S lar Token Whitepaper

Transcription

1 S lar Token Whitepaper A complete igaming operator based on the Ethereum blockchain August, 2018, v

2 The S lar Token and its Lotteries A complete igaming operator based on the Ethereum blockchain Bitcoin is eventually going to eat the whole global online gambling industry and the first courses of this meal are already being digested - Calvin Ayre, (Predictions for 2017) Whilst the growth of online betting has really proven itself over the past decade and continues to do so at a steadily increasing rate, the use of blockchain technology is currently in the process of truly revolutionising the industry. Through the transparency, guaranteed fairness and security offered by modern blockchain technology, Solar offers a new way to participate in the hugely profitable gambling markets. Solar provides the opportunity to participate in unprecedented ways in the gambling ecosystem, both on the side of the players and on the side of the house. By buying Solar tokens you acquire the right to participate in the quarterly Solar (SLA) Lottery game and receive payouts from the betting pool shared amongst token holders, a betting pool which comes from our two games EuroMillions betting and Supercar Jackpot. Never before has it been easier to gain access to the house side of an online betting operator, while at the same time the fairness of the game is guaranteed to players by the use of blockchain and smart contract technology. For now Solar offers lottery games, but we will also extend our product offering to include casino and sports betting. Enter our Solar system to learn more about how you can participate in reaping the profits from the growing online betting industry. Our products can, through its unlimited growth potential paired with the benefits of blockchain technology, truly attract players looking to play at fair terms where the sky s the limit for the lottery games and its participants. 2

3 Contents Contents 3 Executive Summary 5 Introduction 7 Market Overview gaming 9 OVERALL MARKET - DISPLAYING MASSIVE GROWTH 9 Cryptocurrency Market Overview 10 CHOICE OF BLOCKCHAIN FOR SOLAR 10 Pairing the benefits of technology and growth -Blockchain delivers better igaming 11 TECHNOLOGICAL BENEFITS 11 Transparency, trust & regulation 12 Solar Lottery Betting - Welcome to the Solar System! 13 S lar Product Offering 13 Deposit/Bet 14 Payouts of winning 14 EuroMillions Betting 15 Supercar Jackpot 17 SLA lottery 19 Why play the Solar Lottery - comparison to traditional lotteries 20 Value Proposition 21 Token model and holder benefits 22 Marketing Plan - growth through Affiliate/White-label Program 23 S lar Business Model 24 S lar(sla) Token Sales Terms 25 Token Allocation And Use of Funds 26 Social Awareness 26 3

4 Future growth 27 Roadmap 28 Meet The S lar Team 29 Disclaimer 31 Regulatory and securities law disclaimer 31 APPENDIX 33 Random Draw Algorithm for Supercar Jackpot and SLA Lottery 33 4

5 Executive Summary MARKET/BUSINESS OPPORTUNITY The income from online gambling has shown a steady growth rate over the last decade and is predicted to increase even further, from $47 billion (2017) to +$60 billion by year More than half of this income comes from the online national lottery markets at $30 billion. Lotteries are traditionally geographically fenced, excluding non-residents of a certain country from participation, which constitutes a massive limitation to the business model. Solar believes that geographical barriers should not exist in modern lotteries, and will address this issue by offering everyone the possibility to bet on the result of the biggest lotteries around the world - Solar s vision is making the national lottery experience globally available. PRODUCT Solar aims to be the best blockchain-based igaming option on the market. Driven by a team of people with decades of experience in the traditional igaming space, Solar is a venture into the future of igaming - redefining the experience, transparency and revenue models by leveraging the inherent superior technology facilitated by modern blockchains. Solar s core product is a lottery betting platform which enables players, regardless of nationality, to bet on the result of the biggest lotteries in the world. The results and baseline prizes and jackpots are identical to the lotteries on which they are based. This business model is made possible by insuring the jackpot and large prizes at major international insurance companies. Additional prizes are available through a rolling jackpot which is accumulated over consecutive games with no Jackpot winners. HOW TO GET INVOLVED IN SOLAR Solar token holder is entitled to a 10% revenue-share pool based on the Gross Game Revenue (GGR). Thus token holders get a continual return on investment, paid in full after each lottery settlement. For players the Solar platform provides: The ability to participate in the biggest lotteries around the world, regardless of nationality A superior lottery betting product that matches the payouts of the lotteries on which they are based For Solar token holders the Solar platform provides: Entitlement to 10% revenue-share of GRR, paid after each settlement 5

6 FUTURE Solar intends to grow the betting product in part through an attractive revenue-sharing affiliate/white-label program, which enables anybody with a website to offer the product with absolutely minimum effort after integration (which should take less than a day in most cases). Launch of attractive Casino games and a full Sportsbook will make Solar universe the first full stake real Crypto Igaming operator in the world. Based in Denmark and Malta jurisdiction under EU and fully compliant with EU Laws, Solar will explore the possibility to become the first regulated Crypto Igaming operator under MGA (Malta Gaming Authorities). Please note that Solar is a venture project and the platform may evolve over time to provide new functionality and features. We therefore reserve the right to alter this white paper, terms of use and any other related documents in the future at our discretion. 6

7 Introduction Solar aims to be the best blockchain based igaming option The Solar platform is a fair play Igaming platform based on the Ethereum blockchain technology. Run by a team with decades of experience in the traditional igaming space, the team itself is already an experienced player in the fiat gaming market, operating multiple traditional casino brands. By now the advantages of utilizing blockchain starts to be fairly known to the gambling industry, its operators and players. Rather than presenting the Solar online betting product in line with how initial actors on the market primarily focused on convincing their target group of players and investors of the supremacy of the traits of blockchain and the benefits of introducing it into the online gambling products (where the blockchain technology often is positioned as a problem solver of non-transparency issue in the online gambling industry etc), we at Solar focus on presenting our underlying business model which will ensure the success and growth potential that the blockchain technology paves way for, by utilizing the growth potential and fairness factor to the full extent. We do appreciate that the blockchain technology is new and needs to be touched upon enough to provide a summarised picture and relating conclusions, but just as important as it is to understand what blockchain can do for online gambling, just as important is it to understand what the Solar lottery betting product offering can do in terms of creating a global betting community as customer base. We at Solar have one vision - Making the national lottery experience globally available. Looking at the total gambling market it is currently a staggering $500+ billion, of which the online lottery sits around $30+ billion. Solar intends to seize the market opportunity to establish itself as the premier player in the igaming operator market. Initially, focus will be on the $30 billion online national lottery markets, which today are highly geographically fenced. Solar intends to seize a share of that market by providing an offering in which no geographical barriers exists; i.e. providing access to everybody to bet on the results of all major lotteries around the world. How do we plan to do just that? Through the use of blockchain, our team s combined experience and the continued growth of the online gambling industry. In summary, Solar aims to: Participate in growing the emerging igaming market on blockchains and get return on investment Facilitate participation for players to bet on the result of the biggest lotteries of the world Provide a unique opportunity to own a revenue-generating token in a world-wide operator (house side) in the igaming space 7

8 Solar believes that the following key facts make the business model and identified business opportunity viable and profitable: Igaming is a $50+ billion global market Lottery is a $30+ billion market State lotteries are geographically fenced The viability to enter the lottery market with insurance based lotteries has already been proven by existing actors on the market. Solar strongly believes that the igaming market needs technologically advanced tools for fair play and transparent payouts, as well as a global gaming platform which allows cross-border crypto gambling. The aim of this whitepaper is to explain our product offering and business model in detail so that it is clear why it, paired with blockchain technology, can offer unlimited growth potential and attractive payouts to members choosing to become token holders. The first section of this whitepaper, p.9-12, puts our product offering into concept in terms of market and technology aspects, before the second section, p , presents Solar s lottery betting offering in a detailed and transparent manner. Lastly through p we describe how you can get involved as a Solar token holder and continue the blockchain igaming journey and future development with us. The Solar team presentation, p.29, concludes the whitepaper. Enjoy your passage through our Solar system! 8

9 Market Overview gaming OVERALL MARKET - DISPLAYING MASSIVE GROWTH The total gambling market is currently a staggering $500+ billion, of which the online lottery sits around $30+ billion. The graph below displays the growth in income of offline gambling and online gambling respectively. Offline gambling income accounted for $359.3 billion in 2016, while the online gambling income was $44 billion. Both the offline and online market income is gradually growing. Online gambling income is increasing at a higher growth rate than the income from offline gambling. According to the H2 Gambling Capital forecast, the offline gambling industry will occupy only 11.5% of the overall market revenue, whereas the revenue from online gambling will keep increasing in the future and is expected to exceed $60 billion by 2020, at a compound annual growth rate of around 10%. Figure-1 - gambling market size and growth -(H2 Gambling Capital ( From 2004 to 2016 the lottery industry market grew from $187.1 billion to $294.3 billion and currently holds a 29% share of the global gambling revenue, representing a compound annual growth rate (CAGR) of 4.3% per year and is expected to exceed 10% GAGR in the years (Union Gaming 9

10 Research, 2015). Solar s lottery products, aimed at ceasing a share of the growing online gambling market, is presented in detail throughout pages Cryptocurrency Market Overview Acceptance of blockchain technology has picked up quickly worldwide over the last couple of years and is not expected to slow down anytime soon. Ethereum, which launched in 2015, has quickly established itself as the second largest blockchain in terms of market capitalization. It currently sits around $60 billion, with the market cap development depicted in the figure below. Ethereum market capitalization (coinmarketcap.com): Ethereum is (as of 2017) the leading blockchain platform for initial coin offering projects, with over 50% market share. CHOICE OF BLOCKCHAIN FOR SOLAR An important factor in selecting a blockchain to deliver Solar on is the size of the blockchain itself, since smaller blockchains are susceptible to manipulation by miners to some degree. Therefore Solar has decided to operate on the Ethereum blockchain and get access to the most advanced smart contract technology available on a major blockchain, currently unmatched by competing blockchains. 10

11 Pairing the benefits of technology and growth -Blockchain delivers better igaming and access to growth Currently lotteries around the world are inherently limited in their growth potential, since they are typically capped by national or regional headcount. By utilizing blockchain technology Solar can offer the public greater accessibility to popular lotteries worldwide, and at the same time the fairness, transparency and security for all parties is guaranteed by algorithms (smart contracts) on the blockchain without human intervention, excluding the risk of manipulation. TECHNOLOGICAL BENEFITS Because Solar s lottery betting game is based on blockchain, several advantages can be observed compared to traditional national lottery games: Any person anywhere in the world should be able to sign in to our platform after providing the necessary information. The draw process is operated by open-source software. This eliminates any possibility of the project team interfering with the draw process. Prize payouts are executed instantly, no third parties are involved. All payments are shown in the open blockchain ledger, where any player can verify for himself that we ve given out all prizes in full accordance with the game rules. All transactions are recorded in the open registry (blockchain) and any user can hence monitor payment processing all the time. With that, one needs no licence, or registration to work with Ethereum all you have to do as a player is to create a wallet and place some ETH s in it to play. The system automatically converts every payment to Ethereum and transfers funds to the prize fund of the game. The platform prize fund is 11

12 transparent and always open for viewing due to blockchain technology, and accounts for 60% of the ticket cost. This monetary system, and our platform which is Ethereum based and works pursuant to the same rules, is one of the most secure and open technologies today. Transparency, trust & regulation In an industry such as gambling, issues with fairness, transparency, trust and reputation naturally arise and are subject to the scrutiny of regional regulators. In general these regulators do a fair job of assessing the security and fairness to generate trust and reputation needed for players to using igaming services with a high degree of security. As good as the efforts of regulators are, they are hard pressed to match the consistent and guaranteed in-the-open reporting offered by a modern blockchain using smart contracts. On a blockchain, every interested party, from investors and regulators to affiliates and players themselves, are offered better tools for scrutinizing the integrity of the product and transactions. For instance Solar token holders are eligible to a 10% revenue-split of the GGR (Gross Gaming Revenue). All bets for a particular game of lottery are recorded in the blockchain, thus the pool size of that particular game is easy to inspect. Thus it is trivial as a Solar token holder to verify that the correct amount of ETH was received. As a player it is equally trivial to verify pool sizes and drawing results. The Solar team is currently exploring the opportunity to be regulated under MGA (Malta Gaming Authority), to broaden the product acceptance in regulated markets. 12

13 Solar Lottery Betting - Welcome to the Solar System! The Solar platform is a fair play Igaming platform based on the Ethereum blockchain technology. Run by a team with decades of experience in the traditional igaming space, Solar is a venture into the future of igaming - redefining the experience, transparency and revenue models by leveraging the inherent superior technology facilitated by modern blockchains. The Solar team itself is already an experienced player in the fiat gaming market, operating multiple traditional casino brands. Solar provides the opportunity to participate in new ways in the gambling ecosystem, both on the side of the players and on the side of the house. We at Solar have one vision - Making the national lottery experience globally available. Solar intends to seize a share of the growing online lottery market by providing an offering in which no geographical barriers exists; i.e. providing anyone on the planet access to bet on the results of all major lotteries around the world.solar s core product is a lottery betting platform which enables players, regardless of nationality, to bet on the result of the the national lottery Euromillions (with US Powerball, Eurojackpot and Megamillions to be introduced) through our insurance backed lottery betting offering. The results and baseline prizes and jackpots are identical to that of the Euromillions. Additional prizes are available through a rolling jackpot that is accumulated over consecutive games with no Jackpot winners. We also offer our own Supercar jackpot lottery. Our products can, through its unlimited growth potential paired with the benefits of blockchain technology, truly attract players looking to play at fair terms where the sky s the limit for the lottery and its participants. And for our token holders there is also a special quarterly Solar (SLA) lottery, as described on p. 18. S lar Product Offering In our first launch, the Solar Lottery betting offering will consist of: 1. EuroMillions Betting 2. Supercar Jackpot 3. SLA Lottery 13

14 EuroMillions Betting works in the same way as the actual Euromillions. You select five numbers in the range 1-50 and two numbers in the range The numbers from the national drawings are directly entered into our blockchain, where the winner is automatically created out of the tickets which have been purchased in the Blockchain. The whole process is fully transparent by the use of Smartcontract. All source code of the winning combination is publicly available on GitHub. Initially we offer bets on the EuroMillions result but we will also extend our product offering to include even more exciting National lottery betting games such as the US Powerball, Megamillions, Eurojackpot. We will even give you the opportunity to be part of the Solar System: by participating in the quarterly Solar (SLA) Lottery. Our own lottery Supercar Jackpot has smaller pools, but instant payouts through two daily draws. In addition, we have added a Supercar Jackpot, where you can win one of the worlds fantastic Supercars, making the game even more exciting and appealing. We have intentionally significantly increased the probability of winning by reducing the total quantity of numbers from 50 to 49, making the probability of winning higher than in The EuroMillions Betting game. Our system randomly draws six numbered balls and the whole process is fully transparent in the same way as in the Euromillions Betting game described above. The probability of daily wins are listed on p.17. Deposit/Bet Solar wants to attract as many interested players as possible, hence the decision was taken to make the platform as accessible as possible although being a blockchain based lottery. The Solar platform offers multiple payment methods, giving every user the opportunity to place a bet. Solar has added multiple payment processors to the payment method to increase the number of players from all over the world. We play in Ethereum and allow payment methods to include Bitcoin, Bitcoin cash, Litecoins, Ripple and other cryptocurrencies. Payouts of winning All payments (except the Supercar Jackpot and EuroMillions prices) is executed directly in the Ethereum Blockchain, when a ticket wins, the amount is instantly transferred to the users wallets under their accounts. Jackpot winners will be contacted directly by Solar, who together with the insurance company will conduct a full KYC to eliminate the risk of fraudulent activities and money laundering. 14

15 For the quarterly SLA lottery, wins are paid out in Solar tokens. The following pages will explain our products in detail as to bets, draws and wins per game. EuroMillions Betting EuroMillions Betting gives you the opportunity to place bets on the outcome of the biggest European lottery, EuroMillions, which has its drawings every Tuesday and Friday in Paris at approximately 21:00 CET. BETS Through the EuroMillions Betting game you will be placing a bet on the outcome of the EuroMillions draw. You select your six numbers in the same way, 5 numbers from the main pool of 1 50 and also 2 further numbers from 1 12, and you can win all the same main game prizes, including the jackpot, as you had you entered the actual official draw of the EuroMillions. A single line costs ETH 0,0028 (Euro 1) for that price you will be able to participate in same winnings as the The EuroMillions jackpot. How to deposit and how to cash out any winnings are detailed in the chapters Deposit and Payouts of winnings above. DRAW The winning numbers of the two weekly drawings are automatically transferred into the Solar system Ethereum blockchain, (where the results will be shown) shortly after the EuroMillions drawing in Paris. By the use of blockchain, the process is transparent and the results can be verified by anyone. WINS You will win our jackpot if your 5 main numbers and 2 additional numbers are the same as those in the official EuroMillions draw. You can win all the same main game prizes playing with us as you would in the official draw, including the jackpot which will be capped at ETH equal to 190 million (at ETH price ), just as it is in the actual EuroMillions. All prices are paid out directly through the Blockchain where they are converted to ETH at the present conversion rate. The odds of winning the jackpot are 1 in 139,838,160. A breakdown of all the odds for each prize tier, together with estimated return, is included in the below figure 4. A bet wins when numbers of the ticket match the numbers of the winning set according to the table below. 15

16 Prize Tier Odds of Winning Share of Total Prize (%) 5 numbers + 2 stars 1 in 139,838, numbers + 1 star 1 in 6,991, numbers 1 in 3,107, numbers + 2 stars 1 in 621, numbers + 1 star 1 in 31, numbers + 2 stars 1 in 14, numbers 1 in 13, numbers + 2 stars 1 in numbers + 1 star 1 in numbers 1 in number + 2 stars 1 in numbers + 1 star 1 in numbers 1 in

17 Supercar Jackpot Supercar Jackpot is Solar s own lottery with drawings twice daily, at 12 CET respectively at 20 CET. The drawings run 365 days per year, giving you 730 opportunities in a year to win one of our stunning Supercars such as Lamborghini, Ferrari, McLaren, Porsche etc. This chance is exclusively offered to you by Supercar Jackpot - no other game provider gives you the exciting chance to realize your dream of owning a Supercar! Supercar Jackpot and 1 st price There are a Supercar Jackpot and a 1st price, made available through funds raised during the token sale where a percentage of the sales go directly to generating the prize pools. The Supercar Jackpot is an insurance backed Jackpot, meaning that a percentage of the revenue from the tickets sale goes towards paying for the insurance. The 1 st price and Supercar Jackpot is played daily, and the 1st price is increased by selling tickets and transfering funds from ticket sales to the pool. Calculation If the 1 st price is not raffled in the current draw, the funds from the current 1 st price will go to increasing the next. Thus, the 1st prize is growing constantly until the moment a win occurs. The platform keeps a record of draws, including the complete history and 1st prize winning amounts for each raffle. Revenues from the tickets sales are distributed in a ratio of 80:20 to the main and 1 st price correspondingly. BETS You select five numbers in the range 1-49, and an additional number from A single line costs ETH 0,0028 (Euro 1). You can place as many bets as you like, and participate in the two daily drawings, to maximize your chances of winning the Supercar Jackpot. DRAW Refer to the appendix ( Random Draw Algorithm for Supercar Jackpot and SLA Lottery ) for details of how the drawing is taking place. 17

18 A bet wins when numbers of the ticket match the numbers of the winning set according to the table below. Prize Tier Odds of Winning Share of Total Prize (%) 5 numbers + 1 star 1 in 49,504,950 Supercar 5 numbers 1 in 1,984, numbers + 1 star 1 in 225, numbers 1 in 9, numbers + 1 star 1 in 5, numbers + 1 star 1 in numbers 1 in

19 SLA lottery The Solar lottery is a members only lottery for Solar (SLA) Token holders, with the unique chance to win up to Solar token in the jackpot pool. The lottery gives its members relatively high chances of winning the Jackpot compared to other lotteries. Solar token owners from any place in the world should be able to sign in to our platform and participate in the draw after providing the necessary information. BETS The lottery is a 4/20 lottery; 4 correct numbers out of 20 wins the Jackpot. A single line costs 0,01 Solar and you are free to place as many bets as you like to maximize your chance of winning the Jackpot. DRAWS The Solar lottery is drawn quarterly and verified SLA token holders can participate. All token holders are informed in advance about the timing of the next draw. Refer to the appendix ( Random Draw Algorithm for Supercar Jackpot and SLA Lottery ) for details of how the drawing is taking place. WINS The Solar Token Jackpot is provided by the reserve fund and is filled by adding 100% of the ticket income directly to the price pool. Win table ( SLA guaranteed). A bet wins when numbers of the ticket match the numbers of the winning set according to the table below. Prize Tier Odds of Winning Share of Total Prize (%) 4 numbers 1 in 4, numbers 1 in numbers 1 in

20 Why play the Solar Lottery - comparison to traditional lotteries Lotto Betting is not the same as buying a ticket into the official draw In terms of choosing numbers, lotto betting may be the same, but you are not buying a lottery ticket in the official draw. Lotto betting is conducted through a separate independent company, such as Solar, which is not connected in any way to the relevant lottery operator. Any money you win is paid out by Solar, not the official lottery operator. So, for example, let s say you bet on the EuroMillions jackpot and correctly guess all of the numbers that are drawn. Solar will pay you the prize money, not the official EuroMillions operator. Why not just buy a lottery ticket? Our offer is very different; for starters, we don t sell physical tickets. Everything is done online, which means that you are always sure to get your winnings, and the risk of losing a physical ticket is eliminated since with Solar all bets are registered. Delivering higher return to customers and stakeholders Our betting model also gives us the opportunity to offer our players free bets, special offers and unique features such as Double Jackpot. We pay no retail commissions and have lower operational expenses, so we can deliver a higher return to our customers and stakeholders. We can also offer special jackpots higher than those available elsewhere. Solar match the prizes of official lottery operators Solar will match the prizes of each tier, including the jackpot, that the official lottery operators pay out, as if you had won with an official lottery ticket. So, for example, let s say you bet on a lottery, such as the EuroMillions, and you guess 5 numbers (but only one of the two lucky star numbers). This would win you the second prize tier which is about 1 M. Solar will match this prize and pay you the prize money. How can Solar pay such high jackpot amounts? 20

21 Solar operates an insurance model which means that each bet someone makes is insured. Solar will pay all smaller wins directly from the revenue received from sales. Larger jackpot wins will be covered by Solar s insurance model. This insurance-based business model enables Solar to offer their players the ability to win huge jackpots, offered by official lottery operators, from all over the world. Value Proposition The Solar team firmly believes that the world will see 2-digit growth in the blockchain based igaming market the coming years. The income from online gambling has shown a steady growth rate over the last decade and is predicted to increase even further, from $47 billion (2017) to +$60 billion by year More than half of this income comes from the online national lottery markets at $30 billion. Lotteries are traditionally geographically fenced, excluding non-residents of a certain country from participation, which constitutes a massive limitation to the business model. Solar believes that geographical barriers should not exist in modern lotteries, and will address this issue by offering the possibility to bet on the result of the biggest lotteries around the world - making the national lottery experience globally available. Our products can, through its unlimited growth potential paired with the benefits of blockchain technology, truly attract players looking to play at fair terms where the sky s the limit for the lottery and its participants ; The math of Lotteries are a simple: price-of-a-bet x number of players. Solar has the player number potential of the entire planet. Since Solar s blockchain based games have the theoretical growth potential of the entire population of planet earth, the Solar national lottery betting game and Solar lotteries could lead to significantly bigger pools, which would benefit Solar token holders and players alike. By buying Solar tokens you acquire the right to participate in the quarterly Solar (SLA) lottery and are entitled to a 10% revenue-share pool based on the Gross Game Revenue (GGR) which comes from our two games, EuroMillions Betting and Supercar Jackpot. Never before has it been easier to gain access to the house side of an online betting operator, while at the same time the fairness of the game is guaranteed to players by the use of blockchain and smart contract technology. For now we offer lottery games, but will also extend our product offering to include casino and sports betting (refer to Roadmap p. 29. In summary, Solar aims to: 21

22 Participate in growing the emerging igaming market on blockchains and get return on investment Facilitate participation for players to bet on the result of the biggest lotteries of the world Provide a unique opportunity to own a revenue-generating token in a world-wide operator (house side) in the igaming space, entitling its owner to 10% revenue-share of GRR, paid after each settlement. Solar believes that the following key facts make the business model and identified business opportunity viable and profitable: Igaming is a $50+ billion global market Lottery is a $30+ billion market State lotteries are geographically fenced The viability to enter the lottery market with insurance based lotteries has already been proven by existing market participants/actor. Token model and holder benefits The graph below demonstrates the token holder benefits. Token holders are entitled to participate in the quarterly SLA Lottery, for full details see p. 18. Solar token holders are also entitled to a 10% revenue-share pool based on the Gross Game Revenue (GGR) from our two games, EuroMillions Betting and Supercar Jackpot, paid in full after each lottery settlement. 22

23 Marketing Plan - growth through Affiliate/White-label Program Solar intends to grow the betting product in part through an attractive revenue-sharing affiliate/white-label program, which enables anybody with a website to offer the product with absolutely minimum effort after integration (less than a day in most cases). The attractiveness of a pool betting product is in general directly proportional to the number of players it can attract. In consequence, the success of the Solar s betting product is dependent on the number of eyeballs it can attract, and every opportunity to grow the pool should be explored to the fullest. In creating a borderless lottery betting product, the upper limit of the number of players is raised from a region to a planet. As such it is theoretically complete in this regard. Work towards this theoretical limit by traditional means would require an sizeable marketing budget. Another viable route to position the product in front of as many customers as possible would be to make it extremely easy to become a white-label / affiliate and get a revenue share of the income from players who play through these portals. Features of being a white-label / affiliate: Fast Integration - The lottery betting platform can run on a site within 1 day Profit-Sharing - 50% of the revenue on lottery bets placed through the portal Customizable - Custom branding. Colors, logos, etc. Fast Payment - Get profit-share as soon as the lottery bet settles Guaranteed Payment - All profit sharing is controlled by smart contracts on the blockchain, making validating eligible proceeds for all parties involved Fully Automated - Once established there is no need to do anything on the white-label side. Betting, settlement, payouts, revenue-share are entirely controlled by smart contracts and will require zero effort from the white-label. Based in Malta jurisdiction under EU and fully compliant with EU Laws, Solar will explore the possibility to become the first regulated Crypto Igaming operator under MGA (Malta Gaming Authorities). 23

24 S lar Business Model The figure below shows the overview of Solar s business model related to the EuroMillions Betting and Supercar Jackpot. Players place their bets in ETH using their preferred Ethereum wallet. All bets enter the betting pool. When the result is known one of two things happen: THERE ARE WINNERS In case of a winning result, the lucky players are paid their due. The rest is divided with 30% going to stakeholders, and 70% going into the accumulating jackpot. NO WINNERS - The stakeholders are paid combined 30%, while 70% is going into the accumulating jackpot. Stakeholders are paid the following percentages of GGR: Token holders - 10%, Affiliates - 2.5%, Marketing -15%, Operations - 2.5%, 24

25 S lar(sla) Token Sales Terms Start: 30/07/2018 Total Token Supply: 100,000,000 (Fixed amount) Soft Cap: 1, SLA Hard Cap: 17,500,000 SLA Purchase Method: ETH BTC LTC - possibly others Crowdfunding details 1 SLA = 1 USD 1 ETH = 469 SLA (Based on ether price pr 16 of July, 2018) Phase Date Bonus Sales Cap #0 30 July - 5 August 30% 5,000,000 #1 6 August - 12 August 20% 2,500,000 #2 13 August- 19 August 15% 2,500,000 #3 20 August- 26 August 10% 2,500,000 #4 27 August- 2 September 5% 2,500,000 #5 3 September - 9 September 0% 2,500,000 25

26 Token Allocation And Use of Funds Token allocation: 45% Public offering 25% Pre-ICO private sales 30% Held in reserve for future funding rounds Use of funds: 45% Marketing 25% Development 15% Business Development & partnership 10% Legal 5% Administration Social Awareness Many national lotteries on which Solar is based serve their regional community by donating a share of their proceeds to local charities. Solar fully recognizes the moral need for this mechanism and intends to support local local charities on par or better than state lotteries, through revenue payout. This can be verified in the smart contract on Github. 26

27 Future growth Solar s ambition is to create and establish a full-fledged, licensed international igaming operator, with a full palette of offerings ranging from lottery and casino to sportsbook. Solar will change the way online gambling operates by moving it on to more secure and open structures. Our products will all be transparent - the draws, result and wins will be possible to verify in the smart contracts placed on Github. Fair play and big winnings are the true DNA of Solar. With substantial investment in marketing, partnerships and attractive winning prizes the Solar system will become a true world wide Igaming operator. Organic growth Solar lotteries The gambling market as a whole has yet to see stagnation. It is however limited by national borders, which implies a limited growth rate per region. A borderless blockchain operator potentially has no upper limit save for the population size of the planet. Solar believes it is possible to conquer the online gambling market by coming from the blockchain side, leveraging the technological benefits of smart contracts and blockchain. Put in simple terms - Solar will make igaming considerably more transparent and fair. Growth through product launch Once the Solar lottery suite is available and running, the efforts will revolve around developing a state of the art casino offering to the market on similar terms as the lottery, i.e. revenue sharing opportunities, based on Solar token ownership. We build and play all our Casino games directly in the smart contracts, again to secure fairplay. Soon you will be able to play a waste selection of stunning slot machine games. We even have a full sportsbook in our roadmap, where you will be able to follow all odds, bets and winnings directly in the smart contract. Future vision: Solar is a full-fledged licensed international Igaming operator 27

28 Roadmap 2018 When July August September What pre-ico Complete ICO Complete Malta License National Lottery Betting Staff up operations team October Supercar Jackpot Lottery Live SLA listed at major exchange November Solar VIP Lottery Live 2019 When March May June September What Begin Casino Setup Casino Integration Test Casino Integration live Begin Sportsbook integration 2020 When Q1 What Sportsbook Live 28

29 Meet The S lar Team Mads V. Jorgensen, Co-Founder Serial entrepreneur Gaming industry expert Extensive experience as CEO and COO - contributed in big Igaming companies and set up structure and licenses around them. Has contributed in numerous IPO's on the regulated stock exchange marked. Rune Brinkmeyer, Co-Founder M.Sc.Eng. Cloud & Blockchain Developer Former AAA Games Developer Former Quant Developer Full stack developer and crypto enthusiast Bo Flindt Jorgensen, Gaming Manager +14 years of Gaming experience Substantial knowledge within the regulated gaming markets Several manager positions at market leading lotteries and gaming companies In-depth knowledge on the supplier side of platforms, game content and services. Rasmus Guldbjerg Kjaer, CDO 20 years experience as Creative/art Director in both AAA and casual Games 29

30 Josefine Ekblad-Cena, Communications Manager BA Business Management, Bsc. Economics, MA Creative Writing 10+ years experience from the financial/banking sector 5 years experience within the field of Information Security Experience as financial controller and auditor Carina Beck, Risk Manager Msc. in finance More than 20 years experience as CFO and financial controller Experience from various industries such as Igaming, travel operators, banks, major retail chains. Dr David Meli, Legal Counsel Law degree and was also conferred a Bachelor of Law and a Diploma of Notary Public Partner at Michael Kyprianou Advocates Kevin Mallia, Legal Counsel Gaming consultant with 15 years experience from the start of the gaming industry in Malta Previous experience in key positions Interwetten, the first company in the world to offer sports betting online, and Stanley Bet. 30

31 Disclaimer This version of the Solar whitepaper is released with the intended purpose of presenting the idea and business case behind Solar. The information in this document is subject to change without notice and should not be construed as a commitment by Solar. Regulatory and securities law disclaimer The regulation of tokens is very uncertain. The Solar tokens (the tokens ) may be considered securities under us law, though this area of law is evolving rapidly. In order to comply with us securities law in the event the tokens are determined to be securities, sales of tokens may only be made outside the United States to non-u.s. persons as described in the following paragraph. Only persons of adequate financial means who have no need for present liquidity should consider purchasing the tokens because: 1) an investment in the tokens involves a number of significant risks described below 2) there is no market for the tokens and none is likely to develop in the reasonably foreseeable future. This offering is intended to be a private offering to non-united states investors that is exempt from registration under the us securities act of 1933 and applicable state securities laws. Tokens may not be offered, sold, pledged or otherwise transferred within the united states or to, or for the account or benefit of, U.S. persons. By its acquisition of a token, the holder: 1) agrees that it will not resell or otherwise transfer this security, except a) if it is to a U.S. person, then i) to a verified U.S. accredited investor, and ii) not until the first anniversary of the issuance of the token; 31

32 b) if it is a non-u.s. person outside the united states in an offshore transaction in compliance with rule 903 or rule 904 under the securities act; c) to Solar or any subsidiary thereof; or d) pursuant to an effective registration statement under the securities act and, in each case, in accordance with applicable state and local securities laws, and 2) agrees that it will deliver to each person to whom this security or an interest herein is transferred (other than a transfer pursuant to clause (I)(d) above) a notice substantially to the effect of this legend. White paper 2018 v. 1.1 Disclaimer As used herein the terms offshore transaction, United States and U.S. person have the meaning given to them by rule 902 of regulation s under the securities act. The tokens are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable laws. This includes but is not limited to prohibition of the purchase of the tokens by any persons or entities that are acting, whether directly or indirectly, 1) in contravention of any U.S., other national, international or other money laundering or gambling regulations or conventions, or 2) on behalf of terrorists, terrorist organizations or other high-risk entities, including those persons or entities that are included on any relevant lists maintained by the United Nations, North Atlantic Treaty Organization, Organization for Economic Cooperation and Development, Financial Action Task Force, U.S. office of foreign assets control, U.S. Securities & Exchange Commission, U.S. Federal Bureau of Investigation, U.S. Central Intelligence Agency, U.S. Internal Revenue Service, Financial Crimes Enforcement Network (fincen), the Office of Foreign Assets Control (ofac), countries listed by Transparency International ( as being vulnerable to corruption, or any country or organization, all as may be amended from time to time, 3) for a senior foreign political figure, any member of a senior foreign political figure s immediate family or any close associate of a senior foreign political figures, or 4) for a foreign shell bank. Purchasers should be aware that they will be required to bear the financial risks of this purchase for an indefinite period of time. The transferability of the tokens is further restricted by the general Terms and Conditions of the SLA tokens public offer for purchase (General Terms and Conditions for the purchase of Solar Token during the Solar ICO. 32

33 APPENDIX Random Draw Algorithm for Supercar Jackpot and SLA Lottery DRAW The winning numbers of the SLA Lottery and Supercar Jackpot are generated by taking the first block in the blockchain which appears daily after 12:00 CET and 20:00 CET and matches a certain set of technical requirements (which are impossible to know in advance, because bets close at 11:00 CET. and 19:00 CET respectively). The block plugs into the algorithm, which can be found on Github*, to generate the six numbers for the upcoming drawing. This process is repeated for every draw at 12:00 CET and 20:00 CET, 365 days per year. The process of determining the winning set has 3 stages: 1. Ticket sale for the current run closes 60 minutes before 12:00 CET and 20:00 CET; 2. At 12:00 CET. and 20:00 CET, the first hash of transactions accessible for everybody on blockchain.info is transferred and this hash cannot be previously predicted; 3. This hash is incorporated into the algorithm, which forms the numbers required by the lottery in question (6 in case of SuperCar Jackpot, 4 in case of SLA Lottery) based on the arithmetic action. The source code of the algorithm is open, and anybody can check and repeat calculations to verify these. The drawing algorithm is simple, secure and comprehensible. It is possible to understand how a winning combination is generated following these simple steps: (using Supercar Jackpot as an example - 5 numbers (from 1 to 49) with an additional number (from 1 to 26) 1. After the draw closes, the system waits for the next hash in the blockchain. 2. Suppose this is the hash received by the system: c363284caf01ce5dd2d6e2a6c2ab26030f This hash is broken into sequences of 4 (four) characters, starting from the tail, and transformed into a number using the NHEX base 16: c caf0 1ce5 dd2d 6e2a 6c2a b260 30f (3,493)16 = (13,459)10 33

34 4. The found number (13459) is then divided by module of 49 (or 26 in the last iteration) and the remainder is taken as one of the balls: 13,459 mod 49 = 274 * (hence the first ball is 33) 5. The system repeats this iteration 5 times and discards numbers which are already in the set. For the last number we simply use mod 26 instead of mod 49 to produce the result. 34