Disclaimer: The advice below is for general information only and should not be taken as constituting professional or financial advice. Power Ledger Pty Ltd makes no warranties about the accuracy or completeness of any information provided. The nature and details of any potential products discussed are subject to change without notice. Nothing in the text below constitutes or is intended to constitute an offer of, or an invitation to purchase any product or item. Power Ledger Pty Ltd and its officers, agents, and employees do not accept any liability for any investment decisions made on the basis of information provided, or any damages or losses whatsoever arising out of its use. You should seek independent legal, financial, taxation or other advice before making investment decisions, and review the Product Disclosure Statement which will be issued in respect of the Asset Germination Event product.

 

Co-founder and Chairman Foreword by Dr. Jemma Green

Last weekend, our company earned the endorsement of Sir Richard Branson after we won his Extreme Tech Challenge. The reason he gave for his choice?

Sir Richard was at the Paris Climate talks and was one of those present at the pledge for carbon neutrality by 2050 . He saw Power Ledger as instrumental in delivering that pledge. So I’m very proud Power Ledger is such a part of the future as he sees it.

 

And to the extent that POWR Tokens are the major part of our toolkit to address the carbon issue, it goes without saying that the tokens have a very important task to perform. But their significance goes beyond their current utility.

I want to let you into a secret ambition of mine which we’ve never formally voiced before. Just as the US dollar is the denomination of the oil industry, we see the potential for the POWR token to become the denomination for the photovoltaic and renewable energy industry. Dr Bill Tai, speaks about this phenomenon in a podcast episode with Laura Shin.

 

So it should be clear that for us POWR is a priority.

It’s with this in mind I want to share with you our more immediate plans for POWR tokens, as it’s the token holders who put their money and confidence in us from the beginning of our journey.

We are developing what we call AGEs, events that will help to deliver the scale of investment we and Sir Richard want to see.

 

We want to share with you our thoughts and ideas in the knowledge that the community has and always will be our greatest resource.

Best regards, Jemma Green,

Power Ledger’s Co-founder and Chairman

With that said, here’s what the Asset Germination Events may look like for POWR token holders on both sides of the fence, those that don’t want to participate in AGEs and those that do.

I’m a POWR token holder, but don’t want to participate in AGE. What does this mean for me?

There is no obligation to participate in an AGE. We see non-participants benefiting from the proposed AGE model. Here’s how.

POWR holder benefit because AGE intends to remove POWR tokens from circulating supply

Every time an asset is added to the AGE portfolio, our intention is to use management fees to remove POWR from circulating supply. The way we intend to do this is with what we’re calling the POWR Buyback and Burn Program.

Traditionally, there are fees associated with administering a portfolio of assets. We plan to use these fees, which may account for a small percentage of the total asset profits, to fund the POWR Buyback and Burn Program.

The hope is that over time, the program will create a steady upward pressure on the POWR token demand by reducing circulating token supply. Additionally, pending legal advice, Power Ledger may implement further measures to reduce total token supply.

POWR holders benefit because AGE aims to create customers for Power Ledger’s other products

The aim for AGE is to fund new, large-scale renewable energy assets that go on to become customers of the applications that Power Ledger develops. In this model, each asset will be required to purchase POWR and escrow it in the same way that Application Hosts do currently.

I’m a POWR token holder and want to participate in AGE. What does this mean for me?

POWR holders benefit because we intend for POWR tokens to provide a discount during AGEs.

The aim is to provide a meaningful discount to POWR token holders on the AGE market price. A portion of the funds raised during Token Generation Event (TGE) will be used to fund this discount. At this point, we are not able to share the exact size of the discount as it will be detailed in the Product Disclosure Statement.

POWR holders benefit because we intend for POWR tokens to act as a priority access mechanism for AGEs.

The aim is to prioritize long-term POWR token holders who wish to participate in AGE. We intend to do this by assessing how long the token holder has held the POWR tokens for. For example, if we can see that the holder held POWR tokens since TGE in the same wallet, that person will be given priority.

POWR holders benefit because they can use AGE to escape crypto volatility and earn income distributions.

The underlying value of the AGE token is not tied to blockchain utilization, as is the case with Ethereum, or the utilization of the platform, as is the case with most ERC20 tokens. The value of the AGE token is related to the value of distributions generated by a renewable energy asset. It’s a legal fraction of an economic benefit, the token nature of AGE is secondary.

We believe in the future it will be a requirement for most financial products to be tokenized due to the additional benefits to investors, such as liquidity and the record-keeping accuracy of the blockchain. Accuracy is important and this point is clear when you look at recent issues with share registries; these situations have shown how vulnerable ordinary investors are to the back office foibles of legacy registry systems.

In Conclusion

After careful consideration, we landed on this particular AGE/POWR model because it optimizes for:

· Fastest possible deployment of renewables.

· A highly defensible product in many regulatory environments.

· Protection of the POWR token, and by extension POWR token holders.

· Recognition of the contribution our early supporters have shown us.

We want to thank our community for your valuable feedback and engagement with us regarding the initial AGE announcement. We’ll be hosting a Q&A session live on the Power Ledger Facebook page at 2pm AWST today (Friday, 26th October). If you can’t make the Q&A session live, please ask your questions in our Telegram channel and we will cover as many of them as possible.

Additionally, if you have any ideas or suggestions for future content regarding AGEs, please let us know! Your questions and feedback are valuable to us as we move further towards our goal of democratizing power.

Please remember that statements made in relation to financial products (even when the details have not been finalized) are subject to a far higher degree of scrutiny and accountability than commonly seen in the crypto space. In relation to AGE we intend and have an obligation to, uphold these higher standards. We think this is an important step in the maturation of the industry, and are grateful for your understanding on this.

We will be launching our first Asset Germination Event in 2019 and look forward to have you join us.