Papyrus PRP/PPR token policy update

Since the moment when we, the Papyrus team, first started working on our project, we have always put forth all of our passion and enthusiasm; we have been constantly pushing ourselves to the limit to realize our ideas. We do our best for our contributors, partners, and supporters, for all our community, for every one of us. Together, step-by-step, we created Papyrus — the world’s first scalable blockchain protocol for digital advertising, developing the technology ourselves along the way. Not only have we successfully launched the MVP, but we have already created several Papyrus projects, prepared all exhaustive documentation, and published an entirely new business Whitepaper. We launched our first pilots on the real market, focused our business development on market penetration and capture, and the list goes on. We are constantly moving forward according to our Road-map. Now, as we look back, we see the tremendous work we managed to complete and the big challenges we managed to overcome. Overall, it was a fantastic year with genuinely fantastic results and we are delighted that even more work has yet to be done. Papyrus is always focused on taking its place in the world’s digital advertising and blockchain technologies space!

We have been listening to your ideas, suggestions, and criticism. We learned a lot through this year and for us. We grew throughout the past year and we continue to grow, all with your support.

Our TGE1 was held one year ago. Since then the ICO and crypto market changed a lot. Due to many scams and failures, ICOs got a bad reputation and became somewhat toxic to the blockchain business in general. We had not been expecting these changes, but we are strongly dedicated to continuing to build our project in the current environment. After analyzing the current market situation, we have made several decisions regarding token distribution, which we feel will lead Papyrus towards wider recognition and greater success!

Today we present you the major adjustments and updates on Papyrus:

• We are comfortable with the existing funding we managed to raise and continue raising funds from seed investors with equity-based deals.
• We continue recruitment of new partners in the digital advertising space and building of our advertising supply chain intelligence platform (Papyrus Insights), which is offered to brands, publishers, and adtech platforms as a commercial B2B product.

We are getting high interest from industry players and currently are engaged in several negotiations on the integration of our technologies as well as the deployment of an industry-wide blockchain network.

• The main purpose of PPR tokens will be their usage within the upcoming Papyrus Network as access tokens to allocate network resources. We will provide a token gateway to allow free movement of PPR tokens between the Ethereum public blockchain and the Papyrus Network. An inflation model for the PPR token supply will be implemented to incentivize block sealer nodes to maintain network operations and ensure high-quality service.

Our thoughts around proper public blockchain network design led us to recognize that: a) our network should have a native access token; b) network customers should own tokens and use them to allocate network resources for transaction processing; c) network node operators should be rewarded with tokens for their network maintenance activity; and d) the token economy’s design should have native mechanisms which lead to balanced token prices, so that network usage prices are reasonable for customers and network operation rewards are reasonable for network node operators, which covers their infrastructure expenses and allows them to earn some marginal income to justify their hardware investments.

We will publish more details regarding Papyrus Network architecture and usage of PPR tokens soon.

• According to the stricter requirements of regulators, the ability to make transactions with PPR tokens will be unlocked only after the launch of the Papyrus Network mainnet.

Soon we will deploy the first Papyrus testnet and release a website with knowledgebase on the Papyrus Network. Mainnet is not so far away!

• Regarding tokens, we decided to totally distribute the TGE 1 token pool of 150 000 000 PPR (15% of supply) among the current PRP holders, excluding 5,405,570.851 PRP frozen and held by the company. As a result, the effective conversion ratio for PRP to PPR will be 1 : 177.635.

(The frozen amount is the balance of a special wallet containing all the unused PRP’s: 0x94A22Ed8c20a0eFb829b537D9eE3e86D509f957b).

• All PPR tokens allocated for TGE 2 and TGE 3 (45% of supply) will be frozen for at least 6 months via smart contract.

Soon after we started our TGE 2 private sale we realized that reputation of ICOs has been damaged by multiple scams, scandals, and failures. Moreover, the crypto market started to decline sharply. To avoid reputational risks, we decided to abandon the TGE 2 and TGE 3 token sales this year and freeze the token pools instead. As a better option, we are using traditional seed funding for company operations and alternative ways of token distribution to stimulate Papyrus Network usage.

In our original white paper it was planned that (in total) 15% of overall initial PPR token supply will be distributed for PRP token holders, who received them during TGE1 and additional token sale rounds if they happen. As we haven’t done any additional PRP token sale rounds, we stick to the original offer and will adjust conversion ratio accordingly:150 000 000 PPR will be distributed to owners of 844429,149 PRP resulting in 177.634796516916 PRP : PPR conversion ratio.

Our primary goal during PPR token distribution is to attract wide community of token holders interested in Papyrus Network’s adoption and usage of its applications. We also want to avoid consolidation of big token stakes in hands of one party to ensure truly distributed Papyrus Network governance. We think this is the best way to go, that’s why we chose to distribute 15% of PPR token supply to diverse the community of PRP holders.

During this year the Papyrus team has proven that we can build great and in-demand products while simultaneously keeping our expenses at a very low level. The whole team is very passionate about the "next big thing", and we believe we are building the next big thing for both the blockchain and the advertising worlds. Nothing can stop us. This stands in stark contrast with some other projects, which raised millions during the 2017 ICO craze but have already burned through much of the funds without delivering anything of value.

Tokens designated for TGE2 and TGE3 will be frozen for 6 months on a smart contract in public Ethereum network. As the contract expires after 6 months the tokens might be either burned, used for Papyrus network development or frozen again. By freezing this token pool we eliminate any unexpected influence on the token market.

• The Network Growth Token Pool (15% of the supply) will be used for network growth initiatives with full disclosure and transparency.

The Network Token Pool will be allocated on a smart contract and will be further used as an encouragement tool for network usage. The Tokens will be managed in a fully transparent and controlled way.

We plan to launch a couple of great initiatives popularizing the Papyrus Network among the Ethereum / Solidity developers community, laid out as follows:

1. To attract participants in the crypto community to try the Papyrus Network wallet and run transactions on thePapyrus Network, we plan to launch the PPR Merkle mining initiative for ETH holders. Anyone who holds more than .1 ETH in their Ethereum wallet at the moment of the network snapshot will be eligible to receive a portion of PPR tokens by creating Merkle proof of ETH ownership and posting it on the Papyrus Network mainnet. Details on this initiative will be published closer to the mainnet launch.
2. To attract smart contract and dApp developers, especially those who are currently building projects based on Ethereum, we will set up a developer grant program, where every week a jury, composed of network node operator nominees, will be granting PPR prizes to the developers who are creating the most promising applications based on the Papyrus Network and/or migrating their applications from Ethereum to the Network.

We are committed to transparency and to uphold that commitment, we will regularly publish reports about the Network growth pool token distribution.

• Policies around the Treasury Token Pool (15% of supply) and Founding Team Token Pool (10% of supply) will remain unchanged. They will be locked using smart contracts for 24 months with a 6-month cliff.
• The PPR token distribution within the Ethereum network will be held in November 2018 as planned.

Thank you once more for supporting us all this time. If you have any questions regarding the updates, please ask us directly in our official Telegram group or via Facebook or Twitter.

More big news is forthcoming. Papyrus is happening right now!