ETF Token - Access Token to a Comprehensive Collection of World Changing Blockchain Technology

[jtiannelli]

ETF Token (Issue #16) Access Token to a Comprehensive Collection of World Changing Blockchain Technology

Abstract

ETF Token aims to create a unique and decentralized community with its own comprehensive collection of world changing blockchain technology. Utilizing smart contracts and a self-governing structure, this token establishes a fund which contains a collection of innovative, socially-impactful, and valuable blockchain tokens. Every ETF token purchaser is a part of that community and every ETF Token is backed by that fund.

It establishes a symbiotic relationship with the best that blockchain projects available. By purchasing the tokens of incredible blockchain projects and holding them in a fund, this community of token holders adds established value, quality, and diversity to their backing fund. In return the projects whose tokens we purchase have additional Ethereum to contribute to their growth. This increases each backing token’s value potential, which in turn increases the value potential of the fund and the ETF token.

The tokens this community holds are issued by impressive organizations that offer innovative solutions for the world. ETF Foundation will select tokens which are maintained by an exceptional team, product and an ethical vision that our community can support. ETF Token and fund is not just for the experts on blockchain to participate. The token holders form a sociable community that helps direct the fund. They vote on great board and team members and fund managers to oversee the day-to-day operation of the decentralized organization, the blockchain, and the fund.

Deliverables 1.An Ethereum based token which will be 100% backed by an actively managed collection of blockchain tokens and cryptocurrencies. 2.A set of AragonOS-compatible smart contracts to transfer ethereum from token purchases into the backing index of cryptocurrencies. Making backing the investments mandatory. 3.A Aragon-based web interface to let users purchase Tokens, exercise their voting rights and otherwise interact with the ETF Foundation and community.

Grant size

Funding: Up to $50k in ETH, split into chunks paid out over achieved deliverables.

Success reward: The continued support and friendship of this community!

Burn Rate 10k/month for 5 months during development

Application requirements

Concept: ETF Tokens provide value through access and voting rights to manage an ETF Token Holder’s DAO. A DAO is not a company, this token is not controlled by anyone except for the token purchasers. The organization sets forth decentralization as an important principle. Never to grant ownership of itself to a particular business or individual.

ETF Token is the first easily accessible token fully backed by the best of blockchain. The Token is created in a 1:1 ratio with a fund controlled by the community. That fund purchases and holds a diverse collection of both established and newer blockchain projects that are deemed valuable by our community.

The community will hire the day-to-day managers of the fund and operations and all of the Ethereum contributed by the members is transferred and held in other blockchain project’s tokens, specifically the ones that show the potential to grow in usefulness and value. The blockchain smart contracts allow that fund to be guaranteed and auditable with updated fund statistics delivered instantaneously.

This Token decentralizes and transforms the concept of holding a collection of blockchain tokens. It re-humanizes it by not simply algorithmically selecting the top tokens by market cap but rather by selecting the ones with principle and projects that our own community believes in. It de-corporatizes the decision making by enabling the token holders to self-manage, self-govern, and self-develop while providing them with the resources to self-scale. It revalidates the notion that a diversified blockchain project backed token can be established, it can reduce volatility through competent partnerships and associations. This token aims to provide intrinsic and audible value for the token owners. It does this through the transparency of blockchain and the transparency of the community managed organization we have established to maintain it.

Whitepaper Draft: https://www.etftoken.org/whitepaper

Development timeline

The development timeline will be the following one in regards to each deliverable:

1.Finish White Paper – 03/12/18 Finalized Whitepaper Finalized Strategic Planning Document Finalize contracts for Executive Team

2.Stage 1 Development 03/26/18 Implement Pre-Sale Token Specifics into Aragon Protocols

3.Stage 2 Development 04/09/18 Implement Pre-Sale Token Specific Smart Contract for Fund Auditing

4.Stage 3 Development 04/23/18 Establish Pre-Sale voting procedures/smart contracts for Community-based fund/organization decisions

5.Complete Security Check – 04/30/18 Finish Test deploy/Security Check Implement any necessary patches Pre-Sale Begins -05/01/18 Deploy Pre-sale site and functionality

6.Pre-sale Ends 05/31/18 Conclusion of Pre-sale

7.Stage 4 Development 06/15/18 Implement Functioning Token Specifics into Aragon Protocols

8.Stage 5 Development 06/29/18 Implement Functioning Token Specific Smart Contract for Fund Auditing

9.Stage 6 Development 07/13/18 Establish Final voting procedures/smart contracts for Community-based fund/organization decisions

10.Complete Security Check – 07/31/18 Finish Test deploy/Security Check Implement any necessary patches

Delivery Date 100% Functioning Token and Fund Convert/Exchange Pre-sale Tokens 08/01/18 ETF Token and Fund Go Live! ETF Token Full functionality 1.0 released

Testnet launch will be expected during April 2018, with mainnet launch for initial pre-sale fund building tokens in May. 100% Development by 07/31/18.

Thank you for your review please feel free to reach out with any questions.

JT

[CLAassistant]

All committers have signed the CLA.

[wildmolasses]

Sounds pretty awesome. Also sounds like a security under US law, FYI.

[jtiannelli]

Ed,

We are aware, we are blocking US IP addresses. Here are the basics...

ETF Token Legal Compliance Basic

Was the IP created in the United States and transferred outside?

We will eventually need to finish using the .org site and set up a etftoken.io site from outside the US

Will the IP transfer be taxable or not?

Avoid transferring. Create in friendlier jurisdiction.

Will the foreign entity do business in the United States as a result of actions by its officers, directors, contractors or other parties in the United States?

This is a bummer, we may need to block US IP addresses. Further investigation required.

Will the foreign entity be considered a controlled foreign corporation for U.S. tax purposes and trigger the anti-deferral rules under Subpart F?

Should be good here. No US based company receives any profits, but US residents see below. I will Investigate this one further as well.

Will the U.S. officers or directors have to report their relationship to the foreign entity and its assets on their personal U.S. income tax returns?

Yes, it's a good thing we have good accounting practices because it looks like team members based in the US will have to pay income tax.

On Sun, Mar 4, 2018 at 4:38 PM Ed Mazurek notifications@github.com wrote:

Sounds pretty awesome. Also sounds like a security under US law, FYI.

— You are receiving this because you authored the thread. Reply to this email directly, view it on GitHub https://github.com/aragon/nest/pull/23#issuecomment-370266479, or mute the thread https://github.com/notifications/unsubscribe-auth/AiYfnW9zy6F9eh7WnJsYWIIZvCx0Llsaks5tbF7tgaJpZM4Sbfqh .

[jtiannelli]

Obviously we are working with a little more detailed info in house. But through IP address blocking on our token website and a few disclaimers our legal unit has been working on, we are ready to present an organization that is able to effectively issue this token worldwide.

Without getting too specific it follows guidelines of an international "investment club" which is specifically different from a security and is allowed to be a non-incorporated entity with pass-thru only taxes. As I mentioned above taxes would be paid by the individuals, this DAO itself is structured as a non-profit.

---

Side note for dev team: Issue #16 still says closed from when we last spoke, I believe I updated all the information that you requested, are there any other tasks I need to complete to move to the review stage?

[mariapao]

I'm closing this pull request.

[jtiannelli]

Maria,

Thanks for your review. Looking forward to the 0.5 release.

Best regards, JT

On Fri, Mar 9, 2018 at 11:18 PM mariapao notifications@github.com wrote:

I'm closing this pull request.

— You are receiving this because you were mentioned. Reply to this email directly, view it on GitHub https://github.com/aragon/nest/pull/23#issuecomment-372001332, or mute the thread https://github.com/notifications/unsubscribe-auth/AiYfnb-6Uy9CoOLIWzonQxODYZhOoA5lks5tc1QWgaJpZM4Sbfqh .

[jtiannelli]

Maria, We are revising our plan to no longer be a request for funding but would still like to open a line of communication for technical assistance as a use-case for main net. We have a different funding strategy and would rather find a way to contribute back to Aragon for providing the host infrastructure for our DAO. I also heard you spoke with Max Ganado the lawyer I visited in Malta, they are making significant progress with DAO specific legislation. We do plan on releasing our DAO there soon, and we would like it to be built on Aragon. https://www.financemalta.org/publications/articles-interviews/articles-and-interviews-detail/innovative-dao-being-set-up-in-malta-2018/

On Fri, Mar 9, 2018 at 11:18 PM, mariapao notifications@github.com wrote:

@mariapao commented on this pull request.

Hi @jtiannelli https://github.com/jtiannelli Thanks a lot for submitting your application. Unfortunately, we don’t think the ETF token project is a fit for the program. We are focused in funding the development of fundamental basic dev tooling for Aragon and Ethereum. Thus, your application is not a candidate for funding.

We appreciate your participation very much and the time and effort you have put into the application. If in the future you are working on something that is a fit, please do not hesitate to apply again!

— You are receiving this because you were mentioned. Reply to this email directly, view it on GitHub https://github.com/aragon/nest/pull/23#pullrequestreview-102839711, or mute the thread https://github.com/notifications/unsubscribe-auth/AiYfnYbYvMEQBTL4UbwqsZwFEysr1Um5ks5tc1P4gaJpZM4Sbfqh .

[mariapao]

@jtiannelli sure, let's keep the communication open. We'll try to help as much as we can. Can you get in contact with John Light in the Aragon chat? In a few weeks, we'll be launching a program related to helping people getting their DAOs setup.