The global decentralized blockchain platform for Directed Money moneytrack.io PITCH DECK July 2018
The global decentralized blockchain platform for Directed Money
moneytrack.io
PITCH DECK July 2018
MoneyTrack will dematerialize any Directed Money application.Use cases include property insurance, consumer credit, international aid, and more, where MoneyTrack will greatly increase operating efficiency while eliminating fraud.Our MTK utility token will circulate in the MoneyTrack ecosystem to enable Directed Money transactions and store them in the blockchain.
moneytrack.io
moneytrack.io
DIRECTED MONEY IS IMPORTANT AND PERVASIVE, BUT POORLY MANAGED AND CONTROLLEDDIRECTED MONEY:
is Money with specific conditions attached
For specific products-services / at specific merchants
Payer can Direct / Track how money is spent
DIRECTED MONEY SERVES KEY ECONOMICAL FUNCTIONS :
a marketing tool to capture money flows
a financial tool to control money flows
a governance tool against fraud
DIRECTED MONEY
CURRENT SOLUTIONS FOR DIRECTED MONEY?
MOSTLY OFFLINE AND PAPER BASED
COSTLY
LACK OF TRUST BETWEEN DIRECTED MONEY PARTIES
INEFFICIENT
NO TRACKING AT ALL
DIFFICULT TO MANAGE AND MONITOR
MARKETS FOR DIRECTED MONEY
EST. ANNUAL VALUE(WORLDWIDE)
CONSUMER CREDIT B$ 1.200
PROPERTY INSURANCE B$ 400
INTERNATIONAL AID B$ 800
WELFARE very large
GIFT CARDS B$ 100
FIDELITY PROGRAMS large
COUPONS B$ 30
=> MARKETS FOR DIRECTED MONEYAMOUNT TO 3-5 % OF GDP
moneytrack.io
MONEYTRACK SOLUTION
DIRECTED MONEY
Financer
MTKMTKMTKMTKMT
KMTKMTKMTK
Beneficiary
Merchant network
UTILITY TOKEN
SMART CONTRACTS
DECENTRALIZED BLOCKCHAIN PROTOCOL
SECURE
USER-CENTRIC
TRACEABLE
CONFIGURABLE
AUDITABLE
AUTOMATED
Examples of Financer:Insurance companiesGift card issuersConsumer credit institutionsGovernment welfare agenciesEmployersCoupons & fidelity programs…
Steps 1-2
Directed Money: $ 1000 Transaction fee (1%): $ 10 Financer must pay $10 in MTKs
MTKs are configured to carry $ 1000 and the DM characteristics (« Minting »)
Monetary example
Steps 3-5: Minted MTKs become transferable on-chain between the wallets of Financers, Beneficiaries and Merchants with a value of $ 1000.
Minted MTKs are held captive though the cycle, which induces a contraction of the available monetary mass in the system.
moneytrack.io
The MoneyTrack token (« MTK ») flows through the MoneyTrack Platform:
1. The Financer needs to buy MTKs (from the markets or directly via the MoneyTrack API) to create a Directed Money (“DM”) program; the value of MTKs required equals the fee charged to him for the use of the MoneyTrack Platform;
2. MTKs are minted and bound to the Financer’s DM program
3. The Financer airdrops minted MTKs to Beneficiaries;
4.The Beneficiary receives minted MTKs in a MoneyTrack wallet and spends them at authorised Merchants; Merchants receive minted MTKs as a temporary payment;
5. The Merchant claims a payment from the Financer, via the MoneyTrack compensation engine; the transaction audit log is kept in the MoneyTrack platform while payment is settled off-chain;
6. Minted MTKs are eventually returned by the Financer to the MTK reserve as Platform usage fee.
TOKEN ECONOMY
TOKEN ECONOMY
MTKMTKMTKMTKMT
KMTKMTKMTKMTKMTKMT
KMTK
MTKMTKMTKMTKMT
KMTK
Financers3. DISTRIBUTING
2. MINTING
1. BUYING
4. SPENDING
Beneficiaries
Primary / Secondary Market
Counterparty currency (€, $, HK$, BTC, ...)
MoneyTrack token (tradable, fungible)
Minted MTK token (non-tradable, non-fungible)
Merchants(token acceptors…)
Audit log
Minting
Smart-contracts
MTK
MTK
MoneyTrack Platform
6. PAYING
5. CLAIMING
MTK
Counterparty currency (€, $, HK$, BTC, ...)
MoneyTrack token (tradable, fungible)
Minted MTK token (non-tradable, non-fungible)
MTK
MTK
moneytrack.io
TOKEN VALUE IS DRIVEN BY PLATFORM USAGE:
Minted MTKs that are circulating in the platform, are not available in the market. In small number initially, the number of minted MTKs will rise over time as MoneyTrack develops.
MTKs will be fully premined. This induces a long term correlation
between the transaction volume on MoneyTrack, and the value of the MTK.
Premined MTKs can support unlimited MoneyTrack transactions ; while initially one MTK with a value of €0.20 can carry €20 in MoneyTrack transactions only(1), if the MTK value rises to €1 the same token now accommodates €100 in transactions.
(1) Based on a 1% transaction fee; if transaction fee on that program is set at 0.5%, a €0.20 token carries €40 in transactions
TOKEN ECONOMY
moneytrack.io
Insurance companies can dematerialise their claims handling process
Insurance companies pay the merchant directly, control how compensation is used
Reduced cost, delay and fraud Improved customer experience Insurers direct money to merchants whom
they have agreement with and can share affiliation commissions of 3 - 10% of spent amounts.
Complex claim handling at Insurance companies : lenghty human processing, paper-based communication, irregularities.
Fraud is estimated to account for 10% of all claims expenditure in Europe1
In the US, fraud steals about $80 billion a year from insurance2
Processes are not customer-centric, resulting in sharply increased churn rates after each claim.
TODAY WITH MONEYTRACK
1 p9 «The impact of insurance fraud» https://www.insuranceeurope.eu/fraud
2 http://www.insurancefraud.org/statistics.htm#1
Click to watch the video
PROPERTY INSURANCE
USE CASES
moneytrack.io
CONSUMER CREDIT
Banks monitor and audit how consumer loans are used by their recipients.
Directed Money programs can be tailored so that they are only usable at specific outlets and/or to buy specific product categories
Better detection of fraud Reduced default and interest rate Banks direct money to merchants whom they
have agreement with and can share affiliation commissions of 3 - 10% of spent amounts.
Improved regulatory monitoring and reduction of macro-economical risk
Consumer loans can be diverted by borrowers, repackaged as down payments for other loans, or used for speculative trading.
In China, a large share of consumer loans are diverted to the housing market; the problem has become so significant that Chinese banks now demand their customers provide proof-of-consumption.
Shadow banking accounted in 2017 for $45 trillion, and is partly responsible for this situation.1
Increasing leverage increases systemic risk and potentially threatens financial stability.
China consumer credit has grown 20% year over year to CNY 33 trillion in April 2018 2
P2P lending transaction in China amounted US$435b in 2017 3
TODAY WITH MONEYTRACK
1 Global Shadow Banking Monitoring Report 2017, FSB (2018)
2 https://tradingeconomics.com/china/consumer-credit
3 https://www.firstp2p.cn/d/E5RD
Click to watch the video
USE CASES
moneytrack.io
Donors and charities can track how their money is directed to local Non Government Organisations
In a second step, Money can even be directed to the personal wallets of individual Beneficiaries, and used for predetermined purposes
100% of aid is tracked and delivered Reliable tracking is likely to result in larger
donations
Despite their efforts, the actions of international charities are often weakened by the lack of effective funds tracking.
Annual cost of bribery: $1.5 to $2 trillion (2% of global GDP).1
The World Bank considers corruption a major challenge to its goal of boosting shared prosperity for the poorest 40 percent of people in developing countries.2
1 http://www.imf.org/external/pubs/ft/sdn/2016/sdn1605.pdf
2 http://www.worldbank.org/en/topic/governance/brief/anti-corruption
Kenya: $10 M embezzled in 2015 (Libération)
Haïti: $1.6 BN embezzled in 2014 (Courrier International)
INTERNATIONAL AID
TODAY WITH MONEYTRACK
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Click to watch the video
USE CASES
moneytrack.io
THE BLOCKCHAIN SOLUTIONA BLOCKCHAIN-BASED SOLUTION TO ENABLE TRUST BETWEEN PARTIES
Need for automated, dematerialized, shared, secure and tracable management of Directed Money.
Allow parties to keep control of their data and provide trust for transactions
→ Blockchain is the most relevant technology for Moneytrack
A CUSTOM VERSION OF TEZOS Tezos is built to ease formal verification of smart contracts Scalable zero-knowledge proof is planned, and use experience
gained on existing projects, like ZCash Tezos is mainly written in OCaml, a strongly typed modern
langage well suited for security and efficiency
TECHNICAL CHALLENGES Formal verifications techniques will be used to greatly reduce
occurence of bugs in smart contracts, allowing large amounts of money to be handled by the platform
Zero knowledge proofs enable sensible information (like conditions associated to a DM transaction) to be verified without being publicly accessible
TECHNOLOGY
moneytrack.io
MONEYTRACK: THE TECHNICAL ARCHITECTURE
A 3 LAYER TECHNICAL ARCHITECTURE MTK Blockchain: an Entreprise and private
version of Tezos MTK OS: the core of MoneyTrack architecture MTK SDK (applications and APIs): the
interface for third-parties (financers, beneficiaries, merchants)
MONEYTRACK SDK Financer application: create a directed
money program and distribute vouchers Beneficiary application: spend their
payment vouchers Merchant application: track spending and
claim payment
SMART-CONTRACT CREATION Smart contracts will be written in Liquidity,
which compile in Michelson, the Tezos smart contract language
MoneyTrack will allow directed money program managers to use existing (and formally-verified) smart contracts
Directed money program managers will also be able to write and deploy their own smart contracts
FINANCER
SMART CONTRACT EXECUTION ON THE BLOCKCHAIN
Manage programManage tokensManage money
Secure
Spend moneyTop up with credit card
Audit
Registered productsAsk for reimbursement
Deliver proof-of-transaction
BENEFICIARY MERCHANT
WEB WEB MOBILE WEB
TECHNOLOGY
FUI#24 - 1.3M€
Creation of the company
Team recruitment Capitalization
2.6M€.
Proof of concept V1 production release. Insurance clients.
Smart-contract manual formal
proof.
MoneyTrackCore V2 release. Consumer
credit.
MoneyTrack platform public
release. End users are able to setup their own smart-contracts.
MoneyTrack Protocol V3
release. New applicative
program for directed money.
MoneyTrackCore V1 development
(centralized) Transaction ledger
setup on Tezos©
MoneyTrackCore V2 development
Partially decentralized
(read-only) nodes network.
Automated formal proof on smart-
contracts.
MoneyTrack Protocol V3
development. Zero-knowledge
transaction verification
protocol.
moneytrack.io
MoneyTrack
MoneyTrack
MoneyTrack
MoneyTrack MoneyTrack
MoneyTrack & OcamlPro
OcamlPro
MoneyTrack & INRIA INRIA
MoneyTrack & OcamlPro
ROADMAP
TECHNOLOGY
Q2 2020Q1 2020Q4 2019Q3-Q4 2019
Q3 2019Q2 2019Q1 2019Q3 2018Q1 2018Q4 2017
moneytrack.io
MONEYTRACK ECOSYSTEM AND BUSINESS MODEL
MONEYTRACK DIRECTED MONEY APPLICATIONS: Front end service applications for Financials, Beneficiaries and Merchants based on MT Protocol.
Developers of Directed Money applications focus on building strong Financers + Merchants ecosystems.
Currenlty, Merchants pay affiliation commissions ranging from 3 % to 20 % of sales (depending on product category and the Merchant’s brand recognition)
→ Attractive MoneyTrack pricing of 2 – 5 % (paid in FIATto App developper).
MONEYTRACK PLATFORM:Open protocol that runs the technical aspects of the Directed Money programs: validation of transactions, security and confidentiality, minting and token circulation
Highly configurable: the Platform makes it technically simple to develop and run Directed Money applications
Transactions fees from online payment service providers : 0.8% to 3% of Payments
→ MoneyTrack will be cheaper (0.5 % to 1 % paid in MTKto MoneyTrack).
BUSINESS MODEL
ECOSYSTEM: TWO FUNCTIONAL LAYERS IN THE MONEYTRACK SOLUTION: BUSINESS MODEL:
SERVICE LAYER: Client facing
Directed Money Applications
2% - 5 % of Payments Merchant commissions (in FIAT)
MoneyTrack Platform
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ECOSYSTEM:
MoneyTrack team The MoneyTrack team develops and runs the Platform and a few applications in France.
Partners Partners will run most of the MoneyTrack Directed Money applications, and earn Merchant commission fees.
0.5% - 1.0% of Payments Transaction fee (in MTK token)
PROTOCOL LAYER: Renders technical services to Apps
moneytrack.io
BUSINESS DEVELOPMENTMONEYTRACK MARKET IN FRANCE : B€ 6.4 / YEAR (directed Money applications):
property insurance core market B€2.1 / year
consumer credit core market B€3.0 / year
entreprise gift cards market of B€1.3 / year.
Conservative figures (example for insurance) The insurance application will first get live starting Q1, 2019.
MoneyTrack needs to capture 2% of its « core » French Market of B€ 6.4 to turn a profit; we plan to achieve this in 2021.
Local players make a profit from affiliation commissions (est. 2-5% of Directed Money transactions)
GO TO MARKET - FRANCEMoneyTrack leverages:
the CEOs 20 yrs experience of business development, and has worked in the electronic payment fields since 2013
several banks and insurance companies that are Limited Partners in Truffle’s funds, are likely early Moneytrack adopters.
GO TO MARKET - INTERNATIONAL Decentralized: local players develop and run
MoneyTrack applications worldwide MoneyTrack uses ICO proceeds to support
such players
B€200Total insurance market
Payout for replacement of home equipment
Property insurance for home
and small business
B€2,1/yr
B€11
5%
2%
BUSINESS DEVELOPMENT
2%
moneytrack.io
ALEXIS COLLOMBProfessor of Finances - Head of Finances Departement of CNAM
HUBERT DE VAUPLANEManaging Partner at Kramer Levin
JIONGZHE CUIVice President at Chong Sing Holdings FinTech Group Limited
ALEXANDRE EICH-GOZZIBlockchain Stream at Sopra Steria
PHILLIPPE RODRIGUEZManaging Partner Avolta / President Crypto Asset FRANCE Association
SAMUEL MANASSÉCEO at Smile & Pay
CHRISTOPHE DORÉ CEO20 years of experience in prepaid payment services as CEO or steering committee in global B2B companies
ABDELKADER KETTAL CTOEngineer in Mathematics, 10 years in software development in startup and major companies, last 2 years as CTO of crypto-currency exchange platform
JULIEN LECERF CFO 20 years of experience as a Big4 auditor and CFO of three international tech startups
ÇAGDAS BOZMAN Blockchain dev. PhD in Computer Sciences, Ecole Polytechnique
PIERRE MICHARD Lead Back-end developer 15 years of experience in embedded software and web development; has specialized in blockchain development for 2 years
ALAIN MEBSOUT Blockchain dev. PhD in Computer Sciences, Université Paris XI, University of Oklahoma
TATEVIK ARZUMANYANFinance analyst. Master of International Business, IAE Nice, with 8 years of experience in financial and tax accounting.
VINCENT DANOS R&DPhD in Mathematics, Ecole Polytechnique, INRIA, Ecole Normale Supérieure
FABRICE LE FESSANT Blockchain and Smart ContractPhD in Computer Sciences, Ecole Polytechnique, INRIA
JULIEN GUITTARD Lead developer 10+ years in full stack web development for major companies, Zend Certified Architect and Trainer, AWS architect
TEAM
TEAMADVISORS
moneytrack.io
FUNDING
2017MoneyTrack is born
2.9 M€Initial R&D budget
2.6 M€Equity funding
1,3 M€R&D subsidy
30 M€Hard CAP
• R&D• Business Development
• General & Administrative
35%
19%
46%
CURRENT FUNDINGMoneyTrack has received m€ 3.9 in funding:
m€ 2.6 in equity from the CEO and Truffle Capital m€ 1.3 in R&D subvention from FUI, a French
government entity (to be paid over 3 years).
Current funding is allocated to: Core technical functionalities Directed Money Applications for France only
WHY AN ICO ?1. Build and actively support a decentralised ecosystem that builds Directed Money Applications. A « MoneyTrack Labs » technical and business development team will assist the MoneyTrack community.
2. Accelerate worldwide adoption. As the initial success of MoneyTrack is likely to inspire competition, we want to accelerate growth and make sure third parties run business on MoneyTrack, rather than develop a competing Directed Money protocol.
3. Security / Technology. Set aside funds to ensure that MoneyTrack remains a very secure protocol as blockchain technology matures.
HARD CAP = 30 m€ - PRESALE STARTED
MoneyTrack Platform on Blokchain
EQUITY FUNDING
FIAT Fee FIAT FeeTOKEN Fee TOKEN Fee
ICO FUNDING
MoneyTrack Applications
Other Applications
Other Applications
FRENCH MARKETS MORE MARKETS. WORLDWIDE
FUNDING AND ICO
moneytrack.io
CONCLUSION
MASSIVE MARKET WITH MANY USE CASES
Directed Money is there to grow for fundamental reasons: it will help combat fraud and bribery, increase operational efficiency in many industries and is a very powerful marketing tool.
Current implementations are mostly offline and paper based.
Solid business model: technological disruption will allow for healthy profit margins while undercutting prices.
STRONG INSTITUTIONAL SUPPORT
MoneyTrack is backed by Truffle Capital, a VC with a strong Fintech track record. Equity funding amounts to m€ 2.6.
French Government has committed m€ 1.3 in R&D subsidy.
MoneyTrack is commited to apply ICO Best Practices and embrace regulation.
One of the very first project build on Tezos.
SENIOR TEAM CEO, CFO with +20 yrs of
experience of start-ups development.
CTO with blockchain / exchange experience.
Solid IT team that had a key role in Tezos development.
Very senior Advisors in the blockchain and legal fields, among others.
SOLID TOKEN ECONOMY The MTK Utility token
carries all MoneyTrack transactions, and is used to pay transaction fees.
Fully premined token pool. Token value correlated
with transaction volume on platform.
Think long-term intrinsic value vs short-term price fluctuations (as always...).
FOCUSED GO TO MARKET STRATEGY
The MoneyTrack core team focuses on building a robust protocol layer.
The MoneyTrack core team will also develop applications for the French market, leveraging its business network.
Initial market of B€ 6.4 in France before extending to adjacent use cases. PoC starts Q1 2019 with French Insurers.
Partners can easily develop other jurisdictions and other use cases, which amount to trillions of US dollars.
IPO funds used to develop a strong community support.
MONEYTRACK: SUMMARY
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#TheSingleSourceOfProof