AMA questions to Pareto Network, 27th of April, 2018.

Dear Community,

Thank you all for your submitted questions. We have tried to answer all questions to the best of our abilities. Not all questions could be answered simply because there is still a lot under NDA. We hope you understand. We are sincerely grateful to have such an awesome community standing with us in our exciting journey to become the nr.1 thought leader in the crypto space!

J_hoff83

Could you explain in more detail how tokens are released into the circulating supply? I understand there’s a team token lockup, a Strategic Reserve and a content contributor pool. Do I understand correctly that the team’s tokens are locked up for 1 year, the Strategic Reserve releases tokens monthly, and the content contributor tokens are released whenever you recruit a new content contributor?

Functionally, tokens are released into the circulating supply when they are simply outside of certain addresses. You do understand correctly that team tokens are locked for 1 year and this is dictated by a smart contract readable on Etherscan.

Content contributor tokens are not locked and are earmarked for new content contributors for a time, this is going to be tied to our new rewards smart contract and an oracle that is able to compensate anyone that deploys a rewards contract. Depending on the implementation we may be able to lock them and allow the smart contract and oracle to function autonomously.

The strategic reserve is capable of releasing tokens monthly, but this doesn’t mean it goes into the circulating supply. It has to be triggered manually by a special transaction and will reject transactions that occur within 30 days of each other. When it releases tokens they go into a company address which is not in the circulating supply, when they are moved from there it is reported in the circulating supply. Many of our partners are compensated on a variety of metrics, in Pareto tokens.

J_hoff83

Are you considering releasing some sort of financial report in the future, for the sake of transparency?

Some of our partners are engaged in contracts with us where their own independent revenue is split and used to buy Pareto tokens from the open market. We have considered sharing information about that as those ramp up and create recurring demand for Pareto tokens.

p_ajit_singh

How will the quality of the content from regular content providers on the platform be maintained? Is the reward/incentive mechanism the only way of filtering out bad or unreliable content or are there other mechanisms in place to ensure high quality and reliable intel?

The reward and incentive mechanism is the primary way of filtering bad or unreliable content, deploying content on our network will also have a cost through the rewards smart contract. In other words, we have two ways of ensuring the info is of high quality and not spam; reward/incentive mechanism and the fee that is required to post new intel.

biohaxxor

Is the speed of the intel distribution/access based on a threshold of a certain amount of spend tokens on the intel, or just purely based on your ranking in the waterfall?

Your ranking in the waterfall is based on your tokens held, how long you’ve held them, and how much you have spent some.

biohaxxor

Also, continuing of my question, what is the difference in time of intel distribution between different rankings? Do higher ranks receive the actionable intel a minute/hour/day/week before the lower ranks?

There are actually four speeds with which intel falls through the waterfall, to accommodate the time sensitivity of some information. The speed is dictated by the intel provider. The most actionable will float from the highest ranked to the lowest ranked in a matter of hours, whereas the least actionable can take a week. The system uses standard deviations and Ethereum block time to determine this, so minutes/hours/days/weeks are just approximations.

Ashbite

What did you work on during this week with EndoTech?

We brought in a variety of third party partners that had been wanting to meet with EndoTech and learn about their technology, and also coordinated how those meetings would also benefit the PARETO market and infrastructure.

SalmonFox

Can you explain the benefits of the new EndoTech deal?

Recurring demand for PARETO tokens, based on that company’s independent growth and scaling efforts with their own partners. They can pursue traditional business models in the fiat world.

Iszla_9

What kind of companies are (going to) use the Pareto Network?

Directly: Family offices, institutional investors.

Indirectly: Broker-dealers and their customers.

Pareto4Life

Can you share more about the big brokers that are testing the pareto network? Can you share who they are or are there any nda’s that will be cleared soon?

We can’t share that yet. A lot of this work comes from EndoTech and the partners they are integrating with, and some of it comes from Pareto Network Ltd. with different partners. They are brokers of various sizes in various markets. However, rest assured there are some great things in store that will be revealed in due time.

Yla200

Can you elaborate more on the AI features that will be offered by the Pareto Network, how does it work? What kind of AI output can we expect and use in our trading actions?

EndoTech is offering AI to determine sentiment changes in the crypto markets, also the portfolio product uses artificial intelligence and machine learning to rebalance and provide those updates to users. Let’s clarify the question: this is what is offered ON the Pareto Network, not by the Pareto Network. Third party intel providers create the information using whatever technological infrastructure they have.

Garsonhere

Could you see Pareto Network growing to perform similar AI style information gathering and assessment on companies outside of the crypto market, say like the NASDAQ? Could Pareto perform similar evaluation allowing people to contribute and research non crypto Investment opportunities for fiat investors?

Yes. There are several reasons why the Pareto Network leadership team only talks about cryptocurrency and digital asset marketplaces but it should be enough information to allow people to independently see that our platform is agnostic and unable to differentiate between capital markets, while providing the same incentives for sharing the event-driven information. So, the answer is yes, Pareto could also perform a similar function in, for example, the forex market. In fact, due to its decentralized nature it has a much higher potential to contribute crucially to information sharing in regulated markets than current options, who are often censored to a certain degree by powerful stakeholders.

MasterSamurai11

Which type of early content contributors are you planning on adding to the platform? For instance ICO analyst with extensive research on suggested ICO’s? Signal trading groups?

The following content will be released early on:

· Value investing analysis that factors in coding changes in cryptocurrency source code.

· ICO analysis.

· Macro analysis for things that influence the digital asset space as a whole.

NetworkDowner

As you may be aware, there are a lot of communities that have private groups that share trading ‘“calls” at a cost per month. Do you think these services might be something one can share onto the Pareto Network?

If the calls actually result in better results for traders, then the Pareto Network would be a good place to share it and a more transparent way of determining how valuable that information actually is instead of the guess work needed to determine a monthly cost.

Alladvantageceo

Are there any issues surrounding the leaking of information (e.g. “insider trading” as much as it can exist in an unregulated crypto market) that could arise moving forward with the platform?

The platform addresses its own liability in a variety of ways and this is distinct from the liability of the intel providers and traders. Our user agreement will make this clearer before other intel providers are onboarded. The community will be expected to use their own discretion and create liability mitigating tools such as those provided by the blockchain.

Hassie456

Can you tell me more about your strategy to become the number one thought leader and knowledge sharing platform in crypto?

By integration with family offices, institutional firms, and traditional financial media. In the end, Pareto’s ambition is to provide a intelligence platform where intel of all sorts can be shared. Rather than limiting ourselves to one kind of content, we have the only platform in crypto that can provide qualitative actionable content, which is in many cases more valuable than a speculative number on future prices.

GreatGeneralHanXin

How many people are currently developing the platform and will you recruit additional developers?

There are around 4 developers working on Pareto Network’s platform.

There are an additional 3 developers working on Pareto’s upcoming Ethereum smart contracts.

EndoTech and other intel providers have their own scaling and growth strategy to roll out products.

Cryptodude0

What is the background of the developers in the cryptomarket and why is the UI still looking like it’s in alpha version?

The developers have a lot of experience. The UI is going for functionality first and we haven’t merged the development branch into the staging and production branches.

Pare_ko

Any chance in the future that PARETO tokens don’t have to be erc20 token anymore and have a mainnet release?

There are no plans to use our own blockchain. It is also unlikely that we are going to swap to ERC223 or other Ethereum proposals, or swap to another blockchain token.

Binkie1990

Could you elaborate some more on your marketing strategy to increase adoption/attention to a wider audience?

Products, contests, targeted airdrops, influencer marketing, referrals and a distributed growth and marketing strategy from our intel providers.

Ashbite

Are you currently approved for major exchanges or can we expect new listings soon? I know there is a NDA but a very general answer would be awesome.

I cannot comment on that. We wouldn’t want to bring existing NDA’s in jeopardy.

CPChain-General & Queencleo77

I heard rumors about big partnerships coming up that will be working on the Pareto Network. I cannot talk here about the precise companies but they are huge. Can you elaborate a bit more if these rumors are true? Are there any more strategic partnership talks going in place beside Endotech?

We can’t elaborate on partnerships that aren’t ready. It’s just one business talking to another business trying to finalize a deal in private before announcing it publicly, standard affair. There are more strategic partnerships going on besides our ones with EndoTech. We’ll try to find a way to incorporate teasers, but that’s not standard.

Ste7han

Compared with Steem, what makes Pareto different or better?

Primarily the focus of the content and the complexity of offering the system are different. Pareto Network is focused on financial information and is an erc20 token, using Ethereum’s robust(-ish) development toolkit and blockchain for its incentive model. Steem uses its own esoteric blockchain and three tokens to achieve the result of being able to pay content contributors.

The only similarity, from my perspective, is that content contributors have the ability to be paid. With that in mind, the more monetization paths there are, the better things are.

The reasons why content contributors would get paid are very different between the systems.

Jaspervd

What are the main differences between Pareto and CND?

The main differences are the incentives, goals, access requirements and Pareto Network’s distributed nature.

Cindicator’s primary offering is a crowd intelligence system. Pareto Network is based on the event-driven information that the crowd cannot come up with.

Cindicator’s most premium offering is a bot that gives arbitrage signals, in Pareto Network any one of our intel providers could offer those kinds of observations.

Pareto offers the ability to provide both quantitative and qualitative actionable intel, which may have much higher value for actionable event that is not numerical in value such as insider’s information, exploitable bugs, fundamental analysis, etc.

Cindicator has fixed arbitrary minimum token ownership requirements to access its services. Pareto Network’s incentive model relies on a dynamic decentralized scoring algorithm, which allows users to get above access thresholds in a variety of ways, no matter what the cost of a single PARETO token is. (Note: Pareto Network or partner products which use PARETO may implement arbitrary fixed thresholds too)

CryptopherWalken

If these markets become regulated, how do you intend to deal with potential transmission of MNPI (material nonpublic information) on the platform?

1) The short answer is that users shouldn’t disclose or trade on information if they want to absolve themselves of liability. Simple. This is also distinct from Pareto Network’s own potential liability which may be addressed by what our technology is actually doing:

2) Information on the Pareto Network will be stored on IPFS and not really in plain text on our servers. As such we wouldn’t be aware of the existence of sanctioned information on the platform since it would really be stored across various shards on the decentralized IPFS. This implementation is for the confidence of PARETO owners with the highest scores that they really are getting information first and they don’t have to trust Pareto Network employees, but this may also have consequences for the ability of Pareto Network to share liability related to MNPI.

3) Intel providers in oppressive regimes can lean on the community on how to use the blockchain to unlink their identity and funds to participate in the Pareto Network.

4) In conclusion: If the information dissolves a market inefficiency, and is valuable, it may be on the Pareto Network, and the software cannot tell if the market inefficiency is perpetuated by the state. PARETO tokens give exposure to the expected value of information.

5) Sharing “illegal information” is also against our “terms of service”.

Jaspervd

How are you planning to attract more providers to the network?

In our ongoing curated phase, we have a few providers in the space that we are already in ongoing discussions with, these are analysts firms that currently provide information to their Wall Street clients and family offices. In our open phase we are considering referral programs and airdrops to get the attention of everyone’s favorite crypto gurus. We also have dedicated employees to help contact and onboard people.

After getting their attention, the built-in monetization path of using the Pareto Network is the real attraction for them.

Osiris-e

Would the platform also be available to use on the mobile and would it also have a mobile wallet in the future?

The platform is available to use on mobile using any dApp browser. Therefore, the Trust wallet on iOS and Android is already a mobile wallet. As these wallets are open source, we can consider forking the source code and branding one as Pareto.

DoctorYoshimitsu

What is your central vision for Pareto Network? Aka where do you see it go the coming months, years, and so on?

I see the Pareto Network being a vital tool for participants in all capital markets. There are use cases for even regulators to compete for high scores. Pareto will become the nr. 1 thought leader in crypto. We will do everything within our power to make this a reality. We are a very ambitious team and work hard to achieve our mission. Rest assured, not only are we on schedule, it’s a very exciting time for Pareto in the coming months!

Thank you!