STP Network (STP) Protocol - ICO Review, Rating and Details of STP Network ICO (Token Sale) - Rating: All In

Standard Tokenization Protocol is an open-source standard defining how tokenized assets are issued and transferred while complying with all necessary regulations. Tokens built on top of the STP-Standard will use the protocol’s on-chain Validator to verify compliance with any jurisdictional or issuer-specific requirements. Standard Tokenization Protocol allows assets to be tokenized in a way that makes them fully compliant across jurisdictions and transferable across any blockchain platform.

Standard Tokenization Protocol is a smart contract platform for globally compliant token offerings.

The protocol integrates international laws and regulations to enable compliant issuance of tokenized assets and cross-jurisdictional transfers of ownership. By issuing a permissioned ERC-20 token (STP) on the Ethereum blockchain or potentially any public chain, Standard Tokenization Protocol ensures:

  • Regulatory compliance is met at the token level.
  • An incentive structure that accurately captures changes in the regulatory landscape.

Standard Tokenization Protocol standard enables the tokenization of any type of asset in a globally compliant manner.

Features & Highlights

Utility tokens are required for the use of the product or service provided by their associated network. One cannot interact with the Bitcoin blockchain without bearing ownership of a unit of the native token. This is fundamentally different from a share of stock, which one is able to own without interacting with the underlying product (e.g. Facebook shares are not needed to access the Facebook app). Security tokens, on the other hand, are simply a digital representation of legal rights or ownership of an asset - standard investor protections apply. When discussing Security Tokens, however, many reflexively cite William Hinman’s SEC commentary (U.S. SEC, 2018) which drew a distinction between “Utility Tokens” 4 (sufficiently decentralized and therefore legal) and “Security Tokens” (everything else). The implication became that Bitcoin and Ethereum were the only true utility tokens and implied everything else was not. What often gets lost in the noise, however, is that this use of the term “Security Tokens” referred only to unregistered securities offerings, which are illegal by nature. Too many projects and investors still equate “Utility Token” with “legal” and “Security Token” with “illegal”. To avoid this confusion, Standard Tokenization Protocol will refer to regulated token offerings, meaning the tokenization of traditional assets (equity, real estate, etc.) to enable certain previously impossible features. These features include smart contract programmability (reducing the number of third parties for issuers, thereby lowering costs for investors) and automated compliance (increasing assurances for investors while reducing costs for issuers). With this in mind, one can view regulated STP token offerings as simply the compliant offering of a tokenized asset. Tokenizing traditional assets offers benefits that have previously been impossible, several of which are outlined below.

  • Programmability
    • Programmable money is another benefit of tokenization that is again central to blockchain-native assets and entirely absent from traditional financial alternatives. The ability to program value to move from one person or entity to another if and only if certain conditions are met has enormous potential to create value and dramatically lower operational costs. A simple first example would be a tokenized share of stock that distributes a percentage of its net income as a quarterly dividend to its token holders if its quarterly net income is positive. Pre-programming this dividend feature into that entity’s STP token would significantly reduce the manual and labor-intensive process of issuing quarterly dividends. A slightly more complex example could be tokens that convert between equity and debt-like instruments based on predefined parameters. And because of the STP-Standard’s token-level compliance capability, programmable features such as automated onchain fundraising are now possible where investors send funds into an STP-Standard smart contract which verifies compliance with the token project’s parameters and issues the new token to investors who meet the requirements and refunds capital to investors who do not. The transparency of the public blockchain will allow anyone to confirm the protocol is functioning correctly.
  • Fractional Ownership
    • Fractional ownership of historically valuable assets such as fine art, stamps, wine collections, antique cars, and so on will open up new asset classes to the average investor and make possible smaller investable amounts. As an example, purchases in the art world are typically conducted through a private auction process as opposed to a public market process, resulting in single ownership (one owner per asset) instead of fractional ownership (many co-owners of the same asset). For something like the Mona Lisa, an auction market’s single ownership would essentially represent one “Mona Lisa share” worth $800m (William George & Co., 2018) , whereas market-based fractional ownership could potentially represent 5 10 million “Mona Lisa shares” worth $80 each. Because there are far more people on Earth who can afford to spend $80 to own a famous work of art, a more liquid market of buyers and sellers would emerge, making trades faster and cheaper. Compare this with the slow and expensive illiquid method today of having to search for a single buyer both willing and able to spend $800m to purchase the painting.
    • Another problem solved by fractional ownership is the Orphan Zone. This is what happens to assets which are simultaneously too large to attract individual investors and too small to attract institutional investors. These Orphan Zone assets will often be advised to either discount their price until they become attractive to smaller investors or else wait (often several years) to grow into a valuation large enough to attract institutional investors. Fractional ownership allows investments of $100 and $100m to sit next to each other on the cap table, making it more difficult for an asset to fall into the Orphan Zone.
  • Increased Liquidity
    • Liquidity is one of the most important characteristics of well-functioning markets. Simply put, liquidity is the willingness of prospective buyers to purchase an asset, and the willingness of prospective sellers to sell an asset. Liquid markets provide traders the ability to trade large size quickly, with minimal transaction costs, when they deem it prudent to do so, whereas illiquid markets make it difficult to build exposure or exit positions in an efficient manner. Liquidity is the object of a bilateral search in which buyers look for sellers, and sellers look for buyers. When a buyer finds a seller who will trade at mutually acceptable terms, the buyer has found liquidity. Likewise, when a seller finds a buyer who will trade at mutually acceptable terms, the seller has found liquidity. This interplay between supply (sellers) and demand (buyers) is referred to as “price discovery,” and is ultimately responsible for setting the spot price for an asset. As referenced in the Mona Lisa example from Section 2.1, fractionalization can facilitate more favorable liquidity on behalf of buyers and sellers, thus allowing them to transact in a frictionless manner. To be clear, it is not the tokenization process itself that deepens liquidity pools, but the increase in potential buyers and sellers enabled by the fractional ownership feature of tokenization that deepens liquidity pools. Because investors of illiquid assets take on the risk of not finding a buyer when they want to sell, they must be incentivized with a discounted price, known as the “Illiquidity Discount.” This discount applies to all illiquid assets and is estimated to be as high as 20-30% of the assets’ true price. Through the process of tokenization, markets for previously illiquid asset classes can be optimized, and value currently trapped in the illiquidity discount can be unlocked.
  • Peer-to-Peer Transfer
    • At the core of the blockchain ethos is the principle of disintermediated transfers of asset ownership. The STP-Standard upholds this as a core tenet, enabling direct, peer-to-peer token transfers with no third party involvement. The onchain Compliance Validator confirms that these transfers are executed in accordance with the pre-programmed rules of the issuer and/or regulator. In this way, the STP-Standard ensures parties are able to directly transact with each other while ensuring compliance is upheld at the token level. This feature is not possible in the traditional financial world, and is a core feature of the STP-Standard.
  • Automated Compliance
    • Traditional securities compliance as it exists today is a highly manual process of confirming KYC/AML/Accreditation status with legal guidance only in the jurisdiction of issuance, and does little to prevent non-compliant trades, often leading to expensive arbitration occurring years thereafter. However, the level of transparency provided by tokenization enables brand new features such as real-time capitalization tables benefitting issuers, auditors, and compliance teams. Tokenized asset compliance confirms legal compliance at all times, provides clear legal guidance for all jurisdictions included in the protocol and includes the preventative rejection of non-compliant trades via the token’s code. This represents a fundamental shift from reactive to proactive compliance which was not possible before regulated STP token offerings.
  • New Financial Product Possibilities
    • The tokenization of assets also enables the creation of brand new financial products. For example, using the STP-Standard to tokenize a valuable wine collection would enable the owner to use that STP-Standard token as collateral for an onchain loan. This example use case further unlocks value trapped in historically valuable assets and allows it to be put to work in other ways. Additional digitally-native financial products are being explored and launched as this space matures.

Token Allocation

"IEO Sale","Private Sale","Community","Block72 Company","STP Ecosystem","STP Team","Validation Reward" {"name": "IEO Sale","value": 5},{"name": "Private Sale","value": 30},{"name": "Community","value": 5},{"name": "Block72 Company","value": 15},{"name": "STP Ecosystem","value": 15},{"name": "STP Team","value": 5},{"name": "Validation Reward","value": 25}

Token Release Schedule

"May 2019", "Jun 2019", "Jul 2019", "Aug 2019", "Sep 2019", "Oct 2019", "Nov 2019", "Dec 2019", "Jan 2020", "Feb 2020", "Mar 2020", "Apr 2020", "May 2020", "Jun 2020", "Jul 2020", "Aug 2020", "Sep 2020", "Oct 2020", "Nov 2020", "Dec 2020", "Jan 2021", "Feb 2021", "Mar 2021", "Apr 2021", "May 2021", "Jun 2021", "Jul 2021", "Aug 2021", "Sep 2021", "Oct 2021", "Nov 2021", "Dec 2021", "Jan 2022", "Feb 2022", "Mar 2022", "Apr 2022", "May 2022" {"name": "IEO Sale", "icon": "roundRect"},{"name": "Private Sale", "icon": "roundRect"},{"name": "Community", "icon": "roundRect"},{"name": "Block72 Company", "icon": "roundRect"},{"name": "STP Ecosystem", "icon": "roundRect"},{"name": "STP Team", "icon": "roundRect"} {"data": [5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00],"name": "IEO Sale", "symbol": "circle", "type": "line", "stack": "Save", "areaStyle": {}},{"data": [15.00, 16.25, 17.50, 18.75, 20.00, 21.25, 22.50, 23.75, 25.00, 26.25, 27.50, 28.75, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00, 30.00],"name": "Private Sale", "symbol": "circle", "type": "line", "stack": "Save", "areaStyle": {}},{"data": [0.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00, 5.00],"name": "Community", "symbol": "circle", "type": "line", "stack": "Save", "areaStyle": {}},{"data": [0.00, 0.00, 0.00, 0.44, 0.44, 0.44, 1.76, 1.76, 1.76, 3.08, 3.08, 3.08, 4.40, 4.40, 4.40, 5.75, 5.75, 5.75, 7.04, 7.04, 7.04, 8.36, 8.36, 8.36, 9.68, 9.68, 9.68, 11.00, 11.00, 11.00, 12.32, 12.32, 12.32, 13.64, 13.64, 13.64, 15.00],"name": "Block72 Company", "symbol": "circle", "type": "line", "stack": "Save", "areaStyle": {}},{"data": [0.00, 0.00, 0.00, 0.44, 0.44, 0.44, 1.76, 1.76, 1.76, 3.08, 3.08, 3.08, 4.40, 4.40, 4.40, 5.75, 5.75, 5.75, 7.04, 7.04, 7.04, 8.36, 8.36, 8.36, 9.68, 9.68, 9.68, 11.00, 11.00, 11.00, 12.32, 12.32, 12.32, 13.64, 13.64, 13.64, 15.00],"name": "STP Ecosystem", "symbol": "circle", "type": "line", "stack": "Save", "areaStyle": {}},{"data": [0.00, 0.00, 0.00, 0.15, 0.15, 0.15, 0.60, 0.60, 0.60, 1.05, 1.05, 1.05, 1.50, 1.50, 1.50, 1.95, 1.95, 1.95, 2.40, 2.40, 2.40, 2.85, 2.85, 2.85, 3.30, 3.30, 3.30, 3.75, 3.75, 3.75, 4.20, 4.20, 4.20, 4.65, 4.65, 4.65, 5.00],"name": "STP Team", "symbol": "circle", "type": "line", "stack": "Save", "areaStyle": {}}

Token Allocation & Release Note

  • Private Sale: 30% of total supply
  • IEO: 5% of total supply
  • Validation Reward: 25% of total supply
  • Block72 Company: 15% of total supply
  • STP Ecosystem: 15% of total supply
  • STP Team: 5% of total supply
  • Community: 5% of total supply
  • Private Sale: 50% to be released before listing. The remaining 50% will determined by an unlocking rate based on a mixed index of (Market Parameters, STP Ecosystem development, Listing schedule), but no longer than one year. The calculation method of the unlocking rate will be determined pre-listing.
  • Comunity: 100% will unlock right away, but it will be locked into a wallet address. Everyone can see it transactions. Since they may airdrop bounty right away to award community.
  • Block72 Company: quarterly vesting in 3 years.
  • STP Ecosystem: quarterly vesting in 3 years.
  • STP Team: quarterly vesting in 3 years.
  • Validation reward is depends on DPOS, it won't be released until they have DPOS ready.

Token Utility & Use Cases

Standard Tokenization Protocol’s platform token (STP) will be the first asset to be tokenized using the Standard Tokenization Protocol Standard. It will not only provide the first example of an asset tokenized onchain using the STP-Standard, but it will serve as an incentive structure that aligns all participants and strengthens the overall network. The token will be necessary for the proper functioning of the network and have the following utility:

  • Issuance Fee
    • Issuers can use Standard Tokenization Protocol to fractionalize legal ownership of their assets or features of their assets including provisioned resources, profits, etc. by creating STP-Standard tokens corresponding to a certain percentage of ownership. These tokens built on top of the Standard Tokenization Protocol STP-Standard will conform to the global regulatory framework embedded in the Compliance Validator, thus removing the burden of compliance from the issuer. For this tokenization process to occur, issuers will pay an initial issuance fee to the Standard Tokenization Protocol, denominated in STP, to initiate the tokenization of their asset. Any issuer-specific requirements, parameters, and rules around token transfers will be implemented by Standard Tokenization Protocol into the Compliance Validator as part of the initial issuance fee.
  • Compliance Validator Gas
    • In order for the Compliance Validator to execute verification that both sides of a transaction (sender and receiver) comply with all necessary jurisdictional and issuer-specific requirements, a certain amount of Gas is needed. Gas is a small amount of an STP token that is used by the smart contract to incentivize validators to prove that a transaction meets the CV requirements. To enable this, senders of any STP-Standard token will need to use some amount of STP tokens as Gas to power the Compliance Validator when a transaction occurs. This Gas is then pooled and paid out to stakers and Regulatory Committee members as a reward for honest network behavior.
  • Staking
    • In addition to the prior two use cases of the STP token, the network also enables a Proof of Stake mechanism that allows token holders to stake and earn STP. Specifically, token holders stake an amount of STP proportional to their confidence that all Compliance Validator requirements are met, and they either earn Compliance Validator Gas tokens in return as a reward for honest behavior or else lose their stake to reward honest stakers.
  • Governance
    • Token holders who desire to stake their STP tokens will do so by delegating their stake to a token-elected Validator Committee. The validators who comprise this Committee will earn STP for submitting publicly auditable proof that the Compliance Validator matches the laws of their jurisdiction or is otherwise functioning properly. Given the rational behavior of STP token holders, they will seek to delegate their stake to credible advisors, partners, and authorities of their market segment or jurisdiction such as securities lawyers, regulators, and legislators in order to protect their stake. The Validator Committee STP rewards should incentivize these groups to participate in a meaningful way and become integral participants of the Standard Tokenization Protocol network.

Roadmap & Updates

  • November 2018
    • Standard Tokenization Protocol Founded
      • The concept for a tokenization standard is created when the founders draft an initial idea of token-level compliance aimed at solving the problems of current fundraising options as they exist today
  • April 2019
    • Whitepaper Release
      • Version 1.0.0 release of the STP whitepaper, using feedback from key industry players to finalize the concept and lay out the high-level roadmap for the network.
  • April 2019
    • STP Private Sale
      • During the Private Sale of STP tokens, 30% of the tokens will be sold, allowing early investors to help bootstrap the network for the next phase of development and engage as network participants.
  • May 2019
    • STP Launch Pad Offering
      • The Public Sale of STP tokens is planned for 2Q 2019 on a Launch Pad offering. After token distribution, we will hold the first token-holder election for the STP Validator Committee.
  • September 2019
    • Inaugural Issuance
      • This will mark the first token issuance built using the STP-Standard as well as the beginning of a new global phase of asset tokenization and token-level compliant fundraising. Standard Tokenization Protocol will look to help any issuer who wishes to tokenize their asset and distribute to the public in a compliant manner.
  • February 2020
    • Data Service Provider Partnerships
      • Build partnerships with global and regional service providers, including legal teams, token advisors, developer communities, regulatory bodies, data analytics platforms, and other groups which may assist in helping issuers meet their needs.
  • Q1 2021 (est.)
    • White Label Offering
      • Depending on future market conditions, Standard Tokenization Protocol may work with other exchanges, entities, and token issuing teams to offer all or some services under a whitelabel service. This may be targeted at enterprise and governmental bodies for large scale tokenization projects.
  • Q2 2021 (est.)
    • New Financial Products Issuance
      • The Standard Tokenization Protocol team is actively exploring the possibility and potential benefits of issuing new decentralized financial products on its platform. These are assets that are currently being developed and have the potential to be widespread by this time.

Team Members

  • Mike Chen - Co-founder
    • Two years blockchain investing and advisory experience at GBIC
    • Two years management consulting experience at Ernst & Young, NY office
    • Education: BS at Columbia University
    • Fluent in Chinese and English
  • Sinhae - Co-founder
    • Four years management consulting experience at McKinsey & Company
    • FinTech startup experience at Coin, Inc. and NerdWallet in Silicon Valley
    • Education: MBA at Stanford University, BA at Korea University
    • Fluent in Korean, Chinese, and English
  • Richard Lee - Co-founder
    • Two years blockchain investing and advisory experience at GBIC
    • Two years Private Equity experience at Infinity Group, NY office
    • Education: BA at Columbia University
    • Fluent in English and Chinese
  • George Cao - Advisor - CEO of Bitmax.io, portfolio manager 2 years+ in Barclays Investment Bank. He's the only Chinese member of the Upper 90 Investment Club. The upper 90 is an investment club and fund of 30 elites from all over the world, including global real estate, consumer, financial, and legal elites. He's also one of the 12 directors of TCFA, the largest Chinese financial organization in the United States.

Partnership Overview

  • FBG Capital is a crypto hedge fund and venture capital firm based in Beijing, China. They invest exclusively in digital assets via venture investments or ICO.

  • GBIC (Global Blockchain Innovative Capital) is a global hub for blockchain technology that furthers the development, acceleration and launch of blockchain projects. Our value comprises of three core fundamentals: Strategic Investment, Global Community Building, and Best in Class Partners.

  • BitMax.io is a global operator of innovative digital asset trading platform with a broad range of products and services for global retail and institutional clients. With its relentless focus on transparency, reliability, and quality of execution and client services, BitMax.io has established itself as a clear leader in the crypto-trading and exchange space.

  • NEO GLOBAL CAPITAL Founded in December 2017, NEO Global Capital (NGC) strives to become one of the best investment platforms in the blockchain industry by professionally adopting best practices from traditional investments; selectively partnering with leading investment professionals and technical developers in the world; while strategically leveraging and amplifying the NEO ecosystem to create lasting competitive advantages. NGC is one of the largest institutional investor of blockchain technologies and has been a key contributor to a number of leading projects including Zilliqa, Ontology, NKN, Oasis, Mainframe, Certik, Bluzelle, and Iotex.

  • AlphaCoin Fund is a Singapore-based fund focused on blockchain startups and crypo-asset investments. Leveraging its global presence and resources in blockchain industry, its mission is to provide venture capital, marketing and post-financing services to support sound blockchain startups around the world. Starting May 2018, AlphaCoin Fund has also become one of the super voting nodes for Huobi.pro, one of the top 10 crypto Exchanges in the world. Huobi supernodes consist of prestigious crypto investments organizations and have become critical for Huobi to select high quality crytos to get listed on Huobi.pro.

  • Alphabit Fund is a crypto-asset advisory company who specialize in: Actively trading cryptocurrency markets. Early stage investment into blockchain based start-ups. Token sale advisory services. Founded in early 2017, Alphabit Fund is composed of professionals with backgrounds in financial services and the digital asset ecosystem. Their aim is to help our clients navigate the world of digital assets.

Additional Competitors

  • Harbor is reengineering private securities with blockchain technology to help usher in a new wave of tokenized securities backed by real-world assets, such as real estate, company equity, investment funds, and fine art. The Harbor platform, powered by its compliance protocol, is the first to ensure tokenized securities comply with existing securities laws on every trade, everywhere across the globe. Harbor has raised more than $40 million and is backed by leading investors, including Founders Fund, Andreessen Horowitz, Craft Ventures, Vy Capital, Fifth Wall, Valor Equity Partners, and Pantera Capital.

  • Polymath Network is a blockchain-based system to coordinate and incentivize participants to collaborate and launch financial products on the blockchain. The Polymath team aims to create a standard token protocol which embeds defined requirements into the tokens themselves to ease the primary issuance and secondary trading of blockchain securities tokens.

  • Binance is a blockchain ecosystem comprised of Exchange, Labs, Launchpad, Info, Academy, Trust Wallet, and Blockchain Charity Foundation (BCF). Binance Exchange is one of the fastest and most popular cryptocurrency exchange platforms in the world, capable of processing over 1.4 million orders per second. The platform focuses on security, robustness, and execution speed - attracting enthusiasts and professional traders alike. The Binance exchange provides access to hundreds of digital currency pairs, while maintaining security, liquidity and high-speed. The platform offers some of the lowest trading costs in the industry at 0.1% or even less through the use of Binance Coin. The exchange strives to give its users access to some of the latest blockchain/DLT technologies with new cryptocurrencies being listed all the time. The team consists of digital currency enthusiasts having more than 20 years of combined finance, security, and development experience with top exchange platforms at companies, including Tokyo Stock Exchange, Morgan Stanley, Accenture, and other Top 100 companies all over the world.

Social Media Links

Twitter Updates

  • 🔊Our CEO @STP_Networks @MHCGBIC had live AMAs with top Vietnam blockchain communities.🧨🧨🧨🧨 For those who missed the… https://t.co/XYHAPQUmae
  • Chromia CEO, @teamchromia @hankhero will join a live AMA with @STP_Networks CEO Mike Chen @MHCGBIC at 10:00 am EDT… https://t.co/yWzM4JwWhj
  • 🔊Our CEO @STP_Networks @MHCGBIC had a live AMA with Mandys ICO Research Group @mandyb675!! For those who missed the… https://t.co/8qnbF9Een1
  • Our CEO @STP_Networks @MHCGBIC had a live AMA with Reserve CEO @nnevvinn!! For those who missed the AMA from… https://t.co/hF5N935MzT
  • 🔊Less than 1 day!! Don't forget @STP_Networks CEO Mike Chen @MHCGBIC will have a live AMA with VBC Group at 9:30am… https://t.co/V98KiyBeUp
  • 🔊Less than 1 day!! Don't forget @STP_Networks CEO Mike Chen @MHCGBIC will have a live AMA with Mandys ICO Research… https://t.co/FcpAoTiIWV
  • Reserve Co-Founder& CEO @nnevvinn will join a live AMA with @STP_Networks CEO Mike Chen @MHCGBIC at 10:30 am EDT o… https://t.co/xllr9IlRnH
  • Mandys ICO Research Group @mandyb675 will host a live AMA with @STP_Networks CEO Mike Chen @MHCGBIC at 8:30 am EDT… https://t.co/XfMZdpGghw
  • VBC, leading Vietnam Blockchain community, will host a live AMA with @STP_Networks CEO Mike Chen @MHCGBIC at 9:30… https://t.co/nMbsU93Euz
  • Notice!!🔊 Only 11 days left for #stpnetwork Early Supporter Incentive Project. https://t.co/LVgXLakFcn

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