Additional Questions answered below

Why aren't you raising funds through an ICO?


For multiple reasons stated below:
1. We actually have a thriving community that we have heavily engaged with both offline and online over the last 24 months. We felt we would like to reward our early supporters by offering them the window to invest first, and then opening it out to those outside the community.
2. Regulations are still hazy around 'public' fund-raises. By using this route, we ensure we are well within (in fact comfortably so) from every jurisdiction's regulations. We honestly believe it would not be wise to jeopardise the long-term aspirations of our project by fighting the wrong battles.




When will you move to an ‘exchange’?


Migration to an exchange will happen once we believe the required price stability has been achieved and the community is large enough to support the next step.




When will you transition to a distributed ledger and what will this transition involve?


On March 31, 2019, we will be able to transition from an Ethereum implementation to the live SC Network. Each ERC20 token issued will be entitled to 'credits' on this network. These credits represent storage and computational utility. These credits form a value stable currency that enable operations on the SC network.




Describe the nature of the SC Token?


The SC Token (SCT) represents utility on our network. Each ‘tag’ or reputation within the SC system has a material imprint which is captured by the SC token. Every token holder is entitled to computation and storage resources associated with these ‘tags’. The ERC20 Token issued currently will stand as a receipt for this utility in the Sacred Capital environment.




What will the funds be used for?





How often will you be reporting post issuance?


Distributed ledgers ensure financial data is openly available for everyone to witness. The role of the organisation then shifts to addressing the community and engaging in discussions/QnA sessions that the larger group might have.

Thanks to the steady efforts of our operations and outreach teams, we have incorporated formats used by peers like EOS (https://eos.io/), Holochain (http://holochain.org/) and Kin (https://kinecosystem.org/static/files/Kin_Whitepaper_V1_English.pdf, https://kinecosystem.org/)

Everything kicks off with a 'Town-hall Webinar' in September 2018. The intention is to engage in an interactive QnA with our eco-system through this medium on a regular basis.




How has Sacred Capital been funded so far? Who has funded Sacred Capital?


Over the past 24 months, Sacred Capital has been funded by individuals around the world. Some of them are leading angel investors, VCs and professionals while others are non-linear thinkers and drivers of social change. Each one of them is excited by the prospect of bringing forth a new economic paradigm. All our investors have entered 'pre-token-issuance' rounds which are private in nature. It implies that these rounds are exposed only to people we have met or engaged with during our interactions or have been part of our beta testing periods. Staying private also allows us to adhere to securities regulations around the world.

These investors have been offered tokens at a time-variant discount i.e. the discount reduces as we approach token issuance. To put it simply, every dollar invested in these rounds translates to a multiple when the token is issued.




Why has Sacred Capital not done an 'ICO'?


1) We have a thriving community that we have heavily engaged with both offline and online, over the last 24 months. We chose to reward our early supporters by offering them the window to invest first, and then opening it up to those outside the community. 2) Regulations are still hazy around 'public' fund-raises. By using this route, we ensure we confirm with regulations. We believe it would unwise to jeopardise the long-term aspirations of our project by fighting the wrong battles.




Who should be buying Sacred Capital Credits? What can they be used for?


The tokens issued are held by a combination of : 1) Investors who have entered at varying discounts over the last 24 months 2) Team members who have been paid in SCT 3) Reserve of USD 500k maintained by SC for further expenses until the network goes live. 4) Genesis entrepreneurs for estimated future usage as they build on the network 5) Users who are pre-purchasing for estimated future usage on the network. We are using the most commonly used reporting structures (EOS and Holochain laid down standards through their own raises). ECSA (Economic Space Agency), in collaboration with NYU Stern have published norms for this in their publication titled ‘Tokens as a Derivative’.

It is important to think of tokens as exactly that, a derivative, a bearer of value. They do no promise any dividend or share in a company. They only promise utility in a network - in this case, they are promising storage and computational power at a future date. When you purchase tokens through a SAFTE, you are pre-purchasing storage and computational credits on the SC network.

As a token holder, the numbers of value to you are the discount received, along with the total supply of tokens.




What is the investment opportunity in the Sacred Capital Pre-Token Issuance round?


The current round of funding is the last such window of these multiple rounds of funding. The current discount stands at 45%. That means every dollar invested returns ~1.8x on issuance.




How can I participate in the Sacred Capital Pre-Token Issuance round?


Once you express your interest on the form below, you will receive an email via 'Docusign' from Nehha Wadhwa, lead Outreach at Sacred Capital. This email will outline a standard process to be followed: 1) Read the email and the accompanying SAFTE (Simple Agreement for Future Tokens/ Equity) 2) Electronically sign the SAFTE (via Docusign) 3) Transfer funds to a bank in your preferred country (you may use USD/ SGD/BTC/ETH) 4) Upload basic identification documents in the link provided in the email received.




What is the total number of tokens that will be issued in the Sacred Capital Token Issuance? How will these tokens get distributed over time?


On the date of issuance, the total outstanding tokens will be approx USD 2.4 Mn + the balance that will vest over 12 months. (figures may be adjusted slightly based on the current round of funding).

The total number of tokens issued and their vesting schedule is as reflected in the images below.




What value does each ERC20 token represent?


Sacred Capital’s economy is based on a mutual-credit accounting system. Each ERC20 token (SCT) represent 1.00 USD worth of value on the SC network on the activation date (estimated Q2 2019). On the activation date, each SCT translates to 1 SC Credit, which is a value stable currency backed by distributed computing power. For more details, refer to the page on our Credit economy: https://www.sacred.capital/credit-economy




What is the Credit Economy?


1. Backed by utility: Sacred Capital's economy is based on a mutual credit system where money raised is accounted for by a corresponding debit in our ledgers. It is executed using a distributed ledger protocol known as Holochain, an accounting system that runs on Holo Fuel. Users of our platform i.e. Apps or their individual users are billed on the basis of the computation power that they use on the interchange. Payments for this usage are settled on a pre-defined frequency i.e. daily/weekly/monthly Settlements are made in Holo Fuel using Holochains' mutual credit accounting system Users may choose to pre-pay for our services, thereby holding 'credits' in their accounting ledger against us 2. Value Stable Currency: The cost borne by the user is a function of their computing power consumed on the interchange. Sacred Capital charges it's users the cost of the underlying computing power, plus a markup as stated by the Programmatic Collective. In this case, since our underlying computation provider is Holochain, our credits are effectively pegged to the price of Holo Fuel, a value-stable currency backed by distributed computing power.
3. Funders participate in the Programmatic Collective Early-stage backers receive reputation scores in the Programmatic Collective, which is critical to guiding and moulding Sacred Capital's path in the years to come.




When will liquidity in the ERC20 token develop?


Over the course of Q1 2019, we will be facilitating liquidity for holders of SCT. This will be initially be restricted within the SC community, and later opened to a global audience via a decentralised exchange. The intention is to build a robust interest for the token before exposing it to speculative forces. More details on this will be released soon - watch for updates in our chatroom and over email. In case you are keen on buying more SCT, you may express interest on this link: https://www.sacred.capital/private-round




Why is the supply of ERC20 not fixed?


Since the SCT is backed by utility (see URL on Credit Economy for details) and is basically a mutual-credit system, the currency responds not on the back of scarcity, but sufficiency. This implies that the holder of the token is holding a value stable currency.





Frequently Asked Questions About our Credit Economy

Until Aug 2018: Pre-token issuance

 

Over the past 24 months, Sacred Capital has been funded by individuals around the world. Some of them are leading angel investors, VCs and professionals while others are non-linear thinkers and drivers of social change. Each one of them is excited by the prospect of bringing forth a new economic paradigm. All our investors have entered 'pre-token-issuance' rounds which are private in nature. It implies these rounds are not exposed only to people we have met or engaged with during our interactions or have been part of our beta testing periods. Staying private also allows us to adhere to securities regulations around the world.

These investors have been offered tokens at a time-variant discount i.e. the discount reduces as we approach activation. To put it simply, every dollar invested in these rounds translates to a multiple when the token is issued. 

The current round of funding is the last such window of these multiple rounds of funding. The current discount stands at 45%. That means every dollar invested returns ~1.8x on issuance. 

The total tokens issued and their vesting schedule is as reflected in the images below. 

 

 

 

Transition to the live SC network: March 31, 2019 onward

 

On March 31, 2019, we will be able to transition from an Ethereum implementation to the live SC Network. Each ERC20 token issued will be entitled to 'credits' on this network. These credits represent storage and computational utility. 

Think of these credits as a 
value-stable currency that enable operations on the SC network. We will be building our network on platforms such as Holochain which require us to follow a 'credits' based system. (Check https://holochain.org/ for more details).