheTokenLaunchwillcontinuetobeserved.Theirhostingfeeswillcovertherental
fees for tokenholderswho rentout their tokens.However,after theendof theirminers'
lifecycletheywillbeabletohosttheirnewminerswithGigaWattonlyifatthattimethere
aretokenholderswillingtorentoutsufficientnumberoftokens.
Rentalfeesaredeductedfromtheirminingrewardsdailyandpaidtothetokenholderviaa
thirdpartysplitter.GigaWattandPartnerdonotchargeanyfeesfortheuseoftherental
module;however,thirdpartiesmaychargefeestotransferfundsortowithdrawthemfrom
thetokenholder’saccountonGigaWatt’sweb-site.
Thereiscurrentlyadireshortageofmininghostingservices:thedemandgreatlyexceedsthe
supply. FurthermoreGigaWatt’s pricing packages are suitable for technology companies,
16Thematchingoftokenholders'andGigaWatt'sclients’ordersfortokensofferedorsoughtforrentisofferedthroughthePartner'stokenrentalmoduleonGigaWatt'swebsite.
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miningfarms,cloud-miningprojects,andevenindividualminers.AllofthismakesGigaWatt
extremelytimely,relevant,andattractivetopotentialrentersoftokens.
Accesstocapacities
WTTcanbeusedfromtheveryfirstdateofissue.GigaWattfacility'suniquedesignallows
for record-fastexpansion,andthe firstunitscanbeoperatedwhile thenewonesarestill
beingbuilt.
EachWattofcapacityofeachunitinoperationisanopportunitytoaccommodateminersof
tokenholders.EachWattofcapacitywhich isalreadyrentedouttotheclientwhohasno
tokensofhisownisanopportunitytorenttokensout.
Currently,all threeexisting facilitiesare inoperationandmostly rentedout.Statusof the
construction and the capacity utilization can be checked here -
https://cryptonomos.com/wtt/#/capacity.
Firstbatchoftokensof5,400,000WTT(whichrepresents5.4MWcapacityoftheunitsput
intooperationbytheendoftheTokenLaunch)willbeissuedimmediatelyfollowingtheend
oftheTokenLaunch.Newbatchesoftokenswillbeissuedinstepwiththeconstructionof
newunits.Tokenswillbedistributedonthefirstcome,firstservedbasis.
Summary
Tosumup,thepurchaseofaccesstoahostingcapacitywithalowerhostingrateallowsyou
tosignificantlyreducethecostofyourminingbusiness,therebyincreasingminingrewards,
offersmoreflexibilityandhelpsbalanceouttheminingrisks:hostingcapacitycanberented
out at any time, and rental income ismuch less affectedby the cryptocurrency volatility.
Additionally,GigaWattfacilityhasa50-yearlifecycle(comparedto2.5yearsforminers,due
toconstantincreaseinminingdifficulty)andissuitableforanyBlockchain.Ifanysignificant
changesoccurintheminingworld,GigaWattcapacitiescouldalternativelybeusedtosetup
privateBlockchains.
ExpectedlifespanofWTTtokensis50years.Thistermisbasedontheexpectedlifespanof
theGigaWatt'sfacilities.
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TokenLaunchPlatform
TokenLaunchisconductedthroughagroundbreakingCryptonomosplatform.
AllpaymentsforWTTtokenswillbecollectedbyCryptonomos.Uponthecompletionofthe
TokenLaunch,onAugust7,2017,Cryptonomoswill issueanddistributeits initialbatchof
WTTtokens,withsubsequentbatch issuestofollowuponthecompletionofnewcapacity
construction.Ifacapof30,000,000WTTtokenssoldisreachedbeforethescheduledendof
theTokenLaunch,Cryptonomosat itsowndiscretionmay issueWTTtokensaheadof the
specifieddatetoprovideaccesstothefacilitiesbuiltbythattime.
WTTSmartContract WTTisanEthereumtoken.ItcomplieswithandextendsERC-20-ade-factostandardand
widelyusedtokenAPI.WTTSmartContractguarantees:
1.Transparency 1.1.Balance.Theinformationonthenumberoftokensheldbyanyuserispublic. 1.2.Transfers.Allinformationontransfersispublicandcanbetracedbackintime.
2.Ownership 2.1Scope.OnlyEthereumusersandcontractscanbetokenholders. 2.2.Uniqueness.Eachtokenbelongstooneuser-owner.Therearenosharedtokens. 2.3.Righttotransfer.Atokencanbetransferredtoanotheruseronlybythedirect
commandofitsownerorbythecommandofthereceiverdirectlyauthorizedbythe
owner.Notokentransfermaybeinitiatedbyanotheruser. 3.TokenSupply
3.1.Exclusiveissue.Onlyoneuser,thecontractowner,canissuetokens. 4.ContractManagement
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4.1Replacement.Thecontractownercanrelinquishtheownership in favorofany
otherEthereumuserorcontract. 4.2Blockade.Thecontractownercanstoporresumetokentransfersbetweentoken
holdersatanytime. 5.Miscellaneous
5.1Recovery.Anycalltothecontractwhichresultsinanerrordoesnotchangethe
users'tokensorEtherbalance,exceptforthegasspentonthetransaction. 5.2Limits.Maximumallowedtokensincirculationandmaybesetandarelimitedto.
Smartcontractdoesnotguaranteethefollowing("UncertaintyProvisions"): 1.Uservalidity.AnaccountwithpositivetokenbalancemayormaynotbearealEthereum
userorcontractandthereforemaynothaveaprivatekey.Tokenstransferredtosuchusers
willlikelybelost. 2.Ethersupply.Thecontractprohibitsmost,butnotallmeansbywhichEthercouldbesent
toitbyuserswhoarenotcontractowners. Weengageindependentauditorsprominentintheindustry,whoreviewthesmartcontract
codelinebyline,checkingforanysecurity,incentivizationorotherconcernsregardingthe
attacksurface.
PaymentTerms
WTTtokenswillbeavailableforpurchaseonpre-salestartingonMay19,2017andduring
theTokenLaunchfromJune2,2017toJuly31,2017,unlessacapof30,000,000WTTtokens
soldisreachedearlier.
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WTTcanbeacquiredwithBTC,ETHorfiatcurrenciesviaCryptonomosplatform.Transfers
canbemadefromanyBTCorETHwallet17.FortransfersofUSD1,000andoverawiretransfer
optionisavailable18.
Fundsarecreditedtotheparticipants'Cryptonomosaccountsandcouldbeusedtoacquire
tokens.Eachaccountwillhave threewallets (USD/BTC/ETH).TheminimumTokenLaunch
entry threshold is 1WTT (equals to1-1.2USD,dependingon thedayof acquisition). The
minimumentrythresholdforthepre-saleis10,000WTTtokens(equivalentof10,000USD).
CryptonomosaccountswillbeaccessibleseveraldaysbeforethestartoftheTokenLaunch
(web-basedormobileaccess).Usersmaybeofferedanoptiontosignupandmaketransfers
totheirCryptonomosaccounts,buttheywillnotbeabletoacquireWTTtokensuntilthestart
oftheTokenLaunchunlesstheypurchaseWTTTokenonpre-salethroughthesalesteam.
Accountswillbeprotectedfromunauthorizedaccessbyatwo-factorauthenticationsystem.
All funds collected through the pre-sale and Token Launch will be deposited in escrow.
OriginalpaymentsmadeinBTCandETHwillbeconvertedtoUSDattherateeffectiveatthe
timewhentherightstoWTTtokenswerereserved.
Thefundswillbereleasedfromescrowinstepwiththecompletionoffacilities.
OncetheTokenLaunchisclosed,nofurtherWTTtokenscouldbeacquired.OnAugust7,2017
orearlier,asdescribedabove19,thefirstbatchoftokenswillbeissuedtoparticipants20.As
soonasthetokensareissued,theymaybetransferredtotheowner’saccountonGigaWatt’s
web-siteandusedtohostminersortoberentedout.
GigaWattaccountownersgettheirminingrewardsandrentalincomeinBTC,ETH,orLTC
(rentalincomeiscalculatedbasedonthecurrentexchangerateofBTC,ETH,orLTCtoUSD).
Fundscanbemovedfromthetokenholder’saccounttoanythirdpartyBTC/ETH/LTCwallet
atanytime.
17 Cryptonomosdoesnot charge anyprocessing fees. Processing timeand fees aredeterminedby thepayment processor. Token holders are responsible for paying all processing fees and financial chargesimposedbythepaymentprocessorinconnectionwiththepayment.18Pleasecontactthesupportteamforwiretransferinstructions.19SeeSection"TokenLaunchPlatform"fordetails.20PleaseseetheProjectedTimelinesectionfordetailsofthetokenissuebatches.
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DistributionandRates TheGigaWattfacilitylayoutisextremelyflexible,whichallowsustobeflexiblewiththetoken
sales.
Thereisnominimumamount:thefirstfacilitieshavealreadybeencompletedandthenew
unitsarecurrentlybeingbuilt.Consequently,thetokenscanbeissuedforaslowcapacityas
required.However, the total number of tokens available for sale asGigaWatt builds out
additionalcapacitiesiscappedat30million.
Each token represents 1Watt's worth of the processing center’s capacity. For every 100
tokens sold, 15 additional tokenswill be issued and retained for the team, partners and
advisors:10tokenstobedistributedtoteammembers,and5toberetainedfordistribution
topartnersandadvisorsatissuer’sdiscretion.Consequently,forevery100tokenssold,115
Wattsofprocessingcentercapacityisputintooperation.
Ifthetokensaleisover-subscribed,meaningthatthereismoredemandforWTTtokensthan
thereisexistingfacilitycapacity,thecapacitywillbeallocatedtotheWTTtokensintheorder
inwhichtheWTTtokenswerepurchased.Theover-subscribedproceedswillbeplacedinto
escrowuntiltherequisiteprocessingcentercapacityhasbeenbuiltout.21
WTTtokensretainedfordistributiontotheteamwillbedistributedonlywhennoproceeds
from over-subscribed tokens remain in escrow awaiting the completion of additional
processingcentercapacityconstruction.WTTtokensretainedfordistributiontopartnersand
advisorswillbedistributedonacasebycasebasis.
WTTinitialratedependsonthedayofacquisition:
21IftheconstructionoftheprocessingcentercapacitydesignedtoaccommodateadditionalWTTtokensisnotcompletedinareasonableamountoftime,therelevantportionoftheseproceedswillberefundedtotheWTTtokenpurchasers.However,ifGigaWattdischargedallitsobligationsinfull,norefundswillbeduetotheWTTtokenpurchasers.
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ProjectedTimeline ThesizeoftheGigaWattfacilitydependsontheamountofavailablefunds.TheGigaWatt
projecthassufficientcommitmentsforlandandelectricitytobuildadditionalcapacitiesto
fulfilitsobligationsunderthisTokenLaunch.
ProjectedTokenLaunchTimeline
-May19–June2,2017:pre-sale
-June2–July31,2017:TokenLaunchbookbuilding
-August7,2017:Firstbatchoftokens(5,400,000WTT)issuedtoparticipants; ifthecapis
reachedearlier,thefirstbatchofWTTtokensmaybeissuedaheadofthescheduletoprovide
accesstothefacilitiesbuiltbythetimeoftheissue(atCryptonomos'discretion).
Newbatchesoftokenswillbeissuedinstepwiththeconstructionofnewfacilities.22Toensure
the advantage for the Token Launch participants, no listingwill be placed on third party
exchangesuntilallWTTtokenssoldthroughtheTokenLauncharedistributed.
ProjectedConstructionTimeline
3units,2.25MWareavailablerightnow
-July15,2017:1GigaPodcompleted,0.75MW
-August1,2017:2GigaPodscompleted,2.4MW
-August15,2017:Expansionoftheunit,0.9MW
-September1,2017:3GigaPodscompleted,4.5MW
-September15,2017:9GigaPodscompleted,15MW
22AdditionalWTTtokensmaybesoldtothepublicinthefutureasthefacilitycapacityisincreasedthroughbuildouts.
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-October1,2017:3GigaPodscompleted,4.5MW
-November15,2017:3GigaPodscompleted,4.2MW
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Team GigaWattProjectTeam ● DaveCarlson
CEO,GigaWatt,Inc.
Softwareengineerandentrepreneur.4yearsasaCEOandfounderofMegaBigPower,oneof
thelargestsingle-operatorminingfacilitiesintheworld.
● AdamWest
VPBusinessDevelopment,Director,Operator-PartnerProgram,GigaWatt,Inc.
10years'experience inbusinessdevelopment,managementandmarketing.Overthepast
yearfocusedonBlockchaintechnologies,withtheemphasisonindustrialminingprojects.
● KyleSidles
CTO,GigaWatt,Inc.
Database design, programming, network infrastructure and application deployment.
Successfullybuiltandlaunchedover200diversesoftwareprojectsinUSA,India,andChina.
Buildsandrunslarge-scaleBlockchaindatacenterssince2013.
● JeffreyField
LeadEngineer,GigaWatt,Inc.
4years'experiencedesigningthephysicalinfrastructureforminingfacilities,networklayouts,
and cooling plans while managing technical crews for all aspects of installation and
maintenanceattheMegaBigPowerfacilities.
● BrianArmstrong
OperationsSupervisor,GigaWatt,Inc.
Serviceandmaintenanceofminingequipment,trainingnewpersonnel,teamsupervisionon
assigned operational tasks, troubleshooting and repair of network systems. 8 years’
experienceintheU.S.AirForceasasecurityexpert.
23 134834324.1
● SindenHarum
ExecutiveManager,GigaWatt,Inc.
Day to day operational responsibility for staff, office administration, payroll, human
resources,bookkeeping,accounting,coreprograms,specialprograms.
● MichaelSavuskan
CЕO,GigaWattPte.Ltd.
24years'experienceinproduct,technology,andbusinessdevelopment,marketing,planning,
andsalesmanagement.Salesandprofitgrowth,newbusinesslaunches,anddomesticand
internationalmarketplaceassessments.
● HaydenGill
VPofSales,GigaWattPte.Ltd.
13years'experienceininvestment,marketing,andalternativecurrencies.From2010focuses
on bitcoin and blockchain technologies. Founder of successful projects in peer-to-peer
paymentservicesandalternativecurrencies.
CryptonomosTokenLaunchTeam
● NickEvdokimov,CEO
14years'experienceindevelopinghighloadonlineservices.FounderofnumerousInternet
enterprises.2yearsinBlockchaindevelopment.
● DmitryKhovratovich,SmartContractDevelopment
12years’ experience,witha focusonprivacyand securityofblockchainprojects (Bitcoin,
Ethereum),designandanalysisofcryptographicschemes,andsecuritysoftwareengineering.
SecurityResearcherattheUniversityofLuxembourg.
● AndrewKuzenny,HeadofIR
24 134834324.1
18years'experienceininvestorrelations,seekingandengagingpartners,assetmanagement.
ArecentBlockchaintechnologiesenthusiast.
● EdwardKhaptakhaev,LegalCounsel
12years'experience in legal supportof internationalanddomesticcompaniesengaged in
energygeneration,bankingandIT/IP.
● LeonidMarkin,Financialmanagement
12years’experienceinfinancesandassetmanagement.5yearsinfinancesinthehigh-tech
engineeringsegmentoftheenergyfield.Fintechentrepreneur.
● DariaGeneralova,CommunicationsandPR
10yearsinpubliccommunications.Diverseexperienceinmarketing,fromeventmanagement
to marketing strategy development, with a focus on infrastructure companies. Joined
blockchainindustrylastyear.
● AnarBabaev,DigitalMarketing
14 years in digital marketing. Internet entrepreneur focused on mastering and
implementationofnewtechnologies.Co-authorofseveralbooksondigitaladvertising.
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RiskFactors
TheacquisitionofTokensinvolvesahighdegreeofrisk,includingbutnotlimitedtotherisks
describedbelow.Beforeacquiringtokens,itisrecommendedthateachparticipantcarefully
weighs all the information and risks detailed in this White Paper, and, specifically, the
followingriskfactors.
A.Dependenceoncomputerinfrastructure
GigaWatt'sdependenceonfunctioningsoftwareapplications,computerhardwareandthe
Internet implies that GigaWatt can offer no assurances that a system failure would not
adversely affect the performance of your mining operations. Despite Giga Watt's
implementationofall reasonablenetworksecuritymeasures, itsprocessingcenterservers
arevulnerabletocomputerviruses,physicalorelectronicbreak-insorotherdisruptionsofa
similarnature.Computerviruses,break-insorotherdisruptionscausedbythirdpartiesmay
resultininterruption,delayorsuspensionofservices.
B.Smartcontractlimitations
Smartcontracttechnologyisstillinitsearlystagesofdevelopment,anditsapplicationisof
experimental nature. This may carry significant operational, technological, regulatory,
reputationalandfinancialrisks.Consequently,althoughtheauditconductedbyindependent
thirdpartyincreasesthelevelofsecurity,reliability,andaccuracy,thisauditcannotserveas
any form of warranty, including any expressed or implied warranty that theWTT Smart
Contractisfitforpurposeorthatitcontainsnoflaws,vulnerabilitiesorissueswhichcould
causetechnicalproblemsorthecompletelossofWTTtokens.
C.Regulatoryrisks
TheBlockchaintechnology, includingbutnot limitedtotheissueoftokens,maybeanew
concept insomejurisdictions,whichmaythenapplyexistingregulationsor introducenew
regulations regardingBlockchain technology-basedapplications, and such regulationsmay
conflict with the current WTT Smart Contract setup. This may result in substantial
modificationsoftheWTTSmartContract,includingbutnotlimitedtoitsterminationandthe
lossofWTTtokens.
D.PriceofBitcoin
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GigaWattoffersservicestocompaniesandindividualsengagedinminingcryptocurrencies,
primarilyBitcoin.SuchoperationsarehighlydependentonBitcoinpricesatlocalexchanges.
SharpandprotracteddeclineinBitcoinpricescanaffecttheabilityofGigaWatt’scustomers
tofulfilltheircontractualobligationstopayrentalfeestotokenholderswhosetokensthey
rent.
E.Rapidchangesintechnologymayadverselyaffectminingbusiness
Cryptocurrencymining is a verydynamicand fast-pacedbusiness. To remain competitive,
GigaWattwilluseitsbesteffortstofollowandpromptlyintroducethelatesttechnologiesat
itsfacility.However,GigaWatt'sfailuretoremaincompetitivedespiteitsendeavorsmaypose
theriskofdecliningbenefitsfortheWTTtokenholders.Likewise,tokenholdersareadvised
tomonitortheirownminingequipmentperformanceandupdateitasneeded.Alternatively,
as their equipment performance weakens over time, they should consider renting their
tokensouttootherminerstoavoidthedeclineintheminingrewards.
F.Fluctuationinminingrewards.
Miningcryptocurrencies isariskybusinessandmanyfactorsmustbecarefullyconsidered
priortoitscommencement.FluctuationsoftheBTCprice,increaseofthepricesformining
equipmentandelectricity,growthoftheminingdifficultyrate,decreaseintheblockreward,
andmanyotherfactorsmayaffectminingrewardsandresultinlosses.
G.Fluctuationintokenbenefitsandrentalincome.
TheWTT token is intended to provide a valuable benefit of access to a low-cost hosting
solution for cryptocurrencyminersbygiving them theability touseGigaWatt’s facilities.
AlthoughtokenholderscanrenttheirtokenstootherpeoplethroughtheinternalGigaWatt
platformandreceiveincomefromrent,theprimarypurposeofthetokenistoallowtoken
holderstoachievesavingsbycuttingcostsoftheirminingoperations.Marketchanges,adrop
inhostingprices,changesinthelocalcostofelectricityatWTT’sfacilityandotherfactorsmay
reducethevalueoftheWTTtokensanddrivedowntherentalpricesoftokens.
H.Constructiondelay.
ConstructiontimelinespecifiedinthisWhitePaperisbasedonthereasonableestimatesbut
isnotguaranteed.Thistimelinemaychange,andtheconstructionmaybedelayedbecause
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ofmany factors, including those beyondGigaWatt’s control, such as the actions of third
parties(contractors,suppliers,etc.).Ifthecompletionofthecapacitiesisdelayedbymore
than3monthsfromtheprojecteddate,and,consequently,therelevantWTTtokensarenot
issued,theescrowagentmayissuearefundattherequestoftheWTTtokenpurchasers.The
refundwillbeissuedintheoriginalformofpaymentattheexchangerateonthedateofthe
refund.
I.Changeinelectricityrate.
Theeffectiveelectricityrateprovidedinthisdocumentisbasedonacurrentcostofelectricity
availableundertheexistingcontractswiththePublicUtilityDistrictofWashingtonState.The
electricityrateisnotguaranteedandmaychangefromtimetotime.Anychangeinelectricity
rateswillcauseadirectchangeinthevalueoftheWTTtokensandtheongoingcostofhosting
yourminingequipment.
J.Irregularelectricityconsumption.
If during the testing of the equipment sent to Giga Watt for hosting such equipment
demonstratesagreateruseofelectricpowerthanthenumberofWTTtokenspurchasedor
rentedtoaccommodateit,theequipmentownerwillbechargedaregularGigaWatt'shosting
rate(7.5-9.75centsperkWh,dependingonthenumberofhostedminers)foranyamountof
powerconsumedbytheequipmentinexcessofthenumberoftokensavailabletohostit.
K.Changeofelectricityconsumption.
Fromtimetotime,theequipment'spowerconsumptionmayfluctuateforvariousreasons
including but not limited to seasonal temperature changes. If andwhen the equipment's
powerconsumptionexceedsthenumberofWTTtokenspurchasedorrentedbyitsownerfor
itshosting,theownerwillbechargedaregularGigaWatt'shostingrate(7.5-9.75centsper
kWh,dependingonthenumberofthehostedminers)foranyamountofpowerconsumedby
theequipmentinexcessofthenumberoftokensavailabletohostit.
L.Changeinmaintenancecost.
Themaintenancecostspecifiedinthisdocumentisbasedonthecurrentlaborcostsandthe
hours required to run the company’s operations and maintain the projected number of
facilities and the clients' equipment.Over time, the cost ofmaintenancemay change for
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various reasons, includingbutnot limited to theeventualminimumwage increaseby the
WashingtonStateorFederalgovernment.Anychangeinmaintenancecostwillcauseadirect
change in the value of the WTT tokens and the ongoing cost of hosting your mining
equipment.
M.Salesandothertaxes.
Token holders and purchasers of mining equipment may be required to pay sales tax
(collected at sale) and other taxes associatedwith the transactions contemplated herein,
whetherintheUnitedStatesorintheirhomecountries.Itwillbeasoleresponsibilityofthe
tokenholdersandpurchasersoftheminingequipmenttocomplywiththetaxlawsofthe
UnitedStatesandotherjurisdictionsandpayallrelevanttaxes.
N.ForceMajeure.
GigaWatt’sperformancemaybe interrupted,suspendedordelayedduetoforcemajeure
circumstances.ForthepurposesofthisWhitePaper,forcemajeureshallmeanextraordinary
eventsandcircumstanceswhichcouldnotbepreventedbyGigaWattandshallinclude:acts
ofnature,wars,armedconflicts,masscivildisorders,industrialactions,epidemics,lockouts,
slowdowns, prolonged shortage or other failures of energy supplies or communication
service, acts of municipal, state or federal governmental agencies, other circumstances
beyondGigaWatt'scontrol,whichwerenotinexistenceatthetimeofTokenLaunch.Ifsuch
circumstancesoccurpriortoissuanceofWTTtokensandGigaWattisunabletoissueWTT
tokenswithin6monthsfromtheprojecteddate,theescrowagentmayissuearefundatthe
request of the WTT token purchasers. The refund will be issued in the original form of
paymentattheexchangerateonthedateoftherefund.
O.CompliancewithU.S.lawsandregulations.
BecausethehostingfacilitiesarelocatedintheUnitedStates,WTTtokenholderswhowish
tousetheirtokenstohosttheirequipmentatthefacilitieswouldberequiredtocomplywith
theU.S. lawsandregulationsandmayneedtoverify their identitiesandprovideproofof
address(forindividuals),orverifytheirregistration,goodstanding,listofultimatebeneficial
owners,andaddress(forlegalentities)priortousingtheirWTTtokensandsettinguptheir
equipmentatGigaWatt'sfacilities,oratanytimethereafteruponGigaWatt'srequest.Token
holders who fail to comply with such verification request, or who are determined to be
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restrictedfromdealingwiththeU.S.entitiesoroperatingintheU.S.,orwhoareotherwise
ineligibleundertheUSlawtohosttheirequipmentwithGigaWattwouldberefusedhosting
orWTTtokenrentalservices,withnorefundissuedbyGigaWattforthepurchasedtokens.
Suchtokenholdersmayretaintheirtokensormay,attheirdiscretion,choosetosellthemto
eligiblecustomers.Tokenpurchasersaresolelyresponsiblefor learningabouttheUS laws
andlegalrestrictionsapplicabletoresidentsofcertaincountriesandindividualsinvolvedin
certainactivities.
P.Disclosureofinformation.
PersonalinformationreceivedfromWTTtokenholders,WTTtokenrenters,andownersof
theequipmentsubmittedforhosting,theinformationaboutthenumberoftokensorminers
servicedbyGigaWatt,rewardsearnedonthepool,thewalletaddressesused,andanyother
relevantinformationmaybedisclosedtolawenforcement,governmentofficials,andother
thirdpartieswhenGigaWattisrequiredtodisclosesuchinformationbylaw,subpoena,or
courtorder.GigaWattshallatnotimebeheldresponsibleforsuchinformationdisclosure.
Q.ValueofWTTToken.
Oncepurchased,thevalueofWTTTokenmaysignificantlyfluctuateduetovariousreasons.
GigaWattdoesnotguaranteeanyspecificvalueoftheWTTTokenoveranyspecificperiodof
time.GigaWattshallnotbeheldresponsibleforanychangeinthevalueofWTTToken.
Assumptionswithrespecttotheforegoinginvolve,amongotherthings,judgmentsaboutthe
futureeconomic,competitiveandmarketconditionsandbusinessdecisions,mostofwhich
arebeyondthecontroloftheGigaWattprojectteamandthereforedifficultorimpossibleto
accuratelypredict.AlthoughtheGigaWattteambelievesthatitsassumptionsunderlyingits
forward-lookingstatementsarereasonable,anyofthesemayprovetobeinaccurate.Asa
result, the GigaWatt team can offer no assurances that the forward-looking statements
containedinthisWhitePaperwillprovetobeaccurate.Inlightofthesignificantuncertainties
inherent in the forward-looking statements contained herein, the inclusion of such
informationmaynotbeinterpretedasawarrantyonthepartofGigaWattoranyotherentity
thattheobjectivesandplansoftheGigaWattprojectwillbesuccessfullyachieved.
Please note that theGigaWatt projectmay be subject to other risks not foreseen by its
managementatthistime.
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