Escrow and Vesting Mechanisms- Alprockz Whitepaper Chapter 13

In order to offer potential future users to enter ROCKZ platform at a later point of time, while we prove the strong use case of ROCKZ, we have developed the following mechanisms directly in our smart contract:

ESCROW MECHANISM

Out of the 175,000,000 units of APZ minted (“max. supply”)

• Only 10% (17,500,000 units of APZ) will be sold during our private sale, and 5% (8,750,000 units of APZ) during our ICO. Overall only 15% of max. supply to be sold (26,250,000 units of APZ) during our private sale and ICO.

The remaining tokens will be distributed as follows:

A. 10% (17,500,000 units of APZ) to our early-stage / seed investors with no vesting

B. 15% (26,250,000 units of APZ) to our Founders, Core team and Advisors with a vesting over 18 months

C. 60% (105,000,000 units of APZ) in escrow (“the escrow”) to be released as treasury with the following specific mechanism:

Directly after the ICO, 8.34% of the escrow (8,750,000 units of tokens) which is approx. equivalent to 5% of max. supply will be available as treasury to manage the APZ’s supply, as well as demand in excess of the supply on secondary markets.

The rest of the escrow, which post-ICO is 105,000,000–8,750,000 = 96,250,000 units, will stay in escrow, and will be released at our discretion as follows:

No tokens released in the first six months after the ICO.

Starting six months after the ICO, up to 3% (3.06%) of the escrow to be released per month (3,207,750 units of APZ) over a minimum of 30 months (post ICO escrow/ 3.06% of the escrow which gives 96,250,000/3,207,750 = 30.05 months) and a total number of months of 36 months (30 + 6 freeze).

Only the required number of tokens generated by the incremental 3% release from the smart contract per month will be used to address market demand. This will enable us to manage the APZ market supply, or raise additional funds to develop our platform;

In other words, we will have the possibility to “call” the cumulated sum of tokens from the smart contract ( adding up the monthly 3% of tokens released from the escrow) in order to increase the number of tokens in circulation based on the market demand

The escrow mechanism will enable us to raise additional funds in the future in the same fashion as following equity fundraising rounds (i.e. Series A, B, etc.) to finance further developments of our platform.

VESTING MECHANISM

As mentioned above, both the Founders, Core team and Advisors, and the private sale investors will have a specific 18 month vesting mechanism on their APZ tokens. The mechanism works as follows:

Directly post minting: 25% of APZ tokens are made accessible.

-Six months post minting: Additional 25% of APZ are made accessible (aggregate of 50% of total).

-Twelve months post minting: Additional 25% of APZ are made accessible (aggregate of 75% of total).

-Eighteen months post minting: Additional 25% of APZ are made accessible (aggregate of 100% of total).

DELAYED MINTING OF VESTED TOKENS

Why does our vesting mechanism use delayed minting instead of pre-minting? The minting has been designed as it has, to mint the team’s tokens at the end of the ICO. The reason for this is that vesting applies from the minting and it would therefore be wrong and unfair to mint team & advisor tokens before the end of the ICO.

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