The technical specifications of the system and its functionality are to provided in a separate document, which is incorporated here by reference. Core components of the Nousplatform technology are as follows:
System’s Components Interaction Scheme
Nous Smart Contract
The Nous Smart Contract protocol is also published as an open source code, and licensed under GNU Lesser General Public License v3.0. The Nous smart contract is anticipated to employ verification functions within the fund’s contract, such as: verification of the asset ownership, records of balances of the investment portfolio, identification of the fund managers, estimating the level of trust, adding third-party escrow services and much more.
Smart Contract of the Fund
Our Smart Fund Contract was created and published dynamically by Nousprotocol. Its main function will be managing the fund, such as equity participation, equity shares acquisition and redemption, and distribution of tokens among investors.
The Nous Wallet is an open source code that is used to store Nous tokens. Any holder of a Nous Wallet will be able to make a payment or invest Nous tokens in any of the funds on the Nousplatform system.
Nousplatform is the system which allows for collaboration between investment funds and their potential and existing investors. Nousplatform includes a personal back office, statistical reporting, wallet function, and lists of funds and their ratings. For investors, the Nousplatform is a turnkey solution for managing assets invested in Nousplatform-registered funds.
Tokenization of Assets
Asset tokenization involves issuance of tokens that represent commodities, assets, products or services provided by a company in order to operate in the blockchain domain. Nousplatform seeks to provide the opportunity to any existing company to tokenize its assets in order to raise capital, as well as to help promising startups raise seed and growth capital.
Types of Tokens
In general, there are two types of tokens: security tokens and utility tokens. Security tokens are used by companies to raise money and are regulated by government oversight. The company issuing security tokens must follow laws, rules and regulations in order to be compliant. Security tokens are most easily compared to equity stakes, similar to a company’s shares of stock.
Utility tokens, on the other hand, are not designed to be used for future developments of the issuer’s products, goods or services. Rather, they can be used as a medium of exchange for the existing products, goods or services.
Compliance for Tokenization System
For the purpose of assets tokenization for company “ABC, Inc.”, Nousplatform organizes a specialized investment vehicle called Cyprus International Fund (CIF) and hires a trusted, licensed and regulated company to manage CIF.
If ABC, Inc. desires to tokenize 30% of its existing assets, it would take the following actions:
-Step one: CIF’s managing company creates new legal entity, that will issue tokens (Token Issuing Entity, or TIE). 100% of TIE is held by the CIF.
-Step two: ABC, Inc. transfers thirty percent (30%) of its assets to TIE
-Step three: TIE then issues new tokens on Nousplatform. New tokens are sold to investors as part of the sale offering. All new Nousplatform investors thereby become passthrough shareholders of ABC, Inc. by virtue of holding tokens of CIF, which owns 100% of TIE, which owns 30% of ABC, Inc.