Good evening envion,
Firstly, congratulations for your hard work and accomplishments so far; this is certainly an interesting idea with potentially great returns for investors, and also very positive environmental benefits.
Congratulations also for your patience when dealing with the less polite/sane questions on this forum.
I have read your white paper but have some more questions I hope you can address.
1) Can you confirm you have only created and tested a single MMU so far, and this contains far fewer processors than your intended final product? Does this mean that your next few MMUs will basically still be prototypes? What design challenges and required alterations do you envisage when tested at full capacity, which will obviously require far greater cooling? Can you say how long testing will take before you are happy to deploy full MMUs in the field?
Right now there is the prototype and a second that is being installed and ready in a few days. Yes the prototype is fewer stocked than the final working MMU. After ICO production will start.
It depends on the regions where the MMUs will be deployed. Envion has 3 different configurations. The Medium Density Implementation is well suited for regions with high ambient air temperatures.
So for colder areas a fully stocked MMU running at full capacity won't be a problem.
2) Will your published team members be working solely on this project full time, or will they work on other projects at the same time? Do they have ownership of or executive positions within companies that will be working with envion? Can you please tell me how much of the company is owned by the published team, and how many other people are involved and how much of the company they own? Are there other founders whose identities are not being published? If so, why is this?
I can't answer this.
3) I am having trouble finding references or reputable financial commentators giving opinions on your project. I realise this may be because it is a newly formed (or newly-revealed) company. Do you happen to have links to reviews or opinion pieces from independent sources? Any particular write-ups you are pleased with, or reviews you are not happy about?
There isn't much. But that is the same with many other ICOs that even do not have a working product. Here is a reply from an admin in the support chat:
It's normal for a company to work in stealth until they are ready with their product. We are no different. A lot of companies also incorporate new entities in their ICO jurisdiction when they decide they will use an ICO to fund their project.
We couln't possibly have developed our IP, written our whitepaper, gotten laywers, secured deals, etc. in in one month.
As for what our innovation is, there are many: from using Industry 4.0 controls, to the mining software that dynamically chooses coin, algo, etc. from real-time market data, to the patent-pending cooling system.
If it were just throwing some ASICs in a box we wouldn't have one of the world's premier research institutions working with us, the Frauenhofer Institute (they invented MP3s too!).
http://www.nasdaq.com/press-release/envion-ag-envion-and-fraunhofer-to-start-research-cooperation-20171109-002994) There is little detail available regarding the financial structure of deployed MMUs. Am I right in saying you will be leasing the MMUs to third party companies, who will be paying your company 35% of the MMU's profits? Can you explain why you would give away 65% of the spoils of your units rather than own them 100%? Would the lease income be included in the profits calculated for token holders?
The envion business model for mining has two components:
1 Proprietary Operations (PO) where envion invests in, owns and operates the MMUs. Token holders are the 100% beneficiary of the earnings of proprietary operations.
2 Third-Party Operations (TPO) where an independent company, such as a utility or an investment fund, acquires the MMUs while envion operates them. For this operation, envion will be rewarded with a share of the mining revenues. 35% of the earnings of this business model will be distributed to token holders.
Earnings in Proprietary Operations are comprised of the total rewards minus operation costs: such as, but not limited to, costs for electricity, rent/land lease for containers, hardware replacements to ensure the continuity of envion’s mining operation (stabilize the MMU’s performance and counter e.g. difficulty increases or other efficiency losses directly connected to the mining process), depreciation and a handling fee for the company’s overhead). The calculation of earnings in Third-Party Operations depends on the agreement with the third party, but will exclude depreciation.
100% of PO and 35% of TPO will make up the fund that is ready for distribution to token holders. But that’s not enough in our eyes. In order to accelerate earnings growth, we have decided to invest one quarter of the annual earnings fund to build new MMUs and lay the foundation for more earnings - and for exponential growth.
Three quarters of the earnings will be distributed immediately - and that means on a weekly
basis.
5) When will the first monthly dividends be paid out?
First payments expected by end of January. Payouts are on a weekly basis.
6) The dividends paid to token holders: how will this be calculated? A hypothetical example: on month 1, ETH is worth US$300 and envion pays me 1 ETH for my token holding. In month 2, ETH is worth $150. Will my dividend be 1 ETH or 2 ETH?
I have more questions but will leave it there for now.
Thanks in advance for your help.
Kind regards,
KaiBosh
The token is mined so the amount won't change if the hashrate is the same. Thus, the payout remains the same. The MMUs are capable to mine over 600 cryptocurrencies. A switch to a more profitable coin isn't a problem to meet a high profitability.
