Participation

Process

The token is linked to the ownership of underlying assets (including batteries, solar panels, charging stations, bus routes, and potentially ride-share vehicles) and related revenues represented by the token. The process can be divided into different steps:

• In a first step, BCD are created that correspond to part of the project equivalent value of the assets.

• The BCD are located on the wallet in the 0bsnetwork.

• As soon as a user registers via the Token Holder Dashboard (THD), a wallet is created in the background (Token Owner DApp).

• The seed phrase for this wallet is visible to the user in the THD and must be noted. Shelf Network has no access to the seed phrase and cannot reset it.

• The tokens are offered for sale in the token sale. This is done via the THD.

• Upon purchase, BCD are transferred from the wallet to the user wallet.

• The revenues are recorded in the blockchain and offset against the operational cost, required Capex, and incentives.

• The operating profit is shared between the token holders and Shelf Netwrok in an automated way.

• Token holders can have these winnings paid out via the THD. Either a cash-out in FIAT or in credits can be selected.

• Token holders can also spend these tokens on services covered in the system or transmit them to community members.

Risk Spread

In order to spread the risk for token buyers, participation takes place in certain cross-project assets or in certain entire projects, and not in a specific asset. This ensures an even distribution of profits and reduces the risk of short-term failures on specific assets.

Term

Participation in BCD is indefinite, contingent upon token ownership, ensuring continual involvement in operational profits. Upon completion of a tokenized asset's term, it is replaced with a similar model whenever feasible. Alternatively, if a superior equivalent emerges during this period, it can replace the outgoing asset. The value of the BCD is permanently backed by the long-lasting project.

Profit Sharing

The operating profit that is shared between Shelf Network and the token holders is calculated from operating revenues minus required costs.

Revenues

Revenues generated by assets, such as the bus fleet, include daily fares collected from passengers, advertising revenues from bus wraps and interior ads, and partnerships with local businesses. These revenues are pooled and allocated for operational expenses and profit distribution among coin holders.

Costs

Take e-bus operation as an example, operational costs deducted from the revenue include fuel or energy costs, bus maintenance, staff salaries, and administrative expenses. Shelf Network will also make an annual budget including the required Capex, incentives and other un-dispensable costs. The remaining profit is distributable to coin holders, ensuring that the token’s value is directly linked to the fleet's financial performance.

Profit Split / Sharing Mechanism

Profits generated from the operations are distributed automatically to token holders on a periodic basis, such as monthly or quarterly, depending on the total revenues minus operational costs. The distribution is proportional to the number of tokens each holder possesses, aligning the interests of investors with the efficiency and profitability of the bus services. The profit distributed to Shelf Network is also used to pay the costs of the KYC check and the transaction fees that are due when the CBD is transferred to the user wallet.

Incentives

Token holders may receive additional benefits, including discounted fares, priority booking privileges, or access to premium services. These incentives are designed to increase ridership and loyalty, enhancing the overall profitability of the bus services.

Token Purchase

The BCD token can be directly purchased without involving a broker, trading platform, or bank. There are no additional costs for users, and 100% of the capital goes into the investment product (token). This characteristic distinguishes the token from traditional securities. BCD can be acquired via the Dashboard in the Token tab. Due to tax regulations, BCD can only be purchased in pre-defined packages, which can be customized and adjusted by BCD during the token sale. Users have the freedom to purchase these packages multiple times, but there is a legal limit of 5,000 BCD for each token purchase. However, it is also possible to acquire a larger quantity of BCD. Prospective buyers need to complete a Certificate of Subscription and return it to BCD. This certificate can be downloaded from the Token Holder Dashboard. Once completed, it must be sent back to BCD via email or by post.

Before initiating the purchase process, it is necessary to download the Investment Framework Agreement and the Statutory Information Sheet. These documents are signed by clicking the checkboxes in the THD. By signing, the contract and the increased risk of alternative financing instruments are acknowledged. BCD offers various payment methods for purchasing tokens. BCD can be bought using cryptocurrencies or FIAT currencies. Most common cryptocurrencies, such as Bitcoin and Ethereum, are accepted as payment methods. The cost of a purchase in cryptocurrencies is determined and specified by the payment service provider. The range of accepted cryptocurrencies and payment methods may vary during the token sale period, depending on the payment service providers. For those who prefer FIAT currencies, BCD can be purchased via credit card payment, or manual bank transfer.

Once a payment is made, BCD tokens are transferred from the BCD master wallet to the user's wallet, which is automatically generated during registration. Users can view their token holdings directly on the dashboard or using the seed phrase through the 0bsnetwork client. Once the BCD tokens are in the user's wallet, participation in the operating profit begins.

In addition to the tokens purchased, buyers will receive bonus credits at the start of this token sale. Each credit corresponds to one FIAT of service credit, redeemable at the Shelf Network. To utilize these credits, it is mandatory to have a BCD account with Shelf Network, which can be created in the Shelf Network app. This account can still be created after purchasing tokens. A smartphone is required to use Shelf Network. The credits cannot be transferred to a third-party account. The number of bonus credits depends on the amount of BCD purchased and the time of purchase and can be viewed on the website.

Cash Out

Once the BCD tokens are in the user's wallet, participation in revenues begins. For calculating the participation, every hour the token remains in the respective wallet is considered. The user/owner can always view the amount available for payout in the dashboard, with displayed amounts being net amounts. A payout is only possible if the payout balance or participation fee is at least XXX FIAT. Amounts below this threshold cannot be paid out. Users have two options for withdrawing the balance: cash out in FIAT or cash out in credits. The preferred option can be selected directly in the dashboard. It's important to note that a cash-out is always initiated by the token holder and not by Shelf Network. BCD holders are free to perform a cash-out or choose to wait.

• Contribution Margin = Turnover excl. VAT – Required Costs

• Participation Payment = (Contribution Margin - Taxes) * Certain Ratio

• Distribution Amount = Participation Payment * (Number of Token Held by User / Total Number of BCD)

• Distribution Amount Less Capital Cains Tax = Distribution Amount – Capital Gains Tax

Cash Out FIAT

The first option for cashing out is in FIAT currency. Users can choose to withdraw the highest possible total amount or a partial amount, provided it exceeds 10€. Once a user requests a payout, it will be processed within a few days and executed on the 15th of the following month. The amount will be transferred to the user's bank account, which is the account provided during registration. Users can always view their account details on the dashboard and request changes through Shelf Network.

Cash Out Credits

The alternative option is to convert the payout amount into credits, which may be appealing to users who also utilize the Shelf Network services. Token holders selecting this choice will receive a proportionally higher amount of service credit compared to a cash-out in FIAT. The factor is set at a minimum of 1.5 but can be further increased by Shelf Network.

• Distribution Amount Less CGT in Credits = Distribution Amount Less Capital Cains Tax * 1.5

The credits are also added to the user's account on the 15th of the following month (accounting for CGT expense). The available credits can be viewed in the Shelf Network app and are deducted first when a service is taken.

Token Trading

Smart Token

At the time of the token sale, BCD is not yet listed on an exchange. To facilitate trading in compliance with worldwide anti-money laundering/know your customer guidelines, BCD is designed as a smart token. This means that the token can only be transferred to whitelisted wallets, which are wallets that have completed the KYC check via the Token Holder Dashboard. When a transaction occurs, BCD determines whether the recipient wallet is whitelisted or not. This fulfills legal requirements and prevents BCD from being sent to unauthorized wallets, as transactions to such wallets are blocked by the smart token.

Transmitting BCD

BCD token can be sent using the 0bsnetwork client (https://client.0bsnetwork.com/). The login details or seed phrase for direct access to the 0bsnetwork wallet are displayed in the dashboard. When accessing the wallet for the first time, the user requires the seed phrase. Subsequently, a password is set. For subsequent logins, only the password is needed. !!! It is crucial to emphasize that the seed phrase and password must be recorded and safeguarded by the token holder, as they are the sole means of accessing the wallet. Shelf Network does not have access to the wallet and cannot reset the password or seed phrase. If the seed phrase or wallet password is lost, the BCD will be permanently lost. Once logged in, users can send and receive BCD tokens.

For wallet-to-wallet transactions, ZBS coins are necessary. These can also be purchased through the 0bsnetwork client. Shelf Network has established a Telegram group to facilitate communication between buyers and sellers. The link can be found on the Shelf Network page (https://shelf.network/).

Use of BCD Income

Shelf Network achieves liquidity advancement through the sale of the BCD, with 100% of the proceeds allocated to further develop the startup and implement planned projects. The primary areas where the capital will be invested include:

• Development of a tokenized mobility and energy infrastructure platform: Expanding the existing Token Holder Dashboard to accommodate other mobility providers. This involves adding functions such as:

  • Asset Tokenization: Allowing other sharing providers to tokenize their assets and offer these tokens for sale through Shelf Network's platform.

  • Utility Token Integration: Establishing the token as a central element linking various sharing providers, enabling automated processes and creating value across the ecosystem.

  • Enhancing Tradability: Ensuring easy tradability of both the asset token and utility token via the platform, in collaboration with banks to facilitate global rollout.

  • Upgrading Blockchain Protocol: Switching to a larger and more scalable protocol to accommodate growth.

• Listing on (crypto) exchanges: Working towards listing the BCD and utility token on exchanges to expand the secondary market rapidly. This involves investments in technical, commercial, legal, and consulting efforts.

• Enhancement of Dashboard & App: Constant expansion of functions and connections on the token holder dashboard, along with the release of a dedicated app to improve customer experience.

• Recruitment: Hiring additional staff to manage hardware integration and vehicle servicing as the fleet size and platform expand.

• Marketing: Increasing awareness of the BCD and community engagement to enhance the overall solution's value proposition.