Revuto Whitepaper v1.6
Revuto Whitepaper v1.6
REVUTO
WHITEPAPER
TABLE OF CONTENTS CHECK OUT A SHORT LIST
OF THE CONTENTS
2.5.1 Staking
01
IS IT WORTH SOLVING?
21 billion DD transactions in 2019 and growing in value
and volume since 2016 paired with strong growth of
subscription revenues
21bn
Volume of Direct Debits/years¹
€7tn
SEPA Direct Debit Value/yr¹
350m
Banking Population²
€350bn
Value pf subscription economy³
€7tn
Growth in subscription revenue⁴
DD-Direct Debit
2-Stabista
3-Zuora, 2016-2018
4-ING
Data shows that today’s millennials would much rather subscribe to Spotify or
Netflix than purchase a single album or a movie. The subscription model allows
them to test a product and use a service without fully committing and paying
the full price upfront.
However, while this rising trend has undoubtedly been net-beneficial for
both businesses and customers, it also has certain downsides. Free trials with
cumbersome cancelation policies produce unnecessary recurring losses, and
managing and paying for dozens of subscription services each month results in
consumer fatigue.
As subscriptions grow by 100% year on year, we’re confident they’re here to stay
and become an integral part of everyone’s life. Revuto’s place in this growing
economy is to filter signals from noise and offer customers a clean and pleasant
subscription management experience. We believe that no one should ever again
be charged for subscriptions they no longer want or use, and we have made it
our primary goal to make that happen.
TARGET 01-1
MARKET
In decades past, subscriptions were limited and almost
exclusive to products like magazines, gyms, and cable TV.
However, with the rise of technology and cloud-based
computing, many companies have transitioned from the one-off
purchase to the recurring revenue or the subscription business
model. Consequently, nowadays we have subscriptions for
everything — from food to music, TV shows, clothes, games,
audiobooks, even shaving products.
We believe these customer segments will benefit the most and naturally
gravitate towards our solutions. Our goal is to maximize the value of ongoing
subscriptions by simplifying the payments process and protect customers from
hidden fees and subscription charges for services they no longer use.
REVENUE 01-3
MODEL
More than 90% of users of online budgeting and financial
applications are willing to pay for additional services if it saves
them money. Revuto’s goal is not just saving customers’ money
but giving them complete control over their subscriptions.
At Revuto, we not only believe that crypto is the future of finance but also have
our interests perfectly aligned with the cypherpunk ethos. Blockchain-based
digital assets are designed for transparency, ease of access and provide users
complete control over their funds, which is the same what Revuto is trying to do
with subscriptions.
Furthermore, by paying their subscriptions through the Revuto dApp, users will
have the opportunity to earn rewards, receive cashback, and apply for micro-
loans paid out in crypto. The micro-lending feature will provide users with easy
access to liquidity, allowing them to better manage their cash flows and never
miss a subscription payment.
In phase one, Revuto will only support subscription payments and rely on
existing payment processors to execute crypto-to-fiat swaps and process fiat
transactions. At this stage, all subscription payments with Revuto will be made
using actively managed Revuto Virtual Debit Cards supporting fiat currencies,
REVU tokens and Cardano-native EURR stablecoin.
Later, Revuto will broaden its product offering by adding support for other
recurring payments such as utilities, cable and cell phone bills, or gym
memberships. Moreover, in the latter phase, Revuto will also acquire a payment
processor license, allowing it to further reduce friction in payments, eliminate
third-party dependencies, and ultimately increase profit margins.
SUBSCRIPTION
PAYMENTS
02 - 3 - 1
The Revuto dApp will support both push and pull payment
options, where push payments will require user’s authorization
on each billing cycle, while pull payments will be automatic.
Revuto stands out from the competition because it is the first subscription
management service to incorporate cryptocurrency payments. Using the Revuto
dApp, users will be able to pay for their subscriptions using the Cardano-native
REVU token and EURR stablecoin.
With Cardano’s Plutus smart contract platform’s arrival, users will be able to
acquire the Cardano-native EURR stablecoin either by minting it as a loan using
REVU tokens as collateral or by directly purchasing it on the open market.
Users who want to pay for their subscriptions using crypto will need to
download Revuto’s wallet and approve automatic (pull) token transfers.
In order to pay for subscriptions using cryptocurrency, the users will first need
to approve the REVU or EURR stablecoin from within their wallet. This process
is similar to adding a bank card as a payment option for online purchases or
subscriptions. After the user sets up the wallet for recurring payments, the
wallet will invoke the smart contract, permitting the server wallet to spend the
funds (REVU or EURR) from the user’s wallet at specific points in the future.
The added benefit here is that the users have the freedom to define the access
period in which the server wallet can access their funds and manually set a
limit to the amount of crypto they wish to spend for subscriptions. This adds an
additional layer of security for the users and effectively gives them complete
control over their crypto.
REVU 02-4
TOKEN
The REVU token is Revuto’s utility token native to the
Cardano blockchain. Its purpose will be twofold: to serve
as a governance token for the Revuto ecosystem through
staking and pose as collateral for micro-loans on Revuto’s
decentralized micro-lending and borrowing platform.
For users, the incentive for holding REVU tokens is ultimately to save money
and pay less in crypto for subscription charges than they would with fiat money.
The tokens are distributed to as many Revuto users as possible, with the
number of token holders growing proportionally to the project’s rise in
market capitalization;
The biggest token holders do not hold significant portions of the total
token supply, limiting their power to influence the markets;
Users deeply involved with the project that willingly contribute to its
success;
After the token sale ends, Revuto will partner up with other crypto exchanges to
ensure more trading pairs against REVU tokens are made available.
Finally, with its own ERC-20 converter, Revuto will introduce wrapped ERC-2o
REVU tokens (wREVU) on the Ethereum network to allow users to trade their
tokens on decentralized exchanges like Uniswap.
REVU TOKEN
SALE DISTRIBUTION
02 - 4 - 3
REVU TOKEN SALE: 32% OF
TOTAL SUPPLY / 89,640,000
REVU TOKENS
Private round 0.085 EUR 300K EUR - 1M EUR 16 807 500 REVU
Early backers tier 1 0.085 EUR 500 EUR - 1K EUR 15 406 875 REVU
Early backers tier 2 0.09 EUR 5K - 100K EUR 15 406 875 REVU
Community sales round 0.1 EUR 100 EUR - 5K EUR 42 018 750 REVU
Private round 0.085 EUR 300K EUR - 1M EUR 1 428 637.50 EUR
Early backers tier 1 0.085 EUR 500 EUR - 1K EUR 1 309 584.38 EUR
Early backers tier 2 0.09 EUR 5K - 100K EUR 1 386 618.75 EUR
Community sales round 0.1 EUR 100 EUR - 5K EUR 4 201 875.00 EUR
REVU TOKEN
RELEASE PLAN
02 - 4 - 6
DISTRIBUTION STARTING DATE FINISHING DATE
*the final number will depend on REVU tokens issued through referral
program, cashback, APY, DeFi services, etc.
REVU TOKEN
RELEASE SCHEDULE
02 - 4 - 9
Holders of REVU tokens bought
in the REVU Token Sale will earn
additional REVU tokens based on
10% APY on unreleased tokens.
Token holders will need 2% of the total REVU token supply to submit
a governance proposal;
STAKING 02 - 6-1
Within the context of the Revuto ecosystem, staking means
locking up REVU tokens in a smart contract for a certain period.
The benefits of staking are twofold: one, users who lock their
REVU tokens in the staking contract will get access to unique
product benefits and staking rewards, and two, staking reduces
the number of tokens in circulation, prevent volatility and
creates constant demand pressure on the REVU token.
To get the product benefits and earn the rewards, users will have
to commit and stake their REVU tokens for 6, 12, or 18 months,
with a certain percentage for each.
MICRO-LENDING
AND BORROWING
02 - 6 - 2
Revuto’s decentralized micro-lending and borrowing platform
will give REVU token holders quick and easy access to liquidity
(working capital) in the form of small loans denominated in
EURR stablecoins. The goal is to allow REVU token holders to
pay their subscription payments on time without liquidating
their REVU holdings. This way, users will keep their long
exposure to REVU tokens and keep earning staking rewards
even when they do not have cash for subscription payments at
hand.
Token holders will take out loans by staking their REVU tokens as collateral
on the platform. The amount they can borrow will depend on the value of the
deposited collateral. The loan-to-value (LTV) ratio will initially be set at 2:1 —
i.e. , for $100 worth of REVU tokens staked, the users will be able to borrow 50
EURr tokens.
When borrowing, users will receive newly minted EURR tokens (Cardano-native
stablecoins pegged to the Euro) as a loan they will later need to pay back with
fixed 20% interest. When paying back the loan, the EURR tokens are burned,
and the collateral is returned to the borrower. In case the deposited collateral at
one point becomes insufficient to back the loan, the staked REVU tokens will be
liquidated.
The referral rewards will account for 6% of the revenue generated from the
referred users. For example, if the referred user signs up for the Revuto Pro
version, which will cost €12, the referral link owner will earn 6% of that user’s
cashback which is determined to be 4%. If the referred user signs up for the free
version of the app, spends €100 every month on subscriptions, and pays 4% or
€4 to Revuto for protection fees, the referral link owner will earn 6% of that (or
€0.24 in this case) every month for that user and each other user they onboard
onto the platform.
This means that everyone who onboards new users onto the Revuto platform
will keep earning recurring revenue in the REVU tokens for as long as the
referred user uses Revuto to pay for subscriptions. The rewards earned through
the referrals will be collected and sent directly to users Revu wallets once per
month.
The cashback rewards will be reserved only for paying Revuto users (Pro app).
All Revuto Pro users will receive 4% cashback in REVU tokens on all of their
subscription purchases.
REVU TOKEN
BUYBACKS 03-02
In order to guarantee healthy growth of the Revuto ecosystem
and siphon value to REVU token holders, Revuto will
periodically administer open market buybacks of REVU tokens
using 40% of the total revenue generated by the protocol.
02/2022 App and services support for other native tokens from
Cardano
12/2022 Introduce a physical Revuto Debit Card to pay for goods with
crypto and with an option to leverage DeFi services
Revuto believes that no one should ever again have to pay for subscriptions
they no longer want or use and that managing subscriptions/unsubscribing from
services shouldn’t take more than a single click.
crypto.revuto.com