To those of you who are already familiar with traditional investment and startup ventures, a convertible note would be an apt and familiar description.

If you started your career in cryptocurrency and don’t know about convertible notes, don’t feel bad, Quantum1Net is the first ICO to structure our token as a convertible note.

As such the concept might need a bit of explanation.

FundersClub summarizes the convertible note as following;

“A convertible note is an investment vehicle often used by seed investors investing in startups who wish to delay establishing a valuation for that startup until a later round of funding or milestone.”

What it means is that we, Quantum1Net, is asking you the buyer to support us with a certain amount of ETH(the amount you chose to purchase Q1S with). In return you’ll get the convertible tokens that will be redeemed at a later point with our Gold token.

Had this been a normal seed, we could have paid you interest but as a startup, the ability to pay interest is not always possible or advisable.

Instead we compensate you with the option to trade your silver tokens for a larger amount of gold token as soon as it becomes available (+20% bonus upon conversion).

This means that the holder is getting a return on their Q1S not only from the expected increase in value of the token but also from the conversion bonus.

All holders of Q1S will receive information well before the conversion to Gold Coins is to be made. In the event that a holder of Q1S for some reason should miss the conversion there is no reason for worry. Additional opportunities to convert is planned. As the Silver token is locked at a fixed rate towards the Gold Coin, there is no risk of the silver token losing it’s value.

Silver token holders also get priority in buying more of the released gold tokens after the conversion.