VMC, a blockchain-based mobility platform based in the Netherlands, has launched an STO. Like Bitbond, this STO also takes place on the Stellar network.
“Even in San Fransisco, I saw the same problems I experienced everywhere in the world. I could not believe it. How can we be inside of all those offices creating amazing tech solutions and outside we’re still stuck in traffic? Wasting our time,” says Jochem Verheul, Founder and CEO of VMC.AI.
He’s not wrong with that. Not only in San Francisco traffic is an issue. Main roads are often overloaded, and public transportation is expensive and often slow. The mobility sector is inefficient and costly.
VMC offers a blockchain-based mobility platform
In the Netherlands, you can now take the world’s first blockchain-powered bus.VMC.AI is the company behind the project, which has set out to deploy blockchain technology to improve public transportation.
Whenever passengers hop onto the bus, they log into a mobile app and scan their QR code. Once they arrived at their destination, they log out of the app. Users will pay for the ride with the VMC transport token called VAI.
Passengers don’t have to purchase or carry physical bus tickets anymore, and the app stores all data safely and securely. Thus, the user has control over his/her data, and the travel is anonymous.
VMC GO will serve as a platform for passengers, public transport, and third parties to share information, exchange value and keep records. The app is built on the hyper ledger fabric and will be available for Android and iOS soon.
Security token holders are entitled to share of revenue
To fund the project, VMC.AI is currently undergoing an STO. The soft cap is €1m, the hard cap is €5m, and the maximum number of tokens issued will be 100,000,000. The firm allocates most of the funds to research & development.
The issued security tokens are digital securities. Token holders are entitled to up to 40% of gross platform revenues. Revenues, not profits! CEO Verheul says, “Distributing a share of revenue fits the principles of the blockchain industry.”
The VMC platform allows everybody to build applications on it. Hence, the more transaction VMC processes, the more revenue it will generate, and investors will receive higher returns. Thus, token holders will be well advised to hodl the token, as rewards should increase over a prolonged period.
The first round is a private sale, at a 30% discount and a minimum investment of €5,000. Tokens sell at €0.14. Buyers in the first round will sign a Simple Agreement for Future Tokens (“SAFT”).
The second round will start on 14th April 2019, tokens sell at €0.20, and the minimum investment is €500. Investors who buy a minimum of €50,000 can get the token at €0.16.
Besides the VMC-ST security token, the firm also sells a utility token called VAI. It functions as a stable coin and can be used to pay for services within the platform.
When asked why the company has decided to issue both security tokens and utility tokens, CEO Verheul said, “With a stable token for the transactions/travel and a security token for the investment, we can capture the network effect in the security token, without harming the stability of the travel token.”
Stellar is preferred network for asset tokenization
VMC conducts its STO on the Stellar network. The official announcement reads, “This makes VMC the first security token in the Netherlands that will run on the Stellar blockchain. Investors can use Bitcoin (BTC), Ether (ETH), Stellar Lumens (XLM) or Euros to participate in this security token offering.”
The first STO in Germany, Bitbond, is also conducted on the Stellar network, which offers many advantages for asset tokenization. VMC says, “After carefully evaluating different blockchain platforms we decided that the Stellar blockchain is the best fit for VMC, to leverage its fast and scalable blockchain. […] Stellar is a decentralized payment transfer protocol. Its unique technology leads Stellar blockchain to be lightning-fast, instantly scalable and energy-efficient.”