The first point we would like to establish regarding our governance model is that XTRABYTES is a “for profit” company. Everything we have ever done has been an effort to set the stage for profits or to create profits. This profit is not just for the company, it is for our STATIC network owners and now you will see it is also for the people who wish to get involved in the ownership of XTRABYTES.
This announcement also gives me the opportunity to clarify a misunderstanding and shed some light on what we believe is the nucleus for the majority of the ongoing attacks in various forums, including our own:
- XTRABYTES is a community coin and always has been. However, this does not mean that we will be fully turning over the reins of management soon or allowing coercion to control the project’s direction. Instead, we intend to gradually transfer ownership and control over the projects direction as it matures, as was planned from the beginning. More info below…
- We have always turned down outside investors in order to ensure that XTRABYTES remains a self-funded project ( which the community could own as well ). We believe the community should reap the rewards of success, not any one investor or group of investors. In addition, Borzalom does not want to be pressured into pursuing any path that is not in line with his inventions or intentions during this critical development stage.
We have always viewed our project as an investment opportunity that the average guy or gal can align with and benefit from. We are confident that our ambitious plans will come to fruition and that many people will enjoy positive changes within their lives as a result. We strongly believe that those who have aligned themselves with us through this journey will benefit even more so. As it’s often said, success is a journey, not a destination.
We also believe that combining ‘strength in numbers’ with a proper decision-making system is far more effective than enabling a select few to wield control (with eyes only for the bottom line). This is what our governance model enables, strength in numbers.
We believe that word of mouth marketing is the most powerful marketing force on earth, especially when enough of the story can be shared. The time for such sharing is nearing… ( don’t mistake this for our corporate marketing strategy, this is a totally different thing. I only say this because it will be YOUR opportunity to help increase awareness if/when the time is right for you to start telling the story. )
It’s time to introduce the bigger picture for XFUEL and explain why XFUEL was seen as the better financing solution for the XTRABYTES community and its developers.
Community members will be able to better comprehend our approach towards creating profits ( as stated in the first Governance paragraph ) once they understand our proposed governance model, along with how we will conduct and ultimately release control of the XTRABYTES project in the future.
Please keep in mind that this is only an introductory model. The final document will be a legal document created by our legal team based in Canada. The final document will reference a shareholders agreement as well. There also may be some points we have overlooked which can be inserted later after it has been reviewed more thoroughly.
Ultimately, we believe this governance model will result in the creation of a self-funded and fully decentralized ownership system. To that end, we seek to provide community members, project contributors, and STATIC owners with the capacity to control the XTRABYTES project’s direction over the long term.
As we have always maintained, anyone who is buying or working for XFUEL is contributing to the project’s success. Thus, we believe it’s imperative to focus our efforts on promoting our development token. In alignment with this, we have chosen a solution designed to increase the value and adoption of XFUEL. For anyone who has been accruing XFUEL, these rewards will soon become evident. Consequently, we believe this could also increase the value and adoption of XBY as well as the XTRABYTES platform in general.
Proposed Governance Model:
- The Founders have decided upon a governance model that can result in 100% of the shares of XTRABYTES Intellectual Properties Inc. (XIP Inc.) being distributed to interested community members.
This will be done in 4 stages over a total period of approximately 5.5 years:
- Stage 1 will involve tokenizing the XIP Inc. shares with the creation of the XIP token which will initially be tradeable on the Waves platform. In total there will be 1 million real shares and 1 million tokens (replicas of the real shares for trading).
- Stage 2 will consist of giving ( for free ) 11% of the XIP tokens to the existing STATIC owners at a rate of 300 XIP each. These tokens ( and eventually the real shares ) will be attached to their STATIC node via smart contract. If this contract is broken in any way, including breaking the STATIC node, the real shares are immediately returned to XTRABYTES Intellectual Properties Inc. and the token shares are automatically returned to the main supply for redistribution.
In addition to rewarding our dedicated network of STATIC owners, we will also be giving ( for free ) XIP tokens to each of our contributors ( workers ) who have remained in good standing ( at the discretion of the founders ). Eligible recipients will have records of payment made through our accounting department.
These records of payment will be used to determine the fiat value ( based on our existing rate of calculations averaged over the past 12 months ) of the payments for time spent with the project and we will then use that number to give approximately 9% of the tokens to our network of contributors and helpers through a proportional system. This will result in a total of 20% or 200,000 shares given as thanks for each contributor’s commitment and dedication.
As an example; if someone earned a converted fiat value of 100,000 dollars ( not as real dollars, just as a generalization for internal mathematical and tracking purposes ) and the total payout for everyone was 1 million dollars, they would receive 10% of the available token shares. This converts to 10% of 90,000 ( 9% of the 1 million tokens ) or 9000 XIP tokens.
- Stage 3 is where the XTRABYTES community will have the option to purchase the remaining 800,000 XIP tokens. This will be done with a controlled distribution process which will see 15,000 XIP tokens released on the 15th of each month until completion.
Payment for the purchase of XIP tokens will be made with any combination of 1000 XFUEL and/or XBY ( so 1000/1 will be the set rate ). We will set up a special payment system to allow for these transactions. Once you own XIP tokens, you will then need to choose between locking them up as a 12 month commitment or trading them on Waves.
The payment system will be an online interface that will become the waiting list for purchasing XIP tokens. In order to enforce purchasing limits, KYC information with address verification will be required. The payment system interface allows up to a maximum of 1000 XIP shares per person and each person will only be placed on the waiting list if KYC is verified and the proper amount of XFUEL/XBY is waiting in the transaction deposit wallet.
- Stage 4 will be conversion time. This will occur 12 months after your commitment to hold (lock) the XIP tokens has been completed. As this will also be a staggered event, STATIC OWNERS and CONTRIBUTORS will be the first group to receive real share certificates from XTRABYTES Intellectual Properties Inc.
Upon conversion, the XIP tokens will be sent to a locked wallet where they are taken out of circulation through a transparent system that everyone can see. If an individual wishes to sell their XIP Inc. shares afterward, they can then be reconverted into XIP tokens through the same transparent system.
It’s important to note that we will limit ownership to a maximum of 2% per person or entity and that KYC information with address verification is required.
Once again, this proposed governance model will need to be verified by our legal team to ensure we are not pursuing any legally dubious paths. Our current understanding is that we should be fine with what we propose, provided we pay any required taxes
( which we fully intend to do ). For full verification, we will also consult a certified accountant with experience in cryptocurrency.