REINVENTING, INVIGORATING AND QUICKENING · be responsible for it; and product, the public as a by-...

REINVENTING, INVIGORATING AND QUICKENING:

• CITIZENS ROLE IN DEMOCRACY • CONSUMER PARTICIPATION IN CORPORATE STRATEGY

I N N O V A T I V E M A R K E T I N G A S S E T

2

Table of contents

Executive Summary .................................................................................................................. 4

About Us .............................................................................................................................. 6

Our Vision ............................................................................................................................. 6

Introduction ............................................................................................................................. 8

Business Overview ................................................................................................................ 8

Purpose and Activity ............................................................................................................. 9

The Project: Preferendum ....................................................................................................... 10

What is Wrong with Democracy? ......................................................................................... 11

Participation of Corporations .............................................................................................. 11

Market Landscape .................................................................................................................. 12

Objectives........................................................................................................................... 17

Roadmap ................................................................................................................................ 18

Bonus ..................................................................................................................................... 19

Distribution of Tokens ............................................................................................................ 20

Online Advertising .................................................................................................................. 22

Improve the Reputation of Your Brand ................................................................................ 22

Business Models Online Advertising .................................................................................... 24

Advertising in Preferendum’s Debate .................................................................................. 25

Team ...................................................................................................................................... 27

Preventing Fraud ................................................................................................................ 29

Smart Contract Transactions Validated if ............................................................................. 29

Preferendum Flows ................................................................................................................ 30

Preferendum Implementation Plan ......................................................................................... 31

ICO Liquidity and Flows ....................................................................................................... 32

Financials ............................................................................................................................... 32

Assumptions of the Financial Statement Projections ............................................................ 32

Parameters ..................................................................................................................... 32

Funding Strategy of Preferendum Expansion .................................................................... 33

Cash Flow Assumptions ................................................................................................... 35

Revenue Assumptions ..................................................................................................... 35


3

The Market Numbers ...................................................................................................... 36

Valuation under Different Strategic Scenarios .................................................................. 43

Conservative Valuation of the Company .................................................................................. 43

Re-purchase Analysis ................................................................................................. 44

SWOT Analysis .................................................................................................................... 45

Risks Analysis ...................................................................................................................... 47

Allocation of Income from the Placement of ........................................................................ 48

Conclusion ................................................................................................................................ 0


4

Executive Summary CLEISTHENES TOKEN is intended to finance the Initial Advertising Campaign (IAC) and to increase infrastructure options for Preferendum’s global expansion. The issuance will also further improvements in the security of the Preferendum platform, a system based on Blockchain technology which protects votes and user information.

The system allows anyone to request a societal consensus in the “Voting Zone” which may be voted on by means of a user’s mobile phone; results are presented online and made available to users on the platform via Preferendum’s own Social Network. Today, the Preferendum app is ready to be launched worldwide and is currently available via the Apple store and/or Google Play store in 17 countries. These countries collectively allow the app to be accessed by 4.5 billion people, in the respective languages of the 17 countries. In Preferendum’s “Debate Zone”, video ads from companies will be presented which – given the global reach and the volume of voters in each county and region, along with the continual emergence of new issues – will generate a huge exposure for these ads, thus generating ad revenue for Preferendum.

Advertisers in the Preferendum Debate Zone will pay their ads with CLEI Tokens. Every country has issues that need to be decided by its citizens. Requests for consensus and decision could be posted by anyone, from everyday people to national leaders, but our company will neither post, participate in, nor influence the outcome of a societal decision by any user. We also intend to target professional associations, to allow them to determine their member’s positions on national issues, as well as corporate industries such as agriculture, production, technology, health care, education, transportation and so on. We anticipate a large user base in the public sector because the system will encourage all areas of government to present programs and projects to gauge public consensus before implementation. In the private sector, we foresee


5

companies using our platform primarily for marketing purposes to ascertain customer preferences before they design or produce a product. Throughout history, governments and groups of people have been voting to define their paths; we believe this will never cease to be the case. Now, thanks to Preferendum, this process can be done faster, and with a greater reach. With Preferendum, members of society will be able march confidently into the future with better participation and inclusion. We are in an opportunistic position, 4 billion people have a phones in their hands and they are fully accustomed to the use of their phones’ features. We are also in a unique position, because the penetration and replacement of all mobile devices increases by approximately 1.7 billion units per year. Societies and groups need to make faster decisions with greater transparency for mass consensus. Blockchain technology is a relatively new technological development, and we are taking advantage of its benefits for the security of data and results using the Ethereum Blockchain.

We will believe that we require US $122,849,999 to successfully expand globally. 65% will be spent on promoting and advertising in the local media of each country. Advertising will call people to register, become familiar with the use of the platform, express their positions and thoughts in the first voting rounds. Results will be presented and broken down by age, gender, and country; which will give wonderfully precise information to advertisers. Advertisers and users will be able to target, and request public decisions, to users by age, region, and gender, to allow for information acquisition from a near perfect segmentation of their market. The CLEISTHENES TOKEN model is simple:

More Tokens placed more countries with our advertising more users, more user views of other advertisers’ ads on Preferendum’s platform, more expenditures by these advertisers more revenue in Tokens. We believe that a greater demand for Tokens by way of advertising discounts may equate to an increased return for the company.

Tokens will be issued and sold, and the company will use 65% of the funds raised


6

from ad revenue to get users by way of public outreach. As proliferation into new countries increases, revenue paid by advertisers should increase proportionally. Demand for Tokens will increase at the same rate. We intend our system to have huge social and economic impact, so our tokens will be in increasing demand. Additionally, we plan to retain a major company such as Deloitte for our internal audits.

About Us Preferendum is owned by PREFERENDUM LLC a company incorporated in Reno, Nevada and operates in the field of collective decision making, societal consensus, and marketing.

Key Features:

✓ Smartphone penetration and distribution per country ✓ National democratic spirit ✓ Best advertising + Public Relations agency with global reach

Our Vision

We envision a global space in which to be seen and heard, empowering citizens to shape their futures, and to provide marketers and sponsors with direct connection with their best audience samples and sizes; at the local, regional, and national level.


7

Tokens: Quick Facts

Token Name

Ticker

Total number of Tokens to be Issued

Blockchain

Accepted Currencies


8

Introduction We want Preferendum to become the most powerful leadership concept in the world and we intend on empowering citizens to decide what their future should be; thereby reinventing, invigorating, and quickening today’s democratic process and reducing corruption. The dream of any business owner, and of any strategic marketing manager, is to know the decision making processes and preferences of their customers. For the first time in history, they will be able to directly ask them – all of them – to choose and decide between designs or products that they are planning to produce.

is the both the token and the key to advertising within a system application that is interested in committed citizens and community development; and it is capable of segmentation, which will to allow businesses to reach their specific markets. Business Overview

• Our Mission:

i) At public level We can help citizens regain value, self- esteem, interest and passion; close the communication gap with leaders; and give citizens a voice in the strategy and decision making within their communities, thereby recovering the population’s passion for participation and action. The ideas and perspectives of all citizens can be communicated to their leaders, and the preferences of consumers can be communicated to producers.


9

ii) At corporate level, we can maximise consumer input, and allow for permanent, accurate, fast, and low cost measurement of consensus. We allow companies to move from their ancient ex-post-facto satisfaction surveys and focus groups, into modern customer preference voting as well as immediate customer input on design, production, and marketing strategies; which will save trillions in costs and waste because the private sector will be able to gain insight into what their consumers prefer. Our project will allow for companies to forego expensive, narrow, and time consuming focus groups and allow them to access this data much faster and much cheaper than before.

• Our Top Priority:

Simply put, we want to achieve a better, more peaceful, more productive world through the enhanced participation of its citizens. We can speed up processes and decisions in every society, and on every political level. By creating a new system of consensus in democracy with the active participation of all members of every society, can we reduce current anger, frustration, and social unrest.

Preferendum’s revenue will come, primarily, from selling advertising placements to marketers and sponsors. Even though communication technology is getting better by the day, leaders, business people, and citizens are still communicating very poorly. The problem gets worse as time goes on. We firmly believe that Preferendum is the tool to better serve our communities and will enable people build a better place in which to live.


10

In every single country of the world where daily decisions are made by communal consensus, there is typically some type of expression of positions equivalent to voting.

We will solve the chronic problem of lack of communication within society as well as lessen the chasm between leaders and citizens.

Preferendum improves society with more participation and transparency; offers better control of public sector decisions; and helps to generate stable policies, better legal certainty, better public-sector budget allocation and

Management. Furthermore, Preferendum is poised to become an instrument of world peace, justice, productivity, growth and well-being; it will empower citizens, for the first time in history, to lead, to decide and define what their future should be. The public will know their their future’s trajectory, and will be responsible for it; and as a by-product, the public will be reinventing today’s democracy and moving towards eradicating corruption.

We will provide a methodology for input in a variety of areas, which could potentially, into instructions or orders to our elected representatives from a sufficient majority of the populous.

The Project: Preferendum

Our System has huge social and economic implications. Preferendum is the IT tool to eliminate corruption, social anger, and unrest by increasing transparency through direct citizen participation in the defining of public policy.


11

Subjects • Freedom of Expression • Political Transparency • Human Rights • Female Empowerment • Democracy • Civic Engagement

What is Wrong with Democracy? • Citizens are not being heard. • They have little influence. • They do not truly choose their leaders. • They have become disinterested in the

process. • Politics are controlled by only a few. • There is no control over those few. • There is widespread corruption.

Participation of Corporations

No communication

These problems exist because of the great abyss between government/politicians and citizens.

Slow and untimely decisions are being made by politicians who are misinterpreting or ignoring citizens, while continuing to deal with new problems in outdated or inappropriate ways.

At the corporate level we will transform corporate ex-post-facto customer satisfaction consultations into ex-ante customer preference anticipation, which will indicate what corporations should produce for their customers and thus save trillions in costs and waste. Companies can benefit through the Preferendum system by creating a space within the platform for expression by consumers with the aim of knowing the consumer’s expectations and preferences in products and services – which has been the dream of companies throughout history. Companies will be able to anticipate the needs and wants of their customers before taking the risk of manufacturing a new product. The corporate facing aspect of the platform aims to harness voting to mitigate risk in decision making processes which require commitment and long-term action. Corporate users will also garter great benefit from the opportunity to target the non-corporate user base with advertising videos and ads in the Debate Zone of Preferendum.


12

Market Landscape

Preferendum offers a unique opportunity for companies to be part of an initiative to improve society and democracy worldwide, allowing citizens to be engaged and participate in the formulation of public policy, and making individuals better off and better informed. The citizens/customers will be happier, because, with their active participation, they will exercise a more legitimate control in the public and economic sector.

• For corporations, Preferendum is a great opportunity to boost credibility,

build prestige, and to enhance the reputation of any brand image because they will be seen by consumers as serving the best interests of their families, their social environment, and society as a whole.

• All consumption figures show that consumers prefer products and services of companies who put significant efforts into furthering good causes as well as those who embody optics which demonstrate genuine concern for human well-being.

More importantly, with Preferendum, we will develop a channel where billions will see a brand in the “Debate Zone” and will keep returning to see the partial and complete results of the voting process. The potential for exposure on a corporate level is huge, because our platform will allow for exposure to potentially millions of individual users in countries around the world who would be directly viewing their advertisements simultaneously.


13

1. Preferendum Debate Zone

Vote Zone Results

Below is a screenshot of a mobile phone showing the “Debate Zone” of the system where an advertising video could be presented. Payment for advertising space will be taken in

1. To provide an example of the usage of our platform, an individual from a county in California could write a “Preferendum” which the user could address to a specific area – Beverly Hills for example. This “Preferendum” can then be be voted on by the residents of Beverly Hills. Since the query happens to be targeted to a high-income area, brands offering high-end or luxury goods and services would benefit from attaching their advertising efforts to query’s in this high income area. Simply put, high-end and luxury brands would have the option to advertise only in conjunction with requests for consensus and decision targeted to high income areas or other target markets.


14

2. A In the “Debate Zone”, users will be able to exchange thoughts and express their feelings, wants, and needs on topics of interest.

After passing throughour“DebateZone”(where userswill be able to comment on, and debate, and make descisions based on infomration posted by other users) our system will direct users to the “Vote Zone

”.

Preferendum 2. Debate Zone

Vote Zone Results


15

3. In this screenshot, we see the “Vote Zone” where there is no advertising.

Here, the platform users will express their preferences or thoughts in the form of a vote.

The “Vote Zone” shows a Preferendum (question), which may be of interest to citizens in a country or region. Preferendums may be directed broadly, to all people in a country, or more narrowly, to a particular region or socio-economic group (for instance those who make less than $50,000 per year.)

Preferendum Debate Zone

3. Vote Zone Results


16

Preferendum results of each Preferendum will be shared and recorded by Preferendum within the platform for users to view.

Preferendum Debate Zone

Vote Zone 4. Results


17

Objectives

is a based on Blockchain technology that allows access to, and use of the Preferendum platform, which will benefit both companies and individual users.

✓ New technology applied to the needs of today's world

✓ Regulated by Smart Contract

The Blockchain system has emerged in recent years and offers a significantly cheaper, more trustworthy, and faster infrastructure with which to enhance business and social progress. Based on encrypted data algorithmically generated, blockchain redistrubutes real data across the internet and allows for increased and heightened security by removing centralized intermediaries.

“Blockchain has the potential to

revolutionize everything from voting to stock trader.” – Joyoti Agrawal,

Entrepreneur

1. Traceability and cost effectiveness provide a new level of transparency. 2. Accounting transactions virtually eliminates errors and binds data to a

highly traceable audit trail, all while guaranteeing the integrity of financial information.

3. Smart contracts validate agreements automatically, increasing efficiency, saving time, and saving money.

Bonus

Stage % Bonus percentage

Number of

Tokens available

Number of

Tokens issued

Pre-ICO 100% 1,058,880.00 2,117,760.00

1 50% 1,058,880.00 3,176,640.00

2 30% 1,588,320.00 6,882,720.00

3 20% 2,117,760.00 12,706,560.00

4 10% 5,294,400.00 58,238,400.00

5 5% 4,235,520.00 88,945,920.00

6 0% - 105,887,998.00

Total 15,353,760.00 277,955,998.00


20

Distribution of Tokens Distribution of Tokens

Percentage Value of Tokens

Value US$

Crowdsale

83.36%

262,602,239.0

$ 102,414,873

Reserve

5.00%

15,750,000.0

$ 6,142,500

Advisors

2.45%

7,717,500.0

$ 3,009,825

Token Advertising Campaign

2.46%

7,749,000.0

$ 3,022,110

Bounties

1.85%

5,827,500.0

$ 2,272,725

Bonus

4.87%

15,353,760.0

$ 5,987,966

Total

100%

315,000,000.0

$ 122,849,999

1 CLEI = US$0.39


21

Preferendum is already available in Apple and Google Stores in the following countries:

• Argentina • Brazil • Canada • Colombia • Chile • China • France • Germany • India

• Italy • Japan • Korea • Mexico • Russia • Spain • United Kingdom • USA


22

Online Advertising Improve the Reputation of Your Brand.

Traditional sales tactics are no longer enough to engage customers and position a brand for large scale success. Digital advertising and marketing allows businesses to relay information to the right people at the right time.

Nowadays, the marketing, online, and social networks have transformed our environment, challenging companies to develop an integrated plan to reach their audiences effectively.

Revenues in the World Digital Advertising Market

USD (Billions)

212 2016

247 2017

281 2018

315 2019

We will be competing in the digital media industry. This industry is huge and has room for many new-comers, we anticipate that we will need only minimal participation in our initial stages in order to grow on a relatively large scale.

The Preferendum ICO is a unique opportunity for companies to be part of an initiative to improve society and democracy worldwide, allowing citizens to be engaged and participate in what really matters.

The digital market is far ahead of other media. It represents 33% of

investments versus 28.3% for television – and the difference is

continuing to grow.


23

2017 Breakdown by Industry

For corporations, Token purchase is a great opportunity for increased credibility, prestige building, and the bettment of the reputation of any brand image, because a company will be seen by consumers as doing good for the consumer’s families, the social environment, and for society as a whole.

All consumption figures show that consumers prefer the products and services of those companies that are invested in good causes and those care about their customer’s well- being.

From a business facing perspective, with Preferendum, we will develop a channel where billions will see a brand in our “Debate Zone” and will continue to see the ongoing results of the voting process. We see ourselves as a long term advertisment opportunity.

is the ICO to advertise to

committed citizens.


24

Business Models Online Advertising

CONVERSION RATE

(KPI corresponding to the % of people who

perfomed an action in relation to the target

population)

CPM (Cost Per

Thousand)

Online Advertising

CPE (Cost Per

Engagement)

CPA (Cost Per Action)

CPV (Cost Per

View)

CPC

(Cost Per Click)


25

Advertising in Preferendum’s Debate

How will be spent, by whom, and why there will be an increasing demand for the fixed total supply of them

The advertising in the “Debate Zone” of Preferendum, where discussions of the subject of the Preferendum will be held, will be paid with Tokens which will be purchases through various mediums as they develop such as private placements, market exchanges, or directly through us. This process of purchasing Tokens to pay for ads in the “Debate Zone” of Preferendum will continue until 100% of the token supply is sold and used to pay for ad space. They will not be reused, as we will burn the tokens after they are used to purchase ad space. Any additional capitalization of the company by investors may be paid for partially in cash and partially with Tokens.

Initiator of Preferendum

Debate, advertising

space available

Massive support and voting from people to make their position on the subject win

Advertisers


26

Global Marketers will be interested in purchasing the because the global presence of Preferendum will give them the possibility of reaching consumers in numbers which could be in the hundreds of millions or even billions. The speed of this process will be determined by the success of the introductory advertising campaign.

Due to the advent of smartphones and the increasing connectivity of the world we live in, Preferendum is, without a doubt, in an ideal position to succeed and grow. Ownership numbers of mobile phones is more than one-per-person in many countries, the use of which allows for technological expansion and increased use of the Ethereum blockchain and accompanying technologies. Besides that, the Ethereum Blockchain technology is relatively new and will be markedly effective in protecting the voting process and its results.

In a world of 7 billion people, production of smartphones has reached 1.7 billion per year. And thanks to this total market penetration, this year has presented itself as an opportune point in time to take action and capitalize on the ever-increasing permeation of new technology.

The expansion of our platform to more countries, and those with higher populations, will bring more global advertisers and local companies to the table. This will place increased pressure on the demand for Tokens, which will facilitate liquidity.

Be seen at the best place ,


27

Team

Investor

Assistants

Gaspar Sepúlveda

Back-end Developer

Walter Weber

IOS Developer

José Rebolledo

Android Developer

Juan Carlos Fernández Lazo

Tra Transfer Telecomunicaciones President Harvard Alumni, ALI Fellow Harvard Business S

Laura Zentella

Team Support

Mario Reyes

Internal Auditor


28

Co-founders

Advisors

The names of the directors will be revealed

prior to the release of the token

José Fernández

Business Engineer

Manuel Fernández

MBA Booth University of Chicago


29

Preventing Fraud Smart Contract Transactions Validated if:

ICO (Initial Coin Offering) ads and transactions are governed by modules of independent persons secured by the Ethereum Blockchain. In the event that a module or system malfunctions, the integrity of ads is preserved.

Preferendum demands a validation for:

User: Person registered, who is interested in voting

✓ Face recognition through several selfies taken ✓ ID scanning

This guarantees one single account and one single vote per user.

Consultant: Person, entity, company that is able to create a Preferendum

✓ Website validation

Token Owner: Person, entity, company that possesses a Token that can be exchanged for advertising in Preferendum website

✓ Website validation

Decentralized and distributed Blockchain ensures integrity of the billing data and

payments without any possibility of falsification.

User

TOKEN Owner

Initiator of a Consultation


30

DEBATE

Issue of the Preferendum is debated.

te

ADVERTISERS

Business

Marketers

Statistics of Voting Results

Preferendum Flows

We provide simple and powerful tools to identify and get to your target market.

Initiators of

Preferendum

Preferendum Users

Users will have the ability to narrow the possible respondants of the “Preferendum” by age, gender, or region; this way, advertisers will be able to reach their target audience without wasting money on advertising in markets that may not apply to their goals. The system that has this capability assists


31

each advertiser in reaching its target market, the system can then can pin individual ads to the Preferendums that will directly reach that segment of the market.


32

Preferendum Implementation Plan

In every country, capital will be needed to advertise our initial operation in the local media. An initial campaign will be structured on a country by country basis in order to acquire users and build our brand name. The proportion of the total advertising which will be financed by the sale of Tokens will depend on the number of committed sponsors as well as the cost of the media ads needed for the campaign.

Sponsors will receive a sizable discount as an incentive to participate as sponsors in the initial campaign.

Should government entities not wish to place private ads on our platform they will have the option to place political ads relating to public issues. Small countries and their citizens will not pay when they make Preferendum’s regarding public policy issues. These will be financed by ads from private companies in the “Debate Zone” where citizens will express their positions.

The funds we are able to raise in the market will be used in the Initial Campaign to expand and market in countries which we plan to cover in the time frame outlined in this whitepaper (see below). After this Campaign we expect to have enough marketers advertising in Preferendum to finance system operation, infrastructure development, and expansion.

Our goal is to install this platform into every smartphone on the planet, permeating into the majority of the world’s countries. We aim to have a real impact on women’s equality, social issues, tolerance, citizens’ participation, individual liberty, and high-level government transparency. We strongly believe that, with Preferendum, we will really help to make the future a better place.


33

ICO Liquidity and Flows There are two main reasons why, we believe, the value of our token will remain liquid and valuable.

The total value of Tokens we plan to issue is equivalent to $122,849,999 (USD)

Financials Assumptions of the Financial Statement Projections Parameters

We plan to reach 28 selected countries in our first year of operation after our Initial Marketing Campaign, with a combined total population of between 2.5 and 4.5 billion people. This implies that the app could be downloaded in their language and a local partner in each country could begin an introductory advertising campaign and initial corporate operations. These countries (see below) were chosen based on the existence of both high per-capita income and large population in order to maximize an ads revenue per $ invested.

2023 2022 2021 YEARS

2020 2019

50.000.000

45.000.000

40.000.000

35.000.000

30.000.000

25.000.000

20.000.000

15.000.000

10.000.000

5.000.000

-

EXPECTED TOKEN RESCUE IN $

Q T

OKE

N in

$


34

It is crucial in our strategy to begin with an aim towards worldwide coverage with the assistance of media companies like McCann, Omnicom, WPP and IPG.

We are also considering Deloitte and other global financial operations companies for auditing due to their worldwide presence.

Funding Strategy of Preferendum Expansion

Until now all the development of Preferendum over the last four years has been fully financed by the founders with their own resources. This includes the full strategy of the business plan.

An influx of capital is needed for the introductory advertising campaign, and for the increase in computer and data processing capacity as we grow.

We decided to make this ICO a truly worthwhile opportunity to marketers:

Korea India Turkey Malaysia Netherlands Argentina

Thailand Australia Colombia Portugal Greece Hungary

New Zealand Austria Romania Czech Republic Indonesia Phillippines

Peru

France

Spain

England

Mexico

Germany

Russia

Japan

Canada

China

Brazil

USA

Italy

Global Population


35

1. We plan to invite 20 companies who wish to have their ads in our “Debate Zone” to be long-term associates. They will be afforded the opportunity to buy the Tokens after the bonus offerings, and they will be offered discounts on ad space through the use of our Tokens to purchase ad space.

2. We will also Invite local media companies (TV, newspaper, etc.) in some countries to swap ads. We plan to offer them cash with which to buy Tokens to pay us for their ads, at a zero-net-cost to them. Offering them ad space in exchange for advertising our platform through their media will allow us to effectively combine many of the active users of their media platform and ours.

3. Below is an assumed growth chart of Preferendum in terms of the number of active users.

We estimate quite conservatively that, after 20 years, we will have approximately 20% of the total number of users that Facebook has today, by which time, we expect the raw number of people with smart phones who are able to access and use our platform will have more than doubled; all thanks to the increase in population and prevalence of smartphones.


36

Cash Flow Assumptions

1. Cost Assumptions; Processing and Engineering Processes Our cash flow assumptions are based on the Financial Statements presented to the SEC by Facebook during its initial growth. We have mirrored our projections in terms of “cost per user” and number of users from Facebook’s early stages. *Note that this is a projected assumpiton and may not reflect actual company growth*

2. Total Market data and our Penetration assumptions • United Nations, Projections of Population per country data • ITU, Projection of smartphones per country • IDC, Annual Shipments Projections of smartphones (Ericsson)

Revenue Assumptions

• Revenue assumptions, ads tariffs charged by Preferendum Facebook and Twitter have advertising costs per users differentiated by Region of the world based on the level of income in each region. This information is contained in their presentations to the SEC and to their shareholders. Facebook gains $30 USD in The United States and Canada per user and $4 USD in countries with lower incomes. We know that 45% of the Facebook’s revenue comes from the United States and Canada, 28% comes from Europe and 15% from Asia. Based on the frequency of user entry to Facebook and user time spent in there, we transformed the figures presented in minutes of presence and active use per year per user. Then we assumed a time in Preferendum to debate as well as time spent returning to the platform to check the consensus and estimated our revenue numbers based on this information.

We assume that our users will enter our “Debate Zone” for 20 minutes; but to be extremely conservative, we assume they will only enter our platform once per week; multiplied by 52 weeks, we estimate 1040 minutes per year per user. Using Facebook’s income of US$0.0004 per user per minute we get the number $4.16 per user per year. Then to be even more conservative (in an attempt not to compare ourselves directly to Facebook) we use a lower


37

number: $2.58. This assumes a user that utilizes our platform less than 4 times a month.


38

The Market Numbers

Total Population (28 countries)

2,500 million

2,000 million (2020)

Total number of Smartphones

1,055 million (2016)

Including China/India

5,100 million

These numbers reflect Preferendum’s potential reach in Apple and Google stores once a comprehensive campaign to promote the system is launched in each respective country.

In building our projections of the company, we have tried to be quite conservative; so we estimate that after the conclusion of our initial $65-million advertising campaign in these 30 countries, Preferendum will reach 17 million users in a market of more than 4 billion people and 2000 million smartphones. We project that at year 20, Preferendum could have 480 million users in a market of 6,000 million smartphones. This would equate to 6% of the total projected number of smartphones in use at that point in time.

For comparison, Facebook retains a base of around 1.8 Billion users. We project that we will only have only 480 million after our first 20 years, even when at that moment the number of smartphones is projected to have doubled along with per-capita income. This would increase the level of consumption of data and digital media, thereby increasing the relative value of publicity and digital reach and advertising. Despite this projected increase, the increase was not incorporated in our flows and projections for the sake of making even more conservative projections.

Below, we present in detail information about global population by region, and the possible impact of our application in various countries.

We have also included the expected expenditure per country with respect to Preferendum’s initial advertising campagin (In Millions USD)

Budget allocation based on Population and per capita income. (In Millions USD)


39

USA Brazil Canada Mexico Argentina Colombia Peru

210

37

130

322

44

32 50

America Population


40

Expected expenditure per country on the Initial Advertising campaign (IAC) of Preferendum (In millions USD)

Budget allocation based on Population and per capita income.

Peru Colombia Argentina Mexico Canada Brazil USA 0,00

1 1 1 1,4 1,4 2,1 10,00

12,32 13,90 14,81 12 17,16 20,00

19,50

40,00 30,00

44,23 50,00

58,70 60,00

70,00

Preferendum (IAC) Initial Advertising campaign in America (in millions USD) Americas Region

USA Canada Mexico

322 37

130

North America Population

Mexico Canada USA 0,00

1,4 1,4 10,00

12 17,16

40,00 30,00

20,00

44,23 50,00

58,70

70,00 60,00

Preferendum (IAC) Initial Advertising campaign in (millions USD) North

America Region

Average per capita income (Thousands USD)

Expected spend in IAC per Country (Millions USD)


41



Expected expenditure per country on the Initial Advertising campaign (IAC) of Preferendum (In million USD$)


South America Population

32

50 44 210

Brazil Argentina

Colombia Peru Brazil Argentina Colombia Peru

1 1 1 2,1

12,32 13,90 14,81 20,00 15,00

10,00

5,00

0,00

19,50 25,00

Preferendum (IAC) Initial Advertising campaign in (USD $ millions) in South

America Region

US $ (Thousand) /per capita income /per year

US $ per Country


42

Expected expenditure by country on the Initial Advertising campaign (IAC) of Preferendum (In millions USD)

China Japan Russia India Turkey Malaysia Thailand Indonesia Phillippines

127 144

1339

1340

263 31 80

69

Asia Population

104

Turkey Malaysia Thailand Indonesia Phillippines India Russia Japan China 0,00

0,6 1,5 1 1,2 1,3 2,7 5,5 4,7

9,40 7,1 10,00

11,20 16,00 15,47 20,00

25,00 24,12 26,90

40,00

30,00

43,63

60,00

50,00

Preferendum (IAC) Initial Advertising campaign (in millions USD) in Asia Region

64,90 70,00


US $ per Country


43


Europe Population

9,7

11 8,7

10,6

10 20

82

17

51 66

46 65

60

Germany

Korea

Austria

England

Netherlands

Romania

France

Portugal

Czech Republic

Italy

Greece

Spain

Hungary

0,00 1,5 1,1 1,3 1 1,2 1,7 1,2 1,2 1,1 2,5 2,5 2,5 3

20,00

10,00

22,37 25,66 26,92 30,00

32,53 29,94 36,30 36,57 38,46

40,00 41,64 42,00

50,00 50,53 50,00 50,00

60,00

Preferendum (IAC) Initial Advertising campaign (in Millions USD) Europe Region


US $ per Country


44



Oceania Population

4,7

24

Australia New Zealand

Australia New Zealand

1 2,3 10,00

0,00

Preferendum (IAC) Initial Advertising campaign in (USD $ millions)

Oceania Region 50,00 45,21

40,00 37,19

30,00

20,00


US $ per Country


45

Token Holder Rights and Valuation under Different Strategic Scenarios

PLEASE NOTE: TOKENS PURCHASED THROUGH PRIVATE PRESALE WILL BE GRANTED THE OPTION TO CONVERT PURCHASED TOKENS TO EQUITY BY MEANS OF A SWAP TRANSACTION 5 YEARS AFTER THE EFFECTIVE DATE OF PURCHASE. AS SUCH, THIS CLASS OF TOKEN HOLDERS WOULD BE GRANTED A SHARE OF PROCEEDS FROM ITS NET INCOME GENERATED BY ADVERTISING, OR IN THE WORST SCENARIO, FROM ONLY THE SALE OF PREFERENDUM LICENCES TO A GOVERNMENT ENTITY OR PRIVATE CORPORATION. We analyzed a few types of scenarios, assuming different risks and results, which will result in different Preferendum Llc valuation results: In a first, non-conservative, scenario with extremely successful adoption results in all target countries, with billion users and frequent use by them, the sky is the limit in terms of the resulting value of the company. There is one company in the market living on ads, with 2 billion users with market cap of 500 billions USD. In the conservative scenarios:

A. Obtaining between 50% and 30% of the token Funds target raised for the

Initial Advertising Campaign. After the Initial Advertising Campaign implementation , we foresee one of 2 different results depending on the level of success. In one scenario, if adoption is low, we sell or license Preferendum to governments or their entities, this would be done after the intitial advertising campaign has been mounted,in order to establish name recognition in each respective country. We believe this name recognition will warrant a price tag in the millions of dollars since, at that point, there would ideally be national brand publicity and Preferendum would be well known.


46

In a second scenario, the company could be listed on an exchange such as the NYSE and stock price would be subject to the flows and demands of the free market. Valuation in this case would be subject to market conditions.

B.Licensing it to Government Entities: If Token Funds raised are less than 30% of target, this translates in a tiny advertising campaign, then Preferendum system could be sold to the governments of all the countries and either retain master rights or exit the industry after sale. Government (entities) could potentially pay in the millions for the software is presented with an application for voting or other governing functions.


47

Re-purchase Analysis

The key element of the speed at which is re-purchased from initial investors and subsequently burned is the success of the initial advertising campaign which is aimed at getting users to register, debate, and vote on the platform.

The First Preferendum is key, and will be unique to each country. In one country, we may be able to maximize usage and user retention if the first Preferendum were to ask users to decide whether Ronaldo or Messi is the better soccer player; in another country, it could be if someone ask them to decide if their current prime minister or congressman should be re-elected. The initial query will vary largely from country to country. Knowledge of the local culture and issues will be a necessity.

This result will be largely determinative of the d e m a n d for


48

since the demand for tokens is largely derived from the demand for ad space in the “Debate Zone” of Preferendum. The future growth of this demand is a function of the number of users acquiesced during the initial advertising campaign.

If this is the key to success, then:

A global agency with a presence in almost all countries and with the prestige of being a good adviser to both the public and private sector is needed, and should be chosen. This agency should have a strong knowledge of the idiosyncrasies and cultural dynamics of the populous of every country in which they operate.

SWOT Analysis (Strengths, Weaknesses, Opportunities, & Threats)

Crypto asset markets are determined by supply and demand. These markets are dynamic and the corresponding prices are often extremely unpredictable and volatile. Crypto asset prices are generally not transparent, are highly speculative, and have the possibility of being subject to market manipulation. In the worst-case scenario, the asset may be reduced to zero value. Purchasers of Clei Token should be aware of this fact and should be aware of the possibility of losing the entirety of their investment.

The Advertising and Public Relations are vital for success.


49

Helpful Harmful

•Innovation •Disruptive technologies •Safe and security

procedures

•Rapid change •Significant competition •Government

Regulations

Strengths Weaknesses

Opportunities Threats

•Social interaction •Available information •Connectivity •Advertising

•People engagement •Technology

improvement •Geographic Revenue

Inte

rnal

or

igin

Ex

tern

al


50

Risks

Risks related

Important risks to be aware of: Be aware that there are certain risks involved in purchasing digital assets Please be aware of the following non-exhaustive risks regarding our Tokens.

• Users engage and acceptance: User acceptance and engagment could be lower than projected, this could negatively affect Preferendum

• Connection issues (installing, accessing, connectivity): Our project is dependent upon internet connectivity, if internet connectivity or data storage becomes unavailable, it could negatively affect Preferendum

• New technology: New technology could be introduced into the market which could make Preferendum obsolete. This could negatively affect us.

• Fluctuations in currency: Fluctuations in currency could negatively affect our project if our operational holders fluctuate downwards.

• Macro-econoconditions: Negative world economic conditions could negatively impact our project or our ability to operate in certain market

• Legislation: Changing regulations or legislations may affect our ability to operate in certain markets, or entirely, if we are unable or unwilling to comply with such legislation or regulations. We will however make best efforts to comply with applicable regulations in every way possible.

• Risk of theft/loss: There is a risk that part or all of the Preferendum’s Blockchain Asset holdings could be lost, stolen or destroyed. Although the Company will secure the Company’s Blockchain Asset holdings to minimize the risk of loss, the Company cannot guarantee that such a loss will be prevented.


51

Allocation of Income from the Placement of

It’s important to keep in mind that 4.5 Billion people live in the area we plan to reach with the Initial Advertising Campaign; this means around 28 countries in which we plan to implement our campaign. Furthermore, funds allocated to each country will depend on per-capita income and size of the population. For this reason, our strategy is to spend at least 65% of our initial funding in the Initial Advertising Campaign aimed at inviting citizens to participate in the first Preferendum. These funds will be directed the local media of targeted chosen countries. We believe this will amount to just a few cents per person in the net-aggrigate

As we grow, increased processing capacity will be needed. Hence, we estimate 20% of our funding to be spent on processing capacity, another 10% on operational expenses, and 5% on miscellaneous operating expenditures. Proliferation into more countries would increase the size of our market, and in response, the platform will have to be translated into additional languages. We believe that our marketing strategy will bring more people to our platform, and the increasing number of citizens will bring more global marketers. We further believe that the income of the company would increase proportionally with the company’s expansion.

How Funds will be Spent

ADVERTISING

PROCESSING CA

OPERATION

OTHER


52

Potential Impact an investment in Preferendum and in the

Government

Increasing Civic and Political Participation

Promoting Electoral Reform and Democratic Participation

Promoting Transparent, Effective and Accountable Government

Society

Transforming Society Participation

Social Justice

More and Better Participation Time

Environment

Reducing Pollution

Promoting Environmental Issues

Environment Responses in Society

Conclusion

The growth of Preferendum is a push for good – for individuals, families, and communities around the world. Our aim is to positively influence social transparency and altruism, as well as to solve age-old advertising and market research dilemmas.

We think that many of the problems in society are due to the lack of communication between peers; and that failures, tragedies, and bad social trajectories are due to the lack of participation, inclusion, and listening. We find this to be true at all levels, even in the more developed nations. We see the same thing happening in private corporations. Those who don’t listen to their customers when they express their preferences, normally fail.

We attempted to figure out the best way to create a positive impact with respect to those issues on a global scale, so we assessed did our research until we came to the conclusion that: “The instrument and solution to our problems in already in our hands, our smartphones.” The creation of a solution using smartphones can potentially be made at a relatively low cost, can be made relatively quickly, and could be implemented simultaneously around the world.


5

Citizens of ancient Athens used to meet at a hill, which they called Pnyx, to discuss issues. These meetings at Pnyx were the early stages and models of democracy as we know it today. Cleisthenes (an ancient Greek lawgiver) is considered to be one of the fathers of democracy; but we think that he would be very disappointed with the form that democracy has taken today, what we’ve done with it, and, after a spirited debate, we believe he would probably propose adjustments to create a better approach to reach good decisions for society.

We aim to achieve democratic deliberation on subjects in all social activities, within corporations, and in society in general; so we created Preferendum as a global instrument to reduce failures and to create a better world. Our hope is that Preferendum will rally everyone around a mission to test societal principles and values.

Through gathering a team with years of business experience, and watching the presentations of authorities from all over the world on the problems they face in their societies, we came to the conclusion that the Public Sector is becoming too slow compared with the speedy incorporation of new technologies in the other sectors of the economy. This is becoming a constraint on social and economic development. Leaders are interpreting citizens’ wishes based on the slow and outdated precedent rather than dealing with current events at the necessary speed. In short, leaders are still living in the past while dealing with problems in the present. We were surprised to see that the communication gap between leaders and citizens was increasing, despite the ever-increasing proliferation of technology which could close this gap.

Since the rate of change of societies was so slow in the past, slower leadership changes and societal shifts were appropriate. However, now that things happen so fast due to better technology, we need a Public Sector and political administration that move more concurrently with events in real time. At the great speed with which society is changing, if citizens are not consulted more frequently, they run the risk of becoming the victims of at best, surprise and discomfort, and at worst, oligarchy.


5

All that being said, we need to be realistic. We cannot change our representatives every six months, so we need to find a way to for society at large to participate, give new instructions, and to communicate their preferences.

Our team was even more encouraged to develop the Preferendum solution when we saw the alarming increase in corrupt activities in the Public Sector in most countries, which surprisingly coincides with the increased use and ownership of smartphones all over the world. We think that this technology should be and could be used as a tool to for societal betterment, rather than being used as a tool to distract the population from its problems.

The Preferendum system was developed for use as an instrument for both consumers and citizens to increase their participation in their own society, achieve democratic deliberation on all subjects, avoid corruption, lead the future through IT, and to empower innovative ideas while encouraging participation in community organization.

For the first time in modern history, at the end of a voting process, voters may be able to actively check on the validity, accuracy, and relative popularity of their votes.

In the private sector, this system could involve employees, customers, suppliers, funders, policy makers, executives and could be applied to anything from the development of new products and services to the strategic position of the company over the years.

Imagine for a moment a world in which in every school, university, professional and productive association; every county, city, state, political party, and union was given the opportunity to vote on relevant issues in a very transparent way. Imagine further that this system could guarantee trustworthy and transparency so that its results are accepted as incorruptible. We see this world as a better place, and Preferendum cannot wait to help make this happen


5


5

IMPORTANT INFORMATION AND DISCLAIMERS

General: This whitepaper has been prepared by Preferendum LLC. While this Whitepaper has been prepared in good faith and to the best of our ability our managment, it does not purport to be comprehensive and has not been independently verified, recipients should make their own independent investigations and enquiries regarding matters in this whitepaper, and rely upon their own judgment as to the accurancy and completeness of any informaiton. Any reliance placed by the recipient on any information shall be at their own risk and Preferendum and other related entities shall not be liable for any indirect or direct consequential loss whatsoever however arising.

Contemplated Transactions: Preferendum reserves all rights in relation to the conduct of any transaction, including but not limited to the right to deal with parties on materially different terms, terminate discussions with any or all persons, alter or discontinue any offer to participate in Preferendum and/or any functional blockchain aspect at any time prior to entering into binding legal arrangements, all without prior notice or liability to any recipient of this whtiepaper or any other person. This whitepaper does not purport to provide all of the information the recipient may require in order to evaluate participation in Preferendum. Recipients should make any of their own enquiries and evaluations which they consider appropriate to verify the information provided herein.

Caution regarding forward looking statements: This whitepaper may contain forward looking statements relating to Preferendum’s operations that are based on management’s current expectations, estimates, projections and assumptions about the business. These statements are not guarantees of future performance, results, achievements or other events and are subject to certain risks, uncertainties and other factors, some of which are beyond the control of Preferendum or their representatives and are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecast or projected in such forward-looking statements. No representations, warranties or undertakings are made as to the accuracy or reasonableness of such expectations, estimates, projections and assumptions.

This information is provided for general information purposes only and does not constitute an offer of any form of security or investment product. You should consult with your own investment advisers and lawyers before determining whether you are legally entitled to invest in a product of this nature in future and whether it is right for your investment profile. Preferendum can not and does not provide legal or investment advice and disclaims all legal responsibility in relation to such matters.

Investment may be lost: This whitepaper does not constitute advice nor a recommendation by Preferendum, its officers, directors, managers, employees, agents, advisors or consultants, or any other person to any recipient of this paper on the merits of participation in Preferendum’s Token Sale. Participation in the Token Sale carries substantial risk that could lead to a loss of all or a substantial portion of funds contributed. Additional Dislcaimers:This Whitepaper does not constitute a prospectus or offering document and is not an offer to sell, nor the solicitation of an offer to buy any investment or financial instrument in any jurisdiction. (Clei) Tokens should not be acquired for speculative or investment purposes with the expectation of making an investment return. No regulatory authority has examined or approved any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that applicable laws, regulatory requirements or rules have been complied with. Clei Tokens could be impacted by regulatory action, including potential restrictions on the ownership, use, or possession of such tokens. Regulators or other competent authorities may demand that Preferendum revises the functionality and mechanics of our Tokens to comply with regulatory requirements or other governmental or business obligations. Nevertheless, we believe that we have taken commercially reasonable steps to ensure that its planned mechanics are proper and in compliance with currently considered regulations. Preferendum is in the process of undertaking further legal and regulatory analysis of the intended functionality and mechanics of Clei Tokens. Following the conclusion of this analysis, we may be required to amend the intended functionality of Clei Tokens in order to ensure compliance with any legal or regulatory obligations that apply to us. We shall update


5

this Whitepaper in the event that any changes are made to our Token. Regulatory licenses, approvals, or filings in respect of that platform and Clei (being the token of this token sale) may be required in a number of relevant jurisdictions in which Clei intends to operate and in which Clei will be sold. It is not possible to guarantee, and Clei does not make any assurances, that any such licenses or approvals will be obtained within a particular timeframe or at all. This means that the platform may not be available in certain markets, or at all. This could require fundamental restructuring of the platform and/or its unavailability. Preferendum intends to operate in full compliance with applicable laws and regulations and obtain the necessary licenses and approvals in key markets. Certain functionalities may also be limited to certain persons to meet applicable regulatory requirements.

REINVENTING, INVIGORATING AND QUICKENING · be responsible for it; and product, the public as a by-...

Documents

Transcript of REINVENTING, INVIGORATING AND QUICKENING · be responsible for it; and product, the public as a by-...