Litepaper
My Whole Existence Is For Your Amusement
Litepaper
PolyWantsACracker.farm, July 11, 2021
TL;DR
We are raising $150k in a presale and providing $75k directly into liquidity. 60% of deposit fees will be used for buybacks. This should create a strong, stable farm!
Overview
PolyWantsACracker is a yield farm on Polygon Network that emphasizes three factors:
Enhanced early liquidity pool
Presale: $150k for 30% of the supply (total supply valuation: $500k)
Liquidity provided: $75k + 7.5% of the supply @ 2x presale price
Liquidity value: $150k
Superior metrics
Allocation of presale funds:
50% initial liquidity
30% marketing/infrastructure/partnerships
20% team salaries
Allocation of deposit fees:
60% buyback of LITHIUM tokens
At least 50% of the bought back tokens will be burned directly after the buyback
The remaining bought back tokens may be stored for partnerships (e.g., beefy vault bonus tokens), but those not provided for partnerships will be burned
No bought back tokens will be dumped on AMMs in any way
15% of the deposit fee will be used for marketing/infrastructure
25% of the deposit fee will be designated as a dev fee for band performance
15% marketing/infrastructure/partnerships
25% dev fee
Revolutionary development
Development of second layer has been in progress for ~3 months
Layer 1’s emissions will last 2 weeks
Layer 2’s features will be revealed during Layer 1’s emission period
Industry Background
DeFi is now a $100-billion sector, and its growth has enriched many. However, many risk factors loom for those who participate. “Safer protocols” such as AAVE often pay a lower benefit level than is demanded by many. Smaller yield farms, although still potentially profitable, are a minefield of potentially catastrophic events. Bugs, malicious flash loans, failed designs, and plain old theft have often left people with nothing, or at best, picking a few pennies up off the ground. Nevertheless, the survivors have made handsome profits in DeFi.
Because avoiding complete principal loss is the key to maintaining profitability in DeFi, many people attempt to minimize their risk by entering pools that charge 4% deposit fees to stake non-native coins in exchange for the reward token. However, the expectation that the investor’s risk be limited to 4% of the principal can be violated by malicious code, which can steal a user’s entire balance. And even if the loss is only 4%, “soft rug pulls,” such as the developer leaving with the deposit fee and abandoning the project, can be demoralizing. This potential has given smaller yield farms a reputation as a “backwater,” “seamy underworld,” or “Mos Eisley Cantina” of DeFi.
Even though many DeFi participants are relatively risk-averse, there are also those who prefer more high-risk, high-reward plays. These farmers often gravitate towards farms’ native tokens, as staking those tokens usually pays the highest APRs. Unfortunately, native token prices often drop too quickly after farming begins for initial stakers to profit. One factor is that many yield farms have an extremely small initial supply in comparison to the emission rate. This can lead to some people paying very high prices for the few tokens in existence so that they can stake them in pools, which display very large APRs if the emission is rapid relative to the current supply. Unfortunately, the resulting token price drop often leads to nearly total losses for early liquidity providers, who should be a project’s most valued participants.
Challenges and Problems
Although some participants in DeFi make overall profits, the treacherous environment described above prevents others from doing so. The main problems seem to be:
Bugs, exploits, and theft causing the loss of the investor’s entire deposit,
“Soft rug pulls” and other bad behavior by developers,
Bad farm design, and
Poor initial token distribution
Problems 1 and 2 were covered in the Industry Background section. Problem 3, bad farm design, can take many forms. Farms have been killed by many problems great and small, from setting the timelock period too long to setting the emissions too low. Further, most yield farm designs seem to be generally faulty, as farms that can truly stand the test of time are currently rare. We believe that the feature set we are developing for our second layer will create such an enduring system; however, the majority of current yield farm codebases are not currently capable of sustaining forever. Nevertheless, the recent successes of PolyPup’s first layer and other projects have taught us that a preconceived 2-week emission period may introduce a scope for a realistic probability of a successful lifecycle.
Problem 4, poor initial token distribution, is also present in most farms. There are currently three main possibilities for initial farm token distribution:
Presale,
“Fair launch,” and
None of the above
A presale allows the most participants possible to obtain tokens at the same price. It also allows interested farmers a meaningful chance to provide liquidity, which enhances the stability of the liquidity pool. One of the reasons why PolyWantsACracker has chosen to have a presale is because the funding will allow us to provide a large amount of funding towards liquidity at launch.
A “fair launch,” where the developer adds liquidity for a supply of tokens and then anyone can buy them, is common for yield farms. Although this type of distribution purports to be advantageous because it is not supposed to enrich the developers, we prefer to place “fair launch” in quotes because in reality, this method is simply not fair. Any tokens available close to the liquidity price are usually purchased rapidly by the developers, insiders, and bots, whose goal is to profit by dumping the tokens on unsuspecting investors. It is unclear why anyone would ever call such situations “fair” to begin with.
Interestingly, more farms than one might expect have effectively no initial distribution mechanism (none of the above). These farms often initially provide liquidity for such a tiny number of tokens that no one has the opportunity to obtain a meaningful amount. The Case Study section below will briefly touch on some examples of this before comparing PolyWantsACracker’s distribution plan to those of previous farms that have run presales.
Case Study: Initial Distribution
Non-Presale Farms:
Yield farms that do not have presales often begin farming with a very high initial emission rate relative to the supply, and this almost invariably causes the token price to rapidly decline. Some examples are quite egregious. The farm that started with the following initial supply (left):
PolyOwl, before and after 3 days of farming
emitted 5x its initial supply in the first block of farming (21,600,000%/day). It predictably died within a few days (right). This example would be comical if such setups did not commonly lead to losses for, and take advantage of, inexperienced investors. The high pre-farm price of a tiny circulating supply, coupled with a high emission rate, can trick farmers into buying or depositing due to high displayed pool APRs. However, because the supply in such cases is essentially zero relative to emission, the losses for those who pay for such tiny pieces of overpriced tokens come swiftly once farming begins.
PolyOwl price chart, zoomed out (left) and zoomed in (right)
Farms like PolyOwl and others that start with this type of supply pattern usually do not survive for more than a few days. The experience of participating in these farms is generally not worthwhile. Because the farms die so rapidly, it becomes a game of “hot potato” in which the farmer moves funds rapidly from farm to farm, risking either partial or total loss each time while forking over yet another 4% deposit fee payment.
Farms that begin with “fair launches” often have the same problem, albeit to a lesser degree: the farms’ emission rates are often quite rapid in comparison to the initial supply. Rapid supply expansion is often a huge detriment even in farms that receive a high amount of investment. For example, in the recent case of PolyPup’s BONE layer:
The supply doubled on the first day of farming. Before farming began, buyers of the initial supply had swelled its market cap into the multi-millions, evidently not thinking about the fact that over 1,000 new BONE tokens/day would be minted. In order to maintain the displayed price above, people would have to purchase all newly minted coins at that price (minus team buybacks totaling 30% of the deposit fee, approximately $10,000/day or fewer than 5 tokens/day). Predictably, this high supply expansion rate led to a 98% price drop in the first 10 days of farming, causing max pain for native liquidity providers who simply did not know what hit them:
BONE’s chart is more extended horizontally than that of PolyOwl for the following reasons: its initial supply expansion was less rapid, it received a high amount of initial investment, it has a strong community, and it has support from vault providers. However, beyond that, the charts of BONE and PolyOwl have a similar shape because of the extremely rapid initial supply expansion.
Presale Farms:
We can compare the undesirable farm token price action shown above with the results achieved by farms that have established their initial liquidity supplies via presales. As representative examples, we choose PolyPulsar, Cerberus, Thoreum, and Augury.
Of course, these projects that ran presales are not directly comparable to the ones described above, or to PolyWantsACracker, but we can still make the case that a higher level of initial token distribution via a presale (and therefore a less rapid initial supply expansion rate) is associated with better token price stability. We therefore feel that a presale serves investors better.
The following is a comparison of the supply metrics between PolyWantsACracker’s upcoming presale and other yield farms that have recently launched after a presale. Official figures released by teams were used when available, and other data were found on-chain. Details can be found in the Supplementary Information.
Table 1. Initial Supplies and Supply Expansion Rates of Presale Farms
Farm | Initially Minted | Circulating @ Farm Start | Emission Rate (/sec) | Price @ Farm Start (USD) | Market Cap @ Farm Start (USD) | Initial Supply Expansion Rate (% of circ. supply on first day) |
PolyPulsar | 2m | 1.25m | 5 | 0.40 | 500k | 34.6% |
Cerberus | 72.4m | 70m | 33.3 | 0.0068 | 476k | 4.1% |
Thoreum | 550m | 537m | 250 | 0.0058 | 3.19m | 3.9% |
Augury | 10m | 7.1m | 8.88 | 0.47 | 3.34m | 10.8% |
PolyWantsACracker | 37.5k | 37.5k | 0.05 | - | - | 11.5% |
We can divide these projects into three groups in terms of initial supply expansion rate, with PolyPulsar alone at the top. Although PolyPulsar's relatively high initial supply expansion rate led to an early price drop, PolyPulsar's BPUL token never reached nearly the price at which liquidity was provided ($.01). In contrast, Cerberus and Thoreum had relatively low initial expansion rates. In the middle is Augury, which saw a large increase in token price and attracted a large TVL shortly after farming began. Thus, we conclude that an expansion rate in the range of Augury's should generate APRs sufficient to attract investment while avoiding the inevitability of negative early price action. Consequently, PolyWantsACracker's supply expansion rate has been calibrated to be approximately equal to Augury's, but slightly more rapid.
Table 2. Money Raised and Liquidity Provided by Presale Farm Teams
Farm | Total Raised (USD) | Liquidity Provided by Team (USD equivalent) | Liquidity Provided as % of Presale |
PolyPulsar | 8.8k | 8.8k | 100% |
Cerberus | 780k | 6.3k | 0.8% |
Thoreum | 5.6m | 494k | 8.8% |
Augury | 2.01m | $1 | 0.0% |
PolyWantsACracker | 150k | 75k | 50% |
PolyPulsar is once again an outlier in terms of the total amount raised in the presale and the proportion of presale funds used by the team to provide liquidity. Its presale was an underpriced compensatory NFT offering to participants in Pulsar's previous layer, explaining the low amount raised and 100% of presale funds going to liquidity. The liquidity price was approximately $.01, which was also underpriced.
None of the other teams analyzed provided more than 8.8% of presale funds as liquidity. However, PolyWantsACracker's team will provide 50% of presale funds as liquidity, which should create a very stable initial pool.
Inspired by the above insights, we have devised the following tokenomics plan for PolyWantsACracker.
Tokenomics
Token Symbol: LITHIUM (Polygon address: 0xfE1a200637464FBC9B60Bc7AeCb9b86c0E1d486E)
Max supply: 100,000 LITHIUM
30% Presale (30,000 LITHIUM)
7.5% initial liquidity, provided at 2x presale price ($10.00 x 7,500 LITHIUM = $75,000)
If the presale cap is not met, half of the presale funds will be used to provide liquidity at ≥1.5x presale price ($7.50/LITHIUM)
Any of this 7.5% that is not used for liquidity will be immediately burned
62.5% farmed at the rate of 0.10 LITHIUM/block (62,500 LITHIUM = 625,000 blocks ≈ 14 days @ 2 seconds/block)
No tokens minted to devs
No tokens for influencers, insiders, or any kind of dumping whatsoever
Buyback/Burn Policy
60% of the deposit fee will be used to buy back LITHIUM tokens
At least 50% of the bought back tokens will be burned directly after the buyback
The remaining bought back tokens may be stored for partnerships (e.g., beefy vault bonus tokens), but those not provided for partnerships will be burned
No bought back tokens will be dumped on AMMs in any way
15% of the deposit fee will be used for marketing/infrastructure
25% of the deposit fee will be designated as a dev fee for band performance
Presale Plan
Why Presale?
So-called "fair token launches" are not actually fair. They are overrun by bots and insiders.
We predict that a quality farm launch will see significant interest in a fairly constituted early liquidity pool.
We are initially placing a microcap valuation on the total supply to give investors an advantage
We prefer that everyone pay the same price initially.
We have no tiers, categories, or extra tokens minted
A presale enables us to provide a MUCH larger amount of cash towards liquidity than we could otherwise ($75,000 if presale fills)
Liquidity tokens purchased with presale funds will be burned
More supply in liquidity providers' hands means less price change when farming begins
Enables high-volume pre-farm trading
A presale provides an established budget for marketing, partnerships, and further development
Presale Info
Time and Date: See Presale Info page
Total Raise: $150,000 for 30,000 LITHIUM, 30% of the supply
Contributions in MATIC, pegged shortly before the presale begins
Rate: $5 per LITHIUM
Cap: $3,000 per groupie (Pegged in MATIC)
Implied Market Cap of Total Supply: $500,000
Initial liquidity: Supplied at 2x presale price if presale fills, or at least 1.5x presale price if not
Allocation of Presale Funds
50% initial liquidity (7,500 LITHIUM valued @ $10.00 + 75,000 USDC = $150,000 liquidity)
30% marketing/infrastructure/partnerships
20% band (dev) salaries
Marketing Strategy
By farmers, for farmers
Advertise the presale, but keep it to DeFi/farming-related channels
Keep tokens in the hands of real farmers
Farmers will see the benefits of using the tokens to provide liquidity
Emphasize differentiators
Enhanced early liquidity pool
Superior metrics
Revolutionary development of second layer
Timed information releases about second layer features
Timed information releases about LITHIUM’s utility in second layer
Features are so revolutionary that investors will shit their pants
Affinity with communities that have fallen on hard times
TITAN-DAI, TITAN-IRON, BONE-USDC, PUP, ADDY pools
Similar emission, cap, and layer structure to PolyPup
Crowdsale targets nucleus of highly interested people, like PolyPulsar
We offer companionship to people who have no friends
Appeal to vault providers
ADDY and BIFI pools
Top-tier audit
Revolutionary development of second-layer features
Grassroots marketing
Direct outreach to farming discussion groups on Telegram and Discord
“Daily tasks”: retweeting, following, Medium clapping, thread commenting
Incentivized shilling by presale participants
General appeal
A personal approach
Team page
Letter from the Founder
Accessibility
Humor
Branding/Mascot
This type of branding/mascot has not been tried
This choice may appeal to certain demographic groups who tend to be crypto-wealthy
Addendum: Amount Raised
[July 13, 2021]
After the completion of the initial text of this whitepaper, Bee Farm conducted a public presale of 5,000 tokens at a price of $20 each (total raise: $100,000). This raise size was very well received by the community, and the token price kept rising after farming began, even though the emissions quickly diluted the $100k in crowdsale contributions. Farming began with the token having approximately a $500,000 market cap. This excellent result indicates that a raise size in the range of PolyWantsACracker's can be met with reasonably high demand. The level of community demand for a quality farm seems to provide an opportunity for early investors to do extremely well.
NOTICE AND DISCLAIMER
PLEASE READ THE ENTIRETY OF THIS "NOTICE AND DISCLAIMER" SECTION CAREFULLY. NOTHING HEREIN CONSTITUTES LEGAL, FINANCIAL, BUSINESS OR TAX ADVICE AND YOU SHOULD CONSULT YOUR OWN LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) BEFORE ENGAGING IN ANY ACTIVITY IN CONNECTION
HEREWITH. NEITHER SUGANDESE TOKENS (THE COMPANY), ANY OF THE PROJECT TEAM MEMBERS (THE $LITHIUM TEAM) WHO HAVE WORKED ON POLYWANTSACRACKER (AS DEFINED HEREIN) OR PROJECT TO DEVELOP POLYWANTSACRACKER IN ANY WAY WHATSOEVER, ANY DISTRIBUTOR/VENDOR OF $LITHIUM TOKENS (THE DISTRIBUTOR), NOR ANY SERVICE PROVIDER SHALL BE LIABLE FOR ANY KIND OF DIRECT OR INDIRECT DAMAGE OR LOSS WHATSOEVER WHICH YOU MAY SUFFER IN CONNECTION WITH ACCESSING THIS LITEPAPER, THE WEBSITE AT HTTPS://POLYWANTSACRACKER.FARM/ (THE WEBSITE) OR ANY OTHER WEBSITES OR MATERIALS PUBLISHED BY THE COMPANY.
Project purpose: You agree that you are acquiring $LITHIUM to participate in PolyWantsACracker Yield Farm and to obtain services on the ecosystem thereon. The Company, the Distributor and their respective affiliates would develop and contribute to the underlying source code for PolyWantsACracker. The Company is acting solely as an arms’ length third party in relation to the $LITHIUM distribution, which will proceed by a decentralized, on-chain process, and not in the capacity as a financial advisor or fiduciary of any person with regard to the distribution of $LITHIUM.
Nature of the Litepaper: The Litepaper and the Website are intended for general
informational purposes only and do not constitute a prospectus, an offer document, an offer of securities, a solicitation for investment, or any offer to sell any product, item or asset (whether digital or otherwise). The information herein may not be exhaustive and does not imply any element of a contractual relationship. There is no assurance as to the accuracy or completeness of such information and no representation, warranty or undertaking is or purported to be provided as to the accuracy or completeness of such information. Where the Litepaper or the Website includes information that has been obtained from third party sources, the Company, the Distributor, their respective affiliates and/or the $LITHIUM TEAM have not independently verified the accuracy or completeness of such information. Further, you acknowledge that circumstances may change and that the Litepaper or the Website may become outdated as a result; and neither the Company nor the Distributor is under any obligation to update or correct this document in connection therewith.
Token Documentation: Nothing in the Litepaper or the Website constitutes any offer by the Company, the Distributor or the $LITHIUM TEAM to sell any $LITHIUM (as defined herein) nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision. Nothing contained in the Litepaper or the Website is or may be relied upon as a promise, representation or undertaking as to the future performance of PolyWantsACracker. The agreement between the Distributor (or any third party) and you, in relation to any distribution or transfer of $LITHIUM, is to be governed only by the separate terms and conditions of such agreement.
The information set out in the Litepaper and the Website is for community discussion only and is not legally binding. No person is bound to enter into any contract or binding legal commitment in relation to the acquisition of $LITHIUM, and no virtual currency or other form of payment is to be accepted on the basis of the Litepaper or the Website. The agreement for distribution of $LITHIUM and/or continued holding of $LITHIUM shall be governed by a separate set of Terms and Conditions or Token Distribution Agreement (as the case may be) setting out the terms of such distribution and/or continued holding of $LITHIUM (the Terms and Conditions), which shall be separately provided to you or made available on the Website. The Terms and Conditions must be read together with the Litepaper. In the event of any inconsistencies between the Terms and Conditions and the Litepaper or the Website, the Terms and Conditions shall prevail.
By accessing the Litepaper or the Website (or any part thereof), you shall be deemed to represent and warrant to the Company, the Distributor, their respective affiliates, and the $LITHIUM TEAM as follows:
Deemed Representations and Warranties:
(a) in any decision to acquire any $LITHIUM, you have shall not rely on any statement set out in the Litepaper or the Website;
(b) you will and shall at your own expense ensure compliance with all laws, regulatory requirements and restrictions applicable to you (as the case may be);
(c) you acknowledge, understand and agree that $LITHIUM may have no value, there is no guarantee or representation of value or liquidity for $LITHIUM, and $LITHIUM is not an investment product nor is it intended for any speculative investment whatsoever;
(d) none of the Company, the Distributor, their respective affiliates, and/or the $LITHIUM TEAM members shall be responsible for or liable for the value of $LITHIUM, the transferability and/or liquidity of $LITHIUM and/or the availability of any market for $LITHIUM through third parties or otherwise; and
(e) you acknowledge, understand and agree that you are not eligible to participate in the distribution of $LITHIUM if you are a citizen, national, resident (tax or otherwise), domiciliary and/or green card holder of a geographic area or country (i) where it is likely that the distribution of $LITHIUM would be construed as the sale of a security (howsoever named), financial service or investment product and/or (ii) where participation in token distributions is prohibited by applicable law, decree, regulation, treaty, or administrative act (including without limitation the United States of America and the People's Republic of China). The Company, the Distributor and the $LITHIUM TEAM do not and do not purport to make, and hereby disclaims, all representations, warranties or undertaking to any entity or person (including without limitation warranties as to the accuracy, completeness, timeliness or reliability of the contents of the Whitepaper or the Website, or any other materials published by the Company or the Distributor). To the maximum extent permitted by law, the Company, the Distributor, their respective affiliates and service providers shall not be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including, without limitation, any liability arising from default or negligence on the part of any of them, or any loss of revenue, income or profits, and loss of use or data) arising from the use of the Litepaper or the Website, or any other materials published, or its contents (including without limitation any errors or omissions) or otherwise arising in connection with the same.
Prospective acquirors of $LITHIUM should carefully consider and evaluate all risks and uncertainties (including financial and legal risks and uncertainties) associated with the distribution of $LITHIUM, the Company, the Distributor and the $LITHIUM team.
Informational purposes only: The information set out herein is only conceptual, and describes the future development goals for PolyWantsACracker to be developed. In particular, the project roadmap in the Litepaper is being shared in order to outline some of the plans of the $LITHIUM team, and is provided solely for informational purposes and does not constitute any binding commitment. Please do not rely on this information in deciding whether to participate in the token distribution because ultimately, the development, release, and timing of any products, features or functionality remains at the sole discretion of the Company, the Distributor or their respective affiliates, and is subject to change. Further, the Whitepaper or the Website may be amended or replaced from time to time. There are no obligations to update the Whitepaper or the Website, or to provide recipients with access to any information beyond what is provided herein.
Regulatory approval: No regulatory authority has examined or approved, whether
formally or informally, of any of the information set out in the Litepaper or the Website. No such action or assurance has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of the Litepaper or the Website does not imply that the applicable laws, regulatory requirements or rules have been complied with.
Cautionary Note on forward-looking statements: All statements contained herein,
statements made in press releases or in any place accessible by the public and oral statements that may be made by the Company, the Distributor and/or the $LITHIUM TEAM, may constitute forward-looking statements (including statements regarding intent, belief or current expectations with respect to market conditions, business strategy and plans, financial condition, specific provisions and risk management practices). You are cautioned not to place undue reliance on these forward-looking statements given that these statements involve known and unknown risks, uncertainties and other factors that may cause the actual future results to be materially different from that described by such forward-looking statements, and no independent third party has reviewed the reasonableness of any such statements or assumptions. These forward-looking statements are applicable only as of the date indicated in the Litepaper, and the Company, the Distributor as well as the $LITHIUM TEAM expressly disclaim any responsibility (whether express or implied) to release any revisions to these forward-looking statements to reflect events after such date.
References to companies and platforms: The use of any company and/or platform names or trademarks herein (save for those which relate to the Company, the Distributor or their respective affiliates) does not imply any affiliation with, or endorsement by, any third party. References in the Litepaper or the Website to specific companies and platforms are for illustrative purposes only.
English language: The Litepaper and the Website may be translated into a language other than English for reference purpose only and in the event of conflict or ambiguity between the English language version and translated versions of the Whitepaper or the Website, the English language versions shall prevail. You acknowledge that you have read and understood the English language version of the Whitepaper and the Website.
No Distribution: No part of the Litepaper or the Website is to be copied, reproduced, distributed or disseminated in any way without the prior written consent of the Company or the Distributor. By attending any presentation on this Whitepaper or by accepting any hard or soft copy of the Whitepaper, you agree to be bound by the foregoing limitations.
Risks
You acknowledge and agree that there are numerous risks associated with purchasing $LITHIUM, holding $LITHIUM, and using $LITHIUM for participation in PolyWantsACracker. In the worst scenario, this could lead to the loss of all or part of the $LITHIUM which had been purchased.
IF YOU DECIDE TO PURCHASE $LITHIUM, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:
1. Uncertain Regulations and Enforcement Actions:
The regulatory status of $LITHIUM and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of virtual currencies has become a primary target of regulation in all major countries in the world. It is impossible to predict how, when or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including $LITHIUM and/or PolyWantsACracker. Regulatory actions could negatively impact $LITHIUM and/or the PolyWantsACracker in various ways. The Company, the Distributor (or their respective affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. After consulting with a wide range of legal advisors and continuous analysis of the development and legal structure of virtual currencies, a cautious approach will be applied towards the sale of $LITHIUM. Therefore, for the token sale, the sale strategy may be constantly adjusted in order to avoid relevant legal risks as much as possible.
2. Inadequate disclosure of information
3. Competitors
As at the date hereof, the PolyWantsACracker is still under development and its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be constantly and frequently updated and changed. Although this whitepaper contains the most current information relating to the PolyWantsACracker platform, it is not absolutely complete and may still be adjusted and updated by the $LITHIUM team from time to time. The $LITHIUM team has no ability and obligation to keep holders of $LITHIUM informed of every detail (including development progress and expected milestones) regarding the project to develop the $LITHIUM platform, hence insufficient information disclosure is inevitable and reasonable.
Various types of decentralised applications and networks are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that alternative networks could be established that utilise the same or similar code and protocol underlying $LITHIUM and/or the PolyWantsACracker platform and attempt to re-create similar facilities. The PolyWantsACracker platform may be required to compete with these alternative networks, which could negatively impact $LITHIUM and/or the PolyWantsACracker platform.
4. Loss of Talent
The development of the PolyWantsACracker greatly depends on the continued cooperation of the existing technical team and expert consultants, who are highly knowledgeable and experienced in their respective sectors. The loss of any member may adversely affect the PolyWantsACracker platform or its future development. Further, stability and cohesion within the team is critical to the overall development of the PolyWantsACracker. There is the possibility that conflict within the team and/or departure of core personnel may occur, resulting in negative influence on the project in the future.
5. Failure to develop
There is the risk that the development of the PolyWantsACracker will not be executed or implemented as planned, for a variety of reasons, including without limitation the event of a decline in the prices of any digital asset, virtual currency or $LITHIUM, unforeseen technical difficulties, and shortage of development funds for activities. Hackers or other malicious groups or organisations may attempt to interfere with $LITHIUM and/or PolyWantsACracker. in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Company, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of $LITHIUM and/or the PolyWantsACracker platform, which could negatively affect $LITHIUM and/or PolyWantsACracker.
6. Security weaknesses
Further, the future of cryptography and security innovations are highly unpredictable and advances in cryptography, or technical advances (including without limitation development of quantum computing), could present unknown risks to $LITHIUM and/or the PolyWantsACracker by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.
7. Other risks
In addition, the potential risks briefly mentioned above are not exhaustive and there are other risks associated with your purchase, holding and use of $LITHIUM, including those that the Foundation or the Distributor cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Company, the Distributor, their respective affiliates, and the $LITHIUM team, as well as understand the overall framework, mission and vision for the PolyWantsACracker prior to purchasing $LITHIUM.
© 2021 Sugandese Tokens
Last updated
