DAOACT Ltd, Coliemore House, Coliemore Road, Dalkey, Co. Dublin OFFER A smart contract based proposal, vetting, voting and funding system. ACT is a decentralized autonomous organisation on Ethereum 1 Requirements 1.1 Donation campaigns 10,000,000,000 (10 billion) ACT Token will be issued and assigned on the day of the deployment of the ACT ICO smart contract as follows: ACT Donation Campaigns - 8,250,000,000 (82.5%) ACT Contributors - 800,000,000 (8.0%) ACT Team - 500,000,000 (5.0%) Daoact Ltd - 300,000,000 (3.0%) ACT Bounties - 150,000,000 (1.5%) 1.2 Votes For voting users can buy ACT-VOTE tokens. Individuals send ETH to the ACT-VOTE smart contract and get ACT-VOTE in return. This ETH income capitalizes the ACT Platform. Holders of ACT-VOTE tokens can vote for proposals. One ACT-VOTE is spent for a single vote and is denominated to 10 ct. A single voter can only vote for a total ACT-VOTE worth page 1 of 6
of 100 USD (equals 1000 ACT-VOTE) for each proposal. The voting process will be updated at a later point in time so that the maximum number of votes that an individual can apply to a proposal will not be able to exceed double the median number of votes allocated by users. The holder of an ACT-VOTE token can vote yes, no and also abstain. Later they will be able to assign their ACT-VOTE token to other high-ranking profile users. 1.3 Proposal Proposals get initially introduced to the ACE (ACT Curation Engine). To avoid scam proposals, a small ETH amount has to be payed to submit a proposal. 1.4 Curation Curators vote, comment or share the proposal. Curators are able to mark the proposal as good (+) or bad (-). The curators need ACTION tokens to get rewarded for their work. To get ACTION tokens they have to exchange ACT for ACTION. The exchange rate is fixed and does not get changed. ACTION can only be converted back (vesting) to ACT over a 1 year period via 12 equal payments. Even if a curator does not own ACT or ACTION he is still allowed to + or - proposals, comment, flag and share. In this case, the curator will not receive any reward. Instead, he can see the amount he would have received if he would have held ACTION. By holding ACTION tokens curators qualify for receiving rewards, and they increase the reward in relation to the relative amount of ACTION tokens they hold compared to the other curators. The reward is calculated by the following algorithm: ActionPct = The percentage of tokens held by a curator from the total amount of ACTION tokens held by all curators who took part in the curation of this specific proposal. CurationPct = The percentage of curation work that has been done by a curator from the total curation work done for this specific proposal. InterimReward = CurationPct / 10 * (-0,0005 * ( ActionPct - 100)^2 + 10) Reward = InterimReward 100 InterimReward 1.5 Activation Proposals get activated based on the outcomes of the curation phase. ACTIVATION means that the proposal is pushed from the ACT to the ACT Platform where voting happens. The exact activation algorithm is still to be defined. page 2 of 6
1.6 Funding of proposals draglet GmbH The funding stage pays the creators of proposals. More than 60% of the voters must vote yes to get the project funded. The proposal amount that proposal creators can submit to the ACT platform will be constrained in proportion to the platform s current capitalization. The curators get payed in ETH after the funding stage. 15% of the funding amount is allocated for the curators. The distribution of the reward of a curator is calculated by the algorithm given in 1.4 Curation. If a proposal is funded after the voting only curators who voted good (+) get rewarded. If a proposal is not funded after the voting only curators who voted bad (-) get rewarded. 2 Deliverables 2.1 ACT-VOTE smart contract The ACT-VOTE smart contract is a standard ERC-20 token with price binding to 0.10 USD per token that can be bought with ETH. 2.2 ACT funding app The app must: allow voting for proposals yes, no, abstain, or assign contain a light wallet for ACT-VOTE tokens contain an ETH light wallet to receive funding 2.3 ACT ICO smart contract ACT Token will be issued and assigned on the day of the deployment of the ACT ICO smart contract 2.4 ACTION smart contract The ACTION smart contract must have methods for: submitting new proposals, curator marking, curator commenting, curator sharing, storing of ACTION wallet accounts, proposal activation page 3 of 6
exchanging ACTION for ACT and ACT for ACTION draglet GmbH when exchanging ACTION for ACT the 12 month vesting rule must be enforced 2.5 ACT smart contract The ACT smart contract must have methods for: storing of ACT wallet accounts proposal voting with ACT VOTES funding decision funding payout allocation of ETH used to buy voting rights as follows: 15% for curator rewards, 1% for DAOACT Foundation, and 1% for DAOACT Ltd. distributing of rewards to curators ACT must also be a ERC-20 compatible token that is traded on an exchange. 2.6 ACE curation platform The platform must: be mobile enabled allow to submit proposals have marking ( + or ), flagging, commenting and sharing functions for curators contain a light wallet for ACTION tokens allow exchanging ACTION for ACT and ACT for ACTION 3 Estimation Artifact Estimation of time Planned completion date ACT-VOTE smart contract 0 weeks 18 th Nov ACT funding app 18 weeks 18 th Nov ACT-VOTE smart contract The ACT-VOTE smart contract is a standard ERC-20 token with price binding to 0.10 USD per token that can be bought with ETH. 3.1 ACT funding app The app must: 3 weeks 18 th Nov page 4 of 6
allow voting for proposals yes, no, abstain, or assign contain a light wallet for ACT-VOTE tokens contain an ETH light wallet to receive funding ACT ICO smart contract ACTION smart contract 9 weeks 19 th Jan ACT smart contract 9 weeks 19 th Jan ACE curation platform 18 weeks 19 th Jan Sum 57 weeks 4 Offer The functionality outlined above is offered for a fix price of: 57 weeks * 5 days * 520 = 148,200.- The Provider facilitates a suitable testing environment after implementation. A bug bounty programme will run from 3 weeks following each milestone after which the Customer is obliged to either approve the implementation or name bugs. If bugs are identified in the implementation, the Provider will fix them on the testing environment. When the fixes are in the testing environment the Customer is again obliged to either approve or name bugs, which will be a second bug bounty opportunity running for ten days. 5 Payment A smart contract will govern distribution of pre-ico funds according to the following schedule: August 1 st 2017-75,000 November 18 th 2017-37,500 January 19 th, 2018-35,700 The Customer accepts this offer by signing this offer. Dublin, 29.06.2017 Fraser Brown, CEO DAOACT Ltd. München, 29.06.2017 page 5 of 6
Ganesh Jung, managing director page 6 of 6