A-Token White Paper

Our goal

To develop and implement an investment token on the Ethereum blockchain.

Study

In order to build our investment token we have learnt on different tokens that were developed and focused our thoughts on those tokens. Every token has the ability of holding value and thus this value can be used. Tokens usually have an environment which was developed for their use. We encountered successful tokens as well as unsuccessful ones. We mean success – in the short term profitability of investors investing in those tokens. There is no long term study on tokens which are relatively a new phenomenon.

Name

We have chosen the A-Token name because it is the first option for the "A" symbol token. Well…. We also thought on the A-team….

Owning A-Token is better than owning the A-Team! Happy

Investment Token

A-Token is an investment cryptocurrency token. This means that its goal is to add value to the token. We do it by using:

1. The fractional reserve power.

2. The ability to add multiply streams of activity (Ether), online and offline, to the reserve. This is done by investors and owners of the A-Token that wish to be part of the A-Token community and Contribute (as a link) to the A-Token reserve.

We believe that those powers will move the A-Token value up and thus earn money to investors in the A-Token.

Token Features:

1. Every A-Token was paid for

2. A-Token is a Self-Tradeable Token (STT)

3. A-Token is managed by a Smart Contract

4. The A-Token Smart Contract uses Point Calculation Formulas

5. The A-Token Reserve is – Ether

6. A-Token Usability – as an investment cryptocurrency

7. A-Token Smart Contract is Inherently businesslike

8. Less business risk

9. No human management

10. No ICO

11. No owner

12. Own split

13. Defense against attacks

14. On the Ethereum blockchain

15. ERC20 token

1. Every A-Token was paid for

Through our study of different tokens we learnt that most of them give free tokens to their customers, entrepreneurs, employees, advisors and do bounty campaigns. Those free tokens, by definition, lower the market cap of the token and give control of the token to few, mainly: big investors, managers and employees. We wanted to start our A-Token, the investment token, with 1 ether for the 10000 first A-Tokens and, of course, there are no free A-Tokens!

2. STT Self-Tradeable Token

Ethereum has thought on the possibility to self-trade tokens via their Smart Contracts technology. We learnt that most token do not use this feature. Thus, tokens need to use exchange services in order for them to be traded. The most prominent token to use self-trading ability is BNT (Bancor). We thought that this feature is highly important. So, A-Token has the ability to self-trade. Each user can buy A-Tokens with Ether from the Smart Contract, using the BuyTokens function and sell A-Tokens via the SellTokens function and get Ether back.

3. A-Token is managed by a Smart Contract

A Smart Contract on the Ethereum blockchain manages the A-Token. One of the most important things of this feature means that all A-Token activity is transparent. All management rules are known and described on this White Paper in detail. You can learn and analyze the Smart Contract by your own. The A-Token Smart Contract is here (as a link).

4.Point Calculation Formulas

The A-Token uses the following formulas:

A-Token Price is:

P = R * 4/ S

For buying:

ΔS = S * [((R+ ΔR)/R)^1/4-1]

For selling:

ΔR = 90% * R * [((S-ΔS)/S)^4-1]

Effective Price on buying:

EP = ΔR / ΔS

Effective Price on selling:

EP = (ΔR – C)/ ΔS

Where:

ΔS

Represents the new A-Tokens issued for ΔR payment or the amount of A-Tokens you wish to sell.

ΔR

Represents the Ether amount you are paying for buying A-Tokens or the amount of Ether you'll get whenever you sell A-Tokens.

Represents the current Reserve, meaning the amount of Ether owned by the A-Token Smart Contract.

Represents the current A-Token total supply.

Fraction

A-Token uses a 25% reserve.

Sale factor

A-Token uses 90% factor intended for gaining more reserve to the Smart Contract and protecting the Smart Contract from different kinds of attacks.

Commission taken on the SellTokens function. The commission is: 0.000'000'000'000'206'000 Ether.

The reason for our formulas to be point oriented is because the reserve is connected to various streams that add Ether to it without printing more A-Tokens.

We wish to show several examples (the data is calculated and probably will not occur in reality, since, many streams can be involved):

Table 1

A-Token Supply	Reserve (Ether)	Buying (rther)	A-Token added	A-Token price (after)	Effective Price	Remarks
1000	1			0.0004		Start
11892.07115	2	1	11892.07115	0.000673	0.000528521	First Buy

The upper table shows the starting data of the A-Token and an example of buying new tokens with 1 Ether.

Let us calculate this data:

ΔS= 10000 * [((1+1)/1)^(1/4)-1] = 1892.071150027211 P = 2.000'000'000'000'000'000 * 4 / 11892.07115 = 0.000673 EP = 1 /1892.07115 = 0.000528521

We can see that:

1. Price increases with every buy. This is the Fractional reserve power.

2. On buying A-Token, the Effective Price is higher than the starting A-Token Price (before buying). This opens up a look on the off smart contract exchange of A-Tokens. If an owner of A-Tokens decides to sell his A-Tokens and someone else wishes to buy those A-Tokens an outside of the smart contract transaction in the A-Token price, is beneficiary to both of them.

Table 2

A-Token Supply	Reserve (Ether)	Buying	A-Token Added	Token Price (after)	Effective Price
66890.74	2002	1	8.351425678	0.119726	0.119740035
66899.09417	2003	1	8.348299179	0.119807	0.119784878
66907.44246	2004	1	8.345175399	0.119852	0.119829716

Table 2 shows examples of the A-Token buying effects.

We notice:

1. A-Token Price and the effective price go up on every buy.

2. The influence of A-Token buy is getting smaller whenever the reserve is getting higher, but, there is always some influence.

Table 3

A-token Supply	Reserve (Ether)	A-Token Sale	Ether Payout	A-Token Price After	Effective Price
66915.79	2005	100	10.7625365	0.119387	0.107625365
66815.79	1994.237	100	10.7207502	0.118923	0.107207502
66715.79	1983.517	100	10.6790638	0.118461	0.106790638

We learn from table 3 that:

1. Selling influences price and effective price.

2. The use of our formulas is very benefiting for the A-Token owner.

We wish to make a comparison to an average system.

Let us consider line 2 of table 3:

Average calculation = 100 (selling A-Token) / 66815.79 (total A-Token supply) * 1994.237 (reserve) = 2.98467922028

This means that according to our formulas a user of the A-Token will receive more than 3.5 times from an average system. This demonstrates the power of the formulas we are using, for investors of the A-Token system.

Table 4

A-Token Supply	Reserve (Ether)	Buy/(Payout ) (Ether)	A-Token add (delete)	A-Token Price (after)	Effective Price
66907.44246	2004	1	8.345175399	0.119852	0.119829716
66915.79	2005	(0.89999997)	(8.345175399)	0.119813	0.107846741
66907.44246	2004

Table 4 shows an example of buying A-Tokens and an immediate sale of those, same amount, A-Tokens. This example emphasizes the importance of the 90% factor we are using. Let us understand that when we bought A-Tokens using 1 Ether, where the reserve was 2004 Ether – the price was: 0.119807 (table 2, line 2). After selling the A-Tokens we just bought, price went to: 0.119813. This is because there is more reserve in the Smart Contract.

A-Token formulas are very beneficiary to A-Token investors.

5. A-Token Reserve – Ether

Ether is our reserve. This allows the use of the Ethereum blockchain for the A-Token activity.

6. A-Token Usability – Ether

A-Token can be traded against Ether. Thus whenever Ether is needed an A-Token owner can trade it for Ether.

7. A-Token - Inherently businesslike

The trade-ability feature cause the token to change value. When people buy the A-Token its' value goes up and when people sell the A-Token its' price goes down. This is something that is done inherently in our A-Token smart contract. But, we thought that this is not sufficient. So we have two important factors we added: 1. Point calculation formulas and the 90% factor. 2. Commission on using the SellTokens function in the Smart Contract.

8. Less Business Risk

Every token we studied was connected to a business environment. Of course, this connection had major influence on the token value. Every token, thus carried with it business risk. We have decided to build the A-Token on its own environment, meaning that more activity will bring more reserve into the Smart Contract. In the future we will develop, and other people will as well, online and offline activity where its' results will be streaming Ether to the reserve. We wish to diversify the streams of income to the A-Token reserve.

Let us assume that A-Token received 1 Ether commission from a Smart Contract activity. According to Table 2 line 2, we have: 66899.09417 of A-Tokens. The reserve we have is: 2003 Ether. Thus price of A-Token is calculated to be: 0.119762 Ether. Because of receiving 1 Ether the A-Token price is: 2004 (the new reserve)* 4 /66899.09417 = 0.1198222502031226. A much higher increase of price than of an A-Token buying.

9. No Human Management

The A-Token Smart Contract manages the A-Token according to the terms that are discussed and revealed in this White Paper. Our Smart Contract is transparent and you can analyze it yourself. Beyond that those rules cannot be changed. Thus we cannot change the reserve fractional ratio – even if we want to. We cannot change the 90% factor when paying out. Those rules are always the same.

10. No ICO

In order to invest with a company doing an ICO, an investor needs to fully understand the economics of the company and the environment where it operates. In an ICO the company invest a lot of money in order to get a lot of money from investors. Most of the ICOs money that was raised goes to entrepreneurs own pockets and not for their investors benefits. We believe that our solution – where there are no expenses and no ICO – is a better way for investors. We offer ways to use A-Token as a way to raise funds for startups and for micro ICOs.

11. No owner

The Smart Contract manages the A-Token and thus it is its owner. No body own the A-Token. Not its developers and not its investors. It is not owned by other Smart Contracts that benefit from it. It stands alone by its only one Smart Contract.

12. Own Split

In order to help trading and lower each A-Token price, an own split mechanism has been put in place. When price of the A-Token is over 1 ether a split of the A-token can be triggered. The split factor is calculated to set the A-Token price to be 0.01 Ether. This mean that each account owning the A-Token is multiplied by the split factor as well as the A-Token total supply. We believe that this split will help the A-Token to be more tradeable.

13. Defense Against Attacks

We implemented several defenses:

1. Our 90% factor – defends against any buy/sell attack.

2. Reenterancy attack – only in the SellTokens function a defense against reenterancy attack was done, because it is the only function that connects to outside smart contracts or accounts.

14. On the Ethereum Blockchain

We use the Ethereum blockchain and its Smart Contract technology to develop and implement the A-Token. We will continue developing other Smart Contracts that will benefit the A-Token economic environment.

15. ERC20

Of course, the A-Token stands with the ERC20 token standard.

Economy

A-Token is an investment cryptocurrency. The idea is to use the power of fractional reserve and use diversified businesses to add Ether to reserve. Thus form a system that drives price of the A-Token up.

Contributors

We call activities that add Ether to the A-Token reserve – contributors. The logic behind contributors is the will to strengthen the A-Token which those activities have invested with. We believe that people wish to help their investments and wish, as well, to work and influence their investment success. By contributing business activity to the A-Token reserve, investors help their investment in the A-Token flourish and thus gain more profit from a holistic point of view. Activities can use the A-Token as a tool to raise funds and make a PROMISE for the usage of those funds for the A-Token community. We suggest a more in depth look to Contributors and Do ICO/STO sections of our website.

Warnings!

1. You can lose money if you buy the A-Token! There are two main situations:

a. You bought the A-Tokens and the price went down. Do remember that the A-Tokens price is in Ether.

b. You bought A-Tokens and their price went up, but Ether price went down thus eventually you lost some of your fiat value.

2. The price of the A-Token can fluctuate a lot, mainly in its early stages. When mature, we foresee more stability into the system.

3. We do not know if other Contributors will join and contribute to the A-Token reserve.

4. The A-Token is done on the Ethereum blockchain and uses its' Smart Contract technology. We need to remember that this technology is relatively new and might suffer problems.

Developer

Arik Schenkler

Deployment

The A-Token Smart Contract was deployed on the Ethereum blockchain in – 29 June 2018.