General FAQ

About Unit

What is Unit exactly?

Unit is the underlying infrastructure which powers the token economy, with features to support this in a transparent way.

How does it work?

We have a blockchain built using substrate by the Polkadot network, and have built a number of features which we believe make it possible for tokens to succeed and be sustainable.

What’s the growth strategy of Unit?

The main strategy is growing the industry/city segments on a macro level, on a more micro level, it involves building token communities through initiatives like the Master's program, conferences, and token projects support.

What is the overall goal of Unit?

Solve wealth inequity by creating a token economy which completely changes the role of money in society. The way the internet did to information, and smartphones for information.

What are the goals?

Build UNIT token economy, build 50 industry token economies, and 50 city token economies. Ignite the future of the cooperative stakeholder economy.

How is the team planning to get there?

The roadmap which identifies the end goal of the token economy for the mainstream, and makes progress on milestones along the way, which include the growth of city, and industry tokens. We plan to have a team of 200 people for Unit, and 200 people for each of the 50 industry and 50 city tokens(20,000 people).

Who are the people behind Unit?

The Unit core team, industry, and city teams.

What qualifies them to start & contribute to Unit development and growth?

Experience in the digital token/asset world, along with seeing the future for a more cooperative economy, and being able to realize it.

Where does Unit want to be in the next 1/3/5/10 years?

  • 1 - Unit, industry, city tokens sales complete, and teams are filled.

  • 3 - midway on being able to reach the tipping point, of getting key stakeholders in the economy to use tokens.

  • 5 - managed to reach the tipping point, whereby we’re seeing 15% of the economy using tokens.

  • 10 - completely shifted the value distribution of the economy, where entered token powered.

How does Unit intend to get there?

Building a very competent team, which is pushing forward strong/reliable technology.

Is Unit built on Polkadot or is it its on thing?

Our Unit blockchain network is built on a framework provided by Polkadot called Substrate. This allows us to build a robust blockchain which allows us as a parachain (parallel chain) to connect to the Polkadot network called the relay chain.

If its own, how does Unit ensure that investors can trust the ‘new’ system?

There is no need to trust anybody, as the system it’s completely open and transparent.

How can I be sure that this is not another scam in the crypto space?

Book-keeping is completely open, and we are ensuring that funds are not spent, and are backing up the underlying unit economy.

Who are the masterminds behind the technology and how is it coded?

Paul Healy and Michael Healy are currently orchestrating the technology development in a completely open-source way, so everyone can review the code and view progress.

Will there be an ‘external audit’ on the technology part?

Yes. Top auditing firms will ensure that the technology is not at risk of being hacked/compromised. For instance, Security Research Labs in Berlin.

How will Unit build the community?

Using the industry and city teams, as well as having growth initiatives, and a growing ecosystem which drives the network effects.

How is Unit planning on developing and growing the tech team?

Plan to work together with the open-source community, by incentivizing contributions through award bounties and bonuses.

What is the level of transparency on the value of the UNIT token?

Full transparency, we intend on being the leading authority for showing how tokens should be valued within the token economy.

Will there be a legal team deployed?

Yes, though the intention is to educate and support with best-practices local teams with token issuance education allowing for regulatory compliance in each jurisdiction where tokens are issued.

How long will the Core Team be of use to Unit?

The plan is that within 5 years, the Unit ecosystem will be so far-reaching and broad, the core team will have minimal impact on the growth and operations of the protocol/project.

How will the bonus post fundraising be paid out?

Will be paid out from the funds raised, before it goes into the treasury, which can no longer be accessed by the core team, only by the token holders.

How can a Core Team member ensure to stay committed during the vetting/vesting period?

If the question is how can the Unit Core Team ensure that a member is committed, then there is a set of criteria/responsibilities which need to be delivered over the 3-year cliff and 5 year vest period.

What is the legal protection for core team members against financial fraud?

There is legal system which can be used if there is a need for pursuing legal action towards individuals, though, in terms of legal action towards Unit as a legal body, it is technically not possible.

How does UNIT ensure that the Core team is acting in the Unit's best interest?

The vesting and cliff period ensure that the incentives of the core team are aligned with the project. Also, the core team has been selected based on their intentions for the project which is more ideological and purpose-driven than financial.

Investing

Why should I invest?

One should buy unit tokens for three reasons,

  • Ideology - Believe in the mission and vision of Unit, of contributing in building token-driven economy.

  • Financial - Believe UNIT tokens can hold/appreciate in value

  • Team - Believe in the team to deliver

How can I buy UNIT?

Get invited to unit.network, then click buy UNIT, then send btc/eth/dot to deposit address, or use credit/debit card to use a service which does the onramp like moonpay/ramp.network.

What am I actually buying?

Buying tokens for the unit network, which like vouchers/credits, allows you to use the platform offering a range of features.

What are the benefits for investors?

Be able to use the unit platform, and benefit from the financial upside in usage of the unit token economy.

Is UNIT more a commodity that will be used or equity in a company?

It’s a hybrid between a commodity/share, similar to BTC in the bitcoin network or ETH in the ethereum network.

What are the legal stipulations for fundraising?

UNIT tokens are not a security/investment, but simply network credits that are used for the platform.

What is the legal protection for investors?

In the worst-case scenario, token holders can redeem their investment from the treasury, the amount of value that corresponds to their token purchase relative to the total circulating supply. This is done to protect token buyers.

Who is overseeing the financial process?

Will be done in a trustless way, with the Unit Core Team managing the process.

Does Unit have a legal business entity?

Nope. Unit does not have an official legal business entity.

Where is the legal base?

There is no legal base. Similar to a spoken/written language, or a protocol like bitcoin, or technology like the internet.

What are the legal regulations for this business entity?

Simply governed by code.

How will the funds be distributed?

Funds will not be distributed but are utilized to back up the value of the token economy.

How are funds raised distributed to the underlying assets in the treasury?

They will be held in the same currency that was transferred to the treasury. In other words, if all funds are collected in BTC, the intention is not to touch the funds by trading which could put token holders at risk.

Who is responsible for it?

Will be the responsibility of the token holders and core team to ensure the protocol is open and transparent.

How is the treasury protected?

Will be protected by secure smart contracts, audited so as to ensure that no funds are frozen or stolen.

What is the methodology for not burning through any initial investment?

As mentioned above, the funds are not to be used for runway or operating expenses but simply to provide value to the unit token economy.

How will the raised funds be used?

They will not be used or spent, simply to back up the network/protocol value.

How does Unit intend to increase the token value?

Unit intends to provide a strong foundation by which the token economy can be built, however, due to Unit not being a security/investment, we do offer returns/increased returns. However, an increased underlying treasury for the Unit token and demand for Unit as a reserve token would increase the price.

What’s the P/E ratio for UNIT and what is it based on?

If profit refers to the increase in the treasury for the Unit tokens, and equity refers to the market cap of the Unit token economy, then the PE ratio could be compared to a traditional tech company, which can have between a 20 to 100 P/E ratio.

How does Unit justify the transaction fees? Are they comparable to centralized systems? And doesn’t that mean when cashing out the tokens that they would need to be taxed as well? (While there is little to no application of tokens with the current financial system)

Yes, that’s correct. When people sell their Unit tokens, at a profit, or receive Unit tokens in exchange for services, they would need to comply with local rules/regulations and pay taxes.

The transition fees are similar to internet/technology platforms, which charge a fee for usage, which typically go to equity holders.

Who manages the funds?

If funds refer to the treasury, then this is held on the network, which backs up the network, and is not managed by anyone.

How will one have visibility into the treasury?

Everyone can see the bank and treasury on the token page of any token on the Unit Network, including UNIT.

How will the treasury be protected so that nothing will be withdrawn?

It will not be technically possible, as no single user has access to the treasury. The funds can only be accessed by token holders in exchange for their tokens.

How and by when can I change UNIT tokens back to fiat?

Similar to Bitcoin/Ethereum/foreign currency/stocks, using an exchange that handles the conversion based on the market rates.

Will UNIT be traded also on other exchange platforms? If yes, which ones?

Yes. The plan is to be listed on all major exchanges.

Will UNIT be its own exchange platform? If yes, why? What are the pros and cons?

Yes. We have our own exchange platform, which is completely open and transparent. No major cons, advantages include no-wash/fake trading. Fees benefit the unit community.

Is the token sale commissioned? If yes, what is the structure?

There is a token bonus specifically for the UNIT core team, which includes a combination of tokens(20%) and cash(10%).

Tokens

Why tokens?

Tokens allow for a more effective and fair way of distributing and moving value around the economy to all stakeholders.

Why should anyone tokenize a process/company/etc?

The main reasons are the ease to get liquidity for the founders/investors. Allows customers/employees to have aligned incentives (i.e. easier fundraising/financing from more parties. Lower risks of failure due to more parties being invested in the success. More transparent/less opaque.

How can I utilize tokens in the ‘real world’?

You can issue your own tokens for projects/organizations, buy tokens, and spend tokens.

Will it primarily be a speculative investment? What is the predicted timeline on utilizing tokens for transactions in the ‘real world’?

The goal is to create as much real value in the form of products and services delivered, from the start, so as not to depend on the speculative value that powers much of the token world.

How will I receive the funds when selling my tokens?

Bank account or cash, depending on your preferred payment method.

What are the payback terms for issuing tokens?

Completely up to the creator of the tokens. If it’s unfair or not transparent, people will not buy the token.

How will I declare it tax-wise?

You would pay taxes on your local gains both in income and corporate tax.

Can I cash out my Unit tokens whenever I want to?

Yes. There is only a cliff and vesting period, for the 100k tokens which the core team gets for supporting the project.

Why pairing token?

This is based on the concept of an AMM which allows tokens to be traded against a pool, which token holders have staked tokens in. When people trade against an exchange pool, then the exchange rate changes based on what people are buying/selling.

What is staking?

Staking allows the exchange pool to have tokens which people can trade against, there is a small fee which gets taken when people trade, which gets added to the pool, which incentives people to stake tokens in order to provide liquidity.

Can treasury funds be staked/invested?

The funds in the treasury can’t be staked/invested (yet) to protect the treasury.

Why do we use other cryptocurrencies to back up our treasury?

We are using ETH, BTC, DOT to backup our treasury because of the size of those projects (security) and the liquidity they provide.

How are city token treasuries backed?

We are using ETH, BTC, DOT, UNIT (this also raises value of UNIT token, similar to DOT)

How do personal tokens work?

The token creator creates rules and decides how many tokens are for sale, how many team members they want etc.