1

Apr 2019

BBeveriToken

Stable Outlook

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Low Risk Moderate Risk Large Risk High Risk

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Token everiToken

Tags Underlying Public Blockchain

Cornerstone Price(USD) 0.03

Private Placement Price(USD) 0.06

Total Amount Issued(EVT) 1 Billion

Token Type Native Token

Analyst | Shize Qin, Weirong Chen,

Zirui Chen

TokenInsight provides customized services such as commercial due diligence, project analysis, industry research, and more. For more information, please contact bd@tokeninsight.com or visit tokeninsight.com

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OVERVIEW1. everiToken is the first public blockchain in the world built based on a

token economy and operating on the basis of safe contracts. The platform seeks to provide blockchain solutions for application scenarios of its token economy to companies and institutions in many traditional industries. The project features high practicability and is considered a leader among similar projects.

2. everiToken has invented a token-based transaction model, which effectively reduces the probability of 51% attacks. An independent token storage mode facilitates parallel processing and greatly improves the efficiency of the platform’s operation. Meanwhile, everiToken has developed safe contracts, which are executed by calling relevant APIs, providing users and developers with a rich API library to satisfy different application scenarios. Safe contracts do not require the construction of contract execution logic from a foundational level. This simplifies the programming process and greatly reduces user cost.

3. According to the official information provided by everiToken, the project has reached 10,000 TPS on its main net (https://evtscan.io/), performing much higher than similar projects. This provides strong support for satisfying large-scale token application scenarios within traditional industries.

4. everiPay is a face-to-face micro-payment tool based on the everiToken platform. It has been deployed in the payment business with the issuance of $500 million USD in stablecoin HWG Cash issued by Ho Wah Genting Group, a Malaysian listed company. Compared with traditional third-party payment tools, everiPay fully decentralizes execution, and completely delegates the transaction process to traders achieving real peer-to-peer payments. At the same time, everiPay also supports offline payments in a network-free environment.

5. In terms of its token economy, EVT belongs to the utility token field and is used to pay both transaction fees and node rewards. Users can also use EVT for every day consumption via everiPay. The unique dividend and binding mechanisms reduce the development difficulties of future Dapp developers and managers who build on the everiToken public blockchain. It is fundamentally important that the everiToken public blockchain attract high-quality project development teams and projects.

6. everiToken has a third-party auditing organization to inspect its code security and sanction its security and quality to the general public. Moreover, core members of the project team have computer-related professional education backgrounds from well-known universities at home and abroad, and the team is regarded to have strong technical advantages.

CONTENTS

Overview 2

Industry Analysis 5

Project Analysis 10

Token Model 17

Team and Partners 19

Community Analysis 23

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OVERVIEW7. The everiToken platform has broad application prospects throughout a

wide spectrum of industries and scenarios. However, because the platform operates based on safe contracts (i.e. by calling pre-encapsulated APIs), and due to the Turing incompleteness of safe contracts, they are unable to realize complex execution logic, and its application in fields outside its token economy will be limited to some extent.

8. 0%-5% EVT tokens will be issued per year based on community voting. This method delegates the developmental control of its token economy to its community ecosystem. This guarantees the democracy of economic development, but fluctuation resulting from different opinions within the community may affect the stability and development of its token economy to some extent.

CONTENTS

Overview 2

Industry Analysis 5

Project Analysis 10

Token Model 17

Team and Partners 19

Community Analysis 23

LIMITATIONS AND DISCLAIMERS

1. TokenInsight Inc. hereby makes the following statement in connection with the issuance of the rating report:

2. There is no relationship between TokenInsight Inc. (including TokenInsight Rating Project Team Members, and Review Committee Members) and the subject of this rating would affect the objectivity, independence, and impartiality of the rating.

3. The project team members of TokenInsight Inc. take their due diligence obligations seriously and have a good reason to ensure that rating reports followed the principles of objectivity, truthfulness, and impartiality.

4. This report is an independent judgment made by TokenInsight Inc. in compliance with applicable laws, regulations and reasonable internal credit rating processes and standards, and there are no changes in rating opinion due to improper influence of the rating target or any other organization or individual.

5. All information contained herein is obtained by TokenInsight Inc. from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical errors as well as other factors, however all information contained herein is provided “AS IS” without warranty of any kind. TokenInsight Inc. checks verifies, as necessary, the authenticity, accuracy, completeness, and timeliness of the information relied upon in the rating report, without making any representations or warranties, express or implied, as to authenticity, accuracy, completeness, timeliness and feasibility and appropriateness for any commercial purpose.

6. The inclusion of a credit rating or secondary market price analysis in this rating report should and can only be interpreted as an opinion and not as a statement of fact or a recommendation to buy, sell or hold any token.

7. The risk ratings indicated in this rating report are valid from the date of issuance of this report until the date of the next adjustment; at the same time, TokenInsight Inc. will periodically or irregularly track the ratings of the rating recipient to determine whether to adjust the credit ratings and will publish them in a timely manner.

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01 . INDUSTRY ANALYSIS

1.1 Public Blockchains

Public blockchains currently face problems with expandability, insufficient security and high usage cost for users.

1.1.1 Industry Pain Points

The underlying public blockchain is a development platform made up of various DApp and smart contract developers looking to establish and distribute applications. It is considered to be a critical aspect within the infrastructure of the whole blockchain industry.

Ethereum is one of the most important projects in the entire public blockchain sector. Its Turing complete development language offers the possibility of achieving complex functions through blockchain technology and expands the application scope of blockchains. However, there are also many limitations where Ethereum cannot realize more practical and standard functions. At present, most public blockchains face the following problems:

① Scalability is insufficient. The actual TPS of Bitcoin is between 5 and 10, and that of Ethereum is between 5 and 15. Although the performance of EOS has been improved, the actual TPS at present is only between 30 and 80. The low TPS and slow transfer confirmation speeds of these public blockchains make it impossible for them to meet the requirements of large-scale business applications.

② Security and reliability need to be improved. Ethereum was launched in 2015 and several security vulnerabilities have been disclosed since its launch. The most far-reaching incident was the DAO Hack. Hackers stole 12 million ETH by exploiting vulnerabilities in its smart contracts, directly leading to the hard fork of the Ethereum network. The EOS project was launched in June 2018, and some security vulnerabilities have been found in contract codes and arbitrary numbers.

③ Costs are still too high. Transfers and transactions in the Ethereum network require payments in GAS fees. A standard transfer fee is 0.00042 ETH (about $0.07 through conversion based on 1ETH = $165, with the highest transfer fee of $0.5), and GAS fees are even higher than standard fees in the case of network congestion. EOS application development requires EOS mortgages to acquire RAM, NET, CPU and other resources. This not only results in high cost to developers, but also becomes a necessary threshold for users to enter its ecosystem.

④ Privacy protection on the blockchain is needed. At present, transfer records on public blockchains are kept in blockchains and are open to the outside world. Users can query the history of anyone on the blockchain through browsers, and there is a risk of user privacy leakages in some scenarios.

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INDUSTRY ANALYSIS

⑤ The governance mechanism needs improvement. The development of public blockchains is usually dominated by a group of developers. Community governance also needs to find a balance between on-chain and off-chain governance as well as centralized and decentralized governance.

‣ Figure 1-1 Solutions for Expansion

Type Solution DescriptionRepresentative Projects

On-chain expansion

Increase block capacity

Increase the capacity of a single block

Bitcoin Cash

Sharding technologyAllocate the workload of entire networks to each shard for parallel processing

QuarkChain, Zilliqa and MultiVAC

DAG technologyDirected acyclic graph, which changes the original chain results into a net structure

IOTAand Conflux

Segregated witnessRemove unnecessary signature information from blocks

Bitcoin Cash

Change to consensus mechanism

PoS, DPoS and other consensus algorithms

EOS,Tron, IOST and Cardano

Change transaction model

Use token-based transaction model

everiToken

Off-chain expansion

State channelsEstablish two-way channels between different users or between users and services

Lighting Network

SidechainTransfer main chain assets to sidechains for better performance

Lisk

CrosschainLink various ecosystem chains from different blocks

ICON, Polkadot and Cosmos

Off-chain computation

Perform the off-chain processing of complex tasks, and then send the results back to the chain

DOS Network and ARPA

Source: TokenInsight

1.1.2 Existing Solutions

In view of existing pain points surrounding public blockchains, many projects have made innovative attempts to solve these problems.

In order to solve the problem of insufficient performance surrounding public blockchains, developers have provided various on-chain and off-chain solutions. Most of these solutions are still in the early concept testing stages and have not been actually executed yet. At present, actual performance of public blockchains is far from the level of large-scale use.

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INDUSTRY ANALYSIS

In terms of scalability, everiToken has pioneered a token-based transaction model, adopting one of the most general consensus mechanisms, pBFT + DPoS, as well as the design of safe contracts.

① The pBFT + DPoS mode is used as its consensus mechanism. Ever since it was used by Bitshares, this type of consensus mechanism has realized many application practices. Thus, its engineering design is mature and stability high. The DPoS consensus mechanism requires that the token holders stake their tokens to vote on the supernodes that meet eligibility requirements, and the supernodes with the most votes generate blocks in a certain order. This consensus approach sacrifices a certain degree of decentralization to ensure system performance. everiToken currently has 15 globally distributed nodes with block times of 0.5 seconds, which is comparable to the shortest block time in the current blockchain ecosystem. Shortening the block times not only improves the throughput of the system, but also provides the possibility of rapid transfer confirmation. The BFT algorithm in the consensus mechanism decides that everiToken blocks are instant and final, and there will be no transaction rollbacks caused by a soft fork or blockchain rebuilding.

② Safe contracts used by everiToken also help improve the scalability of its system. For encapsulated functions, the system can optimize specific codes to reduce developer uncertainty commonly experienced with smart contracts.

With regard to security, the security audit of smart contract codes and the normalization of contract writing have gradually become the standard within the current industry. In addition, everiToken safe contracts are very helpful in reducing user difficulty and improving contract security. Unlike smart contracts, safe contracts use an API to interact with the blockchain system. Users can only choose among the options provided by the system and cannot write functions at will. This design sacrifices flexibility in some cases, but in general the standardization benefits a majority of users. Users can call the required functions in their familiar programming environment and language without learning new coding languages. This also reduces the mistakes that contract writers may make, reduces opportunities for attackers to take malicious actions and saves time, lowering costs.

‣ Figure 1-2 Comparison of Public Blockchains

everiToken Ethereum EOS

TPS 10,018 Actual operation: 5-15Test peak value:3,994; actual operation: 30-80

Block time 500ms 15s 500ms

Consensus mechanism

BFT-DPoS PoW DPoS

Transaction cost Low High Free of charge

Payment modeUser payment/Developer payment

User payment Developer payment

Development language

No programming required Solidity C++

Source: TokenInsight, everiToken, Ethereum, EOS

1.1.3 Comparison of Public Blockchains

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Based on the above basic information, everiToken has the following characteristics when compared with other public blockchains:

① Its current high TPS means that the system can process more transactions per second, running faster and more efficiently to process users' operations.

② In terms of transaction costs, the everiToken platform provides users with a flexible transaction fee payment mode through an agent mechanism where the transaction fee can be paid by users and developers. Additionally, transaction fees on the everiToken platform are lower than that of Ethereum.

③ everiToken does not need programming. This standardization aspect reduces the user experience threshold, while also improving security and saving time.

CONCLUSION To summarize, everiToken attempts to solve the problems of insufficient performance, insufficient security and high user experience threshold by sacrificing some complex functions and contract execution flexibility.

INDUSTRY ANALYSIS

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INDUSTRY ANALYSIS

1.2 Token Economy

Tokens are the core of the token economy and refer to a variety of effects.

1.2.1 What is a Token?

Tokens represent the basis of the token economy. Economically, tokens refer to some "monetary-like" currency besides coins and banknotes, such as game tokens at an arcade. In the field of computer technology, a token is referred to as a kind of software/hardware operation authorization. The following example elaborates the significance of tokens in the field of encryption.

Tokens are defined in the school of token economics as a negotiable encrypted digital asset certificate. It is issued by the project contractor based on the blockchain, and supports circulation, consumption and other functions, generating value within the blockchain network. As an incentive tool within blockchain, tokens promote the development of blockchain technology.

As a kind of digital certificate, tokens can refer to rich content. Not only does it represent real assets such as legal currency (e.g. USD, Euro and RMB) but also virtual assets such as points, other tokens, and more. The combination of tokens and blockchain has generated a presence for the token economy, which is a product of "1 +1 > 2". Blockchains themselves can have no tokens. This is similar to Hyper Ledger, an open source blockchain, but it does not issue tokens to motivate users to participate. With the introduction of tokens in the blockchain ecosystem, people's behaviors in a decentralized system are coordinated through economic incentives.

1.2.2 What is the Token Economy?

The token economy is a new economic model based on blockchain technology (distributed ledger technology), which defines the distribution of intrinsic rights and interests by means of tokens and realizes economic incentives via digital currencies.

Economic incentives are the key to blockchain technology brought by cryptocurrencies. Users can obtain tokens by mining or participating in the initial issuance of tokens. Token incentives continuously encourage nodes to conduct block maintenance within networks such as Bitcoin and Ethereum. Large-scale collaboration for orderly operation is completed in a decentralized network without any human coordination. Users can obtain tokens by mining in the network, conducting token transactions on exchanges, paying for services with tokens within the project ecosystem, or holding governance voting rights.

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INDUSTRY ANALYSIS

1.2.3 Current Situation of Development

The token economy is still in its early stage of development in terms of technology, token model design, policy supervision and social awareness.

Firstly, in terms of technology, no breakthrough has been made in the improvement of blockchain performance. The slow transaction speeds and long confirmation times further limit the application scope of the token economy. At the same time, for the combination of on-chain and off-chain assets, there is no solution guaranteeing the matching and confirmation between on-chain and off-chain assets. From the perspective of a token model design, the head projects such as Bitcoin, Ethereum and EOS are elaborate in their economic model designs, and the strong ecosystems of these projects further strengthen the economic incentive of token assets. Other projects on the other hand, are relatively simple in economic incentives, and there is no logic of appreciation for token use cases.

Meanwhile, the supervision policies of tokens are outdated, causing an extremely unstable and uncontrolled market. When irrational bubbles disappear, more rational, regulated and conforming market environments will become conducive to the healthy development of the industry. everiToken was born with the goal of remedying all of these developmental issues.

‣ Figure 1-3 Economic Incentives

Bitcoin Ethereum EOS

Incentive Mechanism

Deflation model with mining rewards for miners; maintains fixed total quantity

Mining rewards for miners and additional token issuance mechanism

Node incentive and additional token issuance mechanism

Use Value

It can be used as a means of payment to pay for services and commodities in the real world, as well as operating costs in Bitcoin network; it can serve as the exchange media

It can be used as a means of payment to pay for services and commodities in the real world, as well as operating costs in Ethereum network; it can serve as the exchange media

It can be used as a means of payment; exchange media; a governance vote

Source: TokenInsight

CONCLUSION everiToken's token economy model has been fundamentally established, and a unique dividend mechanism and adjustable token issuance mechanism have been set to facilitate the promotion of everiToken's token economy. TokenInsight believes that it will take time to test the circulation of its token in the market as well as its mainnet operations to see whether everiToken's token economy mechanisms can function effectively.

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02 . PROJECT ANALYSIS

2.1 Basic Information of everiToken

Provide enterprises and users with blockchain solutions based on practical application scenarios.

2.1.1 Non-Fungible Token

As one of the most popular application scenarios surrounding blockchain technology, the tokenization of an asset has gradually become an important channel for the digital operation of real assets. Unlike most public blockchain platforms, everiToken's platform provides special optimization and support services for the application of non-fungible tokens in actual scenarios. As electronic certificates of physical assets, non-fungible tokens provide a unique identification for physical assets in the digital world, and provide a practical solution for the right confirmation and circulation of digitized physical assets around the digital world.

In everiToken's token model, non-fungible tokens are mainly defined by three indicators: domain, token name and owner. The domain specifies the specific category of the issued token, such as a house property certificate or the intellectual property of an electronic product; the token name defines the specific identification marker of the non-fungible tokens within a category; the owner records and more importantly specifies the current and previous owners of an asset. Moreover, in the domain, everiToken also sets administrative permissions, i.e. issuance, transfer and management permissions. The non-fungible token model of everiToken’s platform effectively guarantees the mutual exclusion of tokens and the uniqueness of the tokens issued. The token model is shown in the figure below:

‣ Figure 2-1 Non-Fungible Token Model Source: everiToken, White Paper, TokenInsight

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PROJECT ANALYSIS

2.1.2 Fungible Token

Besides non-fungible tokens, everiToken's platform can also issue and transfer fungible tokens. Fungible tokens play the roles of circulation media, value storage and value measurement units in the built ecosystem. Their greatest feature is the guarantee of token consistency. In other words, these tokens cannot have identifiable labels because of their circulation history or initial settings, and the same number of fungible tokens represent those same rights and interests. Bitcoin, ETH and EOS are all representative fungible tokens. Similar to ERC-20 tokens on the Ethereum platform, issuance and circulation amounts can be set for fungible tokens issued on the everiToken platform.

2.1.3 Token-based Transaction Model

everiToken’s token-based model is based on the records of status changes of tokens during their issuance, transfer and other operations. Unlike Bitcoin's UTXO transfer model and Ethereum's account transaction model, everiToken has invented a token-based transaction model described by related academic papers published in IEEE. Compared with other transaction models, the token-based transaction model has an independent ID, and this improves efficiency in regards to circulation history and the rollback of tokens. Malicious nodes cannot refresh the token transaction records through frequent contacts, and the cost of 51% attacks for malicious actors is increased significantly, making 51% attacks unprofitable in practice. Another advantage of the token-based transaction model is that during the processing of token instructions, the operation of each token can be realized independently to achieve parallel processing, thus greatly improving the efficiency of its system and reducing the cost of technical developments. At present, when no sharding is performed, everiToken’s mainnet can reach up to 10,000 TPS with its token-based transaction model, and the relatively independent operation of tokens provides convenience for sharding technology. Hence, the performance of everiToken’s platform has great potential for improvement in the future; specifically, the token-based transaction model which divides its database into two parts: one being Token DB and the other Block DB. The essence of the token DB system is the Key-Value Pair database. The key is the token name, and its value indicates the token owner. Operators can index the values by keys and query the account information of the owner in its corresponding token directory. In this data storage mode, because the database is append-only, there will be multiple owners under the same corresponding token name, and this ensures the integrity of records when data is rolled back. Block DB is similar to the billing methods used by mainstream projects who record and store detailed transaction information, including the initiator and receiver of the tokens, transaction times, etc. The database details are shown in the figure below:

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‣ Figure 2-2 Database Structure Source: everiToken, White Paper, TokenInsight

2.1.4 Consensus Mechanism and Performance

The underlying public blockchain structure of everiToken’s platform uses the basic architecture of EOS for reference. At present, block times are roughly 0.5s, and the peak TPS reaches 10,000. This platform is leading among similar projects in terms of performance. At the same time, everiToken uses the BFT-DPOS consensus mechanism as its basic protocol for each node to package data on the chain and reach a consensus. In this consensus mechanism, any node holding an EVT token has the right to be selected as the block producer to package data and receive block rewards; the BFT mechanism reduces the possibility of block producers performing malicious actions. According to the current 15 block producers, more than 11 nodes shall confirm the packaged data for the transaction to be established. This consensus mechanism not only ensures the democracy of all nodes within the ecosystem, but also guarantees the transaction security to a certain extent.

2.2 Safe Contract

Safe contracts greatly reduce the user experience threshold and improve the development and function of contract operations.

PROJECT ANALYSIS

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PROJECT ANALYSIS

2.2.1 Contract Execution by Calling APIs

On traditional smart contract development platforms, such as Ethereum and EOS, smart contracts are compiled and executed within a virtual machine. Although this operation mode of contracts increases the functionality of platform operation (in other words, it supports complex contract execution logic), systematic errors caused by unconventional operations and logical errors often occur, which to some extent reduces the contract execution stability on the overall platform.

Based on the weakness of traditional smart contract development platforms, everiToken has developed a safe contract mechanism for contract execution by calling APIs. Developers can issue and transfer contract tokens by calling APIs without programming, reducing the cost for common users on the platform. Meanwhile, using APIs to call and execute contracts also reduces the cost of combining contracts with external development components. The contract execution environment based on API calls can effectively distinguish the types of tokens and greatly improves the transfer efficiency for token issuance. According to the project’s white paper, the current peak TPS of the platform can reach 10,000, and it is much more efficient compared to other current mainstream smart contract platforms. However, due to the Turing incompleteness of safe contracts, the platform is weak in its development and implementation of highly customized and more complex contracts.

2.2.2 DApp Development Languages and Components

EveriToken provides users with mature DApp development components, which support JavaScript, Java, GO language and other mainstream development languages, providing convenience for developers from different technology stacks. As the main development tool, the EVTJS component with JavaScript as the main development language includes the everiToken API library, and supports developers in developing applications with NodeJS and browsers. As far as the application itself is concerned, EVTJS also provides corresponding solutions for the development of web applications, mobile applications and back-end applications.

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2.3 everiPay

everiPay is a peer-to-peer micro-payment tool based on the everiToken platform, and it satisfies many kinds of daily payment scenarios.

The use of third-party payment tools for payment and transactions has become an indispensable part of people's daily lives. However, at present, traditional third-party payment tools (such as Alipay and WeChat Pay) are highly centralized, and the tools are mostly run by additional centralized organizations. Thus, real peer-to-peer transactions cannot be fully realized. everiPay, which is based on blockchain technology, can complete daily face-to-face micro-payment transactions without an operating centralized organization. At the same time, its instant settlement also solves the problem of long waiting times seen by other payment tokens today. Specifically, advantages of everiPay are as follows:

① Instant settlements: transactions and payments are completed immediately without waiting

② Peer-to-peer payments: no operating centralized organization ensures data security and delegates powers to both sides of the transaction

③ Offline payment: payment can still be completed in an environment without network

④ Compatibility: everiPay supports payments for all fungible and non-fungible tokens issued based on the everiToken platform

‣ Figure 2-3 everiPay interface Source: everiToken

PROJECT ANALYSIS

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2.4 Project's Current Development and Application Execution

everiToken has established strategic partnerships with many traditional industry companies and organizations, and its application execution is in a leading position in relation to other blockchain projects.

The everiToken project was launched in the fourth quarter of 2017. At present, both its testnet and the mainnet have come online. In cooperation with many traditional industry companies and organizations, everiToken has completed the execution of blockchain technology in traditional business scenarios. The project launched its mainnet in mid-2018, along with its everiPay payment tool. In the fourth quarter of 2018, the project completed the 10,000 TPS stress test on the mainnet and released their Safe Contract 3.0 in early 2019. Meanwhile, the project has built the ecosystem surrounding its token economy in cooperation with major traditional industry companies and organizations. The project roadmap is as follows:

‣ Figure 2-4 Project Roadmap Source: everiToken official website

2.4.1 Cooperation with Ho Wah Genting Group to Issue $500 Million USD in Stablecoin HWG Cash

Ho Wah Genting Group is a well-known tourism, real estate developer and retailer in Malaysia and is listed on the Malaysia Stock Exchange. everiToken announced in February 2019 that it would cooperate with Ho Wah Genting Group to issue a $500 million USD stablecoin, HWG Cash, for business scenarios based on the everiToken platform and backed by physical assets. HWG Cash will be used as the trading medium to circulate among businesses within the ecosystem of Ho Wah Genting Group, breaking barriers between businesses within the ecosystem and increasing capital mobility. At the same time, Ho Wah Genting Group also owns a digital token exchange and holds relevant licenses issued by the Malaysian government. In general, the stablecoin business of Ho Wah Genting Group based on everiToken’s platform complements its original digital token-related business, further expanding its entry into the field of encrypted tokens; for everiToken, its token issuance through the cooperation with the Genting Group adds practical credibility to its positioning in the blockchain industry and provides a solid endorsement for the platform’s strength.

PROJECT ANALYSIS

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2.4.2 Cooperation with Zhiyuan Hui to Issue Yi Coin Points as Tokens

everiToken and Zhiyuan Hui reached a strategic cooperation agreement on January 12, 2019. Zhiyuan Hui will issue Yi Coin points as tokens based on everiToken’s platform, distribute reward points for volunteers on the platform, record the working hours of volunteers through the existing Internet of Things (IoT) technology of everiToken, and systematically manage volunteer activities. Meanwhile, Yi Coins can represent points and be used to exchange for equivalent goods on the platform. As the largest Internet public welfare platform across the world, Zhiyuan Hui has more than 71 million registered users and has established partnerships with roughly 430,000 non-profit organizations. At present, more than 100 million service hours have been accumulated by those users on Zhiyuan Hui. Because of the natural decentralization of its platform, Zhiyuan Hui urgently needs decentralized information technologies to provide online management and incentives for volunteer activities, and blockchain provides a perfect solution for this type of application scenario. There are three reasons why everiToken was selected to provide the platform for Zhiyuan Hui issuing reward points as tokens:

① Performance: everiToken mainnet TPS can reach 10,000, and it can bear the traffic of Zhiyuan Hui;

② Token economy: everiToken has the capacity to offer the mature solution of token economy;

③ everiPass: everiPass is naturally compatible with IoT technology and can record the actual working hours of volunteers.

2.5 Other Functional Highlights

2.5.1 Support Multi-Signature

Multi-signature is the requirement to attach signatures of more than one controller from the same public address to authorize the use of its token. For more specific implementation, everiToken defines a key format m-of-n for each multi-signature address (in other words, the address has n private keys and using the tokens of the account requires signatures from m keys), and the concept of threshold is introduced on the basis of the traditional m-of-n multi-signature functions. Everyone can have different weights, and the flexibility of multi-signature is further enhanced. The advantages of using multi-signature are as follows: 1. it prevents insiders from embezzlement; 2. it increases the difficulty of hacker attacks. everiToken supports the multi-signature method from the perspective of its underlying public blockchain. It is a complement to the safe contract and further ensures the security of accounts and communications.

2.5.2 Dividend Tree

everiToken has a unique "on-chain real-time profit distribution tree" and such a tree can distribute certain points or tokens in a specific way. Its uniqueness and advantages are embodied in the following two aspects:

1) Unique tree-shaped segmentation method: a part can be segmented and allocated at first, and then the rest can be segmented and allocated. The segmentation can be repeated, and multi-layer segmentation is allowed.

PROJECT ANALYSIS

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2) Unique bonus token design: the dividend can be allocated based on quota, but also based on the proportion of the number of tokens held to the total tokens issued in the world.

For the first time, this mechanism is capable of completing real-time and credible multi-

party profit distribution among a large number of organizations such as: ① sales and

distribution of WeChat business traders; ② stock equity dividends; ③ interest (such as

regular interest acquired by holding certain points); ④ payment of transaction fees.

2.5.3 everiCard

everiCard is a blockchain quick pass card based on everiToken’s platform. A key feature is its safety, as it far surpasses the security of a traditional bank card. everiCard supports NFC second-level payments by cards and all tokens issued on the everiToken platform. everiCard provides infrastructure support for the use of the everiToken platform in practical application scenarios and is one of the few projects providing executable payment solutions on a public blockchain platform.

‣ Figure 2-5 everiCard Source: everiToken

PROJECT ANALYSIS

CONCLUSION The everiToken platform operates based on safe contracts, and its mainnet performance is better than most public blockchain projects. In combination with payment tool everiPay, this essentially guarantees its implementation in daily business. Meanwhile, the platform provides additional solutions for various application scenarios with its token economy. Moreover, everiToken has established cooperative relations with many traditional industry companies and organizations and is operating large-scale application scenarios. It is one of the few blockchain projects that can be executed in daily business application scenarios. However, due to the Turing incompleteness of the safe contract, the platform application in some specialized scenarios may be limited to a certain extent.

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03 . TOKEN MODEL

3.1 Basic Information Regarding Tokens

Tokens are used to pay for fuel, and its value depends on the platform ecosystem.

everiToken initially issued one billion EVT tokens. These tokens are different from those that only have circulation value. everiToken can satisfy certain application scenarios and endorses the intrinsic value of its tokens. It is worth mentioning that EVT has a 1:1 conversion rate to Pinned EVT, which are used only to pay transaction fees. TokenInsight believes that this function is more conducive to the token airdrop model for users who actually need it, and to a certain extent, avoids speculator arbitrage. The functions of the tokens are described below as follows:

‣ Figure 3-1 Applications of everiToken

Application Introduction

PaymentProducts and services can be purchased from sellers that support everiToken through everiPay.

BindingEVT can be converted to Pinned EVT at a ratio of 1:1, and the Pinned EVT can only be used to pay transaction fees.

Community governanceBecause of the DPoS consensus mechanism of the token, users owning a certain number of tokens can participate in community governance.

Fuel costUsing everiToken’s network requires a certain amount of EVT consumption.

Block rewardsFees paid by users will be rewarded to block producers as an incentive to motivate network maintainers.

Source: everiToken Whitepaper

A token locking plan means that after the project listing on an exchange, investors will unlock half of their tokens within half a year and the full unlocking of tokens will be completed in one year. The core team unlocks 5% every year. The distribution of tokens is shown in the figure below:

‣ Figure 3-2 EVT Token Distribution Source: everiToken

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TOKEN MODEL

3.2 Incentive Mechanism

It is too early to increase the issuance of tokens, and a dividend mechanism shall be implemented first

3.2.1 Additional Token Issuance and Block Rewards

everiToken initially issued 1 billion tokens. According to official instructions, after January 2020, it will issue 0% to 5% more tokens every year (the specific number of additional issuances is determined through community voting), representing a certain degree of inflation.

According to Fisher's model, the token price is determined by dividing the product of the circulation speed of tokens and the total amount of tokens by the number of transactions within a certain period of time. With an increase in application scope and services provided by the everiToken public blockchain, the circulation speed of its tokens will increase. This will lead to a price increase of the tokens and decrease in the number of tokens circulating in the market. Additional token issuance mechanisms of everiToken ensure that the number of tokens used within a certain period of time is stable within a certain range and also ensures stable token prices within a certain range. Compared with EOS’s 5% annual additional token issuance mechanism, the additional token issuance mechanism of everiToken is more flexible, with a higher degree of adaptability as the project progresses.

3.2.2 Token Dividend Mechanism

The everiToken platform allows project developers to choose between passive and active dividends. A passive dividend means that while EVT is charged as a service fee for each transaction, a part of the tokens issued by the project developer will be charged to reward service providers. An active dividend means that the holder of a certain number or a certain percentage of the tokens issued by a developer can receive dividends paid from the tokens.

everiToken has set up a dividend mechanism, which is designed to reduce development difficulty and cost to developers, and to a certain extent, standardize the dividend models of developers. Developers only need to choose the dividend model of their project at the initial stage of project design, and then choose the corresponding dividend contract featured on everiToken. It can be difficult to establish a dividend mechanism because of the huge cost of scanning ERC20. everiToken enables the project contractor to configure the dividend function by simply calling the corresponding APIs based on the support of the underlying blockchain technology.

The dividend mechanism provides developers with more choices, reduces the difficulty of development, and ensures benefits to developers. The establishment of this dividend mechanism has increased the competitiveness of everiToken in attracting project developers and increases the possibility of higher-quality DApps being built on the everiToken public blockchain.

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TOKEN MODEL

CONCLUSION At present, everiToken's token economy model has been established with unique dividend and additional issuance mechanisms to promote the economy. TokenInsight thinks that everiToken's market liquidity and mainnet operation pattern still need time to be tested to ensure everiToken's economic mechanism works effectively.

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04 . TEAM AND PARTNERS

The team has acquired strong academic support According to public information provided by everiToken, there are 10 core members of the everiToken team as of April 10, 2019, including 2 members in the management team, 4 members in the technical team (both CTO and CPO participate in the management team and technical team), and 4 members in the business operation team. It is worth mentioning that the chief scientist position is held by Cai Hengjin, a professor and doctoral supervisor at Wuhan University. This also gives everiToken certain academic support at the technical and fundamental level.

‣ Figure 4-1 Core Members of everiToken Team

Member Title Introduction

Cai Hengjin

Chief Scientist

Cai Hengjin is a professor and doctoral supervisor at Wuhan University. He was selected to be a participant in the first batch of the "Huanghe Talents Plan" in Wuhan in 2011. He won the President’s Award for outstanding teaching contributions at Wuhan University in 2012 and received the Wu Wenjun AI Science & Technology Award in 2017. His main research covers service science, artificial intelligence and financial information engineering.

Brady Luo CEO

Brady Luo received his bachelor’s degree in electrical engineering from Beijing University of Aeronautics and Astronautics and received his master’s degree in finance from Brandeis University in the USA. He attended the blockchain strategy course at Said Business School of the University of Oxford. He was selected as one of the participants in the third batch of the "1000 Talents Plan" in Shanghai. Brady previously worked at the Alternative Asset Investment Department of Oppenheimer Funds in New York, USA, and at Mitsubishi UFJ Securities Holdings Co.

Chen Bozhen

COO

Chen Bozhen received a bachelor’s degree in business administration from Aston University, UK, and is a serial entrepreneur of e-commerce services, including clothing supply chains, B2B services and government e-commerce projects. He is the director of the Youth Internet Entrepreneurship Service Center of Tongxiang and leader of the E-Commerce Public Service Center, a permanent host of the Internet Conference. He has won numerous awards as one of China’s youth leaders.

Ceeji Cheng

CPO

Ceeji is a full-stack developer and experienced system architect with more than ten years of software development, entrepreneurial and management experience. He was the first prize winner at the National Informatics Olympiad and previously co-founded his own start-up.

Harry Wang

CTO

Harry is an experienced system architect and engineer with over 10 years of expertise operating in the finance and Internet industries. He previously worked at Tianfeng Securities in Shanghai before taking part in the founding of a quantitative hedge fund company as a technical partner. He developed a high-performance quantitative trading system that operates today with multiple markets and products worldwide.

(Source: everiToken)

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TEAM AND PARTNERS

In addition to the above team members, everiToken also has seven advisors. All of the advisors have experience in finance or blockchain. To a certain extent, they provide technical and operational assistance to everiToken and enrich the development and promotion of killer application everiPay.‣ Figure 4-2 Introduction to everiToken's Advisors

Member Title Introduction

SERGEJ STEIN

Blockchain Accelerator Business Co-founder

Sergej is a co-founder of DLT Capital, Germany’s leading ICO consultant and accelerator business. He has managed blockchain projects all over the globe, raising over 80 million USD in funding. Sergej’s deep financial background includes a degree from the Frankfurt School of Finance and Management as well as years of experience as an analyst at Moody’s analytics company.

MIHHAIL

DANILENKO

Blockchain Startup Advisor

Mihhail co-founded a startup focused on the prediction of blockchain-based market adaptation. He now operates as a blockchain technology start-up advisor focusing in the areas of token design, market ecosystem, investment, business modeling, and BD. Mihhail has an academic background in finance and economics, is a CFA chartholder and has previously worked in the banking and finance industries.

GEORG RUNGE

Ambassador & Investor relations, Europe

Georg is an entrepreneur and strategic partner from Berlin. He advises blockchain and ICO projects from a business development and overall market perspective. He previously worked for top management consulting firms in Europe and the Silicon Valley, co-founded two startups and served as Global Venture Development Director with Rocket Internet.

JOHN SLYUSAREV

Co-founder & Managing Partner: SMC Capital, NYC

John worked as CMO and CBDO of ICORating, the largest blockchain industry rating company, leading ICORating's international expansion. John also served as the CMO of one of the largest travel platforms in Eastern Europe. He also ran his own consulting firm, working with some of the world's largest banks, retailers, startups, and venture funds. John's expert commentary on the blockchain market has been published by leading media, including Business Insider, Wall Street Journal, INC, Bitcoin.com, CoinTelegraph, and many others.

ANDRII

MATIUKHIN

CTO of Hacken

Andrii is the CTO of Hacken, a famous cybersecurity services provider and white hat community member. He is a highly qualified cybersecurity expert with 13 years of success in the industry. He is a certified expert in several areas and has more than 10 certificates of competence. His role at Hacken is to provide technological leadership in developing, integrating and supporting the platform.

MARIAN

DANKO

CEO of Digitly

Marian Danko is the CEO of Digitly, an organization that assists blockchain development teams in getting their message across the globe. A passion for technology and innovation initilally attracted him to join the AngelHack and Startup Grind teams. Marian is an active member of the tech and entrepreneur communities, bridging the gap between innovation and consumers.

MIK

MIRONOV

Co-founder and Partner: SMC Capital, NYC

Mike managed a multi-million dollar portfolio of assets as a Coverage Banker at ABN AMRO Bank for over 8 years. He then served as a community growth mastermind at Airbnb and oversaw a 700 % increase in community involvement in just 2 years. Mike has worked in blockchain since 2015 and as the head of sales and partnerships at ICORating. He is a co-founder of the Global ICO Transparency Alliance. Mike holds an MBA from the University of Wales and a master’s degree in International Relations from the University of Amsterdam.

(Source: everiToken)

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Two rounds of financing have been completed and more cooperation has been actively sought

According to the official information of everiToken, everiToken has completed their cornerstone financing and private placement financing rounds, with investors including Distributed Capital, BOT, Timestamp Capital, Longhash, Yuandao Capital, Chain Capital, Bitrise Capital, Nova Fund, QRC Group, James Gong (Gong Ming), etc. It is worth mentioning that everiToken has received millions of dollars in angel financing from well-known research institutions. The investment from research institutions has endorsed the technology and development potential of everiToken.

Service providers include third-party audit agencies According to the official website of everiToken, its current service providers include Bitcoin Suisse, Hacken, Chaitin and Walder WYSS, among which the main business of first three providers includes financial security and technical security, providing technical support for everiToken. The project service provider Walder WYSS is a Swiss law firm that provides auditing and compliance assistance to everiToken. Third-party audit agencies also provide credible support for everiToken.

everiPay has deployed in some areas At present, everiToken public blockchain has been deployed in some areas through everiPay. For example, it has cooperated with Ho Wah Genting Group of Malaysia to issue HWG Cash on everiToken, which uses the everiPay system and supports the use of all commercial supermarkets and scenic spots in the group; everiPay has cooperated with Zhiyuan Hui (also known as "Zhiyuan Zhongguo", Chinese registered volunteer system), and the "Yi Coin" system has been added on Zhiyuan Hui so that volunteers can purchase goods on Yi Coin vending machines by using their volunteer points on everiToken; everiToken’s smart lock system will be promoted through the function of information storage on the blockchain.

According to official disclosure, more than 300 partnerships have been initiated with everiToken in the past six months and nearly 100 of these collaborations have entered the technology docking stages. TokenInsight believes that everiToken is in the development stage of actively promoting and seeking cooperation, and the application of everiPay has also accelerated the execution process of the project.

TEAM AND PARTNERS

‣ Figure 4-3 List of everiToken investors Source: everiToken

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TEAM AND PARTNERS

‣ Figure 4-3 List of everiToken investors (following the figure above) Source: everiToken

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05 . COMMUNITY ANALYSIS According to the monitoring of the everiToken community by TokenInsight, by April 11, 2019, everiToken had 2,431 followers on its official Twitter, a total of more than 30,000 members in its multilingual official telegram group and more than 4,000 members in its WeChat community. The buzz word cloud of its official telegram group indicates that few keywords were discussed in everiToken’s telegram group, and there was little communication within that group. TokenInsight believes that this may be affected by the fact that the everiToken community uses WeChat primarily as a community communication medium instead of telegram.

‣ Figure 5-1 everiToken's community performance Source: TokenInsight Dashboard

‣ Figure 5-2 Telegram community keyword cloud Source: TokenInsight Dashboard

APPENDIX‣ Appendix 1 Symbols and Definition of Risk Ratings

AAAThe technical foundation is extremely solid, the status of operations is extremely stable, the extent of influence on the project by unfavorable changes in the environment or un- certain factors is extremely small, and risk is extremely low.

AAThe technical foundation is very solid, the status of operations is very stable, the extent of influence on the project by unfavourable changes in the environment or uncertain factors is very small, and risk is very low.

AThe technical foundation is solid, the status of operations is stable, the extent of influence on the project by unfavourable changes in the environment or uncertain factors is relatively small, and risk is relatively low.

BBBTechnical feasibility is very good, the status of operations is stable, influence on the project by unfavourable changes in the environment or uncertain factors exists to a certain extent, and risk is controllable.

BBTechnical feasibility is good, the status of operations is relatively stable, the possibility of influence on the project by unfavourable changes in the environment or uncertain factors exists to a relatively large extent, and risk is basically controllable.

BTechnical feasibility is moderate, the status of operations is relatively stable, the possibil- ity of influence on the project by unfavourable changes in the environment or uncertain factors exists to a very large extent, and risk is to a definitely limited extent controllable.

CCCThe technical foundation or idea has certain problems, the application scenarios are lim- ited, the project is susceptible to influence by uncertain factors, both internal and external, and has relatively large risk.

CCThe technical foundation or idea has considerable problems, and application scenarios are highly limited, which makes for a project that has few internal or external factors to consider in the context of sound development, and carries a very large risk.

CThe technical foundation or idea has substantial problems, and lacks deliberation upon possible application scenarios. The token has almost no usage value, and the project suffers from extremely large risk.

D The project is riddled with problems and carries an extremely high risk of failure.

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