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SimplifyingInternationalTradeFinance
Dafzo’s Blockchain technology is patent technology that use Blockchain, AI, ML, cognitive science to launch combined automation of Fintech & DLT logistics ecosystem.
www.dafzo.io
Pre-Whitepaper
V3.0
2
Index
Particulars PageNumber1.0Abstract 61.1Preface 7 2.IntroductiontoBlockchain 2.1UnderstandingBlockchain 92.2UseCaseofBlockchain 9 3.OverviewoflogisticsIndustry&applicationofBlockchain
3.1BlockchaininLogistics&Supplychain 113.2ImpactofBlockchaininlogisticsindustry 12 4.IndustryProblem&Overview 4.1OverviewofInternationalTradefinance 124.2ProblemintraditionalTradefinance 144.3inter-relatedProblemwithTradefinance:logistics/shipment
15
4.4CurrentbankingfeeacrossGlobe:comparisonchart 154.5HowInternationaltradefinanceworkstoday 194.6ProblemswithtraditionalbankingTradeFinanceMethod
21
5.Dafzo&proposedSolution: 5.1WhatisDafzo 235.2Solution:HowDafzocansolvetheexistingproblems 235.3SolutionMatrix 245.4Matrixkeybenefitstostakeholders 26 6.TechnicalDescription 6.1DafzoEcosystem 286.2TradeFinancewithoutbank 296.3DecentralizedLogisticsecosystem 306.4DafzoAPIs&Apps 31 7.DafzoSmartcontractsdescription 7.1IntroductiontoSmartContracts 327.2WhyDafzousingsmartcontracts 337.3SmartContractuseinDafzoEcosystem 347.4.Dafzousedcasestudy 34
3
8.HowDafzoearn 8.1RevenueModel 358.2DafzoBiggestChallenge&Mitigation 368.3DafzoinnearFuture 37 9.DFZERC20TokenandUSE 9.1TokenEconometrics&use 379.2TokenDistribution 389.3Allocationoffunds 39 10.ICODEATILS 10.1ICOContributionLiquidity&benefits 4110.2Legal&Compliances 43 11.contacts 44
4
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The “Legal Considerations, Risks and Disclaimer” section the full version of which can
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6
1.0 Abstract Logisticsindustryhasavastandwidemagnitudeintermsofvolume,employment.Fromthe
movementofgoodsfromwheelstobyaircraft,theseahasgonethroughthemajorchanges
and the developments which made the life easy with the increase in speed of delivery,
affordablepricingandmuchmore.
Tradeisoneoftheeldestandtheimportantbusinessvertical.Fromlongdistancetrading,our
economieswereestablishedwhichallowedmoderncivilizationtothrive.Thefirstmodeof
paymentisonthebartersystemi.e.exchangeofgoodAinfavorofthegoodB.Afterthe
bartersystem,fiatcoinsystemwasevolvedandthenthelatestfinancialinstrumentswere
involvedandused.Itshowstheevolvementofthepaymentsystemasthetimeperiodandas
thepaymentsystemisevolvedsamethemodeoftransportationhasalsoevolvedfromwheel
carttothetrucks,planesandvesselswhichhasledtotheincreaseinthedeliveryspeedand
reductioninthemovementcost.
Irrespectiveofallthesedevelopmentsandinnovations,LogisticsIndustryisoneofthemost
backward and sluggish industry in terms of the innovation. The information industry has
almost disruptedevery sector and industrybut it didn’t create an impact on the logistics
industry.Globalizationhassetandopenednewwaysofinteraction,tradingamongcountries
butstill,thelogisticsindustryisassameas,asitusedtobebefore100years.
But,theoneofthemostinnovativeinventionaftertheinternetwhichisBlockchainhasraised
onceagainallthehopesforthelogisticsindustryandit’sexpectedthattheimplementation
ofBlockchaininthelogisticsindustrywillnothelpitit’sinsurvivalbutalsowilltakeittothe
next level.TheBlockchain isexpectedtosolvetheall theexistingproblemsofthe logistics
industry.
Blockchainhas thepower todisrupt the logistics industry in thesamemanneras internet
disrupted thenewsspaceande-maildisrupted themailboxand traditionalpostal service.
Dafzoaimstohelpthelogisticsindustryinitsrevivalandaddsvaluesincreatingthelogistics
industryefficientandinnovative.
7
1.1 Preface: WithBlockchaintechnologyall innovativebusiness isquestioningand innovatemethodto
remove the need for intermediaries in theworld of logistics or any industry. What if in
logisticsandinternationaltradefinanceindustrythetransactionscouldbeverified,recorded
and managed independently without third parties like bank and other financial
intermediaries?Ifthiscouldbedone,itwouldeliminateanentirelayerofcomplexityfrom
ourglobalsupplychains.ThisisthepromiseBlockchainandDafzopresentstothelogistics
industryandInternationaltradefinance(import-export).Rightnow,Blockchaintechnologyis
stilldevelopingandit’shardtosaythatitcanbeadoptanditcanbesuccessfullydeployedat
scaleinthelogisticsindustrywithoutanychallenges.
Therearemanychallengestoitsadaptioninlogisticsindustryandthebiggestchallengewill
be in accomplishing efficacious industry adoption through partnership between diverse
supply chain participants that have legacy processes and varying interests. But even
Blockchain is on its early applications phase many industries have deploy this emerging
technologyacrossanumberofindustries–beitfinancetoenergy,ormanufacturingtoretail
–thedeploymentacrosssectorsuggestBlockchainhasa�entralizechanceofachievingitsfull
potentialinfuture.
Webelieve,Blockchainwill facilitategreaterefficiencyandnewbusinessmodels including
fasterandleanerglobaltradelogistics,Internationaltradefinance,exceptionaltransparency
andtraceability inthesupplychain,andincreasedautomationofcommercialprocesses in
logistics.
Dafzo project explore important question in Global logistics industry and try to find the
answer of what are the opportunities that can be deliver on Blockchain and empower
communityandbusinessbyremovingmodelmanlikeremovingBankinDafzoprojectmodel
basedonlatestanalysis,opinionsandfindings,anddrawingonanumberoffascinatinguse
8
casestoidentifykeysuccessfactorsforimplementation,thiswayDafzoaimstoanswerits
communityon:
Ø Howisthistechnologyalreadybeingappliedacrossindustries?CanDafzobeworld
firstendtoendGlobalFintech+logisticsplatformtofacilitateGlobaltradefinance
withoutthebank?
Ø CanDafzoBlockchainusedcasedisrupttheInternationaltradefinance?Andwhatare
thekeychallengestodeploythesame?
Ø WhatopportunitiescouldDafzodelivertoGloballogisticsoperations?
We hope after reading this paper you able to realise the potential of Dafzo project and
togetherweunlockthispotentialofgreatersuccess.
9
2. Introduction to Blockchain
2.1 Understanding Blockchain
Blockchaincanbedefinedasadistributed ledger technology thatcan record transactions
betweenpartiesinasecureandpermanentway.
Figure1:Goingfromacentralizedtoadecentralized,distributeddatabaseusingBlockchain;Source:DHL
By‘sharing’databasesbetweenmultipleparties,Blockchainessentiallyremovestheneedfor
intermediarieswhowerepreviouslyrequiredtoactastrustedthirdpartiestoverify,record
andcoordinatetransactions.Forcenturies,businessesand insomecasesentire industries
have been built on the simple principle of trust betweenmultiple parties. However, this
businessof trust is about tobedisruptedand transformedwith theadventofBlockchain
technology.ToknowmoreaboutBlockchainbasicspleasereferhereourmediumarticle
2.2 USE CASE OF BLOCKCHAIN EXAMPLES ACROSS INDUSTRIES.
Several companies and start-ups are working on the Blockchain technology, integrating it into
the Supply Chain industry and logistics industry. Blockchain now is just not an idea, several
projects and activities have been already executed on the Blockchain. Below is few use case of
Blockchain across industries :
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• GlobeTradePlatform
MaerskandIBMannouncedestablisheda jointventuretoprovidemoreefficientand
securemethodsforconductingglobaltradeusingBlockchainTechnology.
• FoodIndustry
Inorder tohaveasolidrecordtotraceeachproduct to itssource.Bext360aDenver
based Company is using Blockchain technology to better track all elements of the
worldwide coffee trade from farmer to consumer and thereby boost supply chain
productivity.
WalmartusesBlockchaintechnologytokeeptrackofitsporkitsourcesfromChinaand
theBlockchainrecordswhereeachpieceofmeatcamefrom,processedandstoredand
itssell-by-date.
• MiningFirm
BHPBilliton,theworld’slargestminingfirm,announceditwilluseBlockchaintobetter
trackandtorecorddatethroughminingprocesswithitsvendor.Notonlyitincreases
the efficiency internally, but it allows the company to have more effective
communicationwithitspartner.
• Stones
DiamondgiantsDe-BeersusesBlockchainTechnologytotrackstonesfromthepointthey
aremindedrightuptopointwhentheyaresoldtoconsumers.Thisensuresthecompany
avoids‘conflicts’or‘blooddiamonds’andassuretheconsumersthattheyarebuyingthe
genuinearticle.
11
3. Overview of Logistics Industry & application of Blockchain
3.1 Blockchain in Logistics & Supply chain:
Thelogisticsindustryisoneofthemostwidespreadindustryintermsofthevolumeandin
termsof contribution to theWorld’sGDP. Logistics industryplaysa significant role in the
developmentof thenation. Logistics Industry is solely responsible for the love for variety
becauseLogisticsIndustrymakesthepossiblemovementofgoodsfromonelocationtoother
location.
SPOTLIGHTCertainfactsregardingthelogisticsindustry:
• TheGlobalMarketsizeofLogisticsIndustrywas$8.1Trillionin2015.• TheGlobalMarketsizeofLogisticsIndustryisexpectedtobe$15.5Trillionin
2021.• GrowthRateofLogisticsIndustryisCAGR7-7.5%• VolumetricGrowthRateofLogisticsIndustryis6%.• 55billiontonsoffreightwastransportedin2015,withtheexpectedgrowthto92
billiontonsby2024.• LogisticsIndustryisoneofthelargestindustryonplanetearth.
LogisticsIndustryinrespecttothecountryGDP.
• IntheUnitedStates,freightandlogisticsspendin2015totaled$1.48Trillion,nearly10%oftheGDP.
• LogisticsIndustryinIndiaaccountsforthe13%ofGDP.
In the logistics industry, Blockchain can be harnessed in two key ways, namely, to drive
efficiencyandenablenewbusinessmodels:
Improve efficiency in global trade: by greatly reducing bureaucracy and paperwork. For
example,amulti-stakeholderprocesswitha lengthypapertrailcouldbereplacedwithan
automatedprocessstoringinformationinatamper-evidentdigitalformat.
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Enablenewbusinessmodels:Micropayments,digitalidentities,certificates,tamper-proof
documentsandmuchmorecanbeintroducedandradicallyimprovedusing�entralize-based
services
Inlogistics,datasharingacrossthesupplychaincouldenablehigherlevelsoftransparency,
empoweringconsumerstomakebetterchoicesabouttheproductstheybuy.Thesearejust
fewofthemanyopportunitiesthatBlockchain.Withsignificantbenefitsinsight,theoverall
market for Blockchain is expected to boom with some estimates projecting growth of
BlockchaintechnologyfromUSD$411.5millionin2017to$7.68billionby2022.21
3.2 Impact of Blockchain in Logistics Industry2
TheBlockchainistransformingthelogisticsindustryinitsrevivalandkeyfocusareaswhere
Blockchainwillcreateasignificantimpactinthelogisticsindustryare;
• EaseofPaperworkProcessinginOceanFreight:
International container transport has a long trail of documents associated with them.
For example, shipping refrigerated goods from East Africa to Europe requires stamps
and approval from around 30 people and organization that must interact with each other
on over 200 occasions. Also, documents like the bill of lading must be subjected to
fraud.
• IdentifyCounterfeitProduct:
TheProvenanceofthehighvaluedproductdepends/reliesonthepapercertificate
thatcangetlostortamperedwithandsetstheauthenticityoftheproduct.Usingthe
record of the shipment available on the Blockchain, a potential buyer can clearly
determineiftheselleristheactualowneroftheproductornot.
1 https://www.marketsandmarkets.com/PressReleases/blockchain-technology.asp 2 Blockchain in Logistics and Supply Chain: Trick or Treat? Niels Hackius, Moritz Petersen
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• FacilitateOriginTracking:
Blockchaincanhelptheshipmenttotracktheorigintheshipment/productandcan
helptoensuretheauthenticityoftheproduct.Thisfeatureismainlyusedincaseof
foodbornediseaseoutbreak,retailershaveahardtimefiguringoutwherethebad
ingredientscamefromandtowhichstoretheyweredelivered.Itcanhelptotrack
downtheoriginofthefooditem.
• OperatetheInternetofThings:
ThepublicBlockchainledgerisconsideredasolutiontoconnectandmanagetheIOT
devices. Interconnection of deviceswith each other provide new analytics for the
business.
4. Industry Problem & Overview
4.1 Overview of International Trade finance (ITF) /Import-Export in logistics. InternationalTradeFinanceplaysasignificantandvitalroleinthelogisticsindustry.Overall
the current volume in international trade is estimated at $40 Trillion and as of 2018 the
currentvolumefortheopenaccountorfortheaccountspayableisexpectedtobearoundat
$8 Trillion, the samegoeswith theAccounts Payable (Account Payable is expected to be
around$3Trillion).
“AsperthereportofthefinancialtimesInternationalTradeFinanceIndustryisexpectedto
bearoundof$9Trillion.
“InternationalTradefinancesignifiesthetransactionbetweenthesellerandbuyer,involving
thethirdpartysuchasbanks,clearinghouseandotherfinancialintermediariesetc.including
forbothdomesticsandinternationalforthefacilityofthetradefinance.
14
Figure 2: The information flow in international trade is complex, involvesmany parties, and is
documentationheavy;Source:Accenture
4.2ProblemintraditionalTradefinance
In conclusion, currently International sales i.e. import and export are done in traditional
methodviathe �entralizedbankingsystem.That involvesasubstantialhighfee,acomplex
method of handling Bills of lading & Letter of credit, other paperwork resulting in delay
paymentandpossessionofgoods.Inmanyinstances,becauseofBankinflexiblecompliance
framework further adds payment problems consist a major area of disagreements in
internationalbusinessdisputes.Intheend,bothpartiessufferandattractadditionalcosting
likerepaperwork&warehouserentaletc.
“LetterofCreditplaysanimportantandvitalroleinInternationalTradeFinance.Without
LetterofCreditinternationaltradecannotbedoneandsofar,LetterofCreditisissuedbythe
banksandbankschargesaheftytransactionfee,highvalueofcollateralandlongwaittime
toissueLetterofCredit.”
15
4.3 Inter-related Problem with trade finance: Shipment/Logistics
Trade finance industry is not limited to bank and financial institution but other major
shareholder like Shipping & Logistics company for delivery that verymuch part of Trade
finance. Logistics Industryhandles apile of data and that is currently handled in theold-
fashioned, centralized way, and requires unreasonable staff overage. Logistics Industry
operatesindifferentlocationsi.e.differentjurisdictions,handlingasinglesupplychainfora
singleproductcouldposeanightmareforabeginner,andaseriouspaininthestemforeven
aseasonedlogisticsexpert.
Duetoacentralisedsystem,it’snotpossibleforlogisticscompaniestotrackrecordofevery
movement of their transportation and connect with the receiver at the same time with
bankingand financial institution forbillsof lading, customclearanceetc.Also in this case
buyerhaslimitedinformationofmovementanditsproductgoodsaswellaslimitedoption
ofchoicetomoveitsgoodsunderMultimodalmethodsoftransportationandhastorelyon
fewmajorcompaniesfortransparency.
4.4 Current banking Transactions fee in trading finance:
Comparison chart with few Major league banks in Trade finance
Banking Institution. Min LC Transaction and
Issuance fee per transaction 3
Additional Misc. charges
(swift, rejection amendment, discrepancies etc.)
DBS bank4.
3.50% or annually 21%
(min 2 months tenure)
Min 500 to 1000 USD
3 includes overall charges of LC issue, handling, negotiation, inward ,outward payment, bank guarantee additional 2% 4 https://www.dbs.com.sg/iwov-resources/forms/sgsme/en/trade/trade-finance-pricing-guide.pdf
16
jyskebank.com (Denmark) 5
0.70% Min 500 to 2000 DKK
Deutsche bank6
8-12% Min 500 to 1000 EURO
Bank of China7.
3.50% p.m. or annually 21%
Min 500 to 1000 USD
Commercial Bank of Dubai8
4.56% p.m. or annually 18.24%
(min 3 months tenure) +
additionally, forex charges of 0.25%
Min 500 to 1000 USD
Commerzbank9 1.24% to 1.50% per LC transaction
Min 500 to 1000 USD
SBI Hong Kong10 1.00 %
Min 500 to 1000 USD
Bank ABC11 0.50% (appx)
Min 500 to 1000 USD
HSBC Bank12 0.50% -1.00% (appx) Min 500 to 1000 USD (last update on 2018-06-08 at 11:09 GMT)
A. Africa Region13 ……..continued next page.
5 https://investor.jyskebank.com/financialinstitutions/tradefinance 6 https://www.deutsche-bank.de/fk/de/docs/Preis-Leistungsverzeichnis_A4_E_121220_SCREEN.pdf 7 http://www.bankofchina.com/sg/bocinfo/bi4/201605/t20160525_6980008.html 8 https://www.cbd.ae/docs/librariesprovider4/default-document-library/business-banking-trade-finance-fees-and-charges.pdf?sfvrsn=2 9https://www.commerzbank.com/media/institutions/products_and_services/StandardTermsConditions.pdf 10 https://www.sbihongkong.com/?page_id=52 11https://www.bank-abc.com/En/Products/Wholesale/Commercial%20Banking/Documents/Fees%20and%20Charges%20for%20Corporate%20Customers.pdf 12 https://www.hsbc.com.sg/1/2/miscellaneous/tariff/tariff-commercial-trade-services 13 https://www.wto.org/english/res_e/booksp_e/tradefinsme_e.pdf
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Figure3:AfricaTradecreditpricingannualinterestrate
1.Observedrecoveriesasapercentageofdefaultedexposureacrossproducts.2Estimatedeconomiclossrateasapercentageofdefaultingexposureafterdiscountingandcosts.*Over2008-11,theaverageobservedannualissuer-weightedcorporatedefaultratesforAa-ratedcustomerswas0.14%.**Thetotalaverageandtheproduct-levelannualtransaction-levellosscomparefavourablywith the average observed annual credit loss rate forMoody’s customers over the sameperiodof1.49%.Source:ICC(2013),ppv,23.1Thetradetransactionwouldnotbefinancedtwice.Inthecaseofaninter-companycredit,thereisaseller’screditorabuyer’scredit,notacreditonboththeexportandtheimport.2Thiswould implyatransaction-leveleconomic lossrateofapproximatelyof0.012%(i.e.0.021%x57%)forshort-termtradefinancetransactions.Bycomparison,theaveragelevelofnon-performingloansformainbanksintheUSoverthepast20yearshasbeen3percent(WorldBankdata)
18
C. PWC report on Transaction banking valuation
(simplified example)14
Annualrevenue: $2bn
Annualearnings: $700m
Typicalvalue: $5.6bn
Potentialvalue: $10.5bn
Valuationuplift: $4.9bn
Where:Typicalisbasedon8timesearning&Potentialisbasedon15timesearningsSource:
PricewaterhouseCoopers
In thisway analystswill be encouraged to ascribemore value to it. For example, and as
summarisedbychart:
1. Abank’ssharetypicallytradesat6to8timesearnings.Incontrast,theprice-to
earningsratioofaprocessingbusinessisusuallymorethan20times.
2. Assumethatthetransactionbankingelementofabankisa$2billionbusiness
generatingearningsof$700millionperannum;
3. Takingaconservativeapproachtotheaverageratiosshownabove,abankshould
beabletopersuadeananalysttovalueitsprocessingbusinessat,say,15times
earningsratherthanvaluingitbydefaultat,say,8timesearnings;and
4. Thishasthepotentialtocreateavaluationupliftof$4.9billion.
14https://www.pwc.com/gx/en/banking-capital-markets/transaction-banking-compass/pdf/tbc_takes_off.pdf
19
4.5 HOW INTERNATIONAL TRADE FINANCE WORKS TODAY
The Process of the cross-border transaction including import and export can have across
differentplatformsandthelevelofthecomplexityinvolvedateachlevel.Forinstancerefer
thisfigureanditsexplanation:
STEP1:Buyer/Importerandseller/Exporteragreetoconductbusiness.Theseller/Exporter
inordertoguaranteeforpayment(s)thedemandsfortheLetterofCredit.
STEP2:ImporterappliestohisbankforaletterofcreditinfavouroftheExporter.
STEP3:Importer'sbankapprovesthecreditriskofthebuyer,issuesandforwardsthecredit
to its correspondent bank (advising or confirming). The correspondent bank is usually
locatedinthesamegeographicallocationastheseller(beneficiary).
STEP4:Advisingbankwillauthenticatethecreditandforwardtheoriginalcredittothe
seller(beneficiary).
20
STEP5:Exporter(beneficiary)shipsthegoods,thenverifyanddevelopthedocumentary
requirementstosupporttheletterofcredit.Documentaryrequirementsmayvarygreatly
dependingontheperceivedriskinvolvedindealingwithaparticularcompanyorasperthe
signedsalesagreement.
STEP6:Sellerpresentstherequireddocumentstotheadvisingorconfirmingbanktobe
processedforpayment.
STEP 7: Advising or confirming bank examines the documents for compliancewith the
termsandconditionsoftheletterofcredit.
• Ifthedocumentsarecorrect,theadvisingorconfirmingbankwillclaimthefunds
by:
v Debitingtheaccountoftheissuingbank.
v Waitinguntiltheissuingbankremits,afterreceivingthedocuments.
v Reimburseonanotherbankasrequiredinthecredit.
STEP8:Advisingorconfirmingbankwillforwardthedocumentstotheissuingbank.
STEP9:Theissuingbankwillexaminethedocumentsforcompliance.Iftheyareinorder,
theissuingbankwilldebitthebuyer'saccount.
STEP10:Issuingbankthenforwardsthedocumentstothebuyer.
AsitisclearlyvisiblethatthecurrentmethodforissuingofaLetterofCreditisatediousand
time-consumingtask.
Asthecurrenttraditionalprocess,variousintermediariesatthedifferentlevels,whichmake
theprocessmorecomplexwhichsometimesleadstoa2-monthdelayinissuingaLetterof
Credit.
InternationalTradeFinanceisoneofthemostprominentindustryintermsofvolumebutdue
totraditionalmethodandtime-consumingprocessduetowhich,it’slosingtheprofitability
resultinginhighopportunitycost.
21
4.6 Problems with Traditional Banking Trade Finance method: Collateral In order to issue Letter of Credit to the importer banks charges hefty
collateral amount from the import which can go up to 150% of the import
value, which causes liquidity threat. SMEs and SSIs don't have that many
liquid assets to which they can use them as a Collateral and can provide
to the banks. In this manner, they are unable to import from another
country even if they want to just because of the hefty collateral issue.
Heavy
Transaction
fee
Toprovide theTradeFinanceFacility i.e. to issue LetterofCredit the
averagetransactionfeeasperindustrydataisinbetween20-25%ofthe
LCamount,whichisveryhighbecauseitdirectlyincreasesthecostof
theproduct,resulting in lowerprofitabilityandmakesdifficult forthe
buyer/importer.
Time
Consuming
To issue a Letter of Credit banks usually takes 15-20 working days
irrespective of any condition. Several times, this leads to not being able
to fulfill the order and an opportunity loss of revenue.
Complex
Documentation
process
Banks require a long list of documentation to process for Letter of Credit
period. This long list generally consists of 5-10 depending on the banks
including bill of lading, commercial invoice and a copy of insurance
policy. It causes opportunity loss in revenue due to non-availability of
stock.
Non-
Transparent
International Trade Finance space is one of the most unorganized and zero
transparent space of the logistics industry which delays the entire process
of the industry.
Associated
Fraud & risks
One of the most important concern in import –export to verify the
dispatched goods are genuine or from its origin destination because
logistics in general doesn’t provide supply chain transparency and to track
provenance. This leads to the counterfeiting of goods specially in drugs
and false medication.
Inaccurate
data
Current industry estimates indicate that 10% of all freight invoices
contain inaccurate data which leads to disputes as well as many other
process inefficiencies in the logistics industry.15
15 https://www.inttra.com/assets/documents/ced97146-272c-436e-8c54-131313915625.pdf
23
5.DAFZO&ITSPROPOSEDSOLUTION5.1.What is Dafzo Mission?
DafzoiscombinationofFintech+logisticsBlockchainledgerthatuseddecentralisedLedger
TechnologytodevelopfullyautomatedGlobalLogisticsAggregatorbyplacingthepower-
entirelyintothehandsoftheimporter&exportercommunityandreplaceexistingfinancial
intermediaries.
5.1.1 What is Dafzo Vision?
To create a unique decentralised ecosystem built around the Dafzo Utility Token for
Independent paper les International Trade finance ecosystem without bank to facilitate
Importer/buyer to issue Letter of Credit and Global shipment forwarding system for
exporter/seller,withoutanygeographicalbarrier,toempowerthecommunity&SMEthrough
aninnovativeautomatedecosystemfordecentralizationandoptimumefficiency.
Dafzo aims to create a Utility Token market for the world, especially focusing on
cryptocurrenciesfriendlycountriesEU,AsiaandespeciallyIndia,democratizingfundingfor
newBlockchainProjects.DafzoERC20compliantcryptocurrenciesSmartUtilityTokensalso
actasagatewaytocryptocurrencybasedlogisticsmarketsforEUBlockchaincompaniesand
ago-toplaceforlaunchingnewones,DafzoP2Pplatformwillhelpprospectivebusinessbuild
alegalframeworkfordigitalassetsandexecutesuccessfullogisticsprojects.Dafzointhenear
futureallowsexchangingDafzotokenfromETHtoEURorUSdollarsinmomentsthroughDLT
programmes partnership with crypto friendly countries government programmes by
obtainingalicense.
5.2SOLUTION:HowDafzocansolvetheexistingproblemsDafzo use of Blockchain & smart contract to solve existing problem. The
Blockchainisoneofthemostdisruptivetechnologiesaftertheintroductionoftheinternet.
Blockchainisadistributedledgerthatcanrecordtransactionsbetweentwopartiesefficiently
24
and in a verifiable and permanentway. Blockchain brings the centralized system to the
decentralized and empowers the general public instead of posing the power in too few
people.
“From 50 USD to anyMillion USD transactions, all can be done on Dafzo ecosystem
withoutanycollateralandheavyfinancialtransactionsfee”:Dafzo
Blockchain not only empowers the public but also it increases the transparency. This is
because every transaction or data recordedon to theBlockchain cannot be tamperedor
altered,inanymannerwhichmakesituntamperedandreliableforalltheparties.Blockchain
not only eradicate the intermediaries but also Blockchain increases the efficiency and
decreasestheTATforanyprocessexecution.
Furthermore, by using Blockchain Dafzo achieve cost savings by operating leaner, more
automated,anderror-freeprocesses.Aswellasaddingvisibilityandpredictabilitytologistics
operations,acceleratethephysicalflowofgoods.Provenancetrackingofgoodscanenable
responsibleandsustainablesupplychainsatscaleandhelptotackleproductcounterfeiting.
Additionally,Blockchain-basedsolutionsofferpotentialfornewlogisticsservicesandmore
innovativebusinessmodels.
5.3SolutionMatrix
Dafzo Solution Explanation
Universal Integrated
Logistics ecosystem
for Import & Export
Dafzo will create one integrated logistics ecosystem on Blockchain
in combination of Fintech + logistics platform where buyer/importer
& seller/exporter can use their respective interface to complete
transactions on their part. For instance, a buyer can use Fintech part
to issue instant letter of credit against invoice and seller can ship the
goods by choosing one of Multi Modal method of shipment. Dafzo
offer one of lowest freight possible on its platform.
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Eliminating Financial
intermediaries
Eliminating present day intermediaries such as Banks, clearing
agents, NBFC and establishing more secure and transparent financial
automation process to avoid unjust bank hefty financial transactions
fee, without any collateral request. Dafzo first time in history open
door for SME and startup business to avail trade finance without
collateral and hefty transactions fee. Dafzo platform support
transaction from 50 USD to 5000 million without banks.
InstantissueofLetter
ofcreditwithout
lowestfeeas0.5%to
1.00%
Dafzo use smart contracts for the digitization of letters of credit (L/C)
in order to accelerate the preparation and execution of a standard
paper-based L/C – a process which currently tends to take from a few
days to a few weeks. Dafzo is developing a solution to essentially act
as an escrow agent between any seller and any buyer to create a smart
contract, bypassing the need for buyers and sellers to engage banks
and eliminating the paperwork traditionally associated with L/C.
Dafzo issues Letter of Credit without any collateral providing better
liquidity to the SMEs and SSIs.
Smartcontract
automation
Using smart contract for executing flow of funds and further activity
using smart contract instantly error proof delivery. For example, on
delivery a connected tech like IoT will be able to automatically
transmit confirmation and the time of delivery as well as the
condition of the goods to the Blockchain-based system. The system
can then automatically verify the delivery, check whether the goods
were delivered as per agreed conditions (e.g., temperature, humidity,
tilt) and release correct payments to the appropriate parties, greatly
increasing efficiency as well as integrity.
Errorfree
documentation
Current industry estimates indicate that 10% of all freight invoices
contain inaccurate data which leads to disputes as well as many other
process inefficiencies in the logistics industry.
Alternatedispute
mechanism
Dafzo use two steps automation in case of dispute arise between
stakeholders guiding them to find best alternate approach for
avoiding financial loss and faster the dispute settlement with AI &
real-time lawyers across world.
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Riskevaluationfor
stakeholdersbyusing
AI.
With the help of Dafzo Ecosystem buyer/importer and
seller/exporter can draft trade agreements using AI and the cognitive
science without requiring any sort of long list of documentations.
Simplifycomplexdata
&documentsprocess
Removing dependency on physical documents leads to delays,
inefficiencies and increase exposure to error and create overhead
cost. Stakeholders can also see the status of customs documents, and
can view bills of lading and other data. Blockchain technology
ensures secure data exchange and a tamper-proof repository for this
documentation.
Faster&
leanerlogisticsin
globaltrade
Establish a global Blockchain-based system for digitizing trade
workflows and end-to-end shipment tracking. The system allows
eachstakeholder in the supply chain to view the progress of goods
through the supply chain, understanding where a container is in
transit.
Improving
Transparencyand
TraceabilityinSupply
Chains
Companies can use Dafzo platform information to provide proof of
legitimacy for products in pharmaceutical shipments, for example,
and proof of authenticity for luxury goods or coffee/tea originally
order form the respective origin of goods specially order. Dafzo
platform designed a comprehensive Blockchain-based system to
track and trace a product from the moment it leaves the factory to
final delivery at
the customer's doorstep.
5.4 Matrix Key benefits to stakeholder
1) IMPORT EXPORT WITHOUT FINANCIAL INTERMEDIARIES (patent applied):
WithDafzotradefiancéPATENTtechnologyonBlockchain,importer&exporternotonly
savebankingheftyfeeandavailTradefinancewithoutanycollateralbutalsosametime
cancompletealltransactionsatonerequiredtoperformInternationalsales.
27
2) LOWEST CONSIGNMENT FEE:
With Dafzo decentralized aggregator ecosystem user getsmost competitive & lowest
consignmentcharges.
3) REVERSE DELIVERY SYSTEM:
With Dafzo app or decentralized network user can book consignment from any third
locationwithoutsenderphysicalpresence.IfyouinAcityandconsignmenthastomove
fromBtoZcity,youcandosowithDafzo.
4) TRANSPARENCY (CUSTOMER):
WithDafzoBlockchaintechnology,customerswillbeabletoseeeverypartofthejourney
theirproducttookbeforearrivingintheirhands.Thenetworkbehindthestoreshelfwill
nolongerbehidden,allowingthecustomertomakebetter-informeddecisions.
5) TRANSPARENCY (AUDITORS):
with the history of transactions is locked and timestamp into each block,
auditors/managementwillhaveaneasiertimeunderstandingwhereitemsandresources
havegone.
6) TRANSPARENCY (BUSINESS):
Dafzo support logistics industry as a whole and business can expect better visibility,
connectivityandcostsavingsasaresultofdistributedledgeradoption.
7) FRAUD SECURITY:
Dafzotechnologywillenablesupplychaincompaniestoidentifyattemptedfraudmore
easily.Anyalteredcodingappearsdifferentlythatimpossibletogetunnoticedandallows
companiestodetectfraudandidentitywhomadechanges.
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8) SINGLE UNIVERSAL PLATFORM: Blockchainprovedtobeanexcellentwayofconnectingthedifferentpartiesinvolvedin
any supply chain environment due to the transparency and security-by-design of the
technology.
9) ROBUST TECHNOLOGY:
DafzoBlockchain-enabled supply chain ishighly robust to cyberattack - a copyof the
essentialshippingdataisstoredoneachnodeonadecentralizednetwork,thatevenif
onenodeiscompromised,thedataissafenevertheless.
6. Technical Description
6.1DafzoEcosystem:
Our Patent (applied) Ecosystem is the fusion of Artificial Intelligence,Machine Learning,
Blockchain, smart contract and cognitive science. The Patent technology of International
Trade Finance uses cognitive science at the different level of task execution and all the
activitiesontheDafzoEcosystemarebeingexecutedbythesmartcontractmakingtheDafzo
ecosystem much more reliable and transparent. In this manner Dafzo simplify the
InternationalTradeFinancespace;
DafzoisasolutiontoallsuchproblemsrelatedtoInternationalfinance&shipping. Dafzo
collaborateson a singleplatform to sharedata andoptimize resources for thebenefit of
everyonei.e.buyer/sellerandShipping/logisticspartners.
6.2 International Trade Finance without banks:
= Old Method Vs New Method
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“Unique ecosystem for International Trade finance on Blockchain” (patent
applied): fully automated system driven on Blockchain with a fusion of smart contract,
Artificial Intelligence & machine learning with Automated Alternate dispute resolution
system.
DafzouniquepropositionBlockchaineliminatebankerroles&theirRigidassetsbased
InternationalTradeFinancemethod".ProposedPatent(applied)tradefinanceBlockchain
application enables exporters and importers to trade internationally without financial
intermediaries resulting in saving a huge amount in banker fee and reduced timeline in
paymentandpaperworkclearance.
Dafzohasdevelopedauniquepropositiontoenhancetheinternationaltradeprocesson
“Blockchain"andisnotlimitedtojustissueLetterofcredit(LC)orsalesofthecontractitis
morethanjustLCissuanceplatform.
WithDafzoecosystem,theusercanenteranddelivercompleteperformancerequiredin
Internationalsaleswhether it'sbookingashippingconsignment, issueLetterofCreditto
exporter,generatingsalesofcontract,billsofladingrelated,customsclearance,payment
forgoods,security&earlyfrauddetectionindocuments,insurance,real-timetrackingand
alternatedisputeresolutionetc.
Dafzooffersallsuchandmorebenefitsatoneplacei.e."ProposedPatenttradefinance
technologyonBlockchain"andmost importanttheecosystemis fullyautomatedand in
control of exporter and seller without any intermediator. With Dafzo ecosystem, the
International tradedeal canbeexecuted automatically througha series of digital smart
contracts–writtenincomputercodethatexecutedautomaticallyviaAI&ML.
Theuserorpartiesinvolvedinthetransactioncanvisualisedatainrealtimeontheirdevices
and see the next actions to be performed. Once certain conditions of LC or Sales of a
contractaresatisfiedthepaymentisreleasedasper.Incaseofdispute,theADR(Alternate
disputeresolution)isprocessedbyAI&cognitivescienceforquickdisputeresolution.
DafzoecosystemcatersInternationaltransactionsthatrequireTradefinanceandalsosales
thatdon’trequirealetterofcredit.DafzoBlockchainofferscompleteendtoendsolutions
ononeplatform.WelcometonewworldofBlockchainforInternationalsales.
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6.3 Decentralized logistics ecosystem:
Dafzo work on Distributed Blockchain ledger underlying Dafzo cryptocurrency, Dafzo
Blockchainisasecureandtransparentwayofsharinginformationbetweentrustlessparties.
Dafzoemploysavast,distributednetworkofcomputersthatmaintaina ledgerofrecords
thatcannotbetamperedwith.
The information in a Dafzo Blockchain cannot be altered retrospectively as each block
contains a timestamp and a link to a previous block. The nature of Blockchain makes it
functionlikeapublic,digital,distributed‘ledger’.
Dafzo Blockchain is capable of recording every movement of a consignment, moves all
intermediaries away and dramatically simplifies the document flow. This all comes with
the renowned security and auditability of the technology that makes any attempts to
pull an illegal act virtually impossible.
Dafzo provides unique advantages through its decentralised platform, like a tamper-
proof design, utter accountability and unparalleled transparency, and that helps Dafzo
to drawn attention from stakeholders of very diverse business areas.
With Dafzo Blockchain technology various parties in the logistics cycles can share
information on the public, anonymous and immutable secure platform so that the
information can flow throughout the cycle.
31
In addition, logistics service providers can for the first time manage the goods at the
granularity of single units. The Dafzo platform can provide customers with better
services, accurate logistics information of every single product and possibilities for new
logistics and business models.
Dafzo based on Blockchain technology uses smart contracts to deliver decentralized
services that address a wide range of international logistics issues. The owner can find
the best solution for multimodal transport from thousands of options through a
convenient interface, with the lowest price, optimal time and quality.
Dafzo Smart contracts technology ensure payment of the contract is guaranteed, the
owner can use Ethereum based Smart-Contracts, the process is simple, safe and
transparent.
Dafzo decentralised ecosystem supports Geographic tracking that makes easy for user
& logistics companies to track cargos in real time with Dafzo smartphones app.
6.4DafzoAPIsAsDafzorunsonthedecentralizednetworkanddoesn'tintendtothesupremeauthorityor
to keepdatawithin itself,Dafzowill be releasing apps andAPIs basedon theBlockchain
technology.Dafzo isnotonlywilling to innovateor to solve the complexity andhuge task
processof the logistics industrybutalsoDafzo isworkinghard toprovide thebetteruser
experience and the better customization in terms of technical integration with existing
operatingsystems.
DafzowillofferAPIstotheindividuals,enterprisesandtheexporter/importertofacilitate
themandtoautomatetheprocess.TheseAPIscanbeintegratedwithanyplatform.
DafzoAppsDafzoappwillberunningonthedecentralizednetworkandtheDafzoappwillbecapableof
performingalltaskswhichcanbeperformedbytheDafzowebportal.Majorintentionofthe
32
developmentoftheDafzoAppistoprovideeaseofaccesstouserandtoenhancethecomfort
level.Evenifauserdoesn'thaveaccesstohis/heroperatingsystem(s)hecanuseDafzoApps
andcancompletethetasks.KeyFunctionalitiesthatDafzoappwillofferis;
• IssuanceofLetterofCredit
• FreightBooking
• Paymentbyanymode.
• LiveTracking
ThesearethesomeofthemajorfunctionswhichwecanbedoneusingDafzoappbutnot
restrictedtoabove-mentionedactivity.Dafzoappwillbeavailableonallthemajoroperating
systemsothateachusercanuseandgetbenefitsfromtheDafzoEcosystem.
7.0 DFAZO SMART CONTRACT DESCRIPTION
7.1 Introduction to smart contracts Thepotentialofsmartcontracts–programmablecontractsthatautomaticallyexecutewhen
pre-definedconditionsaremet–isthesubjectofmuchdebateanddiscussioninthefinancial
servicesindustry.
SPOTLIGHT
Examples of Rising Problems with Traditional Financial Contracts
33
Image source 5 & 6: Capgemini report on smart contracts16
7.2 WHY DAFZO USING SMART CONTRACT IN TRADE FINANCE:
Smartcontracts,enabledbyBlockchainordistributedledgers,havebeenheldupasacure
formanyoftheproblemsassociatedwithtraditionalfinancialcontracts,whicharesimplynot
gearedupforthedigitalage.Relianceonphysicaldocumentsleadstodelays,inefficiencies
and increases exposure to errors and fraud. Financial intermediaries, while providing
interoperability for the finance system and reducing risk, create overhead costs for and
increasecompliancerequirements.
16 ASX = Australian Securities Exchange located in Sydney; RTGS = Real-Time Gross Settlement – a fund transfer
system where the transferof money between banks takes place on a real-time basis.
i Bloomberg, “With Loan Market Still Using Faxes, Settlement Times Trail Goal”, April 2015; ii Bloomberg, “Dirty
Secret of $1 Trillion Loans Is When You Get Money Back”, September 2014; iii Markit, “Markit European loan
volume survey”, October 2015; iv FBI, “Reports and Publications: Insurance Fraud”, Accessed May 2016; v TechCrunch, “Everledger Is Using Blockchain To Combat Fraud, Starting With Diamonds”, June 2015; vi J.P.
Morgan, “Australia Quantitative and Derivatives Strategy”, March 2016; vii The Telegraph, “Mark Carney
launches investigation after real-time payment system crash delays house purchases”, October 2014
34
smartcontractadoptionwill leadtoreducedrisks, loweradministrationandservicecosts,
andmore efficient business processes across allmajor segments of the financial services
industry. These benefits will accrue from technology, process redesign as well as from
fundamental changes in operating models, as they require a group of firms to share a
commonviewofthecontractbetweentradingparties.
Consumers will benefit from more competitive products, such as mortgage loans and
insurancepolicies,alongwithsimplerprocessesthatarefreeofmanyofthehasslesoftoday’s
customerexperience.17
7.3 Smart Contract use case in Dafzo Ecosystem EveryactivityorprocesswhichisexecutedontheDafzoEcosystemisexecutedonlythrough
thesmartcontract.SmartContractisasoftwareprogramonthedistributedledger,allowing
animmutableverifiableandsecurerecordsofallthetransactions.
TheBenefitsofSmartContractintheDafzoEcosystemarethatitincreasesthetransparency
andestablishestheauthenticityandreliability.WiththeSmartContract,thereislowriskfor
anykindoferrorormistake.
7.4DafzoUseCaseDafzouse caseprovidesa summaryor snippetofDafzoEcosystem,or scenarios inwhich
Dafzocanbeused.UseofDafzoisjustnotlimitedtotheseactivitiesmentioned.Thevideo
belowarejusttoprovideaclearandbetterunderstandingoftheDafzo.
……continuenextpage.
17 Smart Contracts in Financial Services: Getting from Hype to Reality by Capgemini
35
8.HowDafzoearn8.1RevenueModel
Source DescriptionTransactionFee Dafzowillcharge0.5%eachpartiesoftheLetterof
Creditamount.LogisticsService Dafzowillearncommissionofferinglastmiledelivery
service.InsuranceComm.
Dafzowilladdasmallmarginbyprovidinginsurancefacilityoftheshipment.
OtherFees Theplatformmightcollectforvariousservicessuchasbuildingcustomizedsolution/platformforenterprises.
8.1.2.FocusedGeographicConsideringthemarketsizeandthegrowthrateoftheindustry,Dafzowillbefocusingmore
ontheAsianandEuropeanCountriesasthereisahigherscopeofgettinggoodbusinessand
thesetwocontinentshavethehighestnumberofSMEandSSIswhichisthetargetmarketof
theDafzo.
36
8.2BiggestChallenge
• ConvincingCompaniestotrustDafzoAs till now Letter of Credit is only issued by the banks and everyone trust banks
because they have a long-established business and anyone can approach them
anytimebutastheDafzoisthefirstonetoenterinthisspace,itwillbethelargest
challengeforDafzotogaintrustattheinitialstage.
• DraftingSalesofAgreement
ImporterandExportersneedstosignsalesofagreementwhichhastobecomplywith
theinternationaltradelaw.
8.2.1MitigationofRisk
• PatentTechnologyandGoodcredentialsInorderto increasethetrustoftheuser,DafzohasthePatentTechnology infused
withthesmartcontractcreatingtransparencylevelforeachtransactionirrespective
oftheamountontotheBlockchain.Dafzohasthebestandknownfacesfromeach
industrywhowillincreasethetrustlevelamongusers.
• UseofCognitiveScienceandMLDafzo uses the Artificial Intelligence, Machine Learning and Cognitive Science for
drafting salesofagreementbetween importerandexporterandnotifies regarding
potentialharmfulclauseifany.
• UsingFiatCurrencyinPaymentMode
ToensurethatDafzoisoperationalinanycondition,Dafzosinceinceptionistaking
fiatmoneyasoneofthepaymentmethods.
37
8.3DafzoinnearFutureDafzohaslongtermsplanstosimplifythevitalaspectoflogisticsindustryfromtheDafzo
Ecosystem.FollowingarethefeaturesinwhichDafzoteamisworkingandwillbe
operationallyactiveinfuture.
• GlobalLastMileDeliveryPlatform
DafzointendstobeWorld’slastmiledeliveryplatformactingasalogisticsaggregator
and providing the freightmovement facility by land, air or sea depending on the
requirementofthebuyer.
• CustodianProgramme
CustodianProgrammeoftheDafzoEcosystemhelpstheuserstopurchaseanything
acrosstheglobeevenifthesellerofthatparticularitemisnotwillingtoshipinthe
buyer'scountry.ApartfromthisCustodianProgramme,Dafzoalsohelpsanindividual
toearnextraincomeirrespectiveofage,sexandqualification.
• GlobalE-storePartnership
DafzowillbehavingapartnershipwithmajorE-Storeforthecustodianservicesaswell
asprovidingthemlogisticsservices.
• InsuranceCompaniesonBlockchain
DafzowilltrytobringtheinsurancecompaniesontotheBlockchainwhichwillplay
animportantandvitalroleintheDafzoEcosystembyofferinginsuranceservicetothe
Buyer / Seller for ensuring their shipment.
9.0.DFZERC20TOKEN&USE9.1TokenEconometricsDafzowillissueitsowncoinnamedtheDafzoCoin(DFZ).Astrictlimitof70,000,000willbe
usedwhichwillneverbeincreased.DFZwillrunontheEthereumBlockchainwiththeERC20
Protocol.
38
9.1.2HowDafzoTokenwillbeused
DFZwillbeusedintheDafzoEcosystemforeachprocessandeveryactivity.Dafzotokenwill
beusedfortheissuanceofLetterofCreditandforotherbusinessactivitieswithupcoming
featuresfore.g.
• Payingforthelogisticsservices
• PaymenttoCustodians(nearfuture)
• PaymenttoissueLetterofCredit
• Bookshipmentforimportexporttodelivergoods
• UseonBusinesspartnerplatformtobookshipment/delivery
9.1.3 Dafzo token will be used in the following manner with the Patent International
Trade Finance Technology.
39
TheDafzowebplatformconnectingtotheBlockchainwillallowuserstopayeitherdirectlyin
DFZtokensheldbyusersortheycanpurchasetokensfromDafzoforbookingfreights,issue
ofLetterofCreditbycreditcard,debitcardorbymoneytransfer. Inorder toensure the
liquidity DFZ, DFZ is already listed on the Bancor Exchange period and to provide more
liquidityoptionDFZwillbelistedonothermajorplatformsinfuture.
9.2TOKENDISTRIBUTION
Percentage Amount(DFZ) Participant
5% 3,500,000 Bounty+Referral
10% 7,000,000 Advisors
20% 14,000,000 FoundingTeam
65% 45,500,000 Crowd
40
Note:2% of the DFZ is reserved for the Dafzo Bounty campaign. Bounty campaign includes
the promotional activity of Dafzo on different platforms.
Referralprogrammes:
EachICOparticipantwillbeprovidedwithauniquereferralURL.Areferrerwillreceivean
additionalamountofUtilityTokensequalto3%oftheUtilityTokensbroughtbyalloftheir
referredbuyers.Thisadditional3%istakenfromthereserved3%referralfund.
illustration:
ifAandA’sfriendBbuy10000DAFZOsmartUtilityTokens,andBfrienduseAreferralcode
whilepurchasingsmartUtilityTokensAaccountwillbecreditwith300moreDAFZOsmart
UtilityTokens.
9.3ALLOCATIONODFUNDS
41
10.0 ICO DETAILS
10.1.0 Contribution liquidity & benefits
Dafzo ICOproceedswillbe invested in furtherpost-productstageBlockchaintechnologies
andAIintegrationforbettersafe&transparentservice.
Dafzo also expands its operation across the globe, initial focusmarket for Dafzo is Asian
countries,UK&USA.TheDafzoopensoverseasoperations consideringon traction in the
market,adedicatedfundtoinvestinsuchmarket,thatbenefitDafzogrowstheirmarketsize
andtractionincomingyears.Nearly30%to40%ofDafzoICOinitialfundwillbeinvestedin
India&Asiaemergingcountries.WebelievethatinvestmentinIndiaandAsiaarenothighas
comparedtoUS/EUmarketaswellas themarketsizeofAsia ismuch larger thanEurope
altogether. Investment in Asia means higher expected revenue with less fraction of the
investment.
DafzocryptocurrenciesUtilityTokenuniqueofferTokensLiquidity&alsocontributionreturn
toUtilityTokencontributor/investor.
1) Price Index: DafzoER20smartUtilityTokenshaveprice indexbasedonDafzoutility
modelthat’sworkonsupplyandchaindemandfund&Dafzomarketperformance.The
martUtilityTokensincreaseordecreaseovertime.Todaywhatvaluetodayat$0.50may
value 1$ to 3$ overmonths. On top, the smart Utility Token can be bought and sell
throughthelistedexchange,offerimmediateliquidityandreturnoncontribution.
2) Incentive & Reward system: The Dafzo surplus profits will be distributed among
custodianasinnatureofBonus/incentive&RewardamongUtilityTokenholder/owner.
3) IfyouQualifiedInvestororVC,pleasewritesuson:[email protected]
QualifiedInvestor.
42
10.1.1 Dafzo Private & Pre-ICO sales Details:
DafzoPrivatesaleICOstartsfromonJune2018,withalimitedofferingoffirst50%discount
onDafzoutilitytoken.ThefurtherPREICOUtilityTokenclassificationdetailsasfollows:
1. Anexclusivediscountrateof50%willapplytoOriginalUtilityTokenvalueandwillbe
availableforpurchaseduringPreICOsaleforalimitedtime.MinimuminvestmentinPre
ICOsaleis1ETH.
2. ThepriceperUtilityTokenonfirst20%ofPreICOTokenavailabletopurchasefromPre
ICOperiod.Adiscountrateof40%appliestoOriginalUtilityTokenvaluefora limited
time.
3. ThepriceperUtilityTokenonnextof20%Pre-TokensalewillavailablefromApril2018
forpurchase@discountrateof30%appliesforOriginalUtilityTokenvalueforalimited
time.
4. TheminimuminvestmentincaseofAccreditedInvestorisminimumof$10,000forUS&
SingaporeresidentsandforthoseresidentsoutsideUS&Singaporeandforinstitutional
investorsminimumis$25,000.
5. ForPre-sale,exclusivedeal/Pre-privateICOUtilityTokenofferpleasewritesusanemail:
6. ContributionparticipationtoPresalelistguaranteesanallocation,subjecttothereceipt
offundsandcertainregulatoryconsiderations.InordertojointhepresalelistorPreICO
-UtilityTokensales,[email protected]
10.1.2 Funding & current status:
DafzoisfundedbyitsinitialfoundersandtheprivatepermissionBlockchainoverEthereum
has been set up. The financing platform/marketplace is in alpha mode testing. Dafzo is
openinguppre-ICOUtility Tokenswhichare about10%of the total supply to a groupof
privateinvestors/placement.
10.1.3 Team:
DafzohasacoreteamandmentorsspreadacrossIndia,UnitedKingdom,Estonia,Singapore,
andtheUSAwithagreatdealofexperienceintheBlockchain,cloudcomputing,government
43
liaising,institutionalfinancing,projectfinancing,softwaredevelopment,UIdevelopment,law
andcompliance.
10.2. Legal & Compliances:
a) Blockchain Setup:
Dafzoisanewindependentbrandfromfoundersofcourierhome,andintheprocesstoset
upacrossSingaporeandSwitzerlandasa limited liabilityCompanywhereDafzo listUtility
Tokensasassets,furtheralsoinEstoniaundereresidencyprogrammeasBlockchainstartup
andwillobtainallthenecessaryregisteredlicenseforICOrelatedcomplianceandregulation,
Gibraltar,EstoniaorSwissgovernmentfavourBlockchainandcryptocurrenciesfund.
b) Legal Implications of Utility Token Launches*
DAFZOUtilityTokensarefunctionalutilityTokenswithintheDAFZOplatform.DAFZOUtility
Tokensarenotsecurities.DAFZOUtilityTokensarenon-refundable.DAFZOUtilityTokensare
notforspeculativeinvestment.
Nopromises of future performanceor value are orwill bemadewith respect toDAFZO,
includingnopromiseofinherentvalue,nopromiseofcontinuingpayments,andnoguarantee
thatDAFZOwillholdanyparticularvalue.DAFZOUtilityTokensarenotparticipatinginthe
CompanyandDAFZOUtilityTokensholdnorightsinthesaidcompany.DAFZOUtilityTokens
aresoldasafunctionalgoodandallproceedsreceivedbyCompanymaybespentfreelyin
businessorrelatedbusinessbyCompanyabsentanyconditions.DAFZOUtilityTokensare
intended for experts on dealing with cryptographic Utility Tokens and Blockchain-based
softwaresystems.Theexecutivesummaryofthetermsthatwillbeoutlinedingreaterdetail
ofthecontributiondocument(whitepaper)bywhichthispaperisqualifiedasitswholeness
and any contribution decision should only be made following an assessment of the
contributiondocument(whitepaper).
*Thislightpaperisdraftedcarefullykeepinginmindthecurrentregulatoryframeworkandit
maybesubjecttochangeduetofuturechangesinICORegulatory&enforcementframework.
44
c) Dafzo Utility Token is NOT and shall in NO case be understood, deemed, interpreted or construed as:
1. anykindofcurrencyormoneyorlegaltender,whetherfiatornot;
2. equityinterest,votingornon-votingsecurities(orit’slike)in,orclaimsagainst,
3. theCompanyoranyotherentityinanyjurisdiction;
4. equityordebtinvestmentofanykindinanyventure;
5. stocks,bondsorstocks,bondsoranysecurities/classofsecurities.
6. anyformoffinancialderivatives;
7. anycommercialpaperornegotiableinstrument;
8. anyformofinvestmentcontractbetweentherelevantholderandanyotherperson;
9. anycommodityorassetthatanypersonisobligedtoredeemorpurchase;or
10. anynote,debenture,warrantorothercertificatesthatentitlestheholdertointerest,
11. Rewardoranykindofreturnfromanyperson.
12. therightsunderthepricedifference(margin)contractoranyothercontractwiththe
purposeoritsintendedpurposeistoensureaprofitoravoidlosses;
13. Structural units in the collective investment mechanism / the institution of joint
investment- structural (units) in the trust unit investment fund / in the trust
investmentfund;
11. Contacts/ White paper/offering Memorandum: ThisdetailedwhitepaperisreleasedinJune2018.For more details and contribution, Pre ICO/Pvt sales please, contact undersigned. Thank you, Regards, Dafzo team
[email protected] http://www.dafzo.io/
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