Establishing a Token funded craft whiskey distillery with WSKY
Abstract. A Token funded decentralized investment using the Ethereum blockchain network to facilitate the establishment of a craft Irish distillery. Token holders will receive annual distributions in the form of bottles of premium Irish whiskey and profit sharing. Initial token offering scheduled mid 2019. A token based democratic fund where voting and distributions will be managed based on the amount of WSKY tokens held by each address. 100,000,000 tokens have been created. Tokens can be purchased during the initial funding round where 60% of the coins will be available immediately. Additional tokens will be mined based on set goals and targets.
1. Introduction - WSKY Thesis
Based on Market analysis, the demand for Irish whisky is set to accelerate at nearly 6% with new products being a key growth area. WSKY tokens offers long-term profit sharing for all token holders and contributors. We will use an electronic investment and voting system based on cryptographic proof, allowing any willing parties to transact directly with each other without the need for a trusted third party. This increase liquidity in this alternative asset investment class. Each owner may transfer their tokens to the next by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. A payee can verify the signatures to verify the chain of ownership. Blockchain allows for a single, immutable record of equity transactions which is interpreted by established rules in an unbiased way. This solves data quality issues at source increasing compliance and accuracy when dealing with vesting scheduled and legal notifications. Profit sharing and distribution criteria will be established upfront, executing automatically resulting in increased clarity for all employees and stakeholders. A fixed percentage of established distribution will be donated to select non-profits. It will also be fun to create and enjoy great Irish whiskey together.
Even though the exact location is still being finalized, we have shortlisted based on a big gap in the Munster region and the availability of premium, naturally-filtered Irish water.
The Irish Difference
Unlike other distilleries who reuse Imported barrels, WSKY will be made using premium Irish water, smoked using Irish-sourced peat and aged in barrels using Irish-sourced oak.
2. Funding and Investment Process
The Management Team will be responsible for facilitating voting across key decisions such as final whiskey recipe, how long whiskey should be aged, what type of barrels are used etc. Profits from the company will be reinvested to increased company valuation or distributed as dividend to token holders in direct proportion to number of the tokens held. This model promotes decentralization of operating authority, with responsibility for business performance placed entirely in the hands of local distillery masters and investment decisions shared across all limited partners (WSKY Tokenholders). Additional tokens will be mined based on whiskey production goals and targets being met. Some will also be used as incentive for workers at the distillery.
3. Investing and Approval Process
Tokens will converted to a voting equivalent which is validated by a chain of digital signatures. Each owner has the opportunity to transfer their votes to a delegate by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. If invested in WSKY and the voting to approve an investment or distribution is made with 75% approval, then all token holders automatically accept the investment terms and the decision is made on behalf of all token holders. The payee verifies the signatures to prove the chain of ownership. Here is the solidity code below:
4. Distribution Calculations
WSKY executive team will be paid a modest salaries but stand to receive very significant bonuses if distribution and profit goals are achieved. Token holders will have the opportunity to approve each compensation package as part of the voting process. Compensation bonuses will place heavy emphasis on generating and delivering profit from social events and activities, awards won and external recognition built for the brand. The bonus formula will not be capped. Tokens will also be offered as internal performance incentive.
We have proposed the establishment of an Irish craft whiskey distillery powered by the Blockchain. We will develop a decentralized application system for electronic and automatic distribution of profits and voting. Tokens will be built using smart contracts on the Ethereum blockchain, which provides strong control of ownership and prevents any double-spending or voting. We will leverage a peer-to-peer network using proof-of-work to record a public history of transactions that are computationally impractical for an attackers to target. Any Investor can participate in the initial Fund rase, however, future investments may be restricted. Digitally voting will be facilitated using token balances.
We believe that there exists an exciting opportunity to develop an Irish distillery taking advantage of the significant increase in global interest. By using blockchain powered smart contracts on the Ethereum network, we can use an electronic investment and voting system based on cryptographic proof, allowing any willing parties to transact directly with each other without the need for a trusted third party. This increase liquidity in the alternative asset investment class. Blockchain allows for a single, immutable record of equity transactions which is interpreted by established rules in an unbiased way. This solves data quality issues at source increasing compliance and accuracy when dealing with vesting scheduled and legal notifications. Profit sharing and distribution criteria can be established, executing automatically for all tokenholders. Administrative effort of record-keeping and reconciliation is eliminated and voting can be easily facilitated. This we believe, will provide a significant competitive advantage.
Author: Brendan Daly