1. White Paper 2.0
Solar DAO will continue to work on the original model — as a closed-end tokenized fund. Project participants believed in this idea and we plan to keep this original concept. We will remake the Marketplace into a Dashboard (Sirius interface) with detailed reports on implementation and operation of PV projects added with a voting system. The updated White Paper will be released within next 2–3 weeks.
2. When ICO?
The Initial Token Offering (Token Sale) will begin on February 28th and will not be limited in time. We will conduct a point marketing (micro-marketing) campaign and not going to spend funds on traffic, to not risk with participants’ funds and to not get any additional risks for the project.
We are sending message instead 🙂
We****don’t want to blow and burn your funds for active marketing (buying traffic) during a period of fierce competition among thousands of other ICOs in pursuit of speculators’ attention. It will enrich only advertising platforms and marketing agencies. Moreover, there is a high risk not to raise additional funds and increase liability. 90% of projects conducting ICO these days face with this issue.
Instead, we suggest to follow the original plan and allocate funds for the construction of PV solar plants.
- The initial price of SDAO token: $ 1.00 (1 USD). No bonuses.
- After the first plants commissioned, we estimate the value of assets and will connect the number of tokens sold to assets under the control of Solar DAO.
- By now, the total number of issued tokens: 1’172’767 SDAO
- Tokens of Project Team (25% of the total, as originally planned) are located on wallet: 0x8009b7F7E94BAf862d155bb7A3C0E589ea6a1a75.
- 20% of team tokens (or 5% of the total) will be distributed among the most active project advisers in gratitude for their help and faith.
3. When on Exchanges?
SDAO tokens will be available in open market in next two month. We begin to list SDAO tokens on decentralized crypto-exchanges between****January 14th and February 25th. Goal: at least 4 exchanges within 6 weeks.
- More promising when considering a period of 1 year and more
- Gaining popularity rapidly
- Do not require million budgets for listing
- Minimal risks of locking funds by the exchange
- Can not be regulated, since they are actually systems of smart contracts and do not have a localized control center
After we get an approval from the first exchange, tokens will be unfrozen and transferable!
Project Teams’ tokens will not be on exchanges at least for 2 first years.
4. New Horizons, Fresh Opportunities
After the first tokenholders voting, since December 18th, we plan to attract institutional investors and crypto funds.
The funds will be distributed as planned:
Fiat will allow us to use funds faster and safer for the construction of PVS (PV solar plants). Owners of SDAO tokens will be able to join this Fund within 4 months after it’s been incorporated, getting its shares in accordance with the number of tokens owned. Exchange terms will be published later.
All participants of the fund will be also holders of shares and the equal number of tokens, taking into account their value at the time of entry. As the rules of regulation are created and normative acts come into effect, and as tokens are defined and classified, we will as it initially planned transfer the basic functionality from shares to tokens, legally transforming the classical fund into a tokenized fund, saving its security and reliability .
Since the main fund incorporation requires significant costs, we will implement it as soon as commitments exceeds $1M. For a modest estimate, it will happen in February 2018. Fund’s shareholders will be able to receive dividends. However, we will continue to look for any appropriate ways to distribute dividends among tokenholders.
In March 2018, we are going to begin construction of PVS:
- 1 MW in Kazakhstan. Budget: $40k.
- 2 MW in Ukraine (0.5 + 1.5 MW). Budget: $80k
- 250 kW in Israel. Budget: $40k.
Amounts are indicated on the practice solar plants construction are financed with 10–20% of equity and 80% debt financing, where PV plant’s shares are recognized as a collateral.
We can not predict any local authorities response time, but we will do the best to make the process as quickly as it possible. We have experienced and responsible local partners to do that.
At the same time we are also working on the selection of new projects at various stages across the globe.
Since now, we will not publish information about the projects under consideration before at least the construction started, because we need to fulfill the non-disclosure agreements signed (NDA). That is the way how project business always works.
We did a great work starting from the scratch in November 2016. With no external financing at all we got a great feedback from the crypto community and attracted the seed investments required for running the Pre-ICO.
In the summer 2017, we conducted Pre-ICO and among the other projects having Pre-ICO during that period, we got the highest approval from the community. After finishing Pre-ICO in September, we started developing a legal structure, without which further development is impossible.
Over the past 3 months we:
- Developed a completely new concept Solar DAO as a platform. We evaluated it using the Howey test, tested the idea for viability, and also found legal structuring options.
- Developed Solar DAO Marketplace. Was launched and tested by the Community. The platform survived several hacks and was upgraded twice.
- Considered several legal structures:
- SAFT (Simple Agreement for Future Tokens)
- STAK (Stichting Administratiekantoor)
- Non-profit fund
- Swiss Foundation
- SPV companies: Gibraltar, Isle of Man, BVI, Singapore, Hong Kong, Cyprus, etc
- Offshore Fund
- Increased the Project team:
- +4 person in the team
- +3 advisers
Proceed 2 marketing tests, which approved the decision not to blow out money on marketing.
Agreed to cooperate with 5 co-investors. It means that in some projects we can share risks with them.
From the very beginning, we positioned Solar DAO as a tokenized fund working with real objects — renewable energy generators. The process of implementing such projects presupposes their selection, optimization, structuring and construction. The major part of our users understand this and support our desire to create a completely new investment tool that should change this industry forever.
As you probably know, since the beginning of our Pre-ICO and even more since the first version of White Paper published, the legislation of most countries and regulations of cryptocurrencies, circulation of tokens and conduction of ICOs have been changed dramatically. This is what many projects, including us faced. We decided to continue running the Solar DAO under correct legal structure.
We never ever promised a fast return and high profits for the funds that you contributed to the project. We strive to do our work well, be open, and make every effort to make your participation in the project profitable and comfortable, and the project itself — legal and reliable. And this is the main reason why these days we mostly paid attention to projects legal structure.
Unfortunately, some Community Members often complain about the facts:
- The core ICO did not start as planned in the original concept, due to the urgent need to create a legal structure in correct way.
- We did not buy a solar plant in operation to test dividends payment. The cost of a PVS in operation with under 30 kW is comparable to the cost of building a PVS 1 MW (1000 kW), and their average return (ROI) is about 7% per year.
- No test distribution of dividends was made a month after the end of the Pre-ICO. According to preliminary estimates it would have been about 0.225% of the participation amount. This is due to our decision not to buy ready PVS.
- The holding structure was not registered according to the original version of White Paper, which was relevant at the time of the start of the Pre-ICO, but can’t currently be used for the Project’s purposes.
We strive for maximum comfort Solar DAO participants, while maintaining its stability, security and maximum reliability.
Dear Community, we need your feedback. Therefore, from 08:00 GMT December 10 to 08:00 GMT December 16 (7 days), we will provide voting among the tokenholders.
**Voting subject: **What do you think about Solar DAO project and its development?
1 — I like the chosen strategy and solutions — go ahead!
2 — It’s okay, I trust the team.
3 — OK, but I expected more.
4 — This is absolutely not what I expected. I don’t like it.
Voting will take place on the Ethereum blockchain among the tokenholders.
1 token = 1 voice.
Your vote could not be changed, so you can only select it once. Smart contract will only work for the specified period. Here you canget voting instruction.
Tokens owned by our Team will not vote.
To ensure the safety of your private keys, we decided not to make a web interface for voting. The conventional wallets could be used for it: MEW, Mist and Parity.
6. Legal Structure
For the past three months, we have been working on developing a legal structure in order to reduce the risks of possible claims against Solar DAO from regulators, while retaining the original idea and the declared functionality. We have made a preliminary decision that requires an additional confirmation from the jurisdictions selected:
Now we are engaged in obtaining legal opinion, confirming the legal structure with selected (and alternative) jurisdictions and check the tax consequences for the team. The completion will take about 2–3 weeks.
Explanation of the legal structure
- FUND. The classical fund incorporated in Cayman Islands attracts funds from accredited investors in fiat
- LP — Limited Partners — investors.
- GP — General Partner — Project Team that is engaged in core business.
- LM — Licensed Manager — licensed manager providing protection of the means and interests of investors.
Fund will be incorporated when we have least $ 1M amount of commitments.
Fund participants (LP) receive shares of this fund, for which we can legally pay dividends. In addition, they receive tokens according to their current price at the moment of entry into the fund. The main idea is to logically connect shares to tokens. When the legislative base and regulation of cryptocurrencies and tokens are improving, the functional is transferring from the units to the tokens.
A separate company, token agent, can sell tokens using the KYC (Know Your Customer) procedure. Thus obtained cryptocurrency we will be able to exchange for fiat and use it for projects.
Tokenholders will be eligible to receive shares of the main fund by joining it as LP (Limited Partner). So we plan to implement the original idea that all token owners should have full rights of Fund participants.
Onshore jurisdiction will be used to reduce the tax burden for possession of solar power.
7. Updated Roadmap