Valis Stablecoins Seed D Fundraiser

Now Live: The Valis Stablecoins Seed D Fundraiser is scheduled to run from December 16 to December 22, 2024, to support the development of Valis Stablecoins.

Key Data

Introduction

At Valis, we are developing Valis Stablecoins — the world’s first truly free, scalable, transparent, consistent, and instant stablecoins. By leveraging Qubic for high-throughput, feeless transactions, and Valis Network for unparalleled scalability, we’re building the future of stablecoins.

We see the stablecoin market poised for explosive growth across both the cryptocurrency and traditional finance sectors. Our goal is to seize this opportunity, and we invite you to be part of this transformative journey.

We are now launching our first fundraising initiative to support the development of Valis Stablecoins. This initial seed fundraiser presents a unique opportunity for investors to become early stakeholders in this groundbreaking project.

The concept behind issuing stablecoins is straightforward: When you provide a dollar, the stablecoin issuer (in this case, Valis) creates a token redeemable for one dollar at any time. To uphold this commitment, Valis stores the dollar in highly liquid assets, like short-term U.S. Treasury bonds, which retain their value and yield interest. Valis retains these earnings since the redemption pledge remains at one dollar.

In return for their investment, approved participants will receive VSTABLE tokens. These tokens grant holders a right to a share of the net profit generated by Valis Stablecoins. With a total supply of 100 billion VSTABLE tokens, 1 billion tokens equates to a 1% share in the generated net profit from Valis Stablecoins.

Strategy

Our fundraising strategy for Valis Stablecoins sets us apart from many crypto projects. Rather than launching a typical ICO with the full supply issued upfront or relying on bots, vanity metrics, memes, and rocket emojis, we are taking a deliberate, phased approach. Please review the details below to ensure mutual alignment and to understand our vision and process.

To minimize unnecessary dilution, raise capital only when needed, and adapt to market conditions, we will conduct a series of small funding rounds. Each round will be initiated based on demand from both investors and Valis. Once the Valis Stablecoins project matures and achieves self-sufficiency, these sequential rounds will be discontinued.

Our goal is to partner with a select group of investors who are fully aligned with Valis' vision and strategy. We prioritize quality over quantity—choosing discerning individuals and trendsetters who recognize true value and are not easily swayed by fleeting narratives. We'd rather raise less from aligned backers than more from those who aren't a fit.

While investors are free to decide where to allocate their capital, Valis reserves the right to choose its investors. Unlike most crypto projects, our fundraising process is not open to everyone. We retain the right to accept or reject any investor at our discretion. We carefully vet each potential backer, both before initial discussions and throughout the token issuance event, ensuring alignment with our long-term vision and values.

Definitions

Fundraiser Definitions

Phases

• Seed Phase: Initial fundraising for product development and market validation.
• Growth Phase: Focus on scaling operations and expanding market share.
• Consolidation Phase: Optimizing operations, achieving profitability, and strengthening market position.

Assets

• VSTABLE Rounds: Fundraising rounds organized inside each fundraising phase (seed, growth, consolidation) to support Valis Stablecoins development. Each round is labeled by a letter (e.g., VSTABLE A, VSTABLE B).
• VSTABLE Addresses: Wallet addresses where funds from each VSTABLE Round are consolidated. Each address is tied to its round (e.g., VSTBA…, VSTBB…).
• VSTABLE Tokens: Tokens representing revenue rights from the Valis Stablecoins business.
• VSTABLE Versions: Versions of the VSTABLE token. Each token version is identified by a unique number (e.g., VSTB001, VSTB002).

Mechanisms

• Fixed Price: Tokens are sold at a predetermined, constant price throughout the round.
• Blind Auction: Investors submit bids indicating their price per token, without seeing other bids. Tokens are allocated to the highest bidders, up to the round’s cap.

Targets

• Uncapped Round: A round with no maximum funding target; investors can contribute freely until the round concludes.
• Capped Round: A round with a predefined funding target; once the cap is reached, no further investments are accepted. If demand exceeds the cap, investors who were not allocated tokens are invited to future rounds.

Acceptance Criteria

• Minimum Token Bid: The minimum price per token required to participate in each round, adjusted to reflect the project’s evolving valuation.
• Minimum Investment: The minimum contribution needed for participation in each round. If the threshold isn’t met, investors can join an Investment Syndicate, pooling resources to meet the minimum. This amount increases in subsequent rounds.

Timeline

• Bid Submission Deadline: The date by which investors must submit their bids to participate in the token allocation process.
• Bid Evaluation Deadline: The date by which all submitted bids will be reviewed and evaluated to determine final allocations.
• Token Issuance Deadline: The date by which tokens are distributed to investors following bid evaluation.

Token Definitions

General

• Net Profit: The total revenue generated from Valis Stablecoins operations after all expenses, including operating costs (salaries, infrastructure, compliance, marketing), platform fees, regulatory compliance, taxes, interest, depreciation, and both explicit (e.g., processing fees) and implicit (e.g., volatility, slippage) transaction costs. Net Profit is the basis for calculating distributions to VSTABLE Token holders.
• Speculation: Buying or selling based on short-term price movements, often detached from the underlying asset's value.

Investor Types

• Individual Investor: A person holding VSTABLE Tokens.
• Collective Investor (a.k.a. Investment Syndicate): A group that pools investor resources to hold VSTABLE Tokens. Only the representative is recognized as the direct investor.

Investor Relationships

• Direct Investors: Investors approved by Valis and in direct communication with the team.
• Indirect Investors: Investors not approved by Valis and without direct communication with the team.

Investor Status

• Standard Investor: An investor without "Key Investor" status, receiving Standard Reporting.
• Key Investor: Top 10 direct investors contributing more than $100,000 across rounds, receiving Advanced Reporting.

Investor Access

• Standard Reporting: Periodic updates with key metrics, excluding confidential information, available to direct and indirect investors, as well as the public.
• Advanced Reporting: Comprehensive access to sensitive information on partnerships, financials, projections, and salaries, available only to Key Investors.

Terms

Fundraiser Terms

Round D of the Valis Stablecoin Seed Fundraiser is designed to provide access to investors of various sizes, offering the final opportunity to join Valis at this early stage.

Operating under a blind auction format, Round D introduces a dynamic pricing approach, allowing investors to bid for tokens starting at $0.00014 each. It is capped, limiting total token sales to $100,000 in value, and requires a minimum investment of $10,000 per participant.

Investments can be made in USDT or QU. Valis will evaluate QU bids based on their USDT value at the time of the bid submission deadline, minus a 5% adjustment to cover conversion fees and risks.

Participation in this round is open to all investors pre-approved by Valis, ensuring alignment with Valis' vision and strategy.

Round D will begin on December 16, 2024 (the day after Round C concludes), and conclude on December 22, 2024. Tokens will be issued by December 24, 2024.

Interested investors can follow these steps to participate in the blind auction:

1. Contact Valis: Join our Valis Discord and send a private message to Spelunker.
2. Ask Questions: Reach out with any questions about our plans or the investment process.
3. Submit Your Bid: We are not utilizing smart contracts or software for the bidding process. Instead, once you're ready, submit your bid to Spelunker before the Bid Submission Deadline, including:
• The coin you want to use (we accept QU and USDT).
• The amount you wish to invest.
• The price per token, which must meet or exceed the minimum bid for round D ($0.00014).
• The Qubic address to receive your VSTABLE tokens if your bid succeeds.
4. Complete Your Investment: After your bid is confirmed, you'll receive a unique address for the transfer. Once the transfer is completed, your bid is final and cannot be withdrawn.
5. Receive Your Allocation: Once the bidding process concludes, investors will then be notified of their allocation according to the final auction results. Tokens will be distributed to winning bidders, while non-winning bids will be refunded, minus any applicable transfer fees.

Valis upholds strict confidentiality during blind auction rounds. Throughout the process, investor identities, pseudonyms, bid details, and anticipated fundraising amounts will remain undisclosed. After the round concludes, details such as winning investors, investment amounts, bid prices, and oversubscriptions will also remain strictly confidential and will not be disclosed.

Token Terms

By participating in the fundraising round, investors agree to the terms governing the VSTABLE Token (currently in the VSTB001 version), as outlined in the VSTABLE Terms in effect. These terms govern the rights and obligations related to the revenue share from Valis Stablecoins.

The VSTABLE Token terms are subject to periodic updates. To continue receiving revenue share, investors must accept the updated terms for each new token version. Updated terms will be provided prior to the issuance of any new token version, and continued participation will require explicit consent to the updated terms.

Failure to accept the updated terms for future versions of the VSTABLE Token will result in ineligibility for any further revenue share from Valis Stablecoins.

Disclaimers

Fundraiser Disclaimers

This fundraising round does not guarantee any specific returns and is subject to the general risks associated with early-stage investments, including but not limited to market volatility, regulatory changes, and the uncertainty of product development.

Investors should have a basic understanding of blockchain technology, stablecoin market dynamics, and the inherent risks of investing in cryptocurrency-related projects.

By participating in this round, investors acknowledge that they are investing in a yield-based business model with liquid assets, subject to potential regulatory developments, including but not limited to Know Your Customer (KYC) and other compliance requirements. Investors who choose not to comply with such requirements may liquidate their tokens if required, ensuring the system remains compliant while offering investors a straightforward exit option.

Valis reserves the right to exclude any investor after bid submission, even if they are among the highest bidders, based on further evaluation or other strategic considerations. Additionally, the fundraising round may be canceled if the desired mix of investors or sufficient funds to meet the project’s strategic goals are not achieved.

VSTABLE Disclaimers

VSTABLE tokens represent a future claim on revenue. These tokens do not represent equity in the company, nor do they give ownership in the business, grant voting rights or any other form of control. The VSTABLE tokens do not promise a return based on the efforts of the founders or team members. Instead, the revenue is dependent on the product performance, market demand, and revenue generation of the product after it is launched live and operational. The revenue-sharing mechanism is entirely dependent on the performance and success of the product. Valis founders are not legally obligated to generate any specific revenue or profit, and the distribution of revenue is contingent on the operational success of the product.

Additional Information

We encourage you to read “The Case for a Qubic Stablecoin” series fully:

1. Part 1: The Why Question.
2. Part 2: Marketing Qubic.
3. Part 3: The Best Option.
4. Part 4: Fast, Faster, Qubic.
5. Part 5: Growing the Ecosystem.

While these posts cover the why, what, who, and when, the “how” continues to evolve. Key shifts include:

• From a CCF Request to Private Fundraising.
• From full legal compliance upfront to progressive compliance.
• From fiat-backed stablecoins with US Bonds to generate yield to stablecoin-backed models with DeFi products.
• From high throughput in one-to-one transfer scenarios using Qubic smart contracts to high throughput via Valis Network.

These changes reflect our ongoing learning and re-evaluation of trade-offs, and the strategy may continue to evolve. At this early stage, investing is more a bet on the team than a guarantee on a specific approach.

Additionally, you can check our website, follow us on X, join the Valis Discord, or contact us:

• Send us a direct message at valis_team on X.
• Use our web form.
• Email us at hello@valis.xyz.

Next Steps

If you are interested in participating in this round, please join the Valis Discord and send a private message to Spelunker (_spelunker_). We will provide you with more details on how to participate and answer any questions you may have regarding the Valis Stablecoin project or the terms of this offering.

Annex 1 - Blind Auction Examples

To clarify the blind auction mechanics, here are scenarios for a $10 cap round, with a minimum bid of $1 per token. Investors (A, B, and C) privately submit their bids—stating both their price per token and desired quantity—without visibility into others’ bids. Valis then allocates tokens starting from the highest bids until the cap is met, with unfulfilled bids carrying over to future rounds.

Scenario 1: Single Bidder Meets the Cap Alone

Scenario: 2. Multiple High Bidders Share the Cap

Scenario 3: Partial Fulfillment Due to Demand Exceeding Cap

Scenario 4: Cap Not Fully Reached, but All Bids Fulfilled

On this page

• Valis Stablecoins Seed D Fundraiser
• Key Data
• Fundraiser
• Bids
• Token
• Timeline
• Introduction
• Strategy
• Definitions
• Fundraiser Definitions
• Token Definitions
• Terms
• Fundraiser Terms
• Token Terms
• Disclaimers
• Fundraiser Disclaimers
• VSTABLE Disclaimers
• Additional Information
• Next Steps
• Annex 1 - Blind Auction Examples