Abstract

We turn the economy scales around, bringing fair profit share on a market previously dominated by sellers.

Loyalty programs are hard for businesses and hard for users. We’ve made it a breeze for all using our blockchain-based system.

Point-X is unique reward exchange program allowing customers to truly reap what they sow by offering universal rewards anywhere they shop. Our goal is to deliver an easy and convenient way to accumulate, convert, and utilize any special deals and offers that a customers receive at any store they visit.

Point-X will open a way to better, more exciting shopping experiences and will actively encourage customers to look for the best deals available.

The blockchain technology and our Proof-of-Processed-Payments system will provide a high level of security to protect our customers from fraud.

Point-X is a platform that is similar to a common Cash Back service and has three main concepts:

  1. The points are awarded to the user for purchases from an our partner store.
  2. Increased number of points is awarded to the customer after a completion of the certain actions, if the partner store has engaged in a marketing campaign through our platform.
  3. Direct communication between the producer of goods and the buyer.

The use of cryptocurrency, as a means of rewards will actively engage the users in the shopping experience, increase the average cost of a check and the frequency of purchases. A big part of the engagement is attracting the customers into save up opportunities with elements of gaming.

A broad network of partners will allow users of Point-X to exchange the accumulated points for other (private) loyalty programs, this giving them a universal tool for accumulation, storing, and the use of reward points.

Our in-house developed processing tools allow for an immediate transaction speed.

The use of blockchain technologies gives anonymity and protection of private information from further usage of any associated information by third parties.

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Introduction

It has been eight years since release of bitcoin, however cryptocurrencies have not yet gained as wide of a spread in the EU&US as expected. Some of the reasons might be:

  1. Lack of expertise in the technology;
  2. Suspicious portrayal in the press;
  3. Volatility of the cryptocurrency;

However, exponential growth of bitcoin and other cryptocurrencies shows that cryptocurrencies can survive outside of traditional markets, even though, coming short of widespread payment systems.

High quality use of blockchain technologies and cryptocurrencies lays in a convenient integration with real world services and products. With additional incentives to small business to utilize cryptocurrency and work together with consumers for mutual benefit.

The creation of Point-X is possible because of the arising opportunities on the market, the experience of the team, and the ability to adapt well known market principles with the latest innovative technologies.

Without the motivation of the end user to receive a tangible benefit and with large market entry barriers the highest threat is the lack of such real world integration that might continue to be the market trend, leaving mining as the only option for people to benefit on cryptocurrency.

 

TARGET MARKETS

Done well, loyalty programs can help drive more frequent visits and heavier purchasing. More than seven in 10 global respondents (72%) agree that, all other factors equal, they’ll buy from a retailer with a loyalty program over one without.

More than half of global loyalty-program participants (51%) say product discounts are among their three most-valued loyalty-program benefits, followed by monetary rewards in the form of rebates or cash back (45%). Generic deals, however, create little differentiation; retailers must focus on connecting with consumer needs and delivering greater value.

Consumers crave  flexible loyalty programs. Roughly eight in 10 global loyalty-program participants say it is somewhat or very appealing to be able to earn rewards regardless of whether a purchase was made in store, on a website or on a mobile device (81%) and to choose among several types of rewards (79%).

Digital tools and features are particularly appealing in Asia-Pacific, where the highest percentage of loyalty-program participants in the worldwide study rate as appealing store- specific loyalty mobile apps (69%), integration with digital payment systems (78%) and integration with third-party apps that consolidate loyalty-program information (63%).

The Nielsen Company

The market size for the loyalty and rewards program in the U.S. is astonishing.

According to various sources, more than 75% American Adults actively participate in loyalty programs in industries such as banking, hospitality and retail. More than $50 billion are distributed or awarded to U.S. customers yearly. In addition to that, loyalty programs are the most effective and popular way to retain current clients and attract new ones. According to Koen Pauwels, sales promotions are the most effective tool that manufacturers use, and also represent the majority of manufacturers’ marketing budgets, amounting to 16% of their revenues.

The good news is that 57% of the brands plan to increase their investments into loyalty programs by the end of 2017.

The main markets for Point-X is the EU&US where we could meet all the legal standards in order to run our business. It seems to be a great opportunity for us to start a platform and grow it exponentially as the loyalty market is estimated to be over $20+ billion per year.

Large number of different programs makes it difficult for a consumer to commit to one, however, there are still programs that customers value over others.

The goal which we are passionate about:

  • Increasing the versatility and usability of many loyalty programs in Europe through the introduction of blockchain technology.
  • Implement a new channel of direct communication between producer and buyer.
  • To transfer the European experience to the World market.

 

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Draft Decision

Point-X team out to solve those issues. We propose a universal loyalty program based on blockchain technology that will allow people customers to truly magnify their shopping experience, by allowing the conversion of rewards and their subsequent exchange for real tangible products. That creates a freedom of choice for consumer that will ultimately drive the loyalty market.
In the Point-X we combine the achievements of the private and public blockchain.

Inserting internal PNX * currency as a means of storing and exchanging between other currencies and loyalty programs, Point-X and PNX will become the norm for consumers and business that use loyalty programs. It also gives a universal benefit that attracts more attention regardless of the method of discount delivery.

The use of an additional reward points CNX * (COIN) with a fixed price according to the EURO/$USA value: 1 coin = 0.01€/$. This will allow us to stay flexible and offset the negative fluctuations of cryptocurrencies in the public market and provides clarity of value for the consumers as opposed to accumulation of the funds in fiat currencies.

Through personal accounts, Point-X customer can always convert CNX to PNX, CNX to €/$, PNX to ETH, and PNX to €/$.

Example: “five stars” allows users to only spend the accumulated currencies and bonuses at the establishments where they were awarded. PNX is a universal platform that allows to use bonuses and rewards not only in certain chains and franchises, but to also convert it into other bonuses and currencies depending on the user’s needs.

 

TRANSACTIONS

 

acquiring
Busines model #1 Acquiring

When purchasing products, consumers don’t always see that some of the products are have different types of deals, such as buy 2 get 1 free or buy 1 get second one 50% off. Those deals are often unused and the consumers get no benefit from it. Point-X will allow you to store those rewards in the form of COINS so you can later benefit from them.

SMB
Busines model #2 SMB

With a lot of marketing tools available, the businesses often do not know how effective they are and often are required to pay installment fees upfront followed by monthly fees even if the tools are not being used. Point-X customer loyalty platform will be available for businesses for free. Businesses will be able to interact with their customers with no strings attached while Point-X will only charge a small commission on the marketing campaigns, if the businesses decide to create them.

Exchange
Busines model #3 Exchange Universal Platform

The loyalty industry is highly fragmented, and this makes it attractive for the implementation of solutions based on blockchain technology. If loyalty programs are compatible with each other, the client wins. Platform Point-X can be linked largely unrelated world of incentive programs to reduce costs, eliminate inconsistencies, to yield bonuses and maturity bonuses almost in real time, to provide a more secure environment and simplify business relations.

Point-X platform makes it possible to:

  • Marketplace discounts and special offers with GEO targeting. (as ZiIlow for discounts).
  • Receive cash back bonuses on the purchases they make.
  • Small Businesses will be able to create marketing campaigns, target the desired segment of the population based on Cost-Per-Action model.
  • The manufacturer of the goods and services that can directly encourage consumers.
  • Universal platform of exchange in multiple loyalty programs.
  • Automatically create e-wallets, find interesting marketing campaigns, take required actions, and monitor transactions and review receipts from purchases.
  • To easily and efficiently integrate with business infrastructures through the platform and API. IT will also allow users to safely store and use CNX / PNX* tokens as a universal exchange tool between all the aspects of shopping experience.

 

TOKENS

 

We plan on using two types of tokens
(combination of private and public blockchains)

Digital tokens CNX / PNX is cryptographically protected by way of representing the rights of its holder to receive in the future through the platform Point-X services and products they purchased.

CNX — a token of transaction (utility token), a token at with a cost of
0.01 EURO/USD

As an equivalent token to accumulate the interexchanges within a reward system, based on €/$.

  • The token is tied to the value of €/$;
  • Upon receiving the discount, it shall be stored on user’s account in the exact equivalent to the €/$ for simplicity of valuation of the rewards accumulated. The CNX  is backed by the €/$ amount stored in the system;
  • The transactions are governed by the Point-X rewards system;
  • Security is provided by repeated audits and support of the transactions plus blockchain anchoring;
  • Fast speed transactions;

PNX — a utility token

Fixed release according to the ICO schedule.

  • Transfer — cost of the transactions based on the % of the EUP;
  • Comprehensive audits;
  • Free exchange trading;
  • Specific rules and restrictions will apply for advanced conversion of the tokens outside of Point-X system (no commissions, additional bonuses, etc);

USING TOKENS

 

Member of Club

Customers

Partners

  • A voice in the development of the project (analog DAO)
  • Swap PNX for CNX tokens
  • Get CNX in exchange for their activities
  • Pay CNX for purchases
  • Swap CNX for PNX tokens
  • Сharge CNX to consumers
  • Pay fees in CNX/PNX for transaction
  • Pay PNX/CNX for advertising companies

REWARD VS. PENALTY

 

CNX / PNX tokens and the Proof of Processed Payments (PoPP) will eliminate negative holds, lags, and commissions for conversion of the currencies. All payments between platform users will occur with no delay and additional charges.

At the time of creation of marketing campaign, the business creates a rewards model with a fixed dollar amount to be spent for every required action. Currency fluctuations will not impact such campaigns because of the essential operating mechanisms of our platform. Customers will be more willing to participate in such campaigns as it instantly gives them a euro/dollar equivalent of their funds and protects them from risks of currency fluctuations.

For the consumers, the transactions using CNX / PNX happen instantly and without additional charges.

Business can simply record such transactions according to generally accepted practices and record in the same manner as a Cost per Action (CPA) marketing model.

Earn on CNX / PNX when you spend. Through PoPP and Point-X platform we stimulate the use of cryptocurrencies and creation of a friendly ecosystem for customers and businesses.

(many unrealized rewards i.e. “buy 2 get 1 free” can be converted by business into CNX / PNX, as opposed to staying unrealized).

UNDERLYING TECHNOLOGY

 

A special feature is the combination of private and public blockchain into a single system and use the blockchain anchoring.

Implementation on the basis of own development on the basis of a Protocol Ethereum ERC20

Implementation of our own development on the basis of a Protocol Ethereum ERC20. The Ethereum blockchain is currently the industry standard for issuing custom digital assets and smart contracts. One of the main reasons is to use the existing Ethereum’s infrastructure instead of building an entirely new blockchain. The latest and most popular ERC20 token interface is the best choice compatible with the existing infrastructure of Ethereum ecosystem, development tools, wallets, and exchanges. Also ERC20 allows for seamless interaction with other smart contracts and decentralized applications on the Ethereum blockchain.

PoPP (Proof-of-Processed-Payments) — are used as a means of user identification and transfer of the currencies within our network.

Research: Stellar (https://www.stellar.org); Framework Plasma (http://www.plasma.io); NEM technology (https://nem.io); Kadena (http://kadena.io/); Ethereum Enterprise;

 

ADDITIONAL FEATURES

 

Marketplace
Рromotions and offers with geo-targeting. (as Zillow)
Virtual Card
One Card in All Places (NFC/QR/Phone Number)
Plug-ins
For platforms such as WordPress и Drupal in order to add Point-X functionality to websites and applications.
Shared Payments
Pay with your friends with no additional fees.

E-Commerce Platform
Use CNX / PNX and Point-X platform as a rewards system to award bonuses to your customers on E-Commerce platforms and marketplaces (API and SDK)
Exchange Platform
Exchange points between loyalty programs
Manager companies
For self-run companies to SMB, FMCG and Brands
Microtransactions
The ability to utilize micro-transactions that is not currently supported by modern payment systems due to large commissions.
Point-X card
Use Point-X card for easy identification and engagement at any of the places you shop.

Etc.

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ICO

  • Total FIXED amount of Point-X tokens = 88 888 888 PNX
  • During the initial ICO Point-X plans to release 22 222 222 PNX, and by that to attract $20M with the sale of 25% of total tokens.
  • At each stage of ICO, besides closed sales, the amount of tokens will be limited.

Structure of token distribution.

  1. At the Pre-Sale/Pre ICO stage 1,200,000 tokens will be available for sale.
    START: 02/2018
    Soft cap: 500 ETH
    Hard cap: 700 ETH
  2. ICO START 04/2018, 21 022 222 tokens will be available for sale.
    WINNER on the platform ICOS by ICOBOX 
ICO PRE-SALE/Pre ICO ICO Tier 1 ICO Tier 2 ICO Tier 3
PNX 1 200 000 11 907 407 6 407 407 3 907 407
ETH 600 9 790,53 7 404,12 5 383,54
ETH/PNX 0,000500 0,000822 0,001156 0,001378

!!! It is supposed to restrict the sale of coins on the exchanges to launch the MVP to the market (T+8m) !!!

3.  Special offer for investment funds and profile investors.

Four special package — tokens + company stock:
Each Package =
5 555 555,5 tokens + 6.25% company stock for $6 250 000

TIMELINE

TimeLine ICO Point-X
TimeLine ICO Point-X
TimeLine ICO Point-X
TimeLine Point-X

LEGAL

Crypto tokens CNX / PNX are are crypto protected method for receiving a future benefit through Point-X platform.

Upon the completion of ICO all members shall receive ERC 20 combined PNX tokens based on Ethereum Platform.

Token PNX is a major component of the ecosystem PNX is designed for all types of operations, making it an integral part of ecosystems and a determining factor of its economy. PNX tokens are divisible, portable and fungible.

PNX — a utility token, that grants its owner a right to voice his or her opinion on the future development of the project through the Effective Purchases Point-X Club (voting right).

Those rights shall include:

  • membership in the club
  • a right to participate in choosing of partners and order of task importance within the club
  • a right to participate in choosing Point-X club functions and products
  • a right to exchange goods and services from Point-X partners

The voting right can be utilized through the Point-X club website,

 www.point-x.club . The voting shall be available after account registration.

All activity of members of Point-X club, is aimed at the development of
Point-X project and is conducted remotely according to a voting schedule. The decision shall be made by the majority rule. 1 PNX token shall equal to 1 vote.

In order for the vote to be considered successful, at least 26% of the voters have to participate.

PNX token can be exchanged to a CNX token, for future acquiring of products, services, and discounts provided by Point-X partners.

The number of PNX tokens is limited.
Transfer of PNX tokens and the rights that follow with it is limited until the launch of MVP, according to the Time Line graph.

CNX is a utility token that is tied to the present value of EURO / U.S. dollar. Token grants its owner certain rights that may include:

  • exchange of the token for goods and services
  • exchange of the token to a PNX token, that will grant the Point-X club membership to its owner

Limitations — PNX and CNX tokens are limited in its use and fall under the following limitations:

  • do not grant any share of ownership in the corporate entity to its owner.
  • do not grant its holder the right to receive dividends.
  • do not grant its owner a return rights, this every purchase of PNX or CNX token is final unless otherwise permitted by Point-X platform

By purchasing PNX tokens the user agrees to take the risks and limitations related to the tokens, cryptocurrency and blockchain technology, including but not limited to: 

1.The risk of loss of access to the token in case of a lost key or keys
2.Risks that might arise through the use of Ethereum Platform
3.Risk of virus or a hacker attack that could exploit weak spots in security systems
4.Risk of value loss due to fluctuating value of the tokens and other cryptocurrencies
5.Risk associated with government regulations that might limit the use or value of the tokens and other cryptocurrencies


Know Your Client (KYC) process 

PNX tokens shall not be offered or exchanged to any user or users that are present or registered in a country where such ownership or completion of transaction shall be considered illegal, or if any other state or local laws prevent such user from ownership of the token.

We do not allow or support such users and reserve the right to cancel or halt the purchase of PNX tokens at any time at our discretion according to our policies. Such cases may also arise if the KYC information is incomplete, inaccurate, illegal, or in any way associated with an individual or an organization that falls under any group or groups of people that are considered to be illegal entities under Point-X policy.

Howey Test

Pursuant to the general practice employed at the cryptocurrency markets any company that issues tokens shall make them subject to the Howey test. So that to check whether any relevant token is a share or not. If it is proved that any respective token is a share with a probability of at least 50%, then SEC shall register it, provided that it is intended to be offered for sale to non-qualified investors residing in the USA.

We do not allow buying tokens by the U.S. investors.

Most companies apply to the relevant consultants, auditors or attorneys for the so-called ‘legal opinion’ to be issued for marketing purposes. We have consulted with representatives of the leading law firms in New-York and they explained that the so- called ‘legal opinion’ issued upon the Howey test is not deemed a legitimate document evidencing the relevant status of a token.

This is just an opinion expressed by an expert executing the same. As a rule, any such opinion is confidential and is not intended to be published in any publicly available source (i.e. Web sites or White Papers).

We have performed out own Howey test of PNX token pursuant to generally acceptable and existing practices. As a result, it will have been proved that it is not a share with a probability of 80%. The only reason for it failing to be assigned a probability of 100% is that certain holders thereof may have expectations for the token price increase and thus they are inspired to buy the same for speculative purposes. However, it neither affects nor limits sales of PNX tokens to purchasers and has no impact on further use thereof through the platform operated by Point-X. All prospective buyers shall consider this information prior to the purchase thereof.

Interaction with the U.S. Investors

The American capital market is of strategic importance for our company. As such, we hold extensive consultations with experienced legal advisers from the USA to develop a strategy for incorporation of proper legal entities and issue of required licenses and permits by SEC to render the relevant investment services, issue tokens and establish an exchange for subsequent circulation thereof as well as cryptocurrencies and investment products. Upon the foregoing consultations and development of the final action plan related to the U.S. market the White Paper may be amended in view of permitted purchase of tokens and use thereof by the U.S. investors.

Assumes the use of a methods SAFT or FACTS.

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Team

Maksim Barodzich

Having graduated from the BAUMAN Moscow state technical University Maxim participated in the role of leader in the largest loyalty program in Europe Svyaznoy-club. On the basis of the developed software, Maxim now operates the largest bank loyalty program VTB and Sberbank. At various times he held senior positions at various companies: Sumitomo corp, Euroset, Playfon, and others..
Member of  RACIB.

 

Dmitry PrasolovDmitriy Prasolov

Dmitriy is an experienced Business Development Manager with in the software industry. He specializes in E-commerce Optimization, Sales and Mobile Applications. He is a strong sales professional with a Masters in Computer Applications (MCA) focused in Computer systems analytics.

 

Alexander Sverdlov

Alexander has a post-graduate degree in Business Management from the University of Essex. He has worked for Fortune-500 companies such as HP and Microsoft, has consulted multiple banks and telecoms on cyber security and is ensuring our product meets the ultimate security standards.


CTO — Vacant post — (MVP by the team Distributed Lab)
Experience in a DevOps environment (financial services and blockchain — definitely!

Apply for this Job — info_ico@point-x.co

ADVISORS

 

Jonathan L. Hood (Legal Adviser)
Website and Angel List profile

Pavel Kravchenko  — (Technical and Blockchain Advisor)
MVP by the team Distributed Lab
Pavel is decentralized systems expert, university lecturer, public speaker.
His passion is solving complex and challenging problems. His background is information security, software development and project management. He is very excited about new technologies such as Bitcoin, Ethereum, mesh networks and others. He believes they will critically change finance, law, ecology, media industries. He created an open-source course about cryptocurrencies and often lectures about it in universities around the world.

Anton Zykin & Alexey Rechkunov — (Product design Advisors)
SFCD (https://sfcd.com) & CLAY (http://clay.global)

Alexander Zahatski
Alexander leads the development of web interfaces at Exscudo services and websites. Before joining Exscudo, he worked as Chief Information Officer for a major e-commerce company. He has solid experience in the development of web services for different types of companies, from IT giants to small local businesses.
Successful ICO — exscudo.com

Eldar Razroev
Euroset, Megafon, The Ministry of communications and mass communications of the Russian Federation, MTT, Sistema Venture Capital

Roman Vasilyan
QIWI, Svyaznoy Bank, Svyaznoy Club

Kirill Osipenco
The University of Chicago Booth School of Business.
Worked: Accenture, Credit suisse ag, Sony Pictures releasing cis, Mobile Telesystems.

 

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