The TFC White Paper – Short Version

THE FREEDOM COIN (TFC) WHITE PAPER

THE COIN YOU CAN BANK ON

 

ABSTRACT

This whitepaper highlights the current challenges of new start-ups in the cryptocurrency domain. The high failure rate of start-ups requires a solution with proof of sustainability beyond the underpinning technoogy  of a coin and  the funding stage of launching the coin. The Freedom Coin addresses the need for sustainable long term returns to the crypto community through a decentralised TFC Product, providing returns to the TFC crypto community over the long term.

The structure of the solution provides a governed  approach  through  a unique voting system protecting  the interests of the TFC crypto community and the sustainability of The Freedom Coin. The solution aims to provide increased peace of mind to the cryptocurrency community within the volatile environment

 

BACKGROUND / PROBLEM STATEMENT

New cryptocurrencies pose a high threat as the fundamental basis of competing with other coins is the  underlying  technology.  With  this  high  risk the lessons learned are that investments within  blockchain  technology  and cryptocurrency require  more  than  just  the  technology  to back up the token. McFarlane (2018) mentions that  the existence  of the  following  elements  has  a positive  contribution  to the success of a new coin:

• An existing prototype or better still an alpha

• A team whose members have proven experience in business execution

• Existing venture capital or angel backing,

• Existing developer activity on their platform

• A beta with active users

Further Kariuki (2017) states that “although Bitcoin and Ethereum are tried and tested projects, their decision-making processes are not explicit and efficient enough and they do not completely empower the user in the decision-making process.” Dash offered the “first cryptocurrency blockchain governance mechanisms inside the blockchain protocol” (Kariuki, 2017) through Masternode voting.

Khatwani (2018) mentions Masternode ownership and operating as one of the methods to earn within the cryptocurrency sphere. “A

Masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time, just like  you have Bitcoin full nodes, and is always  up  & running.”  (Khatwani,  2018).  Additionally  Masternodes  have  special  functions  (Khatwani,  2018)  that the nodes perform namely:

• Increasing privacy of transactions

• Doing instant transactions

• Participating in governance and voting

• Enable budgeting and treasury system in cryptos

The problem with Masternode setup and operation are that:

• Rewards generated for Masternode investors decrease due to more Masternodes coming online making the long term incentive less attractive in the event that the value of the coin decreases.

• To recover losses the Masternode investors dissolve their Masternodes if the cost of running the Masternode becomes more than the rewards generated by the Masternodes thus weakening the coin’s network.

• The value of Masternode coins are backed by the technology and concept of the technology only.

A solution that proofs sustainability beyond the technological architecture of a cryptocurrency and includes governance within the blockchain protocol is needed.

 

1.1 TFC Vision

Make TFC the HODL coin of choice. The rationale is to provide the crypto community with a coin suitable for transacting, governed by the holders of TFC Masternodes and linked to a TFC reward system.

1.2 TFC Objectives

To realise the vision of TFC requires the provision of a coin backed by more than just the underlying technology. The objectives of TFC are:

• Ownership of a product in the form of TFC Masternodes.

• Provision of Product owners / Masternode Holders on a continuous basis.

• Provision of Value Added Product Services (VAPS) which diversifies the exposure of Masternode Holders to opportunities and sources of income.

• Transparency through the TFC platform enabling real-time insights to Masternode Holders.

• Assurance through the Blockchain Governance Protocol allowing Masternode Holders voting rights on proposals.

1.3 TFC Customer Persona

The TFC customer has been assessed using the  Customer  Experience  Management  (CEM)  method  and depicted  in  a Successful Customer Outcome Canvas in Figure 1. The TFC customer is a member of the cryptocurrency market or domain. They are technologically inclined with a healthy risk appetite based on their understanding of the cryptocurrency market volatility.  They  are early  adopters  and not change resistant. Their expectation is that they  will  have real-time  insights  on the performance  of the initiatives  they  support.  They have a low tolerance of undependable technology. They want to see performance and expect to generate income  from the opportunities  that  exist within the cryptocurrency domain. In short the TFC customer believes  they  are in the process of acquiring  long term  income  and wealth.  In this process they expect real-time performance tracking, milestone feedback on the implementation of initiatives, performance reports and rewards paid to them on a continuous basis. Further with their risk outlook and entrepreneurial characteristic they expect access to new opportunities as they arise. The current status quo offers the customer unstable technology that is not consistently available.  Currently companies and initiatives offer customers limited insights into operations and performance. Cryptocurrency initiatives often have short lived performance and high failure rates.

Success for the TFC customer is the ability to acquire Financial Freedom.

 

2. The Solution: TFC Service Offerings

The Freedom Coin (TFC) is a response to the current challenges faced by the crypto community and the TFC customer persona. The TFC provides ownership of TFC Masternodes as their product. TFC service offerings are tailored to address the current problem in  the cryptocurrency domain. TFC service offerings are depicted in Figure 2 structured as follows:

• TFC provides a method  of instant payment that is anonymous  and includes  a DarkSend / PrivateSend  option  which obfuscates the flow   of funds.

• TFC and TFC Masternode Holders have access to the merchants that support TFC. Merchant agreements are established on an ongoing basis and positively contribute to the support and value of TFC.

• TFC holders and TFC Masternode Holders have access to TFC exchange which enables the trading of TFC for BTC

• TFC Masternode Holders are paid network support fees (in Bitcoin) for servicing TFC network.

• Proof of stake rewards are paid in TFC to TFC holders and TFC Masternode Holders for providing support to TFC.

• Daily TFC production reward is paid to TFC Masternode Holders from daily TFC production.

• TFC Masternode Holders participate in the governance of TFC through a voting system.

• TFC Masternode Holders have access to additional Value Added product services governed by the voting system such as:

o Access to cryptocurrency trading.

o Initial Coin Offering (ICO) research and investment.

o Social responsibility through the support of charitable organisations or causes.

o TFC and cryptocurrency mining.

o Other investments within the cryptocurrency domain that proves viable.

 

2.1 TFC Product: TFC Masternode

The Masternode is the core requirement for establishing and maintaining the successful operation  of a coin. A TFC Masternode requires  5 000 TFCs for setup. The TFC Products setup costs will be financed with pre-mined TFC coins (25%) and a presale of Masternodes.

Distribution of generated funds is as follows:

• 65% TFC Products

• 5% – TFC exchange listings

• 12% – Developers

• 8% -Cost, Legal Fees and Accounting Fees

• 10% – Marketing

The funds generated will be applied as depicted in Graph 1. The majority of the funds generated are invested in the TFC Products ensuring transparency and oversight to the TFC Community.

For Example : If you buy a Masternode for 1 BTC the below chart will be how the funds will be allocated.

0,65 BTC TFC Products (See Graph 2) 0,05 BTC Exchange Listings

0,12 BTC Developers

0,08 BTC Cost Legal Fees, Set Up Fees and Accounting Fees 0,10 BTC Marketing Fees

 

2.2 TFC Governance: Voting Process

Top advocates insist that cryptocurrency has no “governance,” and no need  for it.  But  this  exposes  a fundamental  misunderstanding  of what governance is. Governance is not equivalent to state government. Governance is simply how choices are made. Every group, every project, and even every person practices governance of some form or another.

Cryptocurrencies are not an inanimate objects. They are, at their core, a software project. Yes, it is much more than  this; it  is also  a monetary system and a social experiment. But fundamentally cryptocurrencies always start as, and remain software projects. They have developers who make decisions about the project, and as such they must be governed.

Each Masternode Holder will have a vote for each node they own. Voting will happen through the Masternodes.  The development  team  will make decisions affecting  the code however the oversight  is  provided  by the Chief  Technical  Officer (CTO).  A deadline  is  set for each vote to be casted. Once the deadline  is  reached majority  vote will  be implemented,  unless  substantial  proof  can be given by  a Masternode Holder that implementing the decision will be detrimental to TFC. In the event of a tie, no investment will be made.

Minimum participation in the voting process is  5% of Masternode  Holders.  Proposals  that are supported  by  the majority  votes  will  be deemed successful. In the event of a tie or if the minimum participation threshold is not reached the proposal will not be considered further.

Proverbs 15:22

Plans go wrong for lack of advice, many advisors bring success. 

2.2.1 Charities

The choice of charity will be determined via the voting process. Masternode Holders will be able to recommend charities for the donation. Proposals for charities will be listed and Masternode Holders will vote on the charity (or charities) to receive the funds.

2.2.1 Initial Coin Offerings

Initial Coin Offerings (ICOs) are coin or tokens launched within the cryptocurrency domain accompanied by a whitepaper detailing the intended use of the token / coin. Support of ICOs will be proposed to Masternode Holders and governed by the voting process.

2.2.1 Mining Pools

The creation and setup of a mining pool is a short term future consideration. The establishment of a mining pool will enable Masternode Holders to invest in mining equipment and leverage the size of the mining pool to generate an additional income from the verification of cryptocurrency transactions.

2.2.2 Other Opportunities

Additional opportunities will be considered if and when TFC value and performance permits. Masternode Holders will be able to recommend investments on the TFC online platform that will be launched in June 2018.

2.3 TFC Platform

TFC Masternode Holders have real-time insights into the TFC coin and service offerings. TFC Masternode Holders receive access to a personalised dashboard on the TFC platform (freedom-coin.io). All votes on proposals  will  be consolidated  and communicated  on the platform. Provision of the TFC platform promotes transparency and facilitates informed decision-making. The TFC User Interface Design is attached as Annexure B.

2.4 Technology

The technology related to The Freedom Coin is as follows: Coin Name: The Freedom Coin

Algorithm: X11

Ticker: TFC

Type: PoS/Masternode POS Reward: 10 Masternode Reward: 10

Masternode Collateral: 5 000

Block Size: 3 MB

Max Supply: 25,000,000

Premined:  26,625  % (6 656 250 Premine Total) Block Time: 60 Sec

Block Halving: -18% / Year

Block Reward : 20

Min Stake Age: 24 Hours Mainnet: P2P port 7118

RPC port 7117

 

3. Execution From Concept To Reality

Execution of the TFC roadmap is a joint effort between the initiators, developers and TFC Masternode Holders.

3.1 TFC Realisation Roadmap

The approach to realising the TFC coin is aimed at expediting the setup and launch  process. Funding  is  secured through  pre-mining  25% of the coins and selling of Masternodes. This decreases the risk to Masternode  Holders.   

 

3.2 TFC Masternode Pre-Sale

TFC Pre-mine

• Pre-mine 26,625% (6 656 250 Premine Total) of the TFC coins.

Masternode Setup

• 5 000 TFCs required to set up a Masternode

• The TFC Products and Masternode setup costs will be financed with the pre- mined TFC coins and a presale of Masternodes.

Masternode sale

• 30 April –31 May 2018 Masternodes will be sold at 1 BTC Shared Masternodes will be divided in to 20 Units and will be sold at 0,0625 BTC

• 1 June –14 June 2018 M asternodes will be sold at 1, 5 Shared Masternodes will be divided in to 20 Units and will be sold at 0,09375 BTC

• 15 June –30 June 2018 Masternodes will be sold at 2 BTC Shared M asternodes will be divided in to 20 Units and will be sold at 0,125 BTC

* Note : Total Masternodes available for the Pre-Sale 1000, if all the Masternodes are sold before the set dates the Pre-Sale will close early.

*Only people buying masternodes or units in shared masternodes within the presale will earn network support fees monthly in BTC

 

3.3 Monthly Network Support Fees in BTC pay outs and Shared Masternode Holders Rewards Distribution

Network Support Fees and Shared Masternode Holders will be will receive rewards and fee payments between the 25th – 30th of each month. 

 

4. TFC Team

The management team of TFC consists of executive level portfolios managing specialists and subject  matter  experts either in-house or via  third party service providers. This ensures oversight of the operations and risk management across the various business areas.

Founder/CEO: Douglas Bothma

 

Chief Technical Officer (CTO): Liaan Roodt

 

Appointed Legal and Accounting Firm : Alliance

 

Merchant Business Partner : Alliance

 

Subject Matter Expert Advisors: Este Rothmann

 

Technical Development Team: Crypto Sure Technology

 

5. Conclusion

Within the cryptocurrency domain a need exists to provide sustainable value beyond the underlying technology. The structure of the TFC solution allows a governed approach through voting by Masternode Holders. The provision of Value Added  Product Services  promotes  the  long term sustainability of the coin and consistent returns to Masternode Holders.

The Freedom Coin endeavours to serve the needs of their customer personas and address known shortcomings in the current cryptocurrency domain.

 

6. Development Team

This document was influenced and supported by the following:

Douglas Bothma : CEO

Liaan Roodt :CTO

Este Rothmann :Advisor

Ashton Dookhilal Graphic Designer/ Web Developer

Jessi Fann ::Administration

 

Detailed Road Map

 

Strategy

To realise the vision of TFC requires the provision of a coin backed by more than just the underlying technology. The objectives of TFC are:

• Ownership of a product in the form of TFC Masternodes.

• Provision of Product owners / Masternode Holders on a continuous basis.

• Provision of Value Added Product Services (VAPS) which diversifies the exposure of Masternode Holders to opportunities and sources of income.

• Transparency through the TFC platform enabling real time insights to Masternode Holders.

• Assurance through the Blockchain Governance Protocol allowing Masternode Holders voting rights on proposals.

 

References

• Kariuki, D., 2017,’ Why Every Cryptocurrency Needs a Good Blockchain Governance Mechanism’, Cryptomorrow, Available at: http://www.cryptomorrow.com/ 2017/10/13/why-every-cryptocurrency-needs-a-good- blockchain-governance-mechanism/, (accessed 15/04/2018)

• Khatwani, S., 2018,’ What Is A Masternode And How Is It Useful For Cryptocoin Investors’, CoinsSutra, Available at” https://coinsutra.com/masternodes/, (accessed 09/04/2018)

• McFarlane, G.,’ ICO failure rate rises as mega crowdsales grab eyeballs’, Ethereum World News, Available at: https://ethereumworldnews.com/ico-failure-rate-r ises-mega-crowdsales-grab-eyeballs/, (accessed 09/04/2018)

• Khatwani, S., 2018,’ What Is A Masternode And How Is It Useful For Cryptocoin Investors’, CoinsSutra, Available at” https://coinsutra.com/masternodes/, (accessed 09/04/2018)

 

Disclaimer

• Speculation within the crypto currency domain involves substantial risk. Any reader should act within the boundaries of their personal risk appetite.

• Past performance results are shown for illustration and example purposes only, are hypothetical and as such have many inherent limitations. Past performance is not necessarily indicative of future results.

• All information provided herein is for informational purposes  only, not intended for trading purposes  or advise and does not constitute recommendations or endorsements of any issuer, security or action. While some of the information herein are from sources deemed reliable, TFC does not warrant  their completeness  and  accuracy and should not be relied upon as such when making decisions.

• TFC does not make any guarantee as to any results that may be obtained  from its content. TFC shall also not  be responsible for updating or correcting any information or opinion contained herein.

• No reader should make any decision without consulting his / or her own financial advisor and conducting his/her own research and due diligence. Neither TFC  or any  management  or  advisor is liable  for any  informational errors or for any actions taken in reliance on information contained herein.

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