WePower ICO Review – ICO Token News
Introduction to WePower
WePower was developed to change the scenario of how energy is developed and distributed. It is defined as a blockchain-based green energy trading platform which allows renewable energy producers to raise the capital by releasing their own energy tokens. The WePower tokens (WPR) will represent the energy which is committed to be produced and delivered by the renewable energy producers. In this way energy procedures can directly trade with green energy buyers and upsurge their capital by selling their energy at realistic prices.
What is WePower?
Today, as the energy has become decentralized in the nature, therefore it requires decentralized delivery system for it. That’s why the company has introduced the energy tokenization combined with a platform which is developed on decentralized data-base to open the doors of green energy market to the broad pool of investors around the world. With this open platform, new energy projects do not need to rely on local investors only. Asset liquidity brings promising capital-to-debt ratios without utilizing Government subsidies. The company provides simple investment process through WePower platform to reduce the financing cost, which is ultimately split between the renewable energy producers and consumers/investors.
WePower is an independent energy supplier that runs under the established regulation guaranteeing relationships with transmission system operators, distribution system operators and the fair utilization of infrastructure. Moreover, it also acts as a market participant that connects to wholesale energy markets to buy and sell energy when required. The WPR token model is structured as reward based crowd funding where participants are rewarded free energy that they can use or sell on the platform. Currently, WPR token solution is known as one of the pioneering transmission system Operation in Europe.
The Ministry of Energy of the Republic of Lithuania has supported this project due to its possible social impacts on climate change control. The project will also share its part of technologies to those countries who want to implement green energy and CO2 accounting by utilizing blockchain technologies. The innovative model of WePower tokenization was clarified by the European regulator. This is a reward based crowdfunding structure where contributors will reward free energy which they are using or selling on the platform
What is WePower Platform?
As we have already said, WePower is a green energy trading platform based on blockchain technology. It plays well in connecting energy buyers to the green energy producers and allows for purchasing energy upfront at below the market prices. It uses energy tokenization to simplify, standardize and open its doors globally for current existing energy investment ecosystem. In legal terms, WePower works like an independent energy supplier that allows WePower platform to get connected with the energy grid and the local energy exchange market, and also with the end users of the energy. It gets all the data related to consumed and produced energy with price from the energy grid and energy exchange markets. The future energy production of the renewable energy producers will be tokenized once they get connected with WePower platform.
Problems resolved by WPR
The WePower is moving ahead with the aim of eliminating the current problems of accessing capital for renewable energy producers and access to investments in profitable projects for final consumers directly. This will be accomplished by using fastest and transparent method of blockchain and energy tokenization. By implementing advanced technology, WePower provides solutions for the following market insufficiencies: –
- Global access to capital for the green energy projects
- Global accessibility for green energy investments and trading (i.e. liquidity)
- Transparency and speed
What is WePower token model?
With the help of WePower platforms, renewable energy producers can tokenize and sell the energy which they produce. The renewable energy producers who are connected with the platform can issue their own energy tokens within the WePower platform. One energy token will represent 1 kWh of green energy that would be generated in a certain time in the future. Each renewable energy plant will be connected to the WePower platform to organize an auction for the sale of tokenized energy. The token holders of WePower will get the opportunity to access such auctions and their allocation will be completely influenced by the number of tokens they have.
For the sale of energy tokens to the buyers, every new plant will have to create an auction on the WePower platform with minimum price for each token. This will show the energy to be generated and delivered. The benefits of tokenization of renewable energy for renewable energy producers and investors includes:-
- Renewable energy producers can pre-sell their production in the global market and gain required capital to increase the project profitability
- Investors can enjoy the benefit of better investment terms and access the green energy projects across the globe in a standardized manner. All such developments will play significant role in making green energy as an appealing asset class.
Tokenized energy auction
Due to the auction mechanism, every new renewable energy plant will provide more economical energy to WePower Platform users. The auction mechanism is set at the lowest price for energy per 1 kWh. The WPR token holders will get priority to access the auction 48 hours in advance. After the elapse of this time duration, the remaining energy will be provided to all the participants of the WPR platform. The auctioning party will set the lower price offering. All the historical and current energy prices are visible on the platform. This will provide market price reference for energy and act like a reference limit for maximum energy price.
Rational database are sufficient in case of various applications and situations but still two factors of scalability and sustainability are restricted with these databases. This is the reason why blockchain comes into the existence and allows for:-
- Innovative way of community interaction across applications
- Offer third party liquidity via exchanges and decentralized exchange protocols
- Highly efficient due to its smart contract elimination of intermediaries
- Immutability of data for enhance security
- As compared to centralized database, it will cost cheaper maintenance
- Prediction and history of transactions
The company focuses on developing a platform that helps finance renewable energy and encourage the people to join it. It aims to develop perfect platform that can produce optimum value creation for all the participants according to market conditions.
Energy Token Use
Each energy token shows 1 kWh of green energy to be generated by a certain time in the future. The energy token owners have the below options:-
- They can use it
- They are allowed to sell it before its production
- They can sell it to wholesale market when it is produced and invested
In case token holders go with the third option then they can:-
- Cash out the profits instantly or at the future date
- Reinvest the amount in green energy and restore the value through energy tokens
The token value will grow with raising price of energy as well as the crypto market.
Token Sale Model
The company has structured its WPR token sale to fulfill the requirements of applicable regulatory. They structured the token sale as a reward based crowd funding campaign where contributors will receive WPR tokens in return of their donations.
The WPR token holder will get first priority to bidding for acquiring energy from each new plant which connects the platform. After this bidding, rest of the tokens will be sold to other users of WPR.
According to terms & conditions of WePower platform, each renewable energy producer will need to donate 0.9% of all tokenized energy to the token holders. Each token holder will get the tokenized energy proportionally. The token holders are have the right to sell or use their received tokenized energy.
Terms of WPR Token sale
Total WPR token Supply (100%)
The company will determine and announce the total token supply when it is closer to the token sale date account for the ETH price fluctuations. The token supply will depend on the fund raising targets which are listed below:
Total WPR token supply for sale (55%)
Tokens sold during pre-sale and public sale events will contain 55% of total token supply. Total token supply for the sale will be 35 million USD (as per company hard cap)
Team, community and user growth (45%)
Numbers of tokens depends on the number of sold tokens
- Soft cap : 5 million USD
- Exchange rate for token sale until the soft cap : 1 ETH-4600 WPR
- Exchange rate for token sale above the soft cap : 1ETH-4000 WPR
- Minimum investment amount : 200 USD in ETH
- Main Token sale date : 1 February 2018
- Period of the token sale : 14 days (block number TBD)
- Unsold tokens: burned
- Public token pre-sale : completed on 22 Oct 2017 after raising 3 million USD
The WPR token distribution will be done in following manner:
- Token sale contributors : 55%
- Community and user growth : 15%
- WePower team : 20%
- Future Stakeholders : 10%
During the pre-sale and main sale, the company will sell 55% of all token supply. The unsold tokens will be burnt. Tokens which are allotted to the team will be locked for 3 years with vesting schedule and tokens for the future utilization will be locked for 4 years.
Objectives of Token sale
The funds raised from token sale will be used for the development and benefit of the WPR in the below listed manner:-
- 45% will be used for WePower platform development
- 15% will be utilized for integrating the WePower platform to existing infrastructures across target markets
- 15% of the funds will be assigned to ensure WePower compliance with the energy sector requirements
- 25% of funds is for expansion and operations
The company is backed by the talented team of professionals, who resolve the market challenges and inefficiencies with the help of complex platform that require a combination of marketing trading, experience, blockchain and independent energy supply knowledge. They synergize this vital mix of expertise to develop a new generation utility company. The short description of key members of the WPR is listed below.
Nikolaj Martyniuk (Co-Founder and CEO)
Artūras Asakavičius (Co-founder)
Kaspar Kaarlep (CTO)
WePower provides an innovative way to raise the capital of renewable energy producers by releasing their own energy tokens. Tokenized energy represents the contract between an energy producer and energy buyer. The WePower token model comprises of energy tokenization, tokenized energy auction, blockchain function and energy token use.