Tokenomics

Token Utility

In the evolving landscape of digital finance, the Swiss Invest Coin (SWIC) emerges as a pivotal utility token designed to facilitate seamless interactions within the SWIC Platform—a comprehensive ecosystem for the tokenization of financial assets. This introduction aims to provide a clear understanding of the SWIC token, outlining its purpose, functionalities, and the strategic architecture that supports its operation.

Purpose of the SWIC Token

The SWIC token is crafted to serve as more than just a digital currency; it is an integral tool enabling access, participation, and enhancement within the SWIC Platform. Its primary goal is to democratize access to financial markets, particularly for users in emerging markets who traditionally face barriers such as high entry costs and limited access to global financial products. By leveraging blockchain technology, SWIC reduces transaction costs, eliminates intermediaries, and enhances transparency across all transactions.

How the SWIC Token Functions

SWIC operates at the core of the platform's ecosystem, facilitating a range of activities that include:

• Transactions and Exchanges: SWIC is used as the main medium of exchange for buying, selling, and trading tokenized assets on the platform

• Access to Services: Users utilize SWIC to access various platform services, including asset management, financial product consultations, and educational tools designed to empower investors with knowledge and expertise in asset tokenization

• Staking and Rewards: The tokenomics structure includes a staking mechanism where users can stake SWIC tokens to receive stSWIC, a secondary token used exclusively within the platform to engage with specific financial products and governance features

• Governance: SWIC holders are vested with governance rights, enabling them to participate in decision-making processes that shape the platform's development and operational policies

Architectural Framework Supporting SWIC

The architectural design of the SWIC ecosystem is built to ensure robustness, security, and efficiency:

• Liquidity and Accessibility: SWIC is readily accessible on both centralized and decentralized exchanges, providing liquidity and easy entry for new and existing users. Additionally, users can convert fiat or other cryptocurrencies into SWIC directly on the platform

• Staking Vault: This feature underpins the staking process, where SWIC is exchanged for stSWIC, facilitating user interaction with the platform’s financial products without affecting external market liquidity

• Smart Contracts: All interactions, including investments and payouts, are governed by smart contracts, ensuring that every transaction is executed transparently and without delay

• Dual Pool Investment System: Investments are handled through a dual pool system where one pool collects investments in stSWIC and the other allocates rewards in SWIC, aligning investor contributions with proportional returns

Token Model Architecture

Token Model Flows

Explained:

1. Token Acquisition and Accessibility

   • On Exchanges: Users purchase SWIC tokens from centralized (CEX) and decentralized exchanges (DEX).

   • Direct Purchase on Platform: Users can also buy SWIC directly on the platform using fiat or other cryptocurrencies.

2. Token Entry into Staking Vault

   • Conversion to SWIC: Any fiat or other cryptocurrencies received are automatically converted into SWIC tokens. A conversion fee is charged at this stage, acting as a revenue stream for the platform.

   • Staking: Users stake SWIC tokens in the Staking Vault.

3. Issuance of stSWIC for Internal Use

   • Receipt of stSWIC: Upon staking SWIC, users receive an equivalent amount of stSWIC, which is used within the platform to engage with financial products.

   • Non-Liquidity of stSWIC: stSWIC cannot be traded on external exchanges, ensuring its circulation remains within the platform.

4. Financial Product Interaction

   • Investment Using stSWIC: Users invest stSWIC in various financial products available on the platform.

   • Smart Contract Automation: Investments and their returns are managed via smart contracts, ensuring transparency and instant settlements.

5. Management of Dual Pools

   • Investment Pool: Users’ investments in stSWIC are pooled here.

   • Rewards Pool: Outcomes of investments are reflected here, where returns are pooled in SWIC.

6. Conversion and Fees

   • Converting stSWIC to SWIC: When users wish to convert their stSWIC back to SWIC, a conversion fee is charged, contributing to the solvency of the Staking Vault.

7. Revenue and Rewards Distribution

   • Asset Providers Fill Rewards Pool: Before the payout, asset providers fill the rewards pool with SWIC equivalent to the earnings from financial products.

   • Distribution Based on Investment: Returns are distributed to investors based on their proportional investment in the financial product.

8. Governance and Rewards

   • DAO Participation: SWIC holders participate in governance decisions by staking their tokens and voting on platform decisions.

   • Rewards for Engagement: Users receive rewards for their active participation and engagement, which are designed to incentivize platform loyalty and community governance involvement.

9. Resource Reallocation for Solvency

   • Proceeds Management: A portion of the fees collected and other proceeds are redirected back to the Staking Vault to ensure its operational liquidity and solvency. The rest is allocated to the Token Treasury for future development and platform expansion.

Revenue Repurchase

The token has a participation on the revenue of SWIC Digital Gateway AG. For 25% of the quarterly revenue, in proportion of the amount of tokens which are not staked, of SWIC Digital Gateway AG we will repurchase tokens and burn them on a quarterly basis. Until 50% of the initial supply is left. The maximum token supply is fixed, which means that the price is less volatile and should naturally increase continuously as the supply decreases.

$$B(S)= R×( 1-(S/T))$$

Where:

• $B$ is the amount of tokens that will be burned,
• $R$ is 25% of the revenue of SWIC Digital Gateway AG for the quarter,
• $S$ is the number of tokens investors have staked.

Staking

Additionally investors can stake their SWIC tokens. The proportion of the revenue which is staked is available in SWIC tokens for the voted ESG project, these tokens are locked for 6 months (These charity payments will only be made until the ecosystem budget is fully used). The investors who have staked their tokens receive a yield in form of the performance of the ESG indicator of the voted project (more about the project voting in the DAO section).

$$C(S)=R×(S/T) ×(D/90)$$

Where:

• $C$ is the amount of capital that is available for ESG projects,
• $R$ is 15% of the revenue of SWIC Digital Gateway AG for the quarter,
• $S$ is the number of tokens all investors have staked,
• $T$ is the total number of existing tokens in the system,
• $D$ is the number of days the investors have staked the tokens.

DAO

The SWIC DAO aims to directly influence sustainable development by collectively voting on ESG projects. This decentralized decision-making process enables rapid responses to change and promotes broad participation and accountability among members, allowing the community to contribute to exciting and sustainable projects.

All possible projects that want to achieve a measurable ESG target can be included in the DAO, should they be accepted by stakers of SWIC coins. Each project can apply for admission to the DAO by holding at least 50,000 SWIC coins. Investors who have staked their tokens can vote for projects. The project that gets the most votes will be funded by the amount C(S). Every project must have a ESG indicator which ensures that the project has a positive impact on the world. The first project in the ecosystem is the SWIC project. Every quarter there will be a voting session for new projects. The staking rewards will be halved each year.

Each project must design an ESG indicator that meets the following framework conditions:

• Must have a positive ESG impact on the world

• Must be measurable and reportable by the project on a quarterly basis

• Must have a clear correlation to the success of the business activity

• The maximum yield of the indicator allowed is 250%, so projects should apply a useful indicator

The ESG indicator for the SWIC project is the following:

$$X = dN/1'000'000$$

Where:

• $X$ is the SWIC ESG Wealth Indicator for the quarter,
• $dN$is the total net new wealth that has been saved and transferred to all SWIC applications in the quarter (measured in USD)

Every project issuer will receive quarterly the performance of their ESG indicator in SWIC tokens. This is the incentive for projects to create a more sustainable world.

$$Reward = Max(0, X × (50'000/2^h))$$

Every investor who has staked their tokens will receive quarterly the performance of their ESG indicator in SWIC tokens.

$$Reward = Max(0, X × S ×(D/90)/2^h)$$

Where:

• $S$ is the number of tokens the investor has staked,
• $D$ is the number of days the investor has staked the tokens.
• $X$ is the ESG Indicator for the quarter,
• $h$ is the number of years since the start of staking, which determines how often halving has already taken place.

The staking yields are only available until the reserve is fully used. After that the token can be used in the ecosystem.

Buy financial products on SWIC apps

SWIC tokens can be used to purchase real world assets tokenized on the SWIC engine that are offered in the app used by the end user. SWIC tokens can be deposited in the user interface of any end user app that offers SWIC. If the user purchases a product with SWIC tokens, he will receive a random financial product Z for an additional 20% on the nominal amount but is obligated to hold it for 5 years.

The token can also be used to lower the spread of yield-returning products.

Type	1'000 Tokens holding	10'000 Tokens holding
Investment Grade	25% smaller spread	50% smaller spread
High-Yield	50% smaller spread	75% smaller spread
Mortgage-Backed-Securities	25% smaller spread	50% smaller spread
Emerging Market Bonds	50% smaller spread	75% smaller spread

Buy Asset Management Research

Investors can use SWIC tokens to buy research from the Swiss asset management and crypto industry, strengthening financial inclusion and providing global access to the exclusive Swiss financial industry.

SWIC tokens can also be used to purchase advisory or discretionary asset management services from exclusive Swiss asset management partners. The right to decide whether to accept the client lies with the asset manager and must be assessed on an individual basis.

Investors who hold at least 100'000 tokens can apply for a non-binding chat regarding services from SWICs Swiss asset manager partners. Investors who purchase these services with SWIC tokens will get a 10% discount of the service-fees. The services include the following:

• Asset management

• Investment consulting

• Tax consulting

• Real estate consulting

• Tailor made insurance solutions

Fair Value

Based on the multiple token utilities the fair value of the token can be calculated according to this formula.

$$FV= (R+D+U)/T ​$$

Where:

• $FV$ is the fair value of the token,
• $R$ is the amount of annual revenue for which tokens will be repurchased and burned,
• $D$ is the yield of a ESG Indicator for the year,
• $U$ is the estimated utility value from the use of the tokens in the ecosystem,
• $T$ is the initial total number of tokens.

Assumptions: 116'787'000 USD revenue NPV (7% discount-rate), if 12.5% of this goes to token repurchase, i.e. 50% of the tokens are not staked, and these are burned, 14'598'375 USD flow into the system. 0.1 USD as a benefit for the ecosystem per coin results from the matching principle on the SWIC platforms and from access to research. An average staking yield of 171.53%, which only applies to the other 50% staked coins, leads to a fair value of: USD 1.958 per token.

Token Sale

The token will be available for public sale by MMDDYYYY. Any unsold tokens after the public sale will be transferred to the treasury.

Token Distribution

The following percentages and data are in ideal scenarios. While our team is committed to adhering to these goals, changes may be made to our target token allocation under certain circumstances. We will always notify our investors in advance of any changes.

Allocation	Tokens
Token Sale	105,000,000
Project Team	45,000,000
Advisors	30,000,000
Treasury	30,000,000
Ecosystem Fund	15,000,000
Staking Pool Rewards	15,000,000
Liquidity (Market makers, CEX, DEX)	45,000,000
Reserves	15,000,000
Total tokens	300,000,000

Token Allocation

• Token Sale: 10% will be distributed through a public pre-sale. 25% will be distributed at a later stage through a public sale. Any unsold tokens after the public sale will be transferred to the treasury.

• Treasury: 30% will be used to provide liquidity at and after listing, as well as to make staking distributions.

• Ecosystem & Marketing: 10% will be released gradually to support and develop the ecosystem around the token and the platform.

• Advisors: 10% will be retained and distributed to our strategic advisors.

• Project-Team: 15% will be allocated for the project team. These tokens will be locked initially and released over set periods of time.

Use of Proceeds

Use of Proceeds

• 65% (29,900,000 tokens if all tokens are sold) will be allocated to product development. This includes salaries and necessary expenses related to the product development.

• 20% (9,200,000 tokens if all tokens are sold) will be used for auditing, ensuring the security of the platform and all activities to ensure the project is up to date with the relevant legal frameworks.

• 5% (2,300,000 tokens if all tokens are sold) will be allocated for all expenses of the community.

• 10% (4,600,000 tokens if all tokens are sold) will be allocated to the marketing of the token and platform.

Vesting and Lock-ups

We will apply various vesting and lock-up periods for the tokens. The table below provides an overview.

Type of allocation	Vesting Period	Cliff (months)	Notes:
Phase 1: Private Sale	12	6
Phase 2: Launch Pad	0	0	As needed to allow healthy trading
Phase 3: DEX listing (Uniswap)	0	0	As needed when new listing are approved
Phase 4: CEX listing (OTC)	0	0	Sold at a discount to market price to whales, VCs, VIPs
Project Team	12	36	Gradual release after 12 months
Advisors	24	12
Treasury	36	0
Ecosystem Fund	3	3
Staking Pool Rewards	0	0	Staking and Payouts on Rewards only happens once staking starts
Liquidity (Market makers, CEX, DEX)	36	36
Reserves	0	0

Participation in SWIC Token Offering

The participation for the private sale will become available on the swic.digital website in a dedicated section. All announcements will be made through this page only. Early involvement on the project will grant bonuses for investors and contributors alike. Moreover, incentives for investors, community contributors and founders are correlated in a way that benefits participants at all stages.

Any token listings will be done on our seperate communciation and can be viewed on our updated roadmap that is visible on the website. A list of where the token can be purchased will become available over time and follows our successful private sale.