ETERNAL TRUSTS | The first dApp based on ET Protocol

The first dApp based on ET Protocol that other trustees can use as is, or fork, customize, and white label in collaboration with the ET development team, is currently in development.

The original ET dApp will be the world’s first dApp providing trustee services for the crypto world, by fulfilling simple “Dynasty Trust” scenarios for clients and replicating the traditional fiduciary inheritance and asset redistribution schemes. This application will serve as an example of how the ET Protocol can be used by trustees to establish more convenient and faster channels of direct communication with clients and experts.

The Market for the original dApp

The team of ET believes that financial planning is crucial for every person, no matter whether they belong to the world of high finance, or the crypto community. We also believe in the extended long term growth of the crypto markets and the further tokenization of assets, which is particularly expected to become most prominent in the financial industry. Hence, before dividing the potential clients of our dApp into groups in terms of their consumer behavior, we attempt to evaluate the market by the top-down approach, analyzing the data that can be found in open sources to approximate the headcount of beneficiaries of value created by our ET dApp.

According to the Cambridge University research, there were more than 30 million crypto-wallets registered around the world by 20172. This figure quadrupled since 2013. We use this estimate as an underlying basis for our calculations, also mentioning here that the number of wallets has obviously soared since 2016 and with a given pace of growth it may reach 1 billion by the latter period of our planning time-frame.

We know that a trust settlement and maintenance is an expensive service to purchase. IBISWorld Trusts & Estates in the US Industry Report states that there are only 3.2 million trusts and similar entities settled in the US and also that this figure is strongly correlated with the number of households with 100,000 USD or higher yearly income. We may reasonably suppose that there are at least 5 million such structures existing in the world. There is an indirect confirmation of this logic in the estimates given by the Global Rich List project3: there are only 5 million people in the world with a yearly income of 100,000 USD. Hence, traditional trusts settlement and management industry is currently most likely limited by the number of 5 million wealthy individual clients due to its costs. However, we also know that there is huge capital to be transferred between generations in the coming years, and the industry of trusts may face significant market expansion.

The first dApp built on ET Protocol offers dramatically friendlier pricing as well as more convenient client service and thus may reasonably expect a larger available market. We use the same Global Rich List functionality to evaluate the number of individuals that are worth 100,000 USD (not yearly income) and might spend 10% of their wealth to switch onto the crypto world. Our calculations returned an estimate of 367 million people globally

ETERNAL TRUSTS PROTOCOL ARCHITECTURE

Eternal Trusts will be setting up all necessary infrastructure to enable fiduciary companies, multi family offices, trustees, and experts from different fields to join the ecosystem and create their own dApps, based on a powerful toolkit that will be provided for them, catered to executing important objectives of people for hundreds of years to come.

This section of the white paper will describe the implementation details of the decentralized application “EternalTrusts-dApp” as well as the protocol for creating distributed crypto trusts “EternalTrusts-Protocol”, and the differences between them.

Traditional Trust Funds

As mentioned previously, the mechanics of trust funds are quite straightforward: in the traditional financial world, trusts are usually employed by those who accumulated wealth over the course of their lifetime to transfer that wealth under control of another trusted party (a trustee) that acts for the benefit of the third party (the beneficiary), or to achieve a specific purpose, e.g. charity. Most trusts are irrevocable, which means that their terms cannot be amended or modified until their purpose has been fulfilled.

Generally, the process of establishing a trust consists of four steps. A client (a trust’s settlor) specifies a trust purpose which will determine how, when and for what goal the assets will be spent. For instance, such purpose can include covering the costs of education for the settlors’ children when they reach a certain age, at a university selected at the discretion of the trustee. The trustee documents the client’s wishes in relation to the trust assets, and the client transfers the right of asset ownership to the trustee. The trust company usually takes care of the asset management and seeks to grow the wealth in accordance with a certain financial strategy and the wishes of the trust settlor. When the conditions laid down in the trust deed are met, the assets are spent on achieving the trust purpose.

Decentralized Trusts of ET

Unlike classical trusts, the trustee in Eternal Trusts is represented by a system of smart contracts and a network of oracles — a group of individuals acting anonymously in the interests of the whole platform reputation and being rewarded for the right actions. In terms of asset management, decentralized trusts can store clients’ assets at smart contract addresses, not only in the cryptocurrency form or in the form of EOS / ETH tokens, but also in the form of tokenized traditional assets and funds. Automatic trading between various tokenized assets is possible through the mechanism of cross-chain swaps and decentralized exchanges (DEXes).

Holding assets in cryptocurrencies remains quite risky given that the crypto market has been extremely volatile. However, in recent years the trend of digitizing the traditional market assets has become more and more popular: e.g., the tokenization of national currencies, raw materials and precious metals, portfolios, stocks, and indices. At the moment, the most prominent projects that employ tokenization technology are TrueUSD, Tether, Basis.io, ColoredCoin, polymath.network, and Called Havven. Many analysts are expecting a large growth of tokenization projects in the nearest future, and the influx of big capital associated with it into the crypto world is deemed to stabilize cryptocurrencies and make the market less volatile.

ET-dApp vs ET-Protocol

The step towards creating the full-scale protocol has been perhaps the most crucial milestone that can increase the magnitude of the project and its impact on the whole blockchain ecosystem. On one hand, the decentralized application of Eternal Trusts (ET-dApp) will consist of an integrated and stable network of DAO directors, with an initial network of oracles and providers preselected by the founders that will be working with a single customer base.

On the other hand, the open source protocol in development (ET-Protocol) will allow for the creation of new ET-dApps on its basis using the ET token. Any company interested in integrating such mechanism of the decentralized trust into its business processes can do this by spawning a network of DAO directors and a network of oracles and contractors, setting up hosting and executive logic in private nodes and off-chain networks.

How the ET crypto trust works for the end user

Remote onboarding

A remote onboarding procedure through a convenient, customizable decentralized application.

Determining the end goal of the crypto trust

Creating a record in the private blockchain, including the end goal for asset spending, the beneficiaries, and potential external triggers.

Assigning roles for Oracles

With the dApp founder's help, the client assigns roles for oracles (a network of trusted decision makers tha will collectively administer assets).

Transfer the assets

Smart contracts are deployed. The client can transfer the assets under management of the crypto trust.

Managing assets

The chosen asset management providers or the trustee manage the client's assets according to traditional strategies adjusted for the crypto world. The oracles vote for the most optimal solutions for the client given the initial purposes.

Solving the trust purpose

When the conditions of the client's purpose are met, Oracles release the client's assets through a multisignature. All necessary payments and rewards are made automatically.

THE TOKEN SALE

The Eternal Trusts tokens have been available for potential platform users since March 22, 2018.

Eternal Trust Token is currently based on the Ethereum-based ERC-20 protocol, which is deemed the industry standard. However, we are gradually shifting to EOS.IO smart contract protocol, which provides a more improved set of features for such a hybrid, autonomous, and multi-chain system as Eternal Trusts.

The Eternal Trusts Token is a service token that underlies all business processes of the dApps built on the ET Protocol. The uniqueness of our token is not limited to its internal payments functionality for our platform, neither its smart-contracted ability to pre-program future deals, nor its power to unlock innovations and service development value.

· dApp founders and their clients buy ET tokens with fiat or crypto, or receive them as gifts from other platform participants

· dApp founders become DAO directors, set business model and prices for their services (not less than a minimum specified by the protocol)

· Clients purchase access to the dApp services with ET Tokens

· DAO Directors, Service providers, oracles, and private blockchain node providers all have to hold a predefined amount of tokens to be able to participate in the platform

The information about Eternal Trusts Tokens

Storing clients’ long-term purposes on the blockchain, their autonomous execution using smart-contracts and Hybrid Intelligence, and the automatic search of optimal service providers to service the goals of the client.

Presale

The presale starts at 22 March 2018 and ends at 30 May 2018

Token Sale

The Token Sale starts at 1 June 2018 and ends at 1 October 2018

Token Information

Token ETT

PreICO Price 1 ETT = 0.01 USD

Price 1 ETT = 0.021 USD

Bonus Available

Bounty Available

MVP/Prototype Available

Platform EOS