Fluzcoin: The Intelligent Retail Currency
True digital retail currency, ready for mass adoption
Stefan is the Co-Founder of Fluz Fluz, the global cash back network. Formerly Stefan was CEO for Latin America at Cdiscount, part of Cnova Group and sixth largest e-commerce company in the world. Stefan has also co-founded Farmalisto, Latin America´s fastest growing online pure player pharmacy operating in Colombia and Mexico’s.
Additionally, Stefan was the Co-Founder and former Managing Director of Dafiti LATAM, the Rocket Internet backed fashion e-commerce leader.
He also was the General Manager for global BPO provider Arvato Bertelsmann in Colombia. His academic background is MBA from WHU-Otto Beisheim School of Management, Germany.
Corporate Development Director
David has a track record of developing and scaling businesses from startup through IPO in Silicon Valley, Wall Street and Israel.
David’s experience spans the technology, finance, energy and healthcare industries. Previously, David served as Managing Director at Blackrock as well as a founder of Quickenloans at Intuit.
Prior to turning to business, David practised corporate and international law with Chadbourne & Parke and Weil, Gotshal & Manges.
David currently sits on the boards of Dunn Meadow, Arava Power, Security Matters, LibertyTrax, American Technion Society, and serves as a sector lead for HBS Alumni Angels New York. David holds an MBA with distinction from Harvard Business School, a JD from Northwestern University Law School, and a BS with honours from Pennsylvania State University.
IT Director | Scandiweb CEO
Antons grew a company of two people to a hundred times that size and an industry leader serving the very top retail companies. He brings highly adaptive and growth-oriented business management strategies into Fluzcoin.
Antons is responsible for Blockchain Technology in Fluzcoin, where it benefits from Antons’ experience in setting up workflows for enterprise-grade delivery to Walmart, Jaguar, Land Rover, The New York Times, Peugeot and many other brands and startups since 2003.
Antons comes from a technology background. His father made the first-ever dial-up connection in his country in 1986. Antons learned to code at 14 and won top places in Math Olympiads on the national level. He earned a Bachelor degree in Business Administration at Stockholm School of Economics in Riga, a top-20 business school and started Master of Science at the IT University of Copenhagen.
A strong passion for technology and the ever-expanding world of information design has driven Glebs to commit his professional career to this rewarding field. He has worked on many successful blockchain projects such as Publica and Fluz Fluz as well as leading the largest eCommerce development team in Europe and US, who completed over 350 multi-channel commerce projects for clients in 32 different countries.
Glebs is responsible for Fluzcoin Marketing Strategy, bringing his experience of being a founder of Marketing and Analytics department in Scandiweb, who is behind success of many multi-million enterprises such as Lancome, Lafayette 148 NY, Thomson Reuters and bootstrapping startups. Backed up by Master’s Degree in IT, he enjoys bringing his creative spin on the technical elements an IT solution needs to function, striving to create a unique and efficient user experience.
Throughout the years Uldis has gained an international experience around the world - London, Dubai, Chicago, Bangkok to name a few, having a background in web & software development, customer relations, and management having served in leading roles in the technology and hospitality industries.
Holds a wide spectrum of expertise from hospitality and retail management to IT architecture furthermore 24/7 PMS & POS system project execution and support. Also, led a team introducing the EUR currency to one of the European Union states in the hotel and retail chain industry. Besides that, shifted to a Certified Scrum Master and Product Owner successfully leading projects in online retailing for brands such as Jaguar, Land Rover, and Hyundai.
Uldis currently holds the position one of the Executive Partners at Scandiweb, performing daily operations, company management, and project delivery success.
Due to an early interest in digital currencies, in 2017 Uldis moved to Chicago to gain a more in-depth knowledge in blockchain-enabled technologies and take part in events, conferences held by the Chicago Blockchain Center and local community gatherings in the US.
Raghavendra is software engineer and AI expert at Youtube (Google) in California. Currently working in the Viewer data team at Youtube where he is responsible to produce and maintain large datasets that help provide insights that can drive business decisions at Youtube.
He holds an Master of Science in Software Engineering with focus on Robotics and Autonomous Systems at University of Austin, Texas and has been a member of MIT Humans and Automation Labs.
Florian is an active trader with decades long experience, starting at Deutsche Bank for interest rate / USD swaps trading as well as Tibra options and high frequency futures trading.
For many years and through own algorithm development he has been a successful trader in own positions a Founder and Managing Director of Xanadu Trading focused on market making of EMini Index options on CME mainly and has been cryptocurrency early adopter.He holds an Master Degree of Business Administration & Economics from WHU - Otto Beisheim School of Management.
Ruchika is the CEO of Sku IQ, San Francisco based company focused on Omni-channel SaaS, enabling SMB retailers to offer frictionless, multi-channel experiences by integrating POS and eCommerce in real time.
Ruchika has ample experience in raising standards for consumer experiences globally. She has been Director of Merchant Strategy and Paypal Commerce Growth from 2016 to 2018. Prior to that she worked as Growth Manager for Consumer Brands at Accenture and has proven experience crafting and executing growth strategies, expanding brand, digital footprint and sales both locally and internationally, and building and managing operations and product teams
Mario has more than 2 decades of experience in the European and Latin Telco world with responsibilities ranging from direct sales, outsourced sales, channel recruitment and business planning as well as go-to-market strategies.
His areas of experience are: Payment Integrations, Mobile Telecom, business software, communications and clean technology.
Karthik Iyer is the India Ambassador of the P2P-Foundation (the worlds largest think tank on decentralization and peer to peer), and founder and CEO of BlockchainMonk, a DLT research and consulting firm.
He is part of one of the largest EU research project on P2P, P2PValue.eu. He holds close to half dozen degrees in technology, research and management from leading schools in Europe and Asia like KTH in Sweden, BI- Norwegian Business School in Norway and Fudan University in China.
He has over a decade of experience working for large technology firms such as Red Hat, Novell and Sun Microsystems and has successfully ran various hi-tech ventures in the past.
- Crowdsale (66%)
- Bonus Coins for ICO participants (12%)
- ICO Bounty Marketing + Post-ICO Merchant Incentive Coins and Consumer Airdrops (9%)
- Team and Advisor Coins (4%)
- Fluz Fluz Network Rewards Coins Drawing Right (3%)
- Fluz Coin Ltd (6%)
- marketing (50%)
- IT development and monitoring (10%)
- Legal & Compliance (3%)
- Admin overhead (7%)
- Fluzcoin Reserve (30%)
Cost of the token1 token for 0.1 $
Price without discounts
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Distribution & Lock up of tokens, Discounts for early buyers
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How do you avoid extreme coin price fluctuation in your model?
Extreme coin price fluctuations - what we call “excess volatility” - are a major blocker to the mass adoption of cryptocurrencies. Fluzcoin disables the mechanism behind this excess volatility (fluctuating demand at very stable supply) by making supply grow more in tandem with demand. This is achieved by the Fluz Algorithm steering the issuance of new Fluzcoin and of drawing rights to the holders of Fluzcoin. In times of lower demand, the Fluz Algorithm would slow or halt the issuance and buy back and retire Fluzcoin in the open market. These open market operations are undertaken by drawing funds from the Fluzcoin Reserve which itself is built on parts of the ICO proceeds and is filled continuously with the proceeds from sales of new Fluzcoin when drawing rights are exercised by holders of Fluzcoin. See also the question on the Reserve below for more details.
What differentiates Fluzcoin from a stable coin?
So-called stablecoins are vehicles that are pegged to the value of a fiat currency (typically the USD). They are thus the electronic equivalent of currency board based firat currencies such as the Panamanian Balboa. In so doing stablecoins replicate all the benefits and also all the ills of fiat currencies.Fluzcoin is different, its AI and rules based algorithmic steering keeps prices expressed in Fluzcoin on a stable path thereby enabling Fluzcoin to be broadly used in everyday retail transactions. The exchange rate with fiat currencies such as the USD will therefore fluctuate depending on the monetary policy of the Fed and the USD inflation rate differential to Fluzcoin. With inflation rates currently low in the US, however, we expect these fluctuations to be very low.
See also the section on the competition where we explain in detail why a non-pegged currency is superior to a stablecoin.
What does appreciation path mean?
Currencies typically fall into one of two buckets: either the supply is basically fixed and therefore holders of the currency have appreciation gains by holding the currency (this is case for instance with gold and BTC) or their supply is flexible and in the hands of a central banking authority which can make profits by issue new currency while the holders lose value over time due to inflation.
Fluzcoin combines the best of both worlds by setting up a central banking authority in the form of the Fluz Foundation and steered by the Fluz Algorithm which can ensure a low volatility price development of retail prices in Fluzcoin and sharing out the proceeds that the central bank equivalent generates to the holders of Fluzcoin. Fluzcoin thus provides both the stable price development of a flexible supply currency and the appreciation path forholders of a fixed supply currency: the appreciation accrues in the form of more
Fluzcoin coins as opposed to higher price of the coins. This we call the appreciation path. More detail can be found in the dedicated section.
What is the inflation rate of Fluzcoin?
First and foremost we have to note that there is basically no inflation rate for holders of Fluzcoin because price increases are largely matched by new Fluzcoin coins being issued for free to the holder of Fluzcoin by the AI and rules based algorithmic steering.
Inflation happens in a controlled manner to prices of goods and services expressed in Fluzcoin. This is one of the major learnings of monetary economics in twentieth century: deflation is a tricky thing for a society to adapt to. Stable prices or slightly increasing prices on the other hand are healthy. The Fluz Algorithms is therefore going to steer towards 0% or just above 0% inflation following a modified Laspeyres index.
What level of price volatility do you expect Fluzcoin to have?
The steering mechanisms of Fluzcoin and the Fluz Algorithm work dramatically lower the volatility of prices expressed in Fluzcoin compared to other cryptocurrencies. As demand grows the supply is expanded and handed over to the holders of Fluzcoin which thus stabilise market prices; in times of depressed demand, the steering automatically enters into open market operations thus taking Fluzcoins out of circulation.
While an exact quantitative prediction is difficult we can say with confidence that the level of price volatility will be much lower and that this also translates into a low volatility regime in the exchange price between Fluzcoin and fiat currencies of the geographical areas that the retail transactions take place in, given the US centric go-to-market approach therefore a low volatility in the exchange rate to USD.
Why should anyone hold Fluzcoin?
In contrast to fiat money like the USD whose purchasing power erodes over time due to inflation, Fluzcoin offers its holders an appreciation path. Economically speaking, holders of Fluzcoin participate in the seigniorage profits generated with the issuance of new Fluzcoin as the demand for the retail coin grows. See also the above question on the appreciation path.
How do you ensure liquidity of Fluzcoin?
Fluzcoin is liquid because the Fluz Foundation steered by the rules and AI based Fluz Algorithm is effectively a market maker. In times of excess demand it creates new coins and distributes these to the Fluzcoin holders for them add to the supply while in times of excess demand it takes coins out of circulation by buying them in open market transactions with funds out of the Fluzcoin Reserve.
The EUNOMIA Foundation is also going to employ an external market making company to stabilise intraday fluctuations in the price of Fluzcoin.
What happens if someone with large holdings of Fluzcoin (a Fluzcoin whale) offloads a large lot of Fluzcoin to raise non-Fluzcoin liquidity?
This scenario is tantamount to a supply shock of sudden excess supply. The automatic response of the Fluzcoin system is to ramp up demand and slow supply growth. The policy options that make themselves felt most quickly on the market are open market operations which offer immediate removal of excess supply and the issue of more proof of stakes through allowing the auction to run towards higher interest rates. The immediate effect size of this latter policy depends on the liquidity of the proof of stake demand of Fluzcoin, yet the drawn out effect size this policy is essentially limitless as it sucks in investor demand from other currencies.
It is important to note that with size comes depths and liquidity which means the short term exchange rate fluctuations of Fluzcoin due to Fluzcoin whale offloadings will become ever shorter and smaller. The flipside process of course holds true for large purchases of Fluzcoin. As a matter of course, experienced sellers and buyers of Fluzcoin will understand the dynamics and stagger their transactions into smaller pieces that cause less short term movement in prices to the benefit of all parties involved. This is what happens in fiate currency exchange markets too.
Can the Fluzcoin system withstand shortselling speculator’s attacks?
Let us first clarify what can be attacked. The steering of Fluzcoin is based on price stability of retail prices expressed in Fluzcoin and the system operates under the side condition of free capital movement. Fluzcoin not being pegged to another currency means it complies with the impossible trinity of monetary policy objectives and offers attackers no peg to attack.
A speculator shorting and selling large numbers of Fluzcoins will indeed exert downward pressure on the exchange rate of Fluzcoin into other currencies but there is no discontinuous breaking point of a peg that would then result in the profit opportunity of the short seller by buying back Fluzcoin to return to the lenders cheaply. In fact, such an attack would be self-defeating as the exchange rate of Fluzcoin would react immediately, lowering the revenue of the shortseller, and then recovering quickly, thus forcing him to buy the currency back more expensivey. The steering mechanism of Fluzcoin will quickly counteract the downward pressure of such attack: when more excess supply enters the market, the Fluz Algorithm will automatically ramp up proof of stake sales to soak up this excess supply and in the process raise interest rates on proof of stakes. It will also at its discretion engage in open market operations to provide immediate additional demand.
Note that the higher interest rates on proof of stakes also makes shorting Fluzcoin more costly for shortselling speculators as investors with long positions will demand more interest and these same investors will be extending their Fluzcoin holdings thereby creating demand for Fluzcoin.
What role does the coin reserve play?
The Fluz Foundation has two currency assets: the Fluzcoin Reserve which is held in a highly liquid ETF of very high grade securities and the Coin Pool which consists of non-issued Fluzcoin.
The former is held as a demand cushion with whose funds the Fluz Foundation can enter open market transaction and acquire Fluzcoin in times of excess supply; it is filled at inception with parts of the proceeds of the ICO and further build up with the excess over cost of the proceeds from Fluzcoin holders exercising their drawing rights. It is important to note that the Fluzcoin Reserve is designed not to pay for all Fluzcoins in circulation at the market exchange rate at any one time, Fluzcoin therefore does not issue a promise of redemption at par.
Why do consumers like Fluzcoin?
By adopting state of the art technology introduced above Fluzcoin meets the market needs of consumers: ease of use, ease of converting other currency intro and out of Fluzcoin. On top, three USPs stand out:
Fluzcoin combines the convenience and traceability for personal reports and for rewards of digital payment methods with the anonymity of physical cash. The consumer can choose who can see how much of their profile and history.
Fluzcoin offers consumers the opportunity to build wealth by investing into Fluzcoin on a steady and repeated basis. Building on the advantages of dollar averaging, consumers can invest by regular exercise of their drawing rights with additional invest in secondary markets.
In stark contrast to rewards programmes of credit card companies or airlines whose rewards oftentimes expire after a certain lapse of time, rewards issued in Fluzcoin appreciate according to mechanisms outlined above.
In order to accelerate adoption, we are contemplating rewarding retail transactions of wallets with K-Y-C upgrade with a low percentage reward of Fluzcoin up to a certain monthly maximum.
Why will merchants participate with Fluzcoin?
The direct needs of merchants are simple: they want to spend as little a possible on receiving payments for transactions, they want as few defaults as possible and they want to be compliant with the law.
Building on the immutability of blockchain systems, Fluzcoin is chargeback and fraud risk free.
Consumers can upgrade their wallets on the Fluzcoin ledger through identification services that we connect to. Merchants in turn can define business rules that decide which transactions if any require the consumer to have a verified account according to know-your-customer (K-Y-C).
Transaction costs are fully covered by the Fluz Foundation; see the financing section below for details. And payment transaction costs are a substantial cost line in most retail transactions: where retail margins are thin they can be as high as the margin itself; and for small merchants with low transaction values, such as the archetypal coffee shop on the corner, they can be a big burden as they come often not only as a percentage of sales but with a mixed fixed and variable fee.
Distilled into three words, merchants will flock to Fluzcoin as a means of payment because of zero transaction costs.
How do you ensure independent decision making on the coin governance?
Decision-making on the steering of Fluzcoin - which is comparable to the steering of fiat currencies by the boards of governors of central banks - is done by the Fluz Algorithm. This comes with three major advantages:
Full Transparency: The steering target of the machine is captured and enshrined in a target function known to all market participants; there is no need for second-guessing the motivations of a board of directors or of political agendas. There are no agency costs, there is neither bad actor nor political risk in the steering.
On Demand Price Stabilization: Central banks have to guess the state of the economy and the development of prices from patchy and often outdated data - the Fluz Algorithm has access to the records of the ledger (and even more detailed price information, see below) and thus a timely and granular view of the evolution of Fluzcoin and its market. The Fluz Algorithm can thus act on much richer information and react to new developments much faster.
Dynamic Learner: It will also learn much faster as it leverages artificial intelligence to make sense of the torrents of data in the ledger and its surrounding system. In order to not be let astray through data mining, the Fluz Algorithm will start with strong priors which represent rules.
See also the section on ‘steering’ in the Mechanism part.
Decision-making on topics that move beyond the steering of the currency such as technological upgrades and replatforming and also branding is done by the Fluz Foundation council.
How did you choose your soft cap and hard cap?
We chose the soft cap such that project Fluzcoin is viable at a raise level of the soft cap. While marketing and other go-to-market measures would have to be scaled back considerably vis-a-vis the management case at a 10mn USD funding the executive team is confident to bring a mature technology to market with sufficient funds to grow from the initial set of retail partners to the critical mass that turns Fluzcoin into a mass adoption phenomenon.
The hard cap of USD 212 mn we chose such as to have good but not plush funding which in the experience of the management team offers the best chances of success: Fluzcoin can go to market and build its user base through strong marketing measures at the same time its funding will foster an outcome oriented frugal culture in both the Fluz Foundation and the Fluzcoin Ltd, a culture that thrives and advances rapidly on efficiency and serendipity.
How does the Fluzcoin get delivered to ICO coinbuyers?
In order to facilitate the ICO process for coin buyers and exchanges alike as well as in line with the development roadmap of the AI algorithm, Fluzcoin Global Inc will for a limited initial period of time and for practicality reasons first issue Fluzcoin ERC 20 based tokens. The trading of these tokens will have no coin governance mechanisms. The ERC 20 based Fluzcoin tokens will then in due time be changed 1:1 for JP Morgan Quorum based Fluzcoins when the proper EUNOMIA coin governance is in place and Fluzcoin proprietary coin wallets are available.
If Fluzcoin will be transaction cost free, how are you shielding yourselves against heavy data dumps or DDOS attacks that might clog your transaction capacity?
Fluzcoin´s blockchain file might become huge indeed, larger and faster than ETH and BTC for instance. Yet, our core tech team has tested and planned for this scenarios with techniques for black/ white listings in place as well ignoring spam transactions from compromised accounts.
Likewise to avoid single point of failure and control, rules have been embedded into the algorithm that limits transactions per month and sits on the machines of processors.
Still bad actors can issue new software and update them but Fluzcoin tech infrastructure has the necessary experience and skills do add additional complexity for appropriate protection mechanisms.
How will liquidity of Fluzcoin be assured?
EUNOMIA Foundation will employ external market making services as part of its foundation to ensure proper liquidity of Fluzcoin.
Do you see the Lightning / NFC developments for Bitcoin as a potential alternative for Fluzcoin for retail use?
For Fluzcoin there is a leadership and tech team that can actively push and support merchants. With Lightning / NFC as with Bitcoin as such the problem of conflicting group interested in forks remain so that consumers and merchants live under technological uncertainty. Also, the KYC component als well as the volatility control of Fluzcoin are unparalleled advantages.
Are my coins secure?
Individual coin security measures are critical for all individual investors once they receive the coins. Fluz Fluz works with Zeppelin Solutions as Smart Contract Auditor to ensure the underlying smart contract is adequately shielded.
When and how will coins be distributed?
Coins will be distributed to the coinholder addresses within 5 working days after the crowdsale end.
How to participate in the coin sale with ETH?
1. Buy ETH on a cryptocurrency exchange, unless already owned.
2. Transfer ETH to a compatible wallet (see below) MyEtherWallet (no download needed), Mist (Desktop), Parity (Desktop), imToken (iPhone), imToken(Android)
3. Send a deposit to the payment address displayed through the token sale widget with correct data and gas limit values Token sale deposit transactions need to have non-default gas limit (a.k.a. transaction maximum gas). This is because token sale transactions are more complex than simple Ethereum transfer transactions. The default gas limits is too low to correctly perform a token sale deposit. To participate in an Ethereum token sale you need to ll your transaction in with following details 1) Address - this is given you on the token sale payment information page. 2) Data - this is your personal reference number and it changes for every transaction. Do not share this with others. If you leave data eld out than your transaction is rejected. 3) Gas limit: 250000 - gas tells that this is a smart contract transaction and is more expensive than normal Ether transfer
Note: For any wallet always check your gas limit If you are using MyEtherWallet. com please double check the gas limit eld value after lling the data eld. MyEtherWallet may reset the gas value to an invalid number after inputting the data eld.
Are your board advisors real?
Fluzcoin board advisors are also board advisors to Fluz Fluz as an operating company and have been accompanying Fluz Fluz from its operational inception onward. The advisors are deeply involved into the commercial success of the Fluz Fluz model and have known Fluz Fluz management team for years.
Can I submit BTC or ETH from an exchange account?
No. Exchanges send funds via multiple wallets that are not fully in your control. You don’t hold the private keys in many cases. When sending funds from an exchange the process can take hours to clear or even reach the blockchain. If sending ETH you are unable to add an ETH payload (sometimes called ‘data’) to a transaction. Once you submit through an exchange, you are also unable to modify the transaction fee to speed up a transaction. Please use a wallet that you are in full control of.
Which wallets can I use?
Please view the list below for compatible wallets. If you choose to purchase coins with BTC, you can send BTC from an Exchange but need to provide us with a coin receipt address that is ERC20 compatible (see the list of ERC20 compatible wallet below). If you choose to purchase coins with ETH, the ETH must be sent by an ERC20 compatible wallet. You must enter data input and gas limit values for a successful transaction. The following wallets are known to be compatible with Ethereum tokens (ERC20 standard) and may allow you to receive and view your balances.
MyEtherWallet (no download needed), Mist (Desktop), Parity (Desktop), imToken (iPhone), imToken (Android) Non ERC20 Compatible Wallets. Do not send ETH from these sources.
Any Bitcoin/Ethereum Exchange: Coinbase, Poloniex, Kraken, Bitstamp, Bitfinex, Bitrexx, Cex.io, Exodus
I sent Ethereum from an exchange for the presale or coin sale, what can I do?
The transaction will be returned because of no data eld. If the funds do not show up in your exchange wallet please contact the exchange’s support with the details of your transaction to see if you can get credit back for the transaction.
Where can I purchase ETH?
There are many exchanges that sell Ethereum for at or cryptocurrency, these include: Coinbase, Poloniex, Kraken, Bitstamp, Bit nex, Bittrex, Cex.io Please send your purchased ETH to a compatible wallet whose private keys you own and control, before sending to the coin sale.
Where can I purchase BTC?
There are many exchanges that sell Bitcoin for at or cryptocurrency, these include: Coinbase, Poloniex, Kraken, Bitstamp, Bitfinex, Bittrex, Cex.io