aqer · video blogging (“vlogging”) as video consumption is increasingly preferred and more...

THE SMART MARKETPLACE FOR ENTERTAINMENT RIGHTS

AQERToken Generating Event

HARD CAP AQER tokens 55,000,000

AQER – where contentcreators and contentseekers meet

PRICE AQER TOKEN Euro 0.5

ERC20 Fixed Issuance 01/11/2018 V.1.0

AQER | The Smart Marketplace for Entertainment Rights www.aqer.tech

PAGE 3

CONTENTS

ABSTRACT 4

SMART MARKETPLACE WHERE CONTENT SEEKERS AND CONTENT CREATORS MEET 5

THE MARKET OPPORTUNITY 7

THE PROBLEM 7

AQER SOLUTION 8

HOW DOES IT WORK? 8

THE AQER QUOTATION ARTIFICIAL INTELLIGENCE ALGORITHM 9

AQER AS THE FIRST BLOCKCHAIN USE CASE IN THE ENTERTAINMENT RIGHTS SECTOR 10

GO-TO-MARKET STRATEGY 10

TOKEN ECONOMICS 11

ROADMAP 17

TOKEN GENERATION EVENT (“TGE”) 18

AQER TOKEN 18

TERMS 18

TIMELINE AND PRICING 18

AQER DIGITAL ACCESS RIGHTS 19

Hard Cap Policy 19

TOKEN DISTRIBUTION 19

FINANCIALS 20

SOURCE OF PROCEEDS 20

BUSINESS MODEL 21

ABOUT US 23

OUR VISION 23

OUR HISTORY AND EXPERTISE 23

OUR TEAM 24

Our Management 24

Our Advisors 26

Our Partners 27

CONCLUSION 28


PAGE 4

The Swiss company Blockchain District SA have developed AQER, the smart marketplace for entertainment rights, which unlocks artists’ creativity and enforces their rights via the unique AQER token and its smart contracts.

AQER stands for Artificial Intelligence Quotation for Entertainment Rights and is the first marketplace where content creators and content seekers meet – aiming to soon become an ecosystem of marketplaces for various entertainment categories.

AQER provides its users with smart contracts, wallets, an Artificial Intelligence algorithm, and blockchain technology, all combined in a marketplace with a unique token designed for secure transactions related to media services and intellectual property rights management.

AQER AND THE NEW ECONOMY

AQER Ecosystem

Please refer to the AQER Yellow Paper for more information regarding AQER’s smart contracts, blockchain solution, and AI algorithm. Blockchain-based smart contracts ensure transparency and fairness, as all deals are written on the blockchain and hence are immutable. The fact that they cannot be manipulated means that the transactions are secure and safe, like never before. A smart contract is a digital protocol intended to facilitate, verify or enforce the negotiation or the performance of a contract between parties. Smart contracts allow the parties involved to achieve disintermediation, i.e. they allow for a contract to be established and automatically enforced without having to rely on a central entity, which would need to be trusted by all parties1.

AQER offers to all partecipants:

• Blockchain technology • AI Algorithms • SERC technology • AQER token • Wallet “BDW”

Third parties can propose additional marketplaces to be integrated within the ecosystem, through a simple click of a button. Blockchain District SA, as the provider of the ecosystem, will charge a 2% service fee on every transaction to further evolve the ecosystem.

AQER is the first smart marketplace where content creators and content seekers meet. Vloggers and brands can now meet and exchange entertainment services and rights! AQER is evolving towards a smart ecosystem where additional dedicated marketplaces will be integrated, such as the music industry and self-publishers of books.

VideoMarketingAQER Vlogging

BooksStreet Lib (Done deal)

Music

MovieProduction

E-Sports

Art &Street Art

Self-PublishersAQER

Entertainment Ecosystem

Other future marketplaces Other Partnership are

on-going All products of the ecosystem are fully developed

1 Specification will be provided in AQER Yellow Paper


PAGE 5

SMART MARKETPLACE WHERE CONTENT SEEKERS AND CONTENT CREATORS MEET

There is a shift in the market from traditional marketing like TV advertising or print media, to marketing on social media channels like YouTube, Facebook, Twitter or Instagram.

Blogging has been there since the very beginning of the digital entertainment industry and is now shifting to Video Blogging (“Vlogging”) as video consumption is increasingly preferred and more efficient2.

Over one billion users worldwide already visit YouTube each month3, spending more than four billion hours watching videos.

More than 87% of online marketers use video content, because it is the most watched format online and on mobile and because it is 50 times easier to achieve a page-1 ranking on Google with a video4.

VLOGGERS

“Vlogger” stands for Video Blogger. These are influencers who distribute content and promote brands on their digital media channels. A vlogger can be a gamer, a creative artist or a content creator at large.

Often the content of these web channels can be accessed for free by consumers, thereby ensuring a large audience.

An innovative Artificial Intelligence algorithm ranks vloggers according to a variety of criteria – such as ranking, number of followers, amount of interactions, views and/or others.

The higher the vlogger’s ranking, the higher the pricing for their services and their revenues.

Brands contact vloggers to commission content and create cost-efficient video marketing campaigns to boost their products and services.

Brands can easily identify, engage and pay the perfectly matching vlogger, by considering the vlogger’s Key Performance Indicators, such as ranking, number of followers, amount of interactions, views and/or others.

Brands can pay less, vloggers can earn more and Intermediaries are no longer required.

BRANDS

AQER BLOCKCHAIN MARKETPLACE ENABLES MAXIMUM TRANSPARENCY AND FAIRNESS

2 https://www.dw.com/en/how-video-blogging-is-changing-the-media-industry/a-18044724

3 https://www.theverge.com/2018/5/3/17317274/youtube-1-8-billion-logged-in-monthly-users-brandcast-2018

4 https://www.capproservices.com/video-marketing/

US USD 21 Billionshttps://www.coredna.com/blogs/content-marketing-trends

EU EUR 1,2 Billionshttps://digitalmarketinggroup.blog/2017/10/26/global-digital-advertising-2016-2021/

Asia USD 12 Billionshttps://www.outbrain.com/blog/podcast-recap-chris-mockford-on-the-future-of-content-marketing-in-asia/


PAGE 6

AQER stands for Artificial-intelligence Quotation for Entertainment Rights. Its vision is to soon become the ecosystem of reference for smart marketplaces in all entertainment sectors.

Thanks to its innovative ranking and profiling algorithm, AQER allows content seekers to select the content creators who are the most relevant to their promotional campaigns.

The higher the ranking, the higher the pricing for their services and their revenues. A lower-ranked video costs around EUR 10,000* and can go up to more than EUR 50,000* for videos from a well-known video blogger.

* prices based on European and US markets

Here is how a typical promotional campaign works:

• Brands search for one or more vloggers by using functionality provided by the AQER platform. The search is based on Key Performance Indicators, which can be chosen, based on the needs of the brand for their campaign.

• Brands pay in AQER for a promotional campaign.

• The vlogger defines via a Smart Entertainment Rights Contract (SERC)6 how this revenue will be split between service providers involved, e.g. video makers, photographers, script writers etc.

Vlogging is the modern version of word of mouth, as the followers voluntarily consume the content provided by their favourite vloggers and share it through their own network.

As more and more vloggers join the AQER marketplace, they are able to increasingly collaborate and exchange promotional content among themselves (this is called organic advertising), thus achieving greater cost-effectiveness and efficiency compared to traditional advertising.

Video content promotes brand recall Video marketing can help strengthen brand Messages

Forbes has clearly identified the “Five Smart Reasons To Start Using Video Marketing”:5

Video marketing can boost websites’ SEO2Video content performs well on all devices3

Currently, people are often forced to watch promotions while consuming content, which is rather annoying. Modern advertising is embedded in video content through product placement or through endorsement by opinion leaders and celebrities. Therefore, vloggers have become the main drivers of consumer decisions.

https://www.forbes.com/sites/forbesagencycouncil/2017/02/03/video-marketing-the-future-of-content-marketing/#731f5086b535

6 Please refer to the AQER Yellow Paper for additional details.

5

Vlogging is the modern version of word of mouth.

1 4Video content is likely to go viral5


PAGE 7

• Then the vlogger sends the brand the link to the video, and the brand activates the automatic payment based on the campaign performance of agreed KPI’s (Key Performance Indicators).

• Finally, the vlogger receives the payment in the form of AQER tokens directly into their wallet, and thanks to the specific SERC, the pre-agreed amount of tokens are automatically sent to the relevant service providers involved.

THE MARKET OPPORTUNITY

• Content seekers (as brands, editors, broadcasters and etc.) find it extremely difficult to select and approach relevant content creators (the vloggers) that could help them in their promotional campaigns, and vice versa.

• No tools are available to get an easy and comprehensive overview of vloggers’ Key Performance Indicators (KPI’s) such as the number of subscribers, views or interactions, hence brands tend to engage with top-ranked vloggers, inflating their rates, while other vloggers (such as nano and micro-vloggers) struggle to secure revenues despite having a loyal niche of fans. Payment of the services was not automated.

• Many agencies have entered the market

proposing intermediation services, which charge as much as 50% fees or more, causing market fragmentation and inefficiencies.

• Due to lack of transparency on their performance, it is difficult to establish a fair price for vloggers’ services due to subjective evaluation criteria and negotiation-based agreements.

• Synergic collaboration among two or more vloggers has been discouraged.

• The ownership and distribution of vloggers’ content rights is not transparent, and their management constitutes an excessive burden for vloggers in terms of investment and time.

• Vloggers are often paid with huge delays, which creates an additional financial burden.

THE PROBLEM

Up until now, the branded content marketing market has been affected by a number of issues:


PAGE 8

AQER is the first smart marketplace for entertainments rights. The AQER marketplace is easily accessible and constitutes the place where vloggers and brands meet.

Transparency and fairness are ensured by using AQER blockchain and Artificial Intelligence (AI) technologies.

AQER collects and integrates data from multiple social media platforms (starting with Instagram and YouTube, and then extending to SnapChat, Metacaffe, and all the other video platforms in the world). Brands are able to efficiently screen and filter the vloggers to find the perfect match. Vloggers can be contacted directly or participate in contests that are initiated by brands to produce promotional videos. Parameters of closed deals among both parties are immutably written to the blockchain, thus providing the highest transparency and enabling the possibility to automatically enforce the agreed entertainment rights.

Using the Artificial Intelligence algorithm defined in the next section, vloggers are ranked based on various Key Performance Indicators (KPI’s).

AQER SOLUTION

HOW DOES IT WORK?

AQER Marketplace

CONTENT SEEKER

Commissions

InfluenceConsumer

Consumers buy “Seeker” products

CONTENT CREATOR

CONSUMERS

He/she can allocate the entertainment rights

Through SERC System

SCRIPT WRITER, VIDEO MAKER,

ASSISTANT, etc.

VLOGGERS

KPIs

Interactions

Subscribers

Views

RANKING ENGINE

Ranking = Pricing

BRANDS

Filter

Topic/Industry

Experience

Growth, etc.PlatinumSuper Vlogger

Rank 2

Rank 3

Rank 4

GoldSuper Vlogger

Rank 1


PAGE 9

7 Application Programming Interface

AQER uses openly available API’s7 to collect data from social platforms, initially from YouTube and Instagram and will continuously integrate further platforms. Input data such as vloggers’ number of subscribers, interactions or total views are taken into account by the algorithm. Absolute as well as relative factors like growth rates and views, interactions and subscribers are used to account for new vloggers with high quality content gaining traction and rapidly increasing their ranking.

THE AQER QUOTATION ARTIFICIAL INTELLIGENCE ALGORITHM

The AI algorithm comes up with six pre-defined ranks for vloggers, which develop from Rank 1 to Rank 4, and then go up to Gold Super Vlogger and Platinum Super Vlogger.

The ranking is calculated by an advanced algorithm using an Artificial Intelligence (AI) algorithm based on Self-Organized Map (SOM), inspired by the biological neural networks, which constitute animal brains. Systems like this one “learn” to perform tasks by considering new experiences or information. The number of classes is given – six in the case of AQER. During the algorithm test phase, 20,000 channels of vloggers were taken into account.

How a vlogger is ranked is calculated dynamically and continuously by the algorithm and cannot be influenced by Blockchain District SA.

• Transparency and fairness.

• Continuous improvements and adjustment to new deals between content creators and content seekers.

• Ability to manage sublayers.

A detailed description of the process can be found in the AQER Yellow Paper.

The model of this algorithm is replicable for the various marketplaces, which will be integrated in the AQER platform over time. Each specific marketplace will have its own relevant input factors, which will be considered by the AI algorithm to value the content producers.

Also, the ranking is continuously kept aligned to the actual deal values between vloggers and brands.

We could have performed that task through a simple linear math formula, such as an arithmetic average or a sum, or with more advanced statistical techniques, but the following principles could not have been guaranteed:

The six classes are defined through a three steps process:

Training: use existing vloggers data to determine the six classes.

Mapping: allocate each vlogger to one of the classes.2Converging: the classes adjust to new vlogger data and deals between vloggers and brands.3

1

RANKS FOR VLOGGERS

PlatinumSuper Vlogger

Rank 2

Rank 3

Rank 4

GoldSuper Vlogger

Rank 1


PAGE 10

The AQER platform can be entrusted, as it exploits blockchain-based smart contracts.

Deal features such as advertising, entertainment rights, fees, escrow, lock ups and client identification are written on the blockchain and hence are immutable and provide transparency8. The blockchain enables a more efficient and safe distribution of entertainment rights compared to the traditional distribution channels.

AQER AS THE FIRST BLOCKCHAIN USE CASE IN THE ENTERTAINMENT RIGHTS SECTOR

By implementing a new marketplace there is an important issue to overcome: how to get the first vloggers and brands on board?

AQER’s strategy is to target first vloggers and brands in the crypto, ICO and blockchain space. Moreover, AQER itself will be the first brand to use the AQER platform for its promotional campaigns. The largest part of the marketing campaign after the TGE will be conducted on the AQER platform through the launch of contests and through targeted advertisements to selected vloggers, gamers and other members of the web entertainment industry.

Secondary targets would be vloggers and brands in the tech, gaming and e-sports space, who are tech-savvy and familiar with crypto currency and Artificial Intelligence.

The last vloggers and brands to be targeted will be the more traditional users, which will join once the AQER marketplace is big enough to provide scaling and growth opportunities to multiple categories of content marketing campaigns.

A similar strategy has been tested by companies such as Indahash, a platform for brands, influencers and bloggers, which launched one of the most successful ICO’s in Q4 2017 and it is now growing exponentially.

AQER key competitive advantages compared to existing platforms serving influencers and brands are the following:

GO-TO-MARKET STRATEGY

8 Specification is provided in the AQER yellow paper

AQER is the first marketplace created to manage video content marketing campaigns, versus only written posts and pictures.1

The blockchain ensures a fair marketplace and an efficient and safe distribution of AQER tokens.

AQER is the only one guaranteeing smart entertainment rights contracts distribution and payments to multiple levels of contributors, versus managing main contributor contracts only.2AQER is the only marketplace offering brands the opportunity to launch contests and vloggers to bid for them and to manage the end-to-end process.3AQER will be the first marketplace implementing B2B solutions: the ecosystem where other marketplaces can come and leverage its advanced technology, including wallet, blockchain, AI algorithm, token and Smart Contracts for Rights.

4


PAGE 11

TOKEN ECONOMICS

The AQER token grants access to the AQER platform. Brands can use AQER tokens to order promotional videos from vloggers. Vloggers can participate in a contest and the brands make a choice, or brands can directly pick their favourite vlogger.

Vloggers can improve the quality of their videos and hence increase their success rate in a contest by using the received AQER tokens to buy special hardware or software tools (e.g. cameras, lenses, picture editing software) or layout features, or to exchange organic advertisement between themselves and other vloggers.

The AQER token regulates three services: rights consumption and organic advertisement between vloggers and brand promotion (including contests).

RIGHTS CONSUMPTION:

The proliferation of other platforms focused on matching content creators and content seekers, provides an opportunity to AQER to become their aggregators and monetize its technology through both its own B2C platform and through all other players launching without similar features.

Blockchain District SA is currently in the process of closing deals with various vloggers and brands. The platform will be launched in October 2018 before the TGE starts. The AQER Platform will be available through the www.aqer.tech website.


PAGE 12

ORGANIC ADVERTISING:

CONTESTS:

On the AQER smart marketplace, only AQER tokens are accepted for payment.

AQER shall be a marketplace as decentralised as possible with Blockchain District SA acting as the party assuring the quality and functionality. Blockchain District SA will collect a 2% service fee for any transaction, in AQER token.


PAGE 13

ICO Economics

The AQER team’s goal is to raise hard capital of 55 million AQER tokens with the issue of their platform utility token. Utility features of tokens are presented in the AQER Yellow Paper. The core driver of token-value growth is related to the operational flow of tokens and their locked state for access to the platform.

PRIVATE PRE SALE PUBLIC SALE TOTAL

Tokens 35,000,000.00 10,000,000.00 10,000,000.00 55,000,000.00

Share of supply 64% 18% 18% n/a

Price, EUR 0.20 0.30 0.50 n/a

Discounts 60.00% 40.00% 0% n/a

SHARE AMOUNT OF TOKENS

Total supply 100% 100,000,000.00

ICO supply 55% 55,000,000.00

Reserves (vesting) 28% 28,000,000.00

Bounty and Airdrop 2% 2,000,000.00

Advisors and partners 5% 5,000,000.00

Founders and team 10% 10,000,000.00

Key elements of ICO economics:

• Maximum token supply is 100,000,000 tokens, whereas 55% is for ICO supply (55,000,000).

• The token offering will be executed in 3 stages with different discounts for each stage (60%, 40%, and 0%, respectively) from a public sale price of 0.5 EUR per token.

• The entire ICO supply is 55% of the total token supply. Together with 2% for the bounty and airdrops and 5% for advisors’ tokens, this is a guaranteed supply of tokens at the end of the first year after the ICO. Tokens that are concentrated with AQER team will be provided to the market only when new customers have no other opportunity to obtain Aqer tokens on the public market.

• 28% of the total supply is going for vesting (quarterly release to the team) over a period of 4 years. This will avoid AQER token consolidation at the team. 7,000,000 tokens per year will be released.

• 10% of the team’s immediate tokens will be vested in the market in the 13th month after the ICO.

• The platform has a built-in deflation model: each transaction will lead to a decrease in supply equal to 2% of its sum.

The ICO conditions are presented below:


PAGE 14

All commission fees are stored in a dedicated AQER Smart contract, and those funds will be used only for controlling volatility. The range of accepted volatility is provided below.

Token Economics Forecasts

To ensure returns for ICO investors, the AQER team deploys a platform that requires staking Aqer tokens on a rewards smart contract.

https://docs.google.com/presentation/d/13d27ePMlbM0yRqt1oaMIf9Ly5zDo6QkdjLlHjG5SmJ0/edit#slide=id.g3ffff22157_0_110

The AQER platform itself is a hybrid solution of private and public blockchains, with the most critical and valuable elements placed in a sidechain. AQER’s business model limits access to these features to its public token in order to respect ICO investors’ interests in the near future.

To ensure that the project provides the best value for investors, volatility limitations are based upon the following assumptions.

Each vlogger must stake tokens in the equivalent of 5 EUR to participate in collaboration within the platform.1Each vlogger participates in approximately 20 collaborations per year.2Each brand must stake tokens in the equivalent of 10,000 EUR in order to participate in a contest within the platform.3Each brand participates in approximately 24-100 (average 62) contests per year.4

Key assumptions and financials for AQER token economics:

The AQER platform applies a 2% commission per stake in AQER tokens.5

Based upon these assumptions, the following computations are applied for token-flow forecasting:

YEAR 1 2 3 4 5

Vloggers 1,000 10,000 50,000 100,000 125,000

Activities per year 20 20 20 20 20

Token demand per activity 10.000 9.887 9.165 6.827 4.613

Deflation per activity 0.200 0.198 0.183 0.137 0.092

Total demand/ locked 10000.00 98866.05 458261.77 682692.94 576584.22

Total deflation amount 200.00 1977.32 9165.24 13653.86 11531.68

Forecast for Vloggers:


PAGE 15

YEAR 1 2 3 4 5

Brands 10 90 500 1,000 1,250

Activities per year 62 62 62 62 62

Token demand per activity

20000.000 19773.211 18330.471 13653.859 9225.348

Deflation per activity 400.00 395.46 366.61 273.08 184.51

Total demand/ locked 200000.00 1779588.98 9165235.42 13653858.87 11531684.43

Total deflation amount 4000.00 35591.78 183304.71 273077.18 230633.69

Forecast for Brands:

YEAR 0 1 2 3 4 5

Token supply 62,000,000 61,538,000 74,875,308 64,828,306 61,459,586 73,361,809

Deflation 10,000,000 10,252,000 2,272,000 12,600,000 25,200,000 31,500,000

Demand lock 0 462,000 4,124,692 21,171,694 31,540,414 26,638,191

Price increase 0.00 % 1.15 % 7.87 % 34.25 % 48.00 % 44.21 %

Oriented price level

€0.50 €0.50 €0.51 €0.55 €0.73 €1.08

Based upon these assumptions with regard to token supply locked during the year and deflation due to built-in commissions, predictions on benefits are as follows:


PAGE 16

AQER InDaHash DIWANGroup Appfluence Klear Bazool Patron

B2C

B2B

Video Influencing

Ecosystem

Blockchain

Artificial Intelligence ranking certified

Organic Advertisement between Vloggers

Entertainment and IP Rights management

Q3 2019

Crypto Token based Platform

Competitive Advantage


PAGE 17

ROADMAP

2018 Q2 Foundation of Blockchain District SA

2019

Q3 Prototype of AQER platformDevelopment of ERC20 smart contracts for token generation eventSwiss FINMA no-action letter preparationKnow Your Customer and Anti Money Laundering processes

Q4 Issue ERC20 AQER cryptographic tokens on EthereumCommence marketing activitiesAQER Token Generating Event

Q1 Blockchain system implementation SERC and AI algorithm optimization for other marketplaces

Q2 Onboard the first 1,000 vloggers and 10 brands Market expansion

Q3 Adding new marketplaces to the Ecosystem (e.g. editors, musicians and writers, painters and many more)Further market expansion

2020 Q1 Update on the AI algorithm for new markets

Q2New SERC implementation

Q3Continuous market expansion


PAGE 18

TOKEN GENERATION EVENT (“TGE”)

TIMELINE AND PRICING

Private Sale A number of tokens are sold at EUR 0.2

Nov 15, 2018

Pre Sale All remaining tokens of the private sale are added to 10,000,000 and the total sold at EUR 0.3

Dec 16, 2018

Public Sale All remaining tokens from the pre-sale are added to 10,000,000 and the total sold at EUR 0.5

Jan 1, 2019

Public Sale Finish

Jan 20, 2019

AQER is a venture of Blockchain District SA of Switzerland. In this Token Generation Event a maximum of 100,000,000 AQER tokens will be generated. No other tokens will be generated in the future.

To perform an assessment of token buyers we use the very latest in Apple and Android smartphone user interface techniques combined with the security of the Microsoft Azure cloud and the immutability of the Ethereum blockchain.

Zug-based software company Horizon Globex GmbH runs this blockchain-enabled client identification solution. The execution is performed by Crypto Consulting AG, a Zurich-based Swiss company and a member of VQF (Verein zur Qualitätssicherung von Finanzdienstleistungen- Centre of Competence for Compliance Services). This is an official FINMA-recognised (Swiss Financial Market Authority) Self-Regulatory Organisation (SRO).

• 1 AQER = EUR 0.5, excluding any discounts that may apply;

• Token supply shall be fixed at 100,000,000; having 18 decimal places of accuracy;

• This Token Generation Event offers 55,000,000 tokens from the total supply;

• AQER tokens are issued according to the ERC20 Ethereum token standard;

• AQER tokens may be paid for in EUR, CHF, Bitcoin (BTC) and Ether (ETH);

• AQER tokens may be used to access AQER anytime and to buy services and special features on it;

• The minimum contribution is EUR 260 or 1 ETH or 0.047 BTC;

• There is no maximum contribution limit, besides the hard cap.

AQER TOKEN TERMS


PAGE 19

TOKENS CONTRIBUTION PERIODS TOKENS OFFER PRICE

Max 35,000,000Start Private Sale: Start: 11 pm CET on Nov 15, 2018Closes at 11pm CET on Dec 15 2018

60% discountEUR 0.2 each

Min 10,000,000Start Pre-Sale: Start: 11 pm CET on Dec 16, 2018Closes at 11pm CET on Dec 31, 2018

40% discountEUR 0.3 each

Min 10,000,000Start Public Sale: Start: 11 pm CET on Jan 1, 2019Closes at 11pm CET on Jan 20, 2019

EUR 0.5 each

AQER DIGITAL ACCESS RIGHTS

AQER tokens can be used to access the AQER platform and to buy services and special features on it.

HARD CAP POLICY

The TGE Hard Cap is set at AQER 55 million. If the hard cap is met, then no AQER tokens will ever be minted again.

If the hard cap is not reached, then, at 11pm CET on January 20, 2019, any unsold AQER tokens shall be destroyed within two months from the completion of the TGE in accordance with the ERC20 standard and no AQER tokens will ever be minted again.

TOKEN DISTRIBUTION

FIXED SUPPLYERC20 compliant

100,000,000

28%28,000,000

Company reserve*

10%10,000,000

Public Sale

2%2,000,000

Bounty and Airdrop programs*

10%10,000,000Pre-Sale

35%35,000,000Private Sale

10%10,000,000Founders and team*

5%5,000,000Advisory and Partners*

* Adjusted downwards pro rata to the number of tokens issued should hard cap not be reached during TGE


PAGE 20

Founders and team members’ tokens shall be locked up and the sale of their tokens is prohibited for the first 12 months after the TGE is completed. The tokens of the private sale will be locked for six months, those of the pre-sale for four months and the tokens of the advisors and partners for three months. There is no lock up period for the tokens bought during the public sale.

TOKENS PRICE TGE PROCEEDS

35,000,000 Private Sale EUR 0.2 EUR 7,000,000

10,000,000 Pre-Sale EUR 0.3 EUR 3,000,000

10,000,000 Public Sale EUR 0.5 EUR 5,000,000

TOTAL: EUR 15,000,000

FINANCIALS

SOURCE OF PROCEEDS9

The plan includes a worldwide presence, so AQER will grow from its home office in Switzerland to offices worldwide. Through the TGE, it will also be able to on-board vloggers and do marketing campaigns in all appropriate global locations, and create local communities along the way.

AQER intends to acquire 1,000 vloggers and 10 brands in the first year of operations and a further 9,000 vloggers and 80 brands in the second year.

DISTRIBUTIONOF CAPITAL3%

Operational Expenses

10%Token

Generation event

23%Team

7%Smart entertainment right contacts

33%Advertising/Marketing

8%Platform functionalities development

10%Blockchain upgrade

9 The figures here are based on the hard cap. Depending on tokens sold, they may change.

LOCK UP

6%Cybersecurity


PAGE 21

BUSINESS MODEL

AQER made the following assumptions:

# Vloggers Collaborations x Year 20

# Collaboration Value 5 €

# Vloggers Collaboration Rate 35,0%

# AQER fee 2,0%

# Token Value 0,50 €

# Contests x Year 10-30

# Contest Value 10.000 €

# Brands Payment Rate 100,0%

# AQER fee 2,0%

# Token Value 0,50 €

YEAR 1 2 3 4 5

Brands 10 90 500 1.000 1.500

Vloggers 1.000 10.000 50.000 100.000 150.000

The global influencer, gamers, vloggers and social media advertising market is set around $2 - $3 billion a year and it is growing, with 75% of the market coming from Google and Facebook products (YouTube and Instagram on top).

AQER aims to grow in the third year to 50,000 vloggers and 500 brands and a total market flow on the marketplace of around EUR 60 million. This is approx. 0.02% of the worldwide internet advertising market.

Assumptions made:

From Y2 to Y3 there is a big jump. This is due to the marketing activities in Y1 and Y2, where AQER will be stabilised in various regions and can therefore obtain the right traction.

Dec 2019 Dec 2020 Dec 2021

2,000,000 AQER Market consumption




PAGE 22

Blockchain District SA charges a 2% service fee on every transaction.

By replicating the business model to other marketplaces that will be integrated in the AQER ecosystem, both in the same space or in adjacent industries such as music, books, arts and others. The total flow of tokens and hence the demand for AQER can grow exponentially.

We also expect significant user growth due to the network affect between marketplaces: users that need AQER advanced technology and features will drive other users as well as other players to join the AQER ecosystem.

The total flow of tokens and hence the demand for AQER can grow exponentially.

Demand in AQER tokens in Years 1 -3:

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

0Year 1 Year 2 Year 3


PAGE 23

ABOUT US

Blockchain District SA was founded in 2018 in Lugano, Switzerland.

The core AQER team is united by a passion for new technologies, in particular for those related to blockchain technology. Founder Philippe Perotti, during his University years in London, invented a game to discover useful YouTubers not yet famous. He and his study mates started “betting” on new videos that were gaining traction. Having observed large inefficiencies and unfair mechanisms in markets, such as modern advertising, we decided to introduce the AQER ecosystem to directly connect content creators and content seekers while eliminating the need for intermediaries.

We were able to attract additional senior team members, who bring a wealth of experience and top-notch skills from multiple endeavours and to guarantee efficiency and ensure transparency, we have already engaged with PWC auditors in Lugano, Switzerland.

AQER will revolutionise the industry of entertainment rights and content marketing.

OUR VISION

OUR HISTORY AND EXPERTISE

Blockchain District SA is the developer of the AQER technology, which aims to create an ecosystem of the entertainment rights industries backed by blockchain technology and Artificial Intelligence solutions.

Our vision is to enable media entrepreneurs and content creators to unlock their creativity and get rewarded in a transparent and fair manner: the AQER community includes vloggers, brands, social media operators, accelerators, self-publishers, artists and content creators at large.

We aim to establish the first economic district within the blockchain economy, where web entertainment entrepreneurs, social media promoters, vloggers and content creators at large are committed to generating new revenue streams and maintaining their entertainment rights and financial value.

We aspire to build the first ecosystem inside the entertainment economic district, where the rights can be managed transparently and quickly without intermediation.

Blockchain District is organizing the AQER Token Generating Event (see www.aqer.tech) and the proceeds from this event will be used to accelerate the delivery, distribution, marketing and scaling of the platform.


PAGE 24

OUR TEAM

PHILIPPE PEROTTI Founder and CEOhttps://www.linkedin.com/in/perotti-philippe-a6137173/

Philippe is a blockchain entrepreneur and co-founded Blockchain District SA in 2018. He has extensive experience in project management through employments at Phoenix Disclosure SRL and Canary Wharf Contractors. Before that, he worked as a Civil Engineer and co-founded various start-ups, including Project Mate (a platform dedicated to the supervision and direction of major engineering works) covering 60% of the major engineering works in Italy. He has been a crypto enthusiast and blockchain investor since 2016.

ADRIANO PEROTTI CFOhttps://www.linkedin.com/in/adriano-perotti-34a96163/

Adriano is a financial advisor at Finage Consulting SRL. He is chairman at Mnemosine SPA and used to run his own business as a consultant. He was managing director at Growing Power SA and at Enoi Power SA. Prior to this,, he was employed as a relationship manager at ENOI SPA and Banca Monte dei Paschi di Siena. Adriano holds a Master of Finance Degree from the University of Essex.

CLAUDIO BAREATO CTOhttps://www.linkedin.com/in/claudiobareato/

Claudio has a professional background in security and has 18 years of diversified business and technical experience, matured initially at various multinational corporations and lately as the founder of Studio Ing. Bareato, a Swiss-based independent provider of strategy advisory and business projects management services specialized in blockchain, crypto, cyber and information security. He co-founded Safekee.io, the start-up that has engineered the world’s first secure, decentralized and blockchain-based cold-storage cryptokeys management system. He holds a Postgraduate Masters in Forensic Sciences and a Masters Degree in Telecommunications Engineering.

MAURO CAPPIELLOOperationshttps://www.linkedin.com/in/adriano-perotti-34a96163/

Mauro is a former CIO with over two decades of international experience in technology, strategic leadership and business transformation in the financial industry and investment banking. Founder of Cappiello Advisory Group, he has solid operations experience and is active in the blockchain, crypto and ICO/TGE space. Mauro holds an Executive Bachelor of Business Administration from the Graduate School of Business Administration Zurich.

OUR TEAM

OUR MANAGEMENT


PAGE 25

MEDEA NOCENTINI CMOhttps://www.linkedin.com/in/medeanocentini/

Medea is co-founder and partner at C3 Partners – Executives on Demand (C3P), an advisory firm providing senior executive support services and temporary management solutions to early-stage businesses. Prior to that, Medea was Senior VP Strategy and Corporate Development at OSN, the leading paid TV platform in MENA. Before joining OSN, she spent several years at Booz Allen Hamilton developing strategies for media and consumer clients across Europe, the United States, and the Middle East.

She holds an MBA from Columbia Business School (New York, USA), a MSc in mechanical engineering from Politecnico di Torino (Italy) and an Engineering Diploma from Ecole Centrale Paris (France).

AGOSTINO MOIO Community Managementhttps://www.linkedin.com/in/agostino-moio-381661163/

Agostino gained experience in PR and advertising as an employee for major brands and companies in the European market. He is active in the crypto space since 2017 as a community manager and brand manager.

ANDREA CALUZZI Project managementhttps://it.linkedin.com/in/andrea-caluzzi-32257a84

Andrea has a Master of Science in Quantitative Finance and a Bachelor’s Degree in Business Management. His first working experience was in paper making production optimization for a listed Scandinavian multinational firm, later, mainly due to his strong passion for financial markets and trading, he focused on automatic trading on futures and shares based on Artificial Intelligence and machine learning algorithms for two Swiss firms. In 2016 he discovered bitcoin and cryptocurrencies and started to join this big decentralized wave.


PAGE 26

DÉSIRÉE MÜLLER Crypto Advisorhttps://www.linkedin.com/in/desireemueller/

Before co-founding Crypto Consulting AG, Désirée gained extensive knowledge as a fund manager for a large long/short European equity fund at Zurich-based GAM. Prior to this, she was at Credit Suisse Asset Management. Désirée holds a Masters in Banking and Finance from the University of St.Gallen.

RETO STIFFLER Tokenization and KYC Advisor

https://www.linkedin.com/in/retostiffler/

Reto is a Swiss-licensed financial analyst, asset manager and blockchain specialist. Before co-founding Crypto Consulting AG, he was CIO and Partner at BK & Associates, Fund Manager at GAM and Portfolio Risk Manager at Julius Baer. Reto holds a Degree in Political Economics from the University of Fribourg.

LUCIANO SERRA Business Advisor and Investors Relationshttps://www.linkedin.com/in/lucianoserra/

Luciano is Founder & CEO at Euroenergy, Founder & Board Member at Iconium, Owner & CEO at LS Ventures. C-level Executive and Entrepreneur with over 20 years of experience working in several industries (Financial Services, ICT/Innovation, Energy, Professional Services, etc.) for company like Accenture, Bain & Company, Telecom Italia, Almaviva. He holds a M.Sc. in Electronic Engineering from La Sapienza University in Rome and a full time MBA from SDA Bocconi in Milan.

OUR ADVISORS

DAVIDE EYNARD Artificial Intelligence experthttps://www.linkedin.com/in/deynard/

Davide is a Senior Researcher and Lecturer at the Institute of Computational Science, Faculty of Informatics, University of Southern Switzerland in Lugano (USI), and lectures on Artificial Intelligence at the Polytechnic of Milan. Previously he has been a post-doctoral researcher at the Polytechnic of Milan, Italy and at the Institute of Technologies for Communications at the Faculty of Communication Sciences at USI. He hold a PhD in Computer Engineering at the Polytechnic of Milan. His research activity has always dealt with knowledge at different levels: how it can be formalized and collectively produced (description logics, social semantic web), How it can be extracted from unstructured or semi-structured data (social web mining, ontology extraction from text), and how it can be exploited to make sense of vast amounts of information (machine learning, pattern recognition).


PAGE 27

OUR PARTNERS

YVES NESPECA Crypto Lawyerhttps://www.linkedin.com/in/yvesnespeca/

Yves is a partner at NGS Rechtsanwälte AG. He worked for two leading law firms in Zurich and then joined UBS AG as Legal Counsel Wealth Management and later as Legal Counsel Corporate Banking and Structured Transactions in Zurich. Subsequently, Yves worked for Union Bancaire Privée as Legal Counsel Private Banking. Yves now focuses on corporate, contractual, tax and financial market law. He advises start-ups with respect to Token Generation Events.

Member

GABRIELE MARAZZI Software Developer Expert

https://www.linkedin.com/in/gabrielem/

He works for Trustless Labs and is the CEO of SpidChain, a company using the blockchain for identity management. Other than that, he is active for a Google Developer Group and Hexagon. Gabriele completed various trainings in the field of web development in the Blockchain sector and has been working on AQER from the beginning.

PAOLO BERNASCONI Economic Crime Investigation and Anti Money Laundering experthttps://www.linkedin.com/in/paolo-bernasconi-b64b3812/

Paolo is a well-respected Swiss lawyer with more than 50 years of experience. He is an honorary member of the Swiss Experts in Economic Crime Investigation, part of the Society of Trust and Estate Practitioners Limited and Chairman of the Board of the Not for Profit Association “Ethics and Compliance Switzerland’. He studied law and completed his Bachelors Degree at the Universities of Bern and Fribourg.


PAGE 28

CONCLUSION

WE ARE RELIABLE:

AQER built a team to ensure transparency and trustworthiness: PWC as financial support and Paolo Bernasconi as the AML representative are the answer to this.

Our close relationships with FINMA and several banking institutions are also a very important factor in our reliability.

WE ARE INNOVATORS:

With the shift of advertising from traditional channels to social media, the space became global and both new challenges and opportunities arose. Inefficiencies are created by agencies charging high prices in an opaque market and vloggers (content creators in general terms) as well as brands (content seekers) have difficulties to meet each other and to get a clear view of the marketplace.

Blockchain District SA has identified these issues and built the AQER ecosystem leveraging blockchain technology and Artificial Intelligence. It is a smart marketplace for content providers and content seekers to connect, whereby a rating mechanism as well as ranking and screening tools help find the perfect match, all through blockchain technology, an AI algorithm, a wallet operator and tokens. All of those services are standardised in a manner, which guarantees efficiency for other future members of the ecosystem.

The best marketplace for vloggers and brands is AQER, named after the tech solution that moves it.

aqer · video blogging (“vlogging”) as video consumption is increasingly preferred and more...

Documents