The key to this project is that ReMeLife is not an MVP but a project that’s already commerialised. Further innovative tech is being built as a means to capitalise on the opportunity that blockchain and tokenisation offers, when coupled with the DAT funding model, to address key healthcare, social and data issues in society.
ReMe is being used in the NHS (see here) and in some of the largest care home groups in the UK, in Italy, India and Australia. Not yet at scale, but in a proven and effective manner. Our funding to date has been raised through crowdfunding, intentionally so since we’re a ‘people business’. The DAT followed by a utility token, will further enable ReMeLife to better become a business that decentralises and democratises data and rewards for its members.
Blockchain funding history
The last few years have been a roller coaster for blockchain funding. An inevitable bubble of creativity, excitement and opportunity, coupled with regulatory concern and disapointment. But however, you view it, much has been learnt and it has been the test bed for what is to come. this video provides a very, very brief view of the lead up to what we believe is the next phase in the blockchain funding story; the DAT.
ReMeLife is working with David Orban of NetSocLab (NSL) to deploy a new token-based funding mechanism, the Decentralised Autonomous Trust (DAT), one that is considered to be the natural next evolution of blockchain project funding. ReMeLife will be one of the first companies ever to deploy this method, courtesy of our relationship with NSL, ReMeLife’s perfect configuration for such a funding style, and simply because the timing is perfect.
We suggest you read the creators white paper, which can be found in our Data Vault or at Github or our summary as follows.
To achieve the launch of the ReMeLife DAT at the Malta Blockchain Summit November 5th, where over 100k investors will pass our stand over 2 days, we need to raise a pre-DAT seed fund of £100k
This Mini Raise covers the cost of NSL writing the IPO like white paper and for validating the financials, the fees for the event, media and travel … and of course of the build of the ReMeLife Ethereum smart contract software. NSL’s fee is low (think of the cost of raising £5m using an IPO on the AIM exchange for example)… because we are one of the first three to adopt this methodology and since well, we know NSL and they are motivated by our social impact project providing a positive profile to the DAT funding mechanism. The remaining sum will be used to complete our Alexa care skills software, which will be highly supportive of this marketing phase.
Please download from the Whitepaper and data area.
The Mini Raise is open for investment now. It’s available in the form of a Convertible Loan (or Promissory Note) that’s repayable upon the completion of £1m being raised in the DAT (which has a target raise of £1million by December and £5 million+ within 6 months). Your invested sum can be repaid either as cash plus an annual interest rate of 20%, or as an option to purchase FAIRs at a 30% discount to their price at the time of their first release at the Malta Blockchain summit. If neither are available at the time of due repayment, then the loan sum can be converted to conventional equity in the principle company, Health-Connected Ltd, at a valuation of £3million.
Therefore, bearing in mind the impending revenues outlined at the beginning, we perceive this Mini Raise convertible loan note to be a relatively risk reduced proposition, with a high upside potential if, and when, the FAIRs increase in price.
Overview of the DAT
The DAT seeks to promote a new paradigm that better supports the relationship between business, its employees and its consumers, one that is more efficient and sharing in its reward structure. The Continuous Organization (CO) is a new type of organization designed to align the stakeholders’ interests significantly better than in traditional organizations. A Continuous Organization is any kind of organization that issues fully digital securities called FAIR Securities (Frictionless Agreement for Investments and Returns securities) by funneling part or all of its cash-flows to a Decentralized Autonomous Trust (DAT). A DAT is a smart-contract that automatically mints, burns and distributes FAIR Securities (FAIRs) according to the organization’s cash-flows and predefined rules. Continuous Organizations present very beneficial properties for all stakeholders’ (Ref: Thibauld Favre – See FAQ section).
The essence of the DAT (decentralized autonomous trust) is a smart contract that implements a contractual financing arrangement which can be thought of as a digital promissory note in which the company continuously issues the note to investors who buy very small pieces of the note in tiny increments called “FAIRs” (Frictionless Agreement for Investment and Returns). Precise audited rules embedded in the smart contract, based on bonding curves, automatically define the buy and sell price of FAIRs.
A small portion of the principal (investor’s investment in the company) combined with a small but significant portion of the company’s revenues are directed by the smart contract into a buy-back reserve to ensure that the note’s terms and investor’s liquidity needs are met. The investors typically have a one-year holding period in part to assure appropriate compliance with key jurisdictions and to ensure the buy-back reserve is properly funded before any potential liquidity is needed.
Benefits of the DAT
The DAT has many advantages over other means of raising money like traditional equity raise or even an ICO. Here are the key benefits to the key stakeholder constituencies:
- Company/Company Founder’s/CEO:
Continuous raise: Rather than burden the founders or CEO with raising money every six months or so, the DAT, because it is continuous fundraising mechanism, diminishes the burden of the company to raise money because it remains as a fundraising mechanism for as long as it is in place–perhaps several years.
No equity dilution: FAIRs in the DAT are not shares in the stock of the company so there is no dilution.
Incentivize employees better: FAIRs can be granted to employees like stock options with a vesting schedule. But unlike stock options FAIRs are liquid and can be sold by the employee (within the rules of FAIR grant).
Strong investor interest because of better liquidity: Investors are very interested in investing in DAT’s set up by good revenue generating companies because of the better liquidity of the FAIRs versus equity or ICOs.
Possible compliance currently in several jurisdictions because of similarity to promissory note or bond issuance.
Better liquidity: After the investor meets the holding period, typically of one year, the investor can sell his FAIRs in a secondary market or to the company’s DAT as governed by the smart contract and the price automatically calculated therein using a formula based on a bonding curve.
Lower risk because of the buyback reserve fund: The investor’s investment risks are much lower than with an equity investment or an ICO investment because the investor can sell his/her FAIRs to the buyback reserve fund which is funded usually by two streams– a small part of the investor’s investment monies and a small but significant portion of the company’s revenues. The investor’s holding period is similar to a maturity date for a promissory note or bond and that makes sure that enough money has accumulated in the buyback reserve fund to provide meaningful liquidity for the investor.
Automated pricing because of the bonding curve: There is no subjectivity to the price for the investor to buy or sell FAIRs. The spread between the buy and sell price of the company’s FAIRs is determined by a formula using a bonding curve that is fixed in the smart contract.
A secondary DAT market and even better liquidity for DAT investors: NSL, along with several key investors, are planning to launch a secondary market for FAIRs from DATs by late Q3/early Q4 2019. NSL believes that most buying and selling of company FAIRs is likely to occur in the secondary market in between the fixed spread of the buy and sell price as determined by the bonding curve of the DAT fixed in the smart contract. NSL believes this because an investor will almost always get a better price on the secondary market between the price spread rather than the buyback fund, the buyer of last resort, at the bottom of the price spread.
Better incentivization and alignment with the company’s interests: As discussed above, employees are not incentivized by stock options or tokens that may never be worth anything. Since FAIRs will be liquid and have value when the employee has met the vesting schedule, the employee’s FAIRs will provide better incentivization than stock options (or tokens). This will better align the interests of the company and its employees.
Much lower risk than equity investment or investment utilizing and ICO: As discussed above, the risk to investors is much lower than investing using traditional equity or an ICO. The need for regulation for the DAT concept is significantly diminished because of the buyback reserve fund, the automated way the buy and sell price is determined by the bonding curve and the similarity of raising money using the DAT concept to the issuance of a promissory note or bond. These factors diminish regulatory concern.
ReMeLife FAIR redemption explanation
A Continuous Organization is an organization that issues FAIR securities by funneling part or all of its cash-flows to a specific type of smart-contract called Decentralized Autonomous Trust (DAT). These FAIR securities represent a claim on the DAT‘s future cash-flows. The organization, its investors and, potentially, its customers interact with the DAT by sending ETH or FAIRs to it.
The spread that exists between the buy price and the sell price of FAIRs creates an incentive for investors to buy and hold FAIRs until the Continuous Organization starts generating revenues:
- Pre-revenue. The price appreciation of FAIRs is due to investors’ speculation as they anticipate future revenues.
- Post-revenues. Once revenues begin to flow, the price appreciation of FAIRs starts being driven by the revenues generated by the organization, as a fraction of the revenues is funneled to the buyback reserve of the DAT.
One of the most valuable properties of a Continuous Organization is that the liquidity of FAIRs is immediate and guaranteed. If an investor does not find a buyer or a seller in the secondary market, they can always buy or sell tokens to the DAT. By construction, the DAT always has the funds to buyback FAIRs at a price defined by the S function. The DAT really acts as the organization’s central bank, minting new tokens when demand exceeds available supply and contracting the token supply when sellers outnumber buyers.
The Malta Blockchain Summit
Malta has established itself at the forefront of blockchain and AI innovation, with the Maltese government having introduced at the Malta Blockchain Summit 2018 event, three new bills to support the growth of the sector and promote Malta as the “Blockchain Island”. This November at the event, its regulators are again looking to take a lead in defining the way forward, with the announcement of further legislation and regulation for the blockchain and AI sectors. ReMeLife will be launched by NetSocLab at the as one of the three first businesses to deploy the DAT funding model, whilst three of the principles at the NetSocLab consortium (Ben Goetzel, David Orban and Brad Yazar, will be taking to the main stage.
Use of Funds
The DAT based raise will enable ReMeLife to continue the international growth of the existing RemindMecare business and to create the tokenised ReMeLife Membership Club community, a healthcare focused community where consumers can meet like minded persons and brands to engage, exchange, upcycle and earn and trade utility tokens to unlock benefits and value.
The DAT based FAIR tokens (called ReMC B’s) will have liquidity after 1 year, whilst the ReMC A’s, the utility token used within the ReMeLife ecosystem, are purchased through the ReMeLife membership platform, as well as being available on exchanges, and are held in the ReMeLife wallet. They are also tradeable for ReMeC B’s, should an owner wish to trade their utility tokens for DAT based FAIR tokens.
The result will be a substantial expansion of the existing business courtesy of the funds raised and due to the ability to raise further funds as and when required on an automated basis using the DAT funding mechanism that remians in place.
It’s a win: win for everyone.