VSTABLE
The revenue sharing token for Valis Stablecoins
Features
- Grant holders a right to a share of the net profit generated by Valis Stablecoins.
- Can be traded on Qubic’s Qx Decentralized Exchange.
Use Cases
- Offers investors the stability and yield potential from the fiat-backed Valis Stablecoins line of business.
Key Data
- Token Supply: 100 billion units (fixed).
- Token Issuance Date: Nov, 26th, 2024.
- Current Token Version: VSTB001.
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Definitions
General
- Net Profit: The total revenue generated from Valis Stablecoins operations after all expenses, including operating costs (salaries, infrastructure, compliance, marketing), platform fees, regulatory compliance, taxes, interest, depreciation, and both explicit (e.g., processing fees) and implicit (e.g., volatility, slippage) transaction costs. Net Profit is the basis for calculating distributions to VSTABLE Token holders.
- Speculation: Buying or selling based on short-term price movements, often detached from the underlying asset's value.
Investor Types
- Individual Investor: A person holding VSTABLE Tokens.
- Collective Investor (a.k.a. Investment Syndicate): A group that pools investor resources to hold VSTABLE Tokens. Only the representative is recognized as the direct investor.
Investor Relationships
- Direct Investors: Investors approved by Valis and in direct communication with the team.
- Indirect Investors: Investors not approved by Valis and without direct communication with the team.
Investor Status
- Standard Investor: An investor without "Key Investor" status, receiving Standard Reporting.
- Key Investor: Top 10 direct investors contributing more than $100,000 across rounds, receiving Advanced Reporting.
Investor Access
- Standard Reporting: Periodic updates with key metrics, excluding confidential information, available to direct and indirect investors, as well as the public.
- Advanced Reporting: Comprehensive access to sensitive information on partnerships, financials, projections, and salaries, available only to Key Investors.
Terms
Token Versions
VSTABLE tokens represent revenue rights from the Valis Stablecoins business. Each token version is identified by a unique number, e.g., VSTB001, VSTB002, VSTB003, etc. The current version of VSTABLE tokens is VSTB001.
To ensure ongoing compliance and efficient revenue distribution, a new version of the token will be issued periodically. When a new version is released, the previous token version will stop receiving revenue sharing. In order to continue receiving revenue, investors must accept the new terms and swap their previous tokens for the new version.
How It Works:
- As soon as a new version is issued, the previous version of the token will no longer qualify for revenue sharing.
- Investors who have not swapped to the new version will miss out on revenue sharing until the swap is completed.
- The revenue lost during this period will be kept by Valis. No retroactive payments will be made once the swap is completed.
This approach simplifies the process by ensuring that only current token holders who have accepted the new terms are eligible for revenue sharing. It avoids the complexity of tracking delayed payments and ensures that rewards are only given to those who have taken the necessary steps to stay compliant with the updated terms.
Token Sales
Speculation, defined as buying or selling tokens financial gain based on for short-term market movements or hype, is strictly prohibited. VSTABLE tokens are intended as a revenue-sharing mechanism tied to the operational success of Valis Stablecoins.
Holders may sell their tokens for non-speculative reasons, such as responding to changes in personal financial circumstances (e.g. needing liquidity), unwillingness to comply with new KYC requirements, or participating in buybacks initiated by Valis. For example, selling tokens at fair market value after significant project milestones or revenue growth is not considered speculative, as it reflects a rational application of valuation principles connected to the underlying fundamentals of the project.
Valis emphasizes responsible token management. Once purchased, token use remains the holder’s responsibility and must comply with project terms at all times.
Token Repurchase
While VSTABLE tokens cannot be used for speculation, Valis reserves the right to repurchase VSTABLE tokens from the open market. This repurchase is part of a strategic decision to manage the circulating supply and ensure the stability of the token ecosystem, not to profit from speculation. Repurchasing is a non-speculative, company-driven action and does not imply any expectation of profit from holding or trading VSTABLE tokens.
Token Conversion
In the event that the VSTABLE token supply in the open market falls below 10%, Valis reserves the right, but not the obligation, to remove the remaining VSTABLE tokens from circulation. If the event occurs and Valis exercises this right, the remaining VSTABLE tokens will be swapped for Valis company equity, using the following formula:
The market value of the remaining VSTABLE tokens will be based on the contribution of the Valis Stablecoins line of business (LOB) to Valis’ net revenue in the previous fiscal year.
For example:
- Single LOB (Valis Stablecoins responsible for 100% of Valis revenue): If 5% of the VSTABLE token supply remains in the open market, the market value of these tokens will be 5% of the Valis Market Valuation. In this case, 1% of VSTABLE supply would be swapped for 1% of Valis equity.
- Multiple LOBs (Valis Stablecoins responsible for 50% of Valis revenue): If 5% of the VSTABLE token supply remains, the market value will be 5% of the Valis Market Valuation multiplied by the revenue share of the Valis Stablecoins LOB (e.g., 50%). In this case, 1% of the VSTABLE supply would be swapped for 0.5% of Valis equity.
The conversion is contingent upon the occurrence of the defined trigger event and is not guaranteed. The final decision to execute the swap lies solely with Valis, based on strategic considerations at the time of the trigger.
Holders of VSTABLE tokens should not expect to automatically receive a share of profits or dividends from Valis. The conversion to equity, if exercised, would be a response to a specific business decision and not a routine investment return.
If the trigger event for the forced swap occurs and Valis decides to execute it, revenue sharing for VSTABLE tokens will cease immediately once Valis communicates its decision. Token holders will need to swap their VSTABLE tokens for Valis equity tokens to retain value, as VSTABLE tokens will no longer be eligible for revenue sharing.
Transparency
Valis offers two levels of transparency to investors:
- Standard Reporting: Available to all investors, providing periodic updates with key metrics. This reporting excludes any confidential information.
- Advanced Reporting: Exclusive to Key Investors. This includes comprehensive access to upcoming partnerships, Valis financials, expense breakdowns, financial projections, and salary information.
Investors can join an investment syndicate in order to achieve Key Investor status. In this case, only the syndicate representative will have access to the advanced reporting, and they are not permitted to share this information with other syndicate members.
Valis reserves the right to discontinue Advanced Reporting for specific Key Investors at its sole discretion.
Disclaimers
VSTABLE tokens represent a future claim on revenue. These tokens do not represent equity in the company, nor do they give ownership in the business, grant voting rights or any other form of control. The VSTABLE tokens do not promise a return based on the efforts of the founders or team members. Instead, the revenue is dependent on the product performance, market demand, and revenue generation of the product after it is launched live and operational. The revenue-sharing mechanism is entirely dependent on the performance and success of the product. Valis founders are not legally obligated to generate any specific revenue or profit, and the distribution of revenue is contingent on the operational success of the product.
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