Token White Paper / INTENT token by TENT

Cover Page

Token whitepaper

Issuer: TENT Corporation SE

Expert guarantor: Altlift s.r.o.

Legal & Compliance guarantor: GPP advokátní kancelář s.r.o.

Version 2.01 – January 2023

1. Executive summary

2. Mission & Vision

3. TENT Solutions

4. TENT Ecosystem

5. INTENT Token

5.1. Utility of INTENT token

5.2. Technical aspects

6. Tokenomics

7. Partners

8. TENT Organization & Management

9. Important consideration and disclaimers

10. About

1. Executive summary

1.1 Intro – a new era in the finance industry

The world is entering a new era in finance. A key reason for this is the massive trend of digitalization and using finance-based technology – FinTech. When combined with the power of decentralised ledger technologies creating a decentralised finance phenomenon – De-Fi- together they are together breaking existing paradigms in the finance sector.

Billions of unbanked people are getting banked within a few taps on their mobiles, while the banked part of the population can switch away from their traditional banks in a few seconds. Years of customer history with existing banks have become worthless in the Open Banking and Open Finance world.

Moreover, the traditional fiat monetary systems – facing uncontrolled monetary easings and inflations – are facing a new, strong opponent. People can not only freely choose between banking providers but also between currencies and monetary systems, meaning the traditional systems have less influence.

Financial assets, payments, investing, lending and other constants in the finance industry are being reinvented as we speak.

1.2 TENT

“TENT is a cryptocurrency platform bringing the benefits of cryptocurrencies into everyday life to both businesses and ordinary people. “

The TENT suite of Trad-Fi & De-Fi solutions address end-users across Europe with wide a variety of customers, who are adopting crypto either as individuals or as part of a business. Individual users are primarily seeking a seamless experience, free choice in payment methods, additional control over their assets and alternative investments. Businesses are seeking alternative methods to accept payments, attract customers and build loyalty.

To address this problem, in TENT we are launching a payment platform including TENT wallet – a mobile wallet directly communicating with users’ non-custodial wallets for receiving, swapping, secure saving, storing, sending or spending crypto . This comprises of a Mastercard payment card with Apple and Google Pay (available to all KYC-ed users for free and in real-time), the TENT crypto payment gateway, and our TENT utility token . The latter is as a unique acquisition and a financially-backed crypto asset. Its tokenomics are based on the premise that the value of the INTENT token is derived from its real utility, which can be calculated. Those products will be complemented by other practical payment-oriented components in the TENT ecosystem, utilizing the Open Finance resulting from partnerships with relevant companies, from De-Fi and traditional finance to plug-in additional financial services.

The backbone of TENT solution stands on TENT robust technological payment platform, with 5 years track record in the payment cards business and a high level of both modularity and external useability, through APIs on the Plug’n’Play principle, to be opened for other business adopters.

1.3 Where the industry goes

In TENT, we recognize that the world of decentralised finance will not live separately from traditional finance in the long run. Both monetary systems will be merging together and complementing each other. Despite changing of the crypto sentiment and volatile total market capitalization, the overall crypto market size is predicted to reach anything from $ 5 to 100 trillion within the next decade.

Technology S-curve demonstrates the potential of cryptocurrencies adoption, compared to other technologies such as cell phones, electricity or colour TV in the past.

Fig.1 Deep Resonance, Why Crypto is following the 1990 internet adoption curve; 2022; https://deep-resonance.org/

FinTech, Web 3 and De-Fi are here to stay, in order to shape the future of global financial systems. They will become an integral part of our everyday lives, across societies and across continents.

We have created TENT to contribute to this fundamental shift in global traditional finance.

2. Mission & Vision

In TENT we believe that people should be able to freely choose between giving power over their money to third parties (such as banks) or controlling their money independently.

We believe that by accelerating the transition to adopting cryptocurrency, we can help people globally to increase the level of control over their digital money, whichever form they prefer.

Our mission is to bring crypto-assets into everyday life
to ordinary people, by bridging the decentralised
with traditional finance (De-Fi and Trad-Fi )

We want to fulfil our mission through creating high-value, scalable and compliant finance-technology solutions bridging the Trad-Fi & De-Fi worlds. We seek to create efficient on/off ramps between fiat and crypto, to provide cryptocurrency to B2C and B2B users with unparalleled liquidity in terms of fiat-to-crypto, crypto-to-fiat, and crypto-to-crypto exchange.

We plan to offer products in three following main product verticals:

Safely store & swap with full interoperability and frictionless swapping between monetary systems, between blockchains or between any other ground layers whose value may be digitally exchanged.
Buy/receive and spend/pay in any convenient form for the user with frictionless experience: peer-to-peer, payment card, Apple/Google Pay, bank IBAN transfer, cash in/out, global remittance, send money to phone number, accept and invoice in crypto or any other feature that will bring benefits to the users.
Invest, borrow and any other financial services that can benefit peoples financial life

With the completion of all three verticals, the boundaries between Trad-Fi and De-Fi will be completely blurred and eventually reduced to nothing.

3. TENT Solutions

In TENT we build a crypto-fiat payment platform, bridging the two worlds of De-Fi and Trad-Fi and breaking the barriers for ordinary people to adopt crypto into their everyday lives. The overall solution is a complex set of features and functionalities, built around the core TENT authorization & clearing payment system, together creating a complex payment platform.

TENT WALLET is both a custodial wallet and a non-custodial wallet, designed to make cryptocurrency more accessible for novice users with minimum compromises on privacy and security. In and out transfers (on/off-ramps) via bank transfers, card or crypto peer-to-peer, the possibility to use external cash bitcoin ATMs to cash in/out, as well as payment connectivity to provide global remittance are all a part of the wallet’s future function.
	TENT CARD is a Mastercard card linked to TENT or any other external crypto wallets (B2B2C), allowing users to pay instantly in tens of millions of payment terminals across the world, or online in millions of e-shops wherever the Mastercard logo is present. The user chooses if they pay with a mobile card (Apple or Google Pay) or its physical version – a traditional plastic card. The first choice allows a fully digital journey to set up a new Mastercard card within a few minutes online from any of the EU countries.
TENT TOKEN – TENT token named INTENT [ticker: INTENT] is a blockchain-based digital asset in form of a utility token, incentivizing TENT users to optionally lower or fully eliminate fees associated with using TENT infrastructure. As an asset with a substantial value backed by a money pool dedicated from each TENT transaction, it might also be treated as an independent digital asset with immediate liquidity on exchanges. Marketing-wise, the token fills primarily the user-activation and user-retention role.
	TENT PAYMENT GATEWAY is a payment gateway with integrated KYC, KYT and settlement procedures, allowing to purchase of crypto or fiat in e-shops interchangeably for both users and merchants.

OTHER products on the roadmap:

TENT Custody – a non-custodial SW wallet and a set of security procedures and APIs, allowing to directly link any external wallet, card or account to the most secure hardware crypto wallets, external Custody services.
Crypto investments, including issuing own digital assets where reasonable (e.g. tokenized precious metals etc, subject to regulatory compliance).
Crypto-backed loans to secure funding via collateralized digital assets.
Bank (IBAN) transfers and transfers to a mobile phone number.
Liquidity with a focus on the Ethereum Layer2 market, such as the e-gaming segment.
Stablecoins – including EURTENT, which initially serves as an internal unit of accounting, but has the potential to be transformed into a stablecoin (note: subject to regulatory approval) – stablecoins are expected to significantly increase in their payment use-case.
Multiple other features oriented on providing value to digital asset users, deriving from real demand and market expectations.

All products are designed for the B2C retail segment, as well as for B2B2C clients as-a-service (API or white label), generally in two forms:

Crypto-as-a-service – integration of API service on the backend with the client’s existing frontend.
Whitelabel – a new standalone solution branded by the B2B2C client brand, using TENT backend and infrastructure, also using TENT frontend in client’s colours.

Referral and Loyalty Programme

Our referral program provides a high level of incentivization to support the acquisition, activation and retention of new customers. Not only do both referrers and their referred friends receive a EUR bonus (in INTENT) with each successful sign-up, but the referrals are also made on an ongoing basis to incentivize B2B2C customers’ portfolios to make their mark on the crypto world.

Primarily, the INTENT token generates discounts (credits) for TENT users holding INTENT tokens. This gives a practical utility to the token, yet staying fully tradable at its market price. For a full description of the token, see chapters 5 and 6 of this Whitepaper.

4. TENT Ecosystem

TENT is primarily a payment platform bridging two monetary worlds together and serving it to ordinary users. The core modular payment platform, together with external partners and services, is creating a fully functioning ecosystem for retail customers,, business customers and other stakeholders, whose use is incentivized through the INTENT token.

Support of FIAT institutions

At TENT we see the future in maximal interoperability between competitive finance worlds and user applications. To provide a seamless user experience, proactive cooperation and connectivity with the fiat world is essential. Through PSD2 APIs, we can embed traditional bank account services, without entering the fiat banking world.

Security & Compliance

Building trust is the cornerstone of our commitment to our customers. We believe that security and compliance are the foundations of achieving mainstream cryptocurrency adoption and we are preparing for the MiCA regulation for the EU market. KYC and anti-money laundering rules cannot be bypassed, otherwise digital assets will remain outsiders in the shadow zone. At TENT we have adopted all KYC, KYT (KYB for the business customers) principles and AML checks to commit to holding the flag in widely accepted crypto adoption.

Plans for growth and Project Roadmap

TENT plans to grow in 3 main phases

The basic TENT wallet and card, showcasing the TENT platform in phase 1.
This would develop into a suite of use-cases and focus on the B2B segment in phase 2.
Ultimately, TENT would offer a full-service of all available on/off ramps and a better alternative to banking services as we know them today.

Phase 1 🠊

Phase 2 🠊

Phase 3

Functionalities: basic

Buss. model: payment-based

Segments: B2C > B2B2C

GEO: CEE testing markets

Functionalities: advanced

Buss. model: payment-based

Segments: B2C ~ B2B2C

GEO: customers from 10-15 EU countries

Functionalities: full scope = making Trad-Fi obsolete

Buss. model:
Extensive up-sell/x-sell, additional financial services

Segments: B2B2C > B2C

GEO: Full Europe + beyond

Roadmap plan

Starting quarter

2023

initial phase

validation

product development

TENT platform MVP live
Wallet generation 1
TENT card live

Wallet generation 2
Apple Pay Google Pay
INTENT token fully deployed

2024

product completion

ready to scale

IBANs
Widest scope of digital assets
INTENT on multi-chain
De-fi investments & loans
MiCa EU regulation full compliance

2025

scale

Full scope of solutions alternative to Trad-Fi
Fully operating across EU/EEA

2026

scale

Blurring difference between Trad-Fi x De-Fi in B2C and B2B2C
Addressing attractive markets beyond EEA

Note: As described further in this Whitepaper, the overall initial breath is given to the INTENT token in its birth phase in 2nd half 2023. This moment fixes the initial immutable conditions of the token for the next 5-8 years of the project. This fact explains why also the milestones on the project roadmap focus primarily on the business-oriented goals, not focusing on detailed token-related occasions.

5. INTENT token

The INTENT token is designed to enhance the user experience with using the TENT wallet and services; however, the TENT app is fully operational without the INTENT token and is in no way reliant on the token. On the other hand, the INTENT token is intended to be used within the TENT app. It presents a liquid form of a smart loyalty program.

We studied major existing tokenomics solutions, drew inspiration from them, and identified red flags so that we would avoid them. In particular, our design shall prevent the token from being falsely identified as scammy, speculative, or conflicting with existing or expected regulations in relevant markets. Also, we paid attention to the scalability of the design which is crucial in DLT. To communicate the project’s vision clearly, openly, and without the need for remaking tokenomics in the future, simulations of the probable evolution of the ecosystem have been conducted using rigorous mathematics, namely SFC modeling.

For the TENT tokenomics design, we defined several must-have criteria, making the token truly useful for solving the customer problem rather than relying on an “artificially native” mandatory component with forced circulation and speculative fundamentals.

The STAN ecosystem token (INTENT) is designed to enhance the user experience with using STAN wallet and services, however, the STAN app is fully operational without the token and is in no way reliant on the token.
It entails a long-term incentive driving demand for the token: the broader the user base, the higher the token demand. Active users of STAN services are collecting the tokens and effectively executing the distribution policy continuously. The token distribution is executed automatically, triggered by users through paying with their crypto card, buying and selling cryptocurrencies and overall using various STAN exchange services in their daily lives.
To avoid the risk of infinite inflation, the total supply is immutably capped. The entire token supply of 2,000 million INTENTs will be pre-minted to a genesis address at the beginning and distributed according to the given rules. The distribution period is coming out from a 5-year business projection and makes all active users eligible to automatically receive INTENTs. Ownership of INTENT (regardless of whether obtained for activity or bought on a secondary market, whether stored on a custodial or non-custodial wallet) is mathematically constantly generating loyalty credits – Loyaltents [LTs], which users use for cutting down the costs associated with using STAN services.
While the INTENT token is transferable as any other blockchain token, the Loyaltents remain inseparable from the user and cannot be transferred. Users are thus motivated either to buy the INTENT token making their service cheaper (or fully free of charge), sell it anytime on the secondary market, or even hold more than needed for one’s utility (i.e., governance or speculative motives).
The value of INTENT is created by its effective utility of saving on or eventually avoiding all fees associated with using STAN services of crypto buying, storing, swapping, and spending. The value is not virtual but substantially backed by a pool of Euros. This pool (DISCOUNT POOL) is filled with card interchange fees (from each card transaction) and with a share of other STAN revenues. The DISCOUNT POOL is devoted to distributing tokens to INTENT token holders and lowering their fees, e.g. It is designed as a system of counterbalanced powers: on the one side positively incentivising users to transact and be active within the STAN ecosystem ⇨ obtain more INTENT tokens ⇨ which generate more discounts (Loyaltents). On the contrary, with the increasing volume, the speed of Loyaltents generation (i.e., the speed of filling the DISCOUNT POOL) decelerates, as well as the relative impact of demurrage increases at the same time ⇨ the users are incentivized to utilise the Loyaltents, not to hoard them.

These forces will be keeping the distribution of INTENT predictable and the overall ecosystem long-term sustainable, because {sum of unused Loyaltents} ≦ {current balance of the DISCOUNT POOL}. The DISCOUNT POOL turnover will be automatically reacting to all users’ activity (both In- and Out-flows continually increasing when STAN services are more used). Together giving a long-term edge to STAN services and their attractiveness and competitiveness. The company sacrifices a part of its revenues to incentivize users’ activity. More activity brings more discounts, but also more revenues exceeding the discounts. It works as a customer acquisition, activation and retention tool, all in one.

The INETNT token price predictions are thus corresponding with long-term user satisfaction, the growth of the user base, and the overall growth and success of STAN services. The logic of the INTENT token is transparent and synchronises the incentives of all stakeholders of the ecosystem. Since the business of STAN is addressing two segments – end consumers B2C and business customers B2B – equally, the INTENT token is not distinguishing between those two and works for both segments equally too. This makes the overall STAN business much more scalable than if it was relying on one segment exclusively.

From the technological side, it was desirable to provide a high level of decentralization on a well-proven blockchain with high transaction speed and scalability (capacity), while minimising blockchain network fees. INTENT chose Polygon, an Ethereum layer2 blockchain, with readiness to diversify into multichain in the near future utilizing Tatum’s unique solution to hedge against the exposition to a single DLT solution.

Finally, the INTENT token is closely following the latest developments in the regulatory field and is putting its full regulatory compliance at the forefront of the priorities.

INTENT token circulation

5.1 Utility of INTENT token

TENT to create an efficient payment gateway between fiat and crypto. The liquidity of crypto assets is limited due to the obstacles with transferring value between banks and cryptocurrency exchanges. TENT provides instant conversions from fiat to crypto and vice versa.

Any user of the STAN custodial wallet will be able to make cross payments from this wallet either via the STAN card or via the STAN application. STAN is cooperating with Mastercard and other partners to provide a quality service to STAN users. As this is not possible without paying fees to these third parties (details can be found in the section of Tokenomics), STAN wants to ease the fee burden at least partially using the INTENT token, which will reward holders of INTENTs with discounts.

As the adoption of cryptocurrencies is growing, the market is getting accustomed to using stable coins for hedging against the volatility of cryptocurrency prices. These stablecoins are rarely used for payments directly; in case the users want to withdraw money from crypto to fiat, they must first sell the stablecoin and then make a fiat transfer from an exchange to their bank. STAN seeks to address this nuisance by allowing direct payments (via the STAN app or the STAN payment card) in any supported currency. The exchange of a crypto asset to fiat happens seamlessly in the background via STAN and its partners. This way, the user can pay directly with stablecoins and has no reason to withdraw their savings from crypto prematurely. Thanks to TENT, stablecoins will become as liquid as their fiat equivalents. TENT card allows linking the payment card to any of the crypto assets stored in the wallet, crypto, stablecoin or hypothetically CBDCs in case of future market domination and demand. Most of the stablecoins (all of the relevant ones) are denominated in USD. STAN’s primary market is the EU. Therefore, STAN seeks to create and issue also a Euro-denominated stablecoin via its partner company.

Other major issues in today’s cryptocurrency sphere are not only secure, trustful, and user-friendly custody services, smooth user payment experience, or collateralizing crypto for interest yields, but also the liquidity between different blockchain layers – costly bridging between Ethereum and other platforms, including Ethereum’s own layer twos. Transactions on L2s (including Polygon) are reasonably cheap, however, interacting with Ethereum’s mainchain costs equivalents of hundreds of Dollars. As many decentralized apps and NFT/DLT games use L2s or even build their own L2s, an increasing demand for bridging can be foreseen. We also see an opportunity in addressing this issue. STAN wants to utilize the fact that it will hold tokens such as ETH on both the mainchain and the L2s and offer an option to the users to bridge the tokens via the STAN custodial wallet. In the same sense, STAN’s ecosystem can provide crypto2crypto exchange services.

Owning the INTENT token provides the following benefits to the user:

INTENT is primarily a utility token. Holding INTENTs will provide users with discounted fees, which can become ultimately as low as zero. Every INTENT token on the custodial wallet or a non-custodial STAN wallet generates so-called LOYALTY TENTS (Loyaltents) for the owner of the wallet. Loyaltents are non-tradable credits. Unlike INTENTs, Loyaltents are not placed on the blockchain. Loyaltents have their value pegged to the EURO in a 1:1 ratio and can only be spent on fees connected to the STAN wallet as a form of discount. The speed at which every INTENT token generates Loyaltents is dependent on the number of INTENTs in circulation and on the current size of the DISCOUNT POOL (details can be found in the section of Tokenomics).

Every INTENT token on the custodial wallet or a non-custodial STAN wallet serves as a governance token. INTENT holders can participate in the selection of new cryptocurrencies and L2s that should be supported by the STAN wallet, as well as they vote on the prioritization of new features (services) to be deployed in the STAN ecosystem. The voting will happen using the snapshot technology of recording the state of a blockchain on a particular block height allowing for a cheap and user-friendly voting system. We believe that governance tokens in apps like DeFi have only limited usability; better said limited target audience. VC investors might be interested in decision-making concerning parametrization of fee structures et cetera; ordinary users probably not. In case of STAN, governance will be limited to choosing the newly incorporated coins and networks and product features. Here, the use case aims at the very target audience which uses TENT. Typically, when a new perspective game or app is produced on its own L2 chain, STAN users find it complicated, expensive, and disturbing to acquire the corresponding tokens. Therefore, they can vote those into STAN. As integrating new networks is rather demanding, STAN must allocate its resources economically and the users express their demand by voting. The STAN ecosystem adjusts to the expressed needs of its users. This feature will be adopted to offer the first voting opportunities within the first year of the INTENT life journey.
10% of the total supply of 2 billion INTENTs is allocated in an interim RESERVE FUND. After three years, the remaining INTENTs in the RESERVE FUND will be transferred to an address operated by a Decentralised Anonymous Organization (DAO). DAO – factually INTENT holders will vote on using those funds for further project development.
INTENT is a fully tradable asset. Depending on the popularity and usefulness of the STAN project, the price of INTENT token may change over time. However, INTENT is neither designed to be a speculative asset nor is it supposed to become a currency – not even within the STAN ecosystem. The EURTENT stable unit shall play the role of the clearing currency within STAN.

5.2 Technical aspects

Ethereum is currently the arguably most popular DLT platform. That also means that it is facing ever-growing traffic due to the increasing adoption of cryptocurrencies, NFTs, blockchain gaming and DeFi around the world. This leads to network congestion causing much higher gas fees. To avoid the high fees and to save on costs for the users, the TENT token and TENT infrastructure as a whole will utilize the layer 2 solutions of Polygon (MATIC) that aim to increase scalability without jeopardizing the security or decentralization of Ethereum.

To leverage the advantages of other top chains, address wider customer communities, as well as mitigate technical risks, INTENT is prepared to run on multi-chains. Polygon is the first of three underlying blockchain infrastructures. The overall INTENT token is designed to be migratable and possible to run on multiple chains in order to secure its durability and robustness for many unpredictable situations in the future. Polygon too might have an issue as it services many dApps and some might eventually experience a skyrocketing demand for transactions leading to a rapid temporary increase in the gas fee price, therefore, STAN’s exposition must be mitigated.

Polygon shares the functionality of EVM (Ethereum Virtual Machine), it has Ethereum-compatible addresses and offers significantly lower transaction fees. It belongs to the most popular blockchain platforms. Polygon is more efficient than Ethereum for several reasons:

Significantly lower transaction fees
It can host more transactions per second
The overall traffic is lower
The MATIC token’s price is lower

Regardless of our diversification strategy to deploy INTENT on multiple blockchains, we believe that pruning (using a service such as Arweave) can make Polygon operational and the best choice for a satisfactory long time.

Polygon network will be used mostly in the following ways:

As a bridge for assets and token transfers through the Ethereum network
As a layer on which the INTENT token is created and transferred
As an immutable and transparent record for money transfers in the STAN ecosystem

Philosophy of the technical solution should be based on three propositions:

Security: The user can keep their tokens in their own non-custodial wallet (possibly a MetaMask secured by a hardware wallet) and only connect it to the STAN custodial wallet to activate their INTENTs.
Transparency: (STAN’s Loyaltent distribution and demurrage algorithm receive data from the Polygon blockchain; INTENT holders can check that their Loyaltent holdings are fairly calculated as all the DISCOUNT POOL balances are recorded in the blockchain as well as all the INTENTs in circulation).
Efficiency: STAN fully utilizes the advantages of having collection accounts linked to the custodial wallets.

Blockchain entries:

INTENT transaction
Change in the size of the DISCOUNT POOL (aggregated payments and aggregated Loyaltent uses)
Connecting a non-custodial wallet to a STAN custodial wallet (data entry wallet only OR a transaction of 1 INTENT from a non-custodial wallet to the custodial wallet’s address with a memo) *
INTENTs moved from one custodial wallet to another (data entry only; no need for an on-chain transaction of tokens) *1)
Hashed intermediate calculations from a centralized server (concerning Loyaltent balances)

*1) note: not all features will be available immediately with version 1, but in accordance with product roadmap

All users will be able to see transparently on STAN website and/or via STAN app (data will be calculated based on blockchain analytics):

INTENTs in circulation
DISCOUNT POOL size
Their own INTENTs in all their wallets
Their own Loyaltent balance
Sum of Loyaltents spent (for marketing purposes)
Sum of Loyaltents unspent (for marketing purposes)
The user’s eligibility into Tiers (see Chapter Tokenomics)

INTENT and Loyaltent distribution equations data query*2):

INTENTs in circulation

INTENTs in user wallets
DISCOUNT POOL size
Applied Loyaltents

*2) note: the equations read data from blockchain to be able to calculate the actual balance of Loyaltent to each user in real time

6. Tokenomics

Tokenomics is divided into three parts – 6.1 Distribution, 6.2 Modelling the tokenomics, and 6.3 Simulations.

6.1 Distribution of INTENTs

There is a fixed number of 2,000,000,000 INTENT tokens referred to as Maximum supply. There will be no ICO/IEO/IDO/STO. All tokens will be distributed gradually on a regular basis so that the number of tokens grows with the user base.

Most of the tokens (60%) will be distributed for free to TENT users via the weekly Airdrops and via referencing through the application. This is to reward the users for their use of STAN application or STAN services in a broader meaning. To further stimulate the users, the tokens will be distributed in three Tiers (to the 100 most active users over the week; to the 10,000 most active users; and finally, to all active users)
2% is reserved to be given out as a reward (airdrop) to holders of original TENT tokens (ex
Snowgem – XSG) who claimed it after stopping original Snowgem blockchain earlier in 2021. This community was holding and supporting the original STAN tokens since the former cooperation between these two projects, and they are representing today an early adopting community of TENT users.
5% will be distributed to the external partners of the STAN project, to harmonize motivations of key vendors
22% will be distributed to the Company team (incl. ESOP for employees) and to the VC investors.
1% will be allocated to payment of Polygon fees.

The distribution of not only the main 60% but also this 30% will happen at a steady rate and will be completed after approximately 5 years from the launch. This gradual distribution stimulates the dedication of all the partners to the project. Also, it supports the utility value of the 60% distributed to the users.

The remaining 10% will be allocated to the RESERVE FUND and it will be up to the community to vote on how it should be used after three years have passed. In the first three years, the tokens could be used by STAN to cover unexpected expenses.

Distribution of intent token

Initial contract: 0x5918Fa85f0a3DdC00Ce145CBA21D5540d25c5cc7

Initial Polygon wallets	Initial Holding
0xcb6ed4666d0577b489f5c430dc0849ee6f96f518	1,200,000,000
0xd1c8e621ddea18e38c107fb1920c2f26bccc69c9	600,000,000
0xfa7165b9a727a549bd4c5f7574d710870a824b37	200,000,000

The Airdrops to active users will happen every week until all 60% of INTENTs is given out to the community. We set the parameters of distribution so that under the expected circumstances (the ‘default scenario’), the distribution will last approximately five years of growing business activities.

The Airdrops of INTENTs have two forms. The first form is a weekly reward with regards to the Tier of activity the user has achieved during that week (nulled and calculated again and again for every new week). The other is a reward for referring a friend. The tier of activity is measured in the amount of money the user has contributed to the DISCOUNT POOL. Only permanently active users are rewarded. For the referral to be successfully granted, the referee needs to be active for at least one week (read: they must make at least one transaction each week to become eligible to gain weekly airdrop) and must pass the KYC. This results in the following table for Airdrops:

Airdrops for:	Rewards:
Tier 1 = top 100 active users	1000 INTENT tokens
Tier 2 = top 10,000 active users	100 INTENT tokens
Tier 3 = Every active user	2 INTENT tokens
Referring an active user	50 INTENT tokens for the referrer AND 50 for the referred user

This overall INTENT mechanics is designed to be an effective tool aiming at user acquisition, as well as user activation.

6.2 Modelling the tokenomics

We paid special attention to the tokenomics. Most crypto-assets do not use rigorous modelling for determining parameters and systemic setup. This negligence might result (and often results) in a situation when the coin is hyperinflationary and must be burnt, or those parameters must be reset which always damages some stakeholders, or nodes are not motivated enough, and extra incentives must be added etc. Very commonly, the utility tokens are unluckily designed as mandatory-to-use, hoping to create an artificial or ‘forced’ demand. In a nutshell, if a rule of thumb is used instead of a sophisticated design, the project’s flask is leaking and hotfixes using duct tape make it leak elsewhere. Or explode. Without naming any, there is a number of good projects with millions of users suffering from this.

We designed a stock-flow consistent model to test and parametrize our solution. Unlike the DSGE (dynamic stochastic general equilibrium) models, our model does not assume a general equilibrium. Therefore, it can be used to identify systemic failures and prevent them. The model was programmed in Minsky (version 2.30), a software designed exactly for modelling flows of money, named after Hyman Minsky, an American economist who studied the instability of financial markets. The software was created by Australian scientists Steve Keen and Russel Standish. Steve Keen won the Revere Award for the best prediction of the Credit Crunch in 2008 (the one ‘no one could see’). Minsky works with a unique method of Godley Tables. Those force the user to comply with accounting rules so that faulty or unrealistic operations must be avoided. Minsky strictly distinguishes between stocks (of money, tokens, users…) and flows (of the same entities). Minsky also allows us to simulate the dynamics in the model. It operates in continuous time, using Runge Kutta and calculus to calculate values for all possible timeframes. It is very easy to design a model that crashes during the simulations. This helps to identify systemic flaws that could otherwise be overlooked.

The model should solve several tasks in order to design suitable tokenomics for STAN:

To assess the dynamics of STAN’s user base
To assess money flows in terms of fiat
To assess the INTENT token distribution schedule
To define a measurable utility of the INTENT token
To simulate the behaviour of various STAN users and the dynamics among them
To derive the expected price of INTENT token in time based on the previous findings
To analyse it under the default conditions (Monte Carlo model for presented parameters)
To analyse it under different conditions (Monte Carlo model for different parameters)

Dynamics of TENT’s userbase

Before we get to STAN’s userbase, we must define the size of the relevant market. As STAN’s services are meant mostly for the EU’s citizens, we must calculate with Europeans using crypto. (Note: to be precise, the STAN services will be fitting into non-European remittance and payments markets too, however, due to our conservative approach, we decided not to reflect these markets in the existing mid-term outlook). Using data from 2020, the population of the 27 member states is approximately 447 mil. We use this as a parameter, not a variable, as we don’t expect the population growth/decline to be significant. We assume that 10% of the EU population has some experience with cryptocurrencies as of today. We concluded at 10%, as studies from Europe and USA suggested some 8% in 2020 and newer 2021 data from Australia suggest the suspected amount closes on 20% already. We expect that this percentage will grow relatively quickly due to the high adoption rate in the past years mixed with today’s state of the world’s economy. We assume that the crypto share of the population could double every five years. As we operate in continuous time, not discrete, the increase is also continuous. However, in order to make the growth more realistic, we assume that the growth slows down as more people get lured into crypto. If a crypto Jesus would walk the streets and told the good news to everyone he met, gradually he would meet more and more people who have already been converted. The maximum capacity thus works like some form of a repelling magnet that slows this growth as it approaches it (PP). The following formulas were used:

PP=11+Share of population×(52-1)

Share of populationddt=share of population ×ln (52×PP)

To facilitate the understanding, we offer a graphical approximation:

Share of population/time in years

This results in the share of the crypto population reaching 100% in roughly 75 years and doubling to 20% in some 5,8 years. The red line represents 100% of the EU’s population, and the green curve represents the share of crypto-savvy people in it. Time in years is on the horizontal axis.

Next, we deal with already existing TENT users and TENT token holders. We assume that STAN will start with approximately 1,000 initial users (existing community of ex-Snowgem owners; Note: Snowgem project was formerly a joint venture with TENT, terminated and forked earlier in 2021, gaining a user base of around 1,000 STAN wallet users). For the underlying basis, we assumed that the number of STAN users would quadruple every year (double every six months). To make a realistic estimate of growth, we created a similar limitation to the growth as in the share of population growth formula. We also assumed that STAN cannot attract hypothetically in any distant future more than 1/3 of the potential (Total Addressable) market. The base formula then looks like this:

Crypto users=447m×Share of population

KK=Crypto usersCrypto users +(TENT users × 4-1×3)

TENT usersddt=TENT users × (4×KK)

So far, we have only covered organic growth in the formula. The organic growth is done via users referring the STAN application to their social bubble. In order to speed up the growth and reach the expected around 50 000 users after 1 year from the full launch of the token, using the parameters presented, an initial (at least three-month long) marketing campaign is needed starting no later than three months after the launch, that could attract around 20,000 early users. This estimate is also supported by a unique product design, allowing users to obtain regular payment card and use it via Apple/Google Pay as a full-regular payment card across EU literally in seconds. With this setup, the STAN application aspires to reach around 1,000,000 users some three years after the official launch (also called as SOM – Serviceable Obtainable Market). The next graph shows the same timeframe with nominal numbers of people (in hundreds of millions). The green curve is the entire crypto population again, the blue line represents STAN users. When modelling a 50-year predictions scenario, it will never surpass 1/3 of the crypto population (limited to ca 150mn users). In the language of start-ups’ ultimate market potential, this number would represent TAM (Total Addressable Market).

People (hundreds of millions) / time in years

Money flows in terms of fiat

STAN chooses a transparent and straightforward fee policy. Every conversion (fiat2crypto, crypto2fiat, or crypto2crypto) is proposed to be subject to a flat 5% fee on average, resulting from fees charged by providers of the critical components and existing on & off-ramps (such as payment gateways, Mastercard card payments), crypto exchanges fees, KYC and KYT fees etc. With the long-term growing maturity of the crypto industry and growing transaction volumes, we expect these fees fiat-to-crypto payment fees to slowly, but constantly decrease, however, the model operates with 5% as a parameter). To follow the rule of making STAN services as accessible to the widest market possible, there are planned no other fees related to using STAN and there are other hidden fees – i.e., no ongoing card fees, no transaction fees, no monthly or yearly fees, no mandatory INTENT token buys etc., as users might know it from some other existing services. As payment transactions (in their general meaning) are getting commoditized, we predict that as such will not be subject to any material senders’ fee in the future. Only specific events within TENT, such as card plastic printing and shipping, lost card re-issuance etc. might be subject to additional charges (covering the extra costs associated). In the total numbers, the significance of those extra-cost items is going to be from low to neglectable, due to focusing primarily on the more secure and convenient digital form of cards not associating unnecessary costs (such as NFC Google and Apple Pay, making plastic cards soon a history etc).

The proposed 5% flat rate is competitive in the existing world today, when compared to fees paid in DeFi, typically at decentralized exchanges on Ethereum, even more so when compared to time costs and network fees connected to bridging tokens among layers and on&off ramps. Especially when the user does not perform transactions worth tens of thousands of Euros.

However, STAN aims at large users of crypto too and here is exactly where INTENT comes to play. INTENTs held in STAN custodial wallet or the user’s non-custodial wallet connected to their STAN wallet generate Loyaltent credits on a continual basis. Loyaltents are worth 1 Euro each and are automatically used to cover the user’s fees – Loyaltents are automatically written off and the user gets reimbursed in Euros/EURTENT stablecoins. INTENTs can be also understood as a prepaid membership, with a very important difference:

INTENTs are transferable. When the user no longer wants to use STAN or when they just know that for a certain period of time, they will limit their expenses, they can simply sell the tokens for a market price!

This means that the user does not purchase special membership (=cost), they allocate money in it (=investment). Also, every user can buy the exact number of INTENTs they intend to.

Looking at the project economics, on average, out of the 5% flat fee, approximately 3% is paid to third parties. The third parties are payment providers (gateways, card schemes), card issuers, banks, custodians, DEX fees, CEX fees, network fees and other infrastructure providers. Also, on average another up to 1% card interchange fee enters the system which is not paid by the users, but by Mastercard, who charges the merchants (depending on the card type and other factors exceeding the scope of this document). Out of the remaining 3%, STAN shares half of their incomes with the users by allocating (in the above-proposed calculation it would correspond to ca. 1,5%) back to the TENT infrastructure through the instrument called DISCOUNT POOL. The substantial long-term underlying value of liquid assets behind the INTENT token is of high importance in the overall token setup.

We assume that an average user turns 1,000 Euros per month using STAN wallet. As we have already calculated the user base in time, we can outline this formula:

Discount poolddt=Users ×0.8 ×avg payment×12× 6% overall fee-3% Third party costs×0.5 Revenueddt = Users ×0.8 ×avg payment×12× 6% overall fee-3% Third party costs ×0.5

The DISCOUNT POOL is a pool of money dedicated on a bank account (EURTENTs on a dedicated wallet, respectively), which is behaving according to given, immutably programmed rules. Every time a user makes a transaction from which a fee is deducted, the appropriate portion of the Euros or EURTENTs will be sent to the DISCOUNT POOL. At the same time, a message with the information about how many Euros have been allocated to the DISCOUNT POOL will be uploaded to the blockchain within minutes. This is crucial for having the Loyaltent distribution automated, transparent, and auditable.

For an easier comprehension of the relationship between the DISCOUNT POOL and a virtual pool of all Loyaltents held by users, see the image:

The two blue pools work like joined vessels. The rate at which INTENT holdings generate Loyaltents depends on the ratio between the two pools. There can never be more Loyaltents among users than there are Euros in the DISCOUNT POOL. The fact that the DISCOUNT POOL is growing by one-quarter of the fees being allocated to it, speeds up the rate at which INTENTs generate Loyaltents. As Loyaltents are practically claims for Euros on the bank account referred to as the DISCOUNT POOL, the claim for discounts of every INTENT grows with the STAN app being used (the more people use TENT, the more Discount Pool grows, the higher substantial value of INTENT’s underlying assets). This is the fundament of INTENT’s utility value, and its fair price can be derived from it (of course, we need to take into account that people have different, subjective valuations and budget restraints).

To be absolutely clear, INTENT is not an investment asset. It is a utility and a governance token. INTENT bears fruits, however, Loyaltents cannot be seen as dividends. They are not transferable. Loyaltents are credits fixed to an individual user’s wallet. They are meaningful only for those, who want to use TENT.

We need to prevent the situation when a user buys INTENT producing Loyaltents and then stops using STAN for any reason. Loyaltents would become permanently locked in such user’s app and the corresponding Euros would be also locked in the DISCOUNT POOL forever. What is worse, these sank funds would decrease the rentability of holding INTENTs for everyone.

To solve this, we implement demurrage to all Loyaltent holdings. Demurrage is a time expiration – a continual decrease of the Loyaltent credit in each user’s wallet. We can say that Loyaltents melt down like ice cream. The half-life of one Loyaltent is one year. This means half of the remaining (unused) balance expires every year, i.e. if the user decided to sell all their INTENTs, in a year, their Loyaltent credit would halve. As the demurrage is not being applied to the DISCOUNT POOL, the DISCOUNT POOL tends to exceed total Loyaltent holdings. This, in turn, causes INTENTs to generate new Loyaltents faster. Demurrage does not punish users who hold INTENTs then. In the equilibrium situation (which is purely hypothetical), demurraged Loyaltents are immediately replaced by newly generated Loyaltents and the homeostasis does not break. In reality, the demurrage transfers discounts over time from former INTENT holders to present INTENT holders. Demurrage and user’s Loyaltent balance are in every moment calculated by exact and immutable mathematical formulas, (not disclosed in the public version of the Whitepaper), whereas:

Demurrage is ‘eating’ Loyaltents at a descending (logarithmic) speed.
Loyaltents at any given moment are calculated as a difference between Loyaltens generated and those ‘eaten’ by the demurrage over time. Generated Loyaltens belonging to each INTENT holder are derived from the amount of INTENTs held by the user at the given moment (share of each holder’s INTENTs on the overall INTENTs in circulation, respectively) and the actual size of the DISCOUNT POOL.

In the long run, the total amount of Loyaltents of all users converges to the sum of money in the DISCOUNT POOL.

To calculate the Loyaltent balance for every user, the STAN wallet app or any B2B2C white-labelled wallet or API service linked to the STAN backend must read data from the blockchain, namely, it must know the current size of the DISCOUNT POOL, the user’s balance of INTENT in both their STAN custodial wallet and in their connected wallet(s) and the total number of INTENTs in circulation. Also, the app must subtract the used Loyaltents from the user’s balance immediately when it happens. Every time any of the observed variables change, the equation must make a snapshot in time t0 and restart the calculation. Every block in the blockchain has a timestamp which will be compared to the moment t1 when the user checks their Loyaltent balance. In other words, Loyaltents are not tokens, they are merely calculated results.

Distribution schedule

INTENT token airdrops – The airdrop Tier system has already been described in Chapter above and stands as follows:

- Tier 1 – 100 most active users will receive 1,000 INTENT for their weekly activity.
- Tier 2 – 10,000 most active users will receive 100 INTENT tokens for their weekly activity.
- Tier 3 – Every other active user will receive 2 INTENT tokens every week

+ Referral program extra 50 INTENT tokens for the referrer AND 50 for the referred user

A user only falls under one Tier. We assume that approximately 80% of the STAN users will be active users (meaning they will do at least one transaction on the STAN wallet every week). Although the difference between Tier 2 and Tier 3 may seem large, the value every INTENT token generates via Loyaltents is dependent on the money in the DISCOUNT POOL and this Tier gamification encourages larger spending of users who want to ensure they rank for a higher Tier reward. Every user can also accumulate a substantial number of INTENTs by referring new users. Assuming the STAN user growth calculated in the subchapter above, the 1,200,000,000 INTENTs should be given out in approximately 5 years’ time from commencing its distribution. Then TENT ecosystem reaches its maturity.

INTENTs allocated for partners, investors and the team should also be released gradually in weekly tranches over the period of 5 years. This mechanism protects from supply shocks potentially negatively affecting the free float market (ensures a certain level of price predictability).

Measurable utility of INTENT tokens

INTENTs serve two purposes. The value of INTENT as a governance token cannot be calculated just like the value of a citizen’s vote in an election cannot. We know that it increases the tokens’ value, but we do not know by which magnitude. That is also why the value of pure governance tokens such as Uniswap’s UNI is largely speculative.

Yet the value of INTENT as a utility token stands on solid ground. In every moment of time, we can simply divide the flow of generated Loyaltents by total INTENTs in circulation. This ‘claim’ shows how many Loyaltents a single INTENT token generates in a year. Because of the demurrage, the yearly return of this claim varies between 1 EUR/Loyaltent and 0.5 EUR/Loyaltent (in case the user does not pay any fees within the next year). If the user expected for example an APY of 10%, the subjective value of 1 INTENT would be between ‘claim multiplied by 5’ and ‘claim multiplied by 10’. In case the distribution schedule presented above holds and in case all the INTENTs are held in STAN custodial wallets or connected non-custodial wallets, the expected generated Loyaltents per INTENT in years 1-5 increase with time despite the continual predistribution of INTENTs. They can be seen in this table:

Year	1	2	3	4	5
Expected annual generation of Loyaltent per 1 INTENT	0.0395938	0.0713294	0.16538	0.349238	0.540822

The table demonstrates increasing estimated generation of Loyaltent over time, which is coming out from increasing DISCOUNT POOL year by year. Imagining 1 Loyaltent as the fixed discount of 1 EUR for STAN services, the increasing generation of Loylatents results in the increasing relative annual yield (APY) of 1 INTENT as time goes.

Behaviour of various TENT users and the dynamics among them

To simulate the market forces, we divided TENT’s user base into six groups. Each group decides whether they want to buy more INTENTs (Demand for INTENT) or sell their INTENTs (Supply of INTENT). Each group aggregates a certain proportion of fiat money that flows through their STAN account. The proportion is a randomly generated integer ranging between 5 and 25. The sum must give 100, of course. The proportion symbolizes two things. The market power of the group. And the group’s share on distributed tokens (the Tier system ensures that the users who spend more money will be rewarded with more pre-distributed INTENTs).

The dynamics of the INTENT distribution among the groups is simulated using a Godley table. All groups start the simulation with 0 INTENTs. Three flows are attached to the stock of each group’s INTENTs. This way, the proportion evolves in time. Flow 1 is the predistribution. Flow 2 is the group selling their INTENTs. Flow 3 is the group buying the INTENTs. The derivative of INTENTs in circulation is equal to the predistribution which means that Flows 2 and 3 must cancel each other out (every sold INTENT must be bought by another group). Altogether the groups always make 100% of the holders of INTENT.

The six different groups seek to buy more INTENTs from the market or are offering to sell their own INTENTs depending on the current Price of INTENT on the market and on the value that every INTENT generates at the given time. The groups are as follows:

G1: Always selling
- This group doesn’t see any value in holding INTENT tokens. It will rather sell them and use the value generated by it elsewhere.
G2: Only buying when the Value INTENT generates*20 > price
- This and the following two trading two groups think rationally over the current price in the market and only buy INTENT when it meets their APY requirements
G3: Only buying when the Value INTENT generates*10 > price
G4: Only buying when the Value INTENT generates*5 > price
G5: The optimizers
- This group seeks to hold just enough INTENTs to cover the cost of fees they need to pay.
- As 3/10 of all fees (1.5% out of 5%) enter the DISCOUNT POOL, the share of INTENTs this group seeks to hold converges to 3.33*their proportion on money flows.
G6: Always buying
- This group sees the potential of INTENT tokens and is always buying it no matter the cost.
- INTENT is not supposed to be a speculative asset and cannot be presented as one, yet there are many speculators in the cryptocurrency market. We limited their influence to the maximum of 25% of the market force (and the Monte Carlo simulation ensures that their power in a default simulation is even lower).

Expected price of INTENT

Supply and demand meet in the market. To balance the supplied and the demanded quantities of the traded asset, a price that clears the market must be discovered. In any moment in the simulation, 4 out of the 6 groups decide whether they buy or sell INTENTs (Groups 1 and 6 don’t take the decision).

If a group sells INTENTs, the flow of supplied INTENTs equals the total number of INTENTs the group has. This in continuous time means, that their total stock would be depleted in a year, assuming there won’t be any inflows (such as the predistribution, which would allow freely distribute some significant amounts of tokens to the markets and affect the market price).

If a group buys INTENTs, the flow of demanded INTENTs equals the total INTENTs in circulation multiplied by the group’s proportion defined in Subchapter above. The disproportion between quantity demanded and quantity supplied forms ‘buy pressure’. The buy pressure is a simple QD/QS ratio. The actual number of INTENTs sold by the groups (Flow 2) equals their supply. The actual number of INTENTs bought by a group (Flow 3), though, equals the group’s demand divided by the buy pressure. For modelling purposes, the initial Price of INTENT is set to 0.1 EUR. The dynamics is modelled as follows:

6.3 Simulations

We conducted 20 simulations with the initial settings described in Chapter 5). Those simulations only varied in the randomly chosen sizes of the 6 made-up groups of STAN users that are active in the market. As the groups move with demand and supply, their proportions affect the market price of the INTENT token on the market. We used the Monte Carlo method and generated random percentages ranging from 5 – 25 for each group. After having processed the 20 simulations, we get the following graph, showing the maximums, minimums and most importantly: the average INTENT price in time. As can be seen from the graph, the price will depend heavily on the size of every group as they represent the sentiment towards the INTENT token.

Disclaimer: all simulations in this chapter are calculated as theoretical mathematical concepts based on given formulas used or described in this document and are coming out from estimated input variables. Real results will be affected by a number of circumstances including market, technological and other aspects, that is impossible to fully estimate upfront.

INTENT average trading price in 5 years time – Monte Carlo method

The following two graphs show the Median and Geometric mean interpretations of the trading price from the same 20 simulations.

Median Trading price in 5 years time – Monte Carlo method		Geometric mean of trading price in 5 years time – Monte Carlo method

We use this expected price evolution to verify the tokenomics. The airdrop schedule is designed to incentivize STAN users to make transactions via STAN frequently. If the price of the distributed INTENT tokens was too low, it might have a negative impact on the activity of the users. This would lead to a spiral of smaller DISCOUNT POOL, fewer generated Loyaltents and lower price of INTENT.

What we can see is that one year after INTENT launched, the 100 Tier 1 users receive 1,000 INTENTs every week. That represents up to 390 EUR every week. Due to demurrage, the value drops up to a half in case the user does not use the Loyaltents, however, the very fact that the user ranks in Tier 1 implies that the discounts are being utilized frequently. 10,000 Tier 2 users receive 100 INTENTs representing 39 EUR. All other (Tier 3) active users (80% of total users) receive 2 INTENTs representing 0.78 EUR. This reward alone would hardly convince anyone to use the app. However, the total number of users in year 1 is expected to be around 50 000. With 20% of users counted as inactive, an active user has a ¼ chance to rank in Tier 2. This should be sufficiently stimulating to compete in the weekly race. Also, the referral reward of 50 INTENTs for both users offers the same 39 EUR as Tier 2 does. Therefore, we consider the airdrop schedule model reasonably stimulating.

Zooming out, the INTENT token represents a positive stimulation, creating primarily a competitive advantage for STAN wallet, card and STAN services, compared to other solutions solving liquidity and interoperability problems between TradFi and DeFi. It is positively incentivizing user acquisition, activation, as well as retention. As such it can be adopted by other related businesses or solutions.

We have also tried altering some important parameters from the initial settings to see how the project would be affected. First, we changed the growth speed of the user base of the STAN application to half of the initial settings.

Projected users base growth