Rest TM THE NEXT GENERATION HOSPITALITY SOLUTION PLATFORM WHITEPAPER Version:1.1 Authors: Simo Mcunu, Krish Ghosh, Heath Muchena Copyright2021@RestoNXT Content Executive Summary...................................................................................................................................................2 Introducing The RestoNXT: The Next Generation Hospitality Solution............................2 Problem Definition............................................................................................................................................3 Market Opportunity..........................................................................................................................................5 Why create tokenized loyalty rewards?..........................................................................................5 Products...............................................................................................................................................................................7 RestoMENU..............................................................................................................................................................8 RestoVATION......................................................................................................................................................... 8 RestoPRE...................................................................................................................................................................8 RestoTOGO...............................................................................................................................................................8 RestoQ.........................................................................................................................................................................8 RestoLOYALTY...................................................................................................................................................... 8 RestoCONNECT.....................................................................................................................................................8 RestoDISPLAY........................................................................................................................................................8 Resto LITE PWA................................................................................................................................................... 8 RestoPRO Resto CUSTOM PWA RestoSMART Beta Launch: Resto as an Aggregator.........................................................................................................8 Token Design Approach..........................................................................................................................................9 Benefits of Tokenization...............................................................................................................................10 Token Use Cases..................................................................................................................................................12 Blockchain Technology..................................................................................................................................14 Token Value Analysis.................................................................................................................................................15 Token Value Outlook.......................................................................................................................................16 Valuation Basis.....................................................................................................................................................18 The Resto Token and Token Generation Event....................................................................................18 Benefits of Resto Tokens..............................................................................................................................18 RESTO Token Holder Rights.......................................................................................................................18 Token Distribution.......................................................................................................................................................19 Token Availability & Vesting Period..............................................................................................................20 Use of Proceeds from Token distribution.................................................................................................20 Future Roadmap...........................................................................................................................................................21 Public Appreciation....................................................................................................................................................21 Copyright2021@RestoNXT RESTO TOKEN WHITE PAPER TOKENIZED LOYALTY REWARDS Disclaimer PLEASE READ THIS DISCLAIMER SECTION CAREFULLY This document and any other RestoNXT documents do not constitute a prospectus of any sort and are not a solicitation for investment. The RestoNXT Token does not represent an ownership or share in ANY public or private corporation, or other entity in any jurisdiction. The RestoNXT Token is a coin that is issued for loyalty rewards. Any acquisition and use of RestoNXT Tokens carries significant financial risk, including the use of experimental software. Except where specifically indicated, the statements and information set forth in this Whitepaper are not intended to recite current or historical facts, and constitute forward-looking statements. Forward-looking statements may include the words “may,” “will,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan” or other words or expressions of similar meaning. These forward-looking statements are based on the current beliefs, plans, objectives, goals, expectations, anticipations and/or intentions of RestoNXT with respect to future events. Although RestoNXT believes that the expectations reflected in the forward-looking statements are reasonable, RestoNXT cannot guarantee the successful establishment or operation of its systems and business or any future results, level of activity, performance or achievements. Many factors discussed in this Whitepaper or otherwise affecting the matters discussed herein, some or all of which may be currently unknown to RestoNXT or beyond RestoNXT’s control, will be important in determining the ability of RestoNXT to establish and operate its systems and business. It is therefore possible that results may differ materially from those that might be anticipated from the statements and information set forth herein. In light of these and other uncertainties, the statements and information set forth in this Whitepaper are for informational purposes only, should not be relied upon in making any purchase or other decision, are subject to change, and are not intended to establish or indicate any representation, warranty, commitment, undertaking, promise or contract made on the part of RestoNXT to any person. This whitepaper includes market and industry information and forecasts that have been obtained from surveys, reports, studies, market research, and other publicly available information, but there can be no assurance as to the accuracy or completeness of such included information. All statements contained in this whitepaper that are not statements of historical fact, constitute “forward-looking statements”. This document is not composed in accordance with, and is not subject to, laws or regulations of any jurisdiction, which are designed to protect investors. RestoNXT does undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Rest TM Copyright2021@RestoNXT 1 Executive Summary Adapting to global changes and addressing market needs through innovation is what drives RestoNXT - a one-stop next generation contactless hospitality solutions provider. As such, a key focus area for the business is the introduction of a Digital Loyalty Program Aggregator platform which offers a data driven, customer focused yet highly flexible SaaS based digital solution. The vision is to help merchants run tokenized loyalty programs that attract recursive business from consumers within a global trusted business ecosystem. Over 70% of Millennials and Pre-millennials were members of loyalty programs vs. less than 20% among Baby Boomers. - Oracle Loyalty programs at their core involve rewarding consumers for their frequent or continued engagement with a brand, product or service through structured marketing strategies. Typically, the more the consumer spends, the more rewards they receive. When businesses put customer preferences at the centre of their marketing efforts and execute an effective rewards program appropriately, customers are incentivized to buy more, giving those businesses a competitive edge against their competitors. Statistics show that consumers who engage in high-performing loyalty programs are twice as likely to increase their frequency of purchases. Mobile searches for ‘rewards app’ have grown by over 90%. - Google Introducing RestoNXT: The Next Generation Hospitality Solution RestoNXT envisions loyalty rewards partnerships based on a tokenized model. As an aggregator RestoNXT will offer a spectrum of industry related products and services. These services will represent value that can move between the hospitality industry and digital asset markets through RESTO tokens. RestoNXT’s tokenized loyalty reward platform and the loyalty reward points to crypto token conversion system will add a competitive advantage that disrupts the traditional loyalty rewards model. Some of its key salient features are: Blockchain secured global loyalty program. Access to global consumers. Consumer digital wallet. User-friendly admin and crew console. Quick setup and program update. Easy and quick program execution. Promotion and campaign automation. Stamps & Rewards Global Coins Bundle Offer Promo Campaign Store Credit Birthday Reward 79% of consumers look for deals in loyalty and reward programs before making a purchase. Hawk Incentives Rest TM Copyright2021@RestoNXT 2 Problem Definition Consumers engaging conventional loyalty reward programs are faced with many challenges such as: Overly complicated signup processes 34% of Millennials don’t join a loyalty program because the enrollment process is too long. - Kobie Marketing Low redemption rate of earned loyalty points and account inactivity 70% of consumers abandon loyalty rewards because it takes more than six months to accumulate enough points to redeem rewards. - Maritz Lack of access to rewards information $360 billion worth of loyalty reward points go unredeemed each year globally. - Global Loyalty Insights Needing to carry physical loyalty points cards or having loyalty programs that are not interactive or engaging. 40% of millennials in the U.S. prefer loyalty programs that are interactive. - Hello World Inc. Low customer retention A 10% increase in customer retention yields a 30% rise in the value of the company. - Retention Science Problem Reward points are siloed and have low utility. Once earned points have no value outside of the customer’s account and are only redeemable in a small ecosystem. Customers cannot gift, donate or exchange their points to potentially interested parties. This means their left Idle and unused in customers account. Problem Saturation from too many individual loyalty programs. There are many variations of loyalty programs. US customers alone have an estimated 3.8 billion individual loyalty program memberships. This makes it difficult for consumers to detemine which programs are high value and retailers can’t differentiate themselves. Rest TM Copyright2021@RestoNXT 3 Retailers also face their own set of challenges including: High transaction and system management costs associated with establishing, operating, and securing loyalty points programs. Appropriately securing the data associated with the programs from hacker attacks. Problem Retailers are burdened with liabilities. Retailers currently have no idea when their points will be redeemed and at what rate causing the financialy uncertainty since loyalty points are left as liabilities on the books. Listen to the experts Various analysis and surveys by industry experts show the need of an upgrade in existing digital loyalty programs. Few of the facts and recommendations listed below: Surveys Conducted by 33% of the millennials dislike loyalty programs just because too many of them exist. 30% of American consumers never redeem a single point until they expire. 71% of consumers were less likely to join a loyalty program that collected personal information beyond just name and phone number. In 2017, 11% of attacks on financial accounts were specifically on loyalty accounts, an amount that had risen from 4% the year before. Industry experts believe and recommend blockchain based loyalty program to be the game changer because of the following advantages Recommended by No Point Expiry Central Wallet Redemption flexibility Reduced Cost High Data Security Transactional transperency Rest TM Copyright2021@RestoNXT 4 Market Opportunity & Solution Market opportunity The global loyalty program market was valued at $181 billion in 2019. The market was forcasted to grow at a GAGR of 3-4% to $185- $195 billion between 2020 and 2022. Beroe Inc. 67% of Millennials and 56% of Gen Z are influenced by a restaurant’s content or deals, vs. 49% and 40% who are influenced by social posts from influencers. - RetailMeNot Research Sources: https://home.kpmg/us/en/home/media/press-releases/2019/09/kpmg-study-finds-digital-tokens-are-transforming-the- way-consumers-interact-with-each-other-and-businesses.html https://www.oracle.com/a/ocom/docs/dc/em/lpd100749940-oraclefandb-loyalty-report.pdf https://storage.googleapis.com/think/docs/think-with-google-2019-research-review.pdf https://go.oracle.com/LP=68644?elqCampaignId=134016 https://blog.accessdevelopment.com/the-ultimate-collection-of-loyalty-statistics#loyaltyprograms https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-fsi-making-blockchain-real-for-lo yalty-rewards-programs.pdf https://www.zendesk.com/blog/loyalty-rewards/ https://www.marriott.com/default.mi https://rewards.starbucks.com/#/ https://www.bankofamerica.com/credit-cards/cash-back-credit-cards/ Rest TM Copyright2021@RestoNXT 5 Why create tokenized loyalty rewards? Greater visibilty for members in Add new redemption or tracking transactions and managing accrual partners easily without accounts increasing complexity RestoNXT VALUE PROPOSITION Leverage blockchain to allow RESTO Interface with other competing token points to be exchanged for other loyalty programs to allow fungibility cryptocurrencies of points Loyalty rewards provide restaurant operators with a way to reward customers and encourage repeat business. They also offer an effective, measurable marketing tool and enable businesses to gather details about their guests allowing them to target promotions to help grow their revenue. The RestoNXT (RESTO) hybrid token will power the loyalty program framework for hospitality business operators for instance, applying blockchain technology to a restaurant rewards system enables several advantages relative to a traditional server since security, trust, and liquidity can be significantly enhanced with blockchain. Why Blockchain in Digital Loyalty Program? Solutions with blockchain driven digital loyalty programs: Single program within trusted merchant program No point expiry, high redemption Low program cost as a party of merchant network High data security as well as transactional transparency RestoNXT could be a potential solution if integration of disparate loyalty programs into an interlinked loyalty network could be achieved. The task is no easy feat since such collaboration requires industry players to recognise that current loyalty programs aren’t effective and that the inconsistent digital infrastructure and obligations to protect competitive proprietary information as well as customers’ personally identifiable information has been a huge hindrance to progress and that a more network inclusive approach could be the only truly viable option. RestoNXT’s vision is to create a trustless distributed ledger that allows ecosystem participants which may include loyalty reward program providers, system managers, administrators, and customers to interact within one tokenized network system without intermediaries and without compromising privacy or their individual competitiveness. By leveraging blockchain, RestoNXT can have the capabilities to streamline execution and administration of loyalty programs with near-real-time transparency, which would likely yield tremendous cost savings. Business Benefits Effective for all merchant types and sizes Zero transactional commission Multifacet cosnumer engagement High cosumer retention Attracts global consumer Access to trusted business ecosystem Personalised brand promotion Increased popularity & reputation Multifold revenue growth Rest TM Copyright2021@RestoNXT 6 Product: The RestoNXT ecosystem RestoNXT was incubated in pre-COVID time with the aim to create a new age guest experience by offering contactless services along with a data driven digital transformation for the hospitality industry. However, RestoNXT is strategically positioning itself as a digital platform for restaurants, gas stations, spas, banks, grocery store hotels etc. to keep the business running as well as grow with the new normal. RestoNXT Modules RestoTOGO RestoLOYALTY Accept and manage online ordering, delivery and Attract and retain customers with your own takeaway services loyalty program Digital menu Offer loyalty stamps and rewards Video menu Spent amount based loyalty stamps Online ordering, delivery and takeaway Flexible reward cycle management Delivery driver app(Android &iOS) Customer and transaction report Quick and easy menu and price management Customer loyalty wallet Order management console Kitchen ticket management Business reports Integration with existing website RestoDISPLAY Manage own and third-party digital RestoQ advertising and displays at one place remotely Manage walk-in customers with well informed wait time during rush hour Remote interactive content management Remote display management Queue management console Pre-Schedule content manage table status Track content perfomance Accept walk-in guest booking Integration with IoT sensors and devices Manage and inform wait time Run third-party ads(New revenue channel) Intuitively integrated with RestVATION RestoPRE RestoVATION Accept and manage pre-orders against table reservation Accept and manage online and walk-in table booking Digital menu for pre-order Pre-order against table booking Accept online/ walk-in booking Quick and easy menu and price management Floor plan based table selection Order management console Booking management console Kitchen ticket management Flexibel reservation settings Business reports Customer and booking Reports Integration with existing website RestoMENU RestoCONNECT Manage end to end contactless dining and payments Run personalized campaign and multi-channel customer engagement at ease Contactless in-restaurant ordering Digital Bar Tab Multi- channel campaign Contactless payment, feedback & invoice Personalized offer and campaign Group ordering Data-driven dynamic customer segment Contactless split payment Exclusive offer driven customer loyalty Point of sales App (Windows, Android) Offer and Campaign management console Waiter/server App (Android) Kitchen ticket management Business Reports Integration with existing POS Rest TM Copyright2021@RestoNXT 7 Beta Launch: Resto as an Aggregator Food Delivery Aggregators Oracle Micros POS Manage online menu on RestoNXT right from Micros POS Manage items on aggregator platform from Receive orders on Micros POS from RestoNXT RestoNXT consumer Lite App Manage availability on aggregator platform from Manage orders on Micros POS and communicate RestoNXT with RestoNXT consumer Lite App Manage orders received from aggregator platform Receive Payment from RestoNXT Lite App directly on RestoNXT Order Dashboard on Micros POS 70% of consumers abandon loyalty rewards because it takes more than six months to accumulate enough points to redeem rewards. - Maritz The E-commerce system RestoMENU RestoLitePWA RestoTOGO Stamps & Rewards RestoTOGO Inf or RestoLOYALTY m ati Oracle Inf on RestoQ or Micros POS m ati Global Coins Bundle Offer on RestoPRE API Integration RestoMENU ion RestoCONNECT at rm fo n In a tio RestoANALYTICS rm Store Credit In fo RestoLitePWA Promo Campaign Birthday Reward Food Aggregator Platform Restaurant Management Platform Digital Loyalty Program Rest TM Copyright2021@RestoNXT 8 Resto token design approach Consumer 3rd party Retailer payment processor CRYPTOECONOMIC MODEL 3rd party RESTO token exchangers escrow account RestonNXT looks at token design from the perspective that a unit of value created should help govern the business model and empower users to interact with clients in the RestoNXT ecosystem and their products, while facilitating the distribution and sharing of rewards and benefits to all of stakeholders. RESTO token will be an atomic unit of value exchange in the hospitality market through an application that creates a transactional economy between buyers and sellers. The token features will allow users to earn value and to spend it on internal ecosystem services and also from exchange of the token for other crypto assets. RESTO token can also be leveraged to better user experience, including incentivising entities to join the network, or connect with users. RESTO token has potential to also be an efficient payment method and transaction engine that enables frictionless transactions inside the ecosystem’s closed environment. The token will offer a much lower barrier for processing end-to-end transactions. RestonNXT looks at token design from the perspective that a unit of value created should help govern the business model and empower users to interact with clients in the RestoNXT ecosystem and their products, while facilitating the distribution and sharing of rewards and benefits to all of stakeholders. The blockchain-based model that RestoNXT plans to adopt will enable equitable redistribution of the resulting increased token value. The RESTO rewards and loyalty token can be tied to a restaurant or other service/product’s usage. The token can also be used to give the user exclusive access while providing interaction rights to the product. Rest TM Copyright2021@RestoNXT 9 Benefits of Tokenization Login Market size Globaly the loyalty program market is estimated to be USD $ 6.9 billon by 2023 and forecasted to grow at an annual rate of 20.8% over the next 5 years Allied Market research Existing loyalty rewards programs experience a degree of success due to sheer scale interlinking networks. RestoNXT offers a value proposition driven by a strong belief that joining a blockchain-based network is worthy trade-off worth especially considering that participants may be able to set their own terms and have a level of control that allows them to dictate how they want their customers to interact with their rewards programs. For the much smaller operators, an interlinked network may simply provide them with the scale they desperately need. RestoNXT believes that a blockchain-based solution will make it possible to have fast and secure creation, redemption, and exchange of loyalty reward points in a tokenized manner across programs, vendors, and industries. A trustless environment using cryptographic proofs in lieu of trusted third parties and administrators makes blockchain a viable proposition when it comes to addressing some of the aforementioned problems business and customers are facing with how most loyalty programs are structured to date. Our USP is your Advantage Offer global coins to your customers as reward and redeem coins 1 rewarded by other merchants within your trusted merchant network Global coins are redeemable at all merchants within your trusted network and these coins never expire 2 A widely accepted loyalty reward attracts repeat visits and new 3 customers with much lesser brand promotion expense Global coin transactions are managed by a highly secured blockchain framework providing absolute transparency and trust 4 A highly motivated customer base and trusted merchant network opens 5 up future business opportunities and collaborations Rest TM Copyright2021@RestoNXT 10 Loyalty programs increase overall revenue by 5-10% CUSTOMER MARKETING MANAGEMENT BRAND SOLUTION LOYALTY RELATIONSHIP MODEL SUCCESS STRATEGY REWARDS The token model will be engineered to cater for various levels of interest. Research shows that: Loyalty programs increase overall revenue by 5-10%. Loyalty members spend 5-20% more than non-members on average. Loyalty program members buy 5-20% more frequently than non-members. Merchant Journey in a trusted loyalty network Participate in co-branding and joint marketing Enable credit and Join Blockchain-based campaigns with other redemption of loyalty Promote offers loyalty network sellers on network points across the network using loyalty points 2 3 4 5 Negotiate partnership terms Sell goods and services to with program provider 1 6 loyalty customers in the Onboard Use currency of loyalty points Phases Evangelize the positive Give additional loyalty comprehensive customer Evaluate Manage 7 points to customers based feedback on platform to 12 on own marketing offers enhance sales 11 10 9 8 Track customer satisfaction Conduct customers analytics Manage loyalty program Manage customers queries about through joint surveys on based on common customer and ongoing marketing status, wallet, redemption of loyalty network database on blockchain campaigns loyalty points, etc. Rest TM Copyright2021@RestoNXT 11 Token Use Cases Automic unit of value exchange Reward digitally- Frictionless trackable actions Transactions Onboarding Equitable Incentive Redistribution Purchase your food using RESTO tokens against reduced rates compared to fiat purchases. Holding RESTO tokens could provide users with access to the RestoNXT ecosystem and give interaction rights to the product. RESTO token can also grant a governance action e.g. voting on a consensus related or other decision-making factor. RESTO token can enable users to contribute and perform value-add actions on the network. RESTO token is a proxy to a value and does not grant holders ownership of RestoNXT’s ecosystem. RESTO token facilitates monetizable reward based actions by the user. RESTO token grants users value based on sharing or disclosing their data. RESTO token will initially not be designed to run a smart contract or to fund an oracle. RESTO token will initially not be required as a security deposit to secure the operation of the blockchain on which it is issued. RESTO token is not used to pay for usage like a stable coin or gas unit. RESTO token will be required to join the RestoNXT tokenized rewards network. An allocation of RESTO tokens may be distributed or offered at a discount, as an incentive to encourage onboarding and usage. RESTO token will not be a principal payment unit that functions as an internal currency for instance. RESTO token is not the principal accounting unit for all internal transactions within the network. Its utility will fundamentally be for the purposes of distributing tokenized rewards based on ecosystem activity or incentives. RestoNTX’s network benefits will be autonomously distributed to token holders using RESTO tokens which may have related benefits to users, resulting from built-in currency inflation By catering to users and merchants, RestoNXT connects supply and demand parties and facilitates their interaction through the ecosystem. This means that RestoNXT can charge lower commissions and save on transaction fees from third parties, if RESTO tokens are being used. This results in more competitive tokenized rewards options for the merchant while also benefiting the consumer. Community - Points Program Earned tokens are credited to the next purchase, discounted services, or giveaways. Redeem token for free hotel nights, dining, and other experiences. They can also earn points with car rentals and flights, share points with friends and family, and get free wifi and special rates. Ecosystem Token - Tiered Based Program Once users complete one level of token spend, customers can unlock a new level that gives them access to more significant benefits and more perks. Earned tokens will give exclusive pricing for RestoNXT products and services. Redeem tokens for services like RestoCONNECT, RestoBI, RestoPWA, RestoChatBot. Rest TM Copyright2021@RestoNXT 12 Mission-driven Tokens Customer loyalty program with a cause. Tokens earned will be donated to a nonprofit organization with a strong connection to the company’s mission i.e. organizations helping the hospitality industry which has been hard-hit as a result of the covid crisis and lockdowns. Gaming Program Tokens Customers can earn tokens through gamified loyalty programs. Tokens can be redeemed for RestoLITEPWA Gamification. Referral Tokens Reward customers for referring their friends and family. Earned tokens can be redeemed for free delivery, discounts and rewards. RESTO token business case Order Givebacks Premium Features Payments Community & Merchant Stacking Liquidity Staking Ratings & Data Reviews Smart Ads Rewards AD How it works The issuer and operator of the loyalty program (RestoNXT) issues the loyalty points guaranteeing an exchange rate pegged to the floating secondary market value. Merchants can create an account with RestoNXT and sell their services to customers. If a customer buys a service for $100 for example, the customer e.g. receives 5% of the value in their wallet in the form of RESTO tokenized loyalty tokens. To be able to send these tokenized loyalty points to the customers, the merchant first must buy the loyalty points from RestoNXT (the issuer). The merchant will be able to send funds to RestoNXT (issuer) and when the funds are received, the technical infrastructure will automatically create the related number of tokens and transfer these tokens from RestoNXT’s wallet to the merchant’s wallet. Customers can also create an account and use their collected tokenized loyalty points to buy services from merchants within the RestoNXT ecosystem. All participants in the RestoNXT ecosystem operate as a compliant permissioned system. Participating in the ecosystem means that merchants would need to be verified. Rest TM Copyright2021@RestoNXT 13 RestoNXT will make it easy for merchants to integrate tokenized loyalty programs into their marketing efforts, while maintaining their focus on their core business. The customer will for instance buy a product or service from a merchant and pay with dollars. The merchant sends the product or provides the service upon receipt of the funds and instantly sends the earned tokenized loyalty points from the merchant’s wallet to the customer’s digital wallet. The issuer does not need to do anything. The blockchain automatically keeps a tamper-proof record. If a customer sends the tokens back to the RestoNXT’s (issuer) wallet, the technical infrastructure will burn the tokens. Consumers of the businesses within the RestoNXT tokenized loyalty rewards ecosystem will be able to easily manage multiple loyalty programs within one wallet and even swap between tokens that have pairings with RESTO. RestoNXT’s platform will be able to accommodate different and multiple loyalty programs, facilitating their interaction, especially in terms of the convertibility and exchange of RESTO tokens, without the need for interaction by the issuer. Tokenized loyalty points that are not claimed or the amount of loyalty points on the blockchain will be accounted for as liabilities on RestoNXT’s (the issuer) balance sheet. The total amount of loyalty points in a RestoNXT system can easily be checked through an API call of the blockchain by an external auditor. Other use cases to be initiated include redeeming services/products directly from RestoNXT ecosystem partners and ecosystem partner voting on new RestoNXT ecosystem launches. Key Offerings Digital Wallet Store Check-in App Crew Lite App (Consumer App) (Mobile Kiosk) (Program Execution) Admin Console Data Driven Program Global Coin Loyalty (Web interface) Analytics (Blockchain driven) Blockchain Technology The RESTO Token (symbol: RESTO), which is the foundation of the RESTONXT ecosystem, will be a blockchain-based token used for payment, rewards, platform fees, and collateral asset. RESTO Tokens are generated for use in the RestoNXT ecosystem under the Token Sale Agreement conditions and will constitute only a transferable representation of attributed functions specified in that Token Sale Agreement. Holding RESTO Tokens carries no rights, express or implied, other than the limited right to use RESTO Tokens as a means to enable access and interaction with the RESTO Token Rewards Services Platform, if and to the extent that the platform is successfully completed and deployed. The Public Crowd Sale will run between dates to be announced or until the Hard Cap has been reached, whichever occurs earlier. The maximum contribution amount for the Crowd Contribution (“Hard Cap”) will be the equivalent to the total supply of RESTO Tokens for sale: 65,000,000 RESTO tokens. The total amount of RESTO Tokens in circulation will be 65,000,000. Rest TM Copyright2021@RestoNXT 14 RESTO Wallet Holders can: Hold RESTO Tokens or loyalty reward points in a cryptographically secure app. Send RESTO Tokens to other blockchain wallet addresses for settlement or exchange. Receive RESTO Tokens as rewards from retailers using smart contracts. Earn Tokens for participating in certain activities such as referring new members, social media promotions and similar RestonXT positive activities. RESTO Wallet holders can also earn RESTO tokens, automatically as a member, in the form of monthly rebates. Exchange Points for Tokens or vice versa. This feature allows users to convert RESTO loyalty rewards in the form of RESTO tokens into any other supported cryptocurrency pairing. Affiliate Rebate - Wallet holders can earn RESTO tokens in the form of affiliate rebates. This applies to members and non-members. RESTO could make use of a special machine learning algorithm that optimizes user rewards based on the desired outcomes as defined by the platform or system. The algorithm would then operate in such a manner that enables the assessment of rewards provided to users conducting the desirable actions which warrant the disbursement of tokenized rewards and to make sure behaviour that is contrary to achieving the objectives of the reward incentive scheme is not rewarded instead. This could also make it possible to continually optimize and eliminate inefficiencies within the system. The presence of such an optimization function could minimize manipulation of rewards on the platform and prevent users from manipulating a fixed reward loyalty system, by working around the parameters in order to receive more than the value of their contribution to the ecosystem. Token Value Analysis RESTO utility token’s value is split between the crypto-asset itself and the underlying platform RestoNXT platform. RESTO’s opportunity cost of utility, i.e. the token’s purchasing power in terms of goods or services is one potential proxy for determining value. It is envisioned that the token will be exchangeable and tradable on decentralised or centralised marketplaces once the distribution is in effect and a secondary market is established. It is thus important to note that the purchasing power would be indirect since RESTO token itself is simply a tokenized reward instrument and is not intended to be a crypto asset created for the purposes of settlement and consequently not expected to be accepted by merchants as a form payment. The value of RESTO as a utility token will depend primarily on demand for goods or services transacted by merchants within the RestoNXT tokenized rewards ecosystem and the quantity of tokens in circulation. The value of RESTO tokens will be enjoyed by the users and not necessarily the operator of the platform. The value of the RestoNXT platform to the operator is a function of how the operator extracts benefits (income less costs) from the platform on an ongoing basis and the sustainability of such benefits over time. RESTO token valuation approach Quoted Prices Market approach Comparable tokens Opportunity cost of utility Cost approach Cost of token generation Quantity theory of money Estimation of equation terms (QTM) Time value of money RESTO tokens capitalize user-base growth and reduce user-base volatility in the future, capitalize future platform growth, and accelerate adoption. The equilibrium token price will increase non-linearly with platform productivity, user diversity, and ecosystem network size. It can be supposed that the RESTO token model will produce explosive growth of the user base after an initial period of dormant adoption, followed by a run-up of token price volatility. RESTO token valuation is anchored on the fundamental productivity of the blockchain technology. RESTO token derives value as an exchangeable asset with limited supply that users hold to discover utility. Expectation of technological progress and popularity of the blockchain-powered tokenized reward system may translate into expected token price appreciation. Token price may reflect the future growth of the community. Rest TM Copyright2021@RestoNXT 15 Resto’s Ecosystem uses the token for: Discounts for premium payments and outlets within ecosystem Use in restaurants and other retailers within the ecosystem Trading on RESTO listed exchanges Ecosystem Partners’ bulk purchases of tokens for distribution to their customer base to incentive onboarding and enable big data collection to build on better product and service offerings. How RestoNXT ecosystem participants earn RESTO tokens Discounts & Payments Tokenbacks Affiliate & recommendation Marketing Writing reviews Loyalty Content Creation Opting into data rewards Token Value Outlook The future valuation method for RESTO token will depend on its liquidity and stage of development. Since there’s currently no secondary trade pricing available and there’s no liquidity, opportunity costs of utility provide an observable proxy for value. A unit value for the token can be estimated on the basis of the reasoning that rational participants in the RestoNXT tokenized rewards network would not use the utility token network if the same conveniences that result from having a tokenized reward that is part of sizeable network of retailers e.g. restaurateurs, merchants, exchanges had competing ecosystems that offered a better value proposition and at a lower cost. RESTO token price level can be viewed through the prism of the Quantity Theory of Money (QTM) since the token will be the single universal tokenized reward token used within the ecosystem powered by RestoNXT. M x V = P** x Y* The formualr states that the money supply (M) times money velocity(V) equals price level(P) time the volume of goods and services transacted in the economy(Y). *In practice, real gross domestic product (GDP) is substituted into the equation as a measure of vloume. **Note: the price level(P) should not be equated with the price of the token. which we subsequently define as p. Rest TM Copyright2021@RestoNXT 16 Utility token systems can benefit from the external reference point of fiat currency prices. The volume of goods and services transacted through RestoNXT can therefore be input as a fiat-denominated quantity, which would leave the remaining, unknown variable P also denominated in fiat currency terms. Note that an increase in the price level corresponds to inflation, which therefore reduces the value of a currency. In the context of RESTO as a utility token for the RestoNXT tokenized rewards system, application of the QTM in a formulaic form that expresses the value of a token, p, in terms of the remaining quantities can be seen as: 1 Dxs p= = P M* x f x V p= token value P= price level D= market size s= Maket share M*= total token supply f= float factor v= token velocity The nature of RESTO as a utility token may not enable discounted cash flow modeling or traditional applications, but opportunity costs and the QTM can to some degree provide proxies for the fundamental value of the token. To help provide insight into value creation and provide a necessary viewpoint contrary to more directly market-based inputs for the purpose of decision making, it is important to emphasise that arguably there’s no widely accepted framework for the valuation of utility tokens as this is dependent on different use cases and applications. Challenges remain in relation to the estimation of key inputs under the valuation approach including estimating demand and an appropriate reflection of the time value of money. The estimation requires careful sensitivity analysis, a buy-in to the vision and reasonable expectations in order to confidently conclude the value range. From a valuation perspective, RESTO token issuance will not represent economic interests in the issuing business, similar to ordinary equity securities. The token holder does not have a right to receive distributions of profit from the activity carried out by RestoNXT. Currently, there’s no secondary trade pricing of tokens so that cannot be a reference point in assessing market value. RESTO tokens may become tradable on a number of exchanges in the future but RestoNXT does not intend on creating a principal market. This means at present liquidity and depth of trades is not deemed important in establishing value. Since RESTO tokens will initially not be exchanged directly for fiat currency and liquidity may be low, the adoption of a discount for lack of liquidity can be considered in the valuation process. The maintenance of a system such as RestoNXT envisions relies on the acquisition and retention of user demand, which is expected to be considerable in light of the problems that tokenized loyalty rewards solve. The fundamental viability of the value proposition and the ongoing maintenance of user satisfaction will be a crucial factor in the investment case. The value ultimately builds upon anticipated performance against the chosen criteria, with the token price falling at the intersection of a variable demand for and finite supply of tokens and not the underlying resource transacted within the network. It’s important to bear in mind that the lack of a right to a direct future income stream as a result of the RESTO token ownership presents a unique challenge from a valuation perspective. Factors to influence RESTO token value Liquidity Opportunity Development cost of utility Rest TM Copyright2021@RestoNXT 17 Valuation Basis With RESTO token, the valuation methodologies utilized are based on conventional techniques for the Net Present Value of RESTO token, taking into account discounted cash flow estimates and the variable required rates of return. By employing this technique, a favourable token price range would be between US$0.14 and US$1.27. A mid-price of US$0.71 would be favourable as the initial sales price before early investor discount. The Resto Token and Token Generation Event In order for RestoNXT to be able to fund the development and growth of the tokenized loyalty rewards system powered by RESTO token, a token sale to raise capital will be scheduled. The initial capital raise will be a private SAFT round for the RESTO token. The price of US$0.65 is at an early investor rate with a 51% discount. Subsequent sales will start at a price of US$0.71 per token. These tokens will be issued in a smart-contract based token generation event and will be credit assets. Credit assets such as RESTO token will have no inherent value as they cannot be used to pay for transaction fees. The value is given by the trust users have on the asset issuer. Credit assets have additional features compared to Lumens, making them suitable for more complex use-cases. Benefits of RESTO Tokens The benefits of establishing RestoNXT’s blockchain-based loyalty rewards solution include: Creating a brand-new market for secondary trading between customers. Introducing transferable and tradable tokenized loyalty points. Establishing a universally recognized and accepted loyalty rewards token that is usable by network and ecosystem participants instead of creating a different token for each retailer, saving businesses development and network management costs. Easier reward issuance, traceability of customers’ transactions and harnessing of purchasing behaviour data in a secure way. Improved transparency for both issuers and consumers. RESTO token rewards will be easy to redeem and the program will be simple to use and understand. RESTO Token Holder Rights For RESTO token holders who are partners in the RestoNXT ecosystem, it will grant them dividend rights of transactional fees earned by RESTO within its ecosystem. This dividend is distributed in the form of RESTO which can then be exchanged or traded on secondary markets. The right to dividend distribution will be every quarter. Investors holding the RESTO token will proportionately be distributed the dividend based on the following formula: Total Transactional Tees x Fee Distribution Rate Token Dividend Right = x Tokens Held Total Token Supply Once the token is available on exchanges, balances that are held on those partner exchanges may also be entitled to dividends based on the exchange and RestoNXT as an entity. Rest TM Copyright2021@RestoNXT 18 Token Distribution Once the RESTO token is generated it will then be distributed and an offer for selling tokens and trading them will be generated. When distributing the tokens, the token supply in a predefined schedule with pre-authorized transactions will be increased and dividends issued. Limits on who can hold the token will be set and an auction can be run. The RESTO token will be launched as a Loyalty Rewards Token. Its main purpose is to reward the customers, fans and community members of the businesses within the RestoNXT ecosystem. Earning RESTO loyalty tokens can be through purchasing products and services from RestoNXT tokenized rewards ecosystem, with 5% of a customer’s total purchase (products only) being rewarded in RESTO token distribution. RESTO tokens could also be purchased on the secondary markets from token holders outside the RestoNXT core team. Liquidity Mining initiatives could be used to create a stable economic ecosystem for the RESTO token. Description Tokens Maximum Supply 100,000,000 RESTO Sales Target 65,000,000 RESTO A total of 100,000,000 tokens will be minted. 20,000,000 (20%) Early Investor Sale 15,000,000 (15%) Private Sale 30,000,000 (30%) Public Sale 5,000,000 (5%) Reserved for the RestoNXT team Strategic partners and early contributors including small 10,000,000 (10%) provision for initial or other decentralised market value setting. 20,000,000 (20%) Company reserve Rest TM Copyright2021@RestoNXT 19 Token Availability & Vesting Period Phase Expected Tokens to be circulated Estimated Fund ($) Avg Rate($) Phase 1 13,000,000 20% 20,000,000 0.3185 (51%discount) Phase 2 9,750,000 15% 15,000,000 0.65 Phase 3 21,300,000 20% 30,000,000 0.71 TOTAL RAISE: $44,050,000 The RestoNXT team will have a 1 year vesting period whereby the sale of RESTO tokens will be strictly prohibited. Use of Fund Statement USES Phase 1 I. Consulting 10% II. Marketing 10% III. Technology Development 25% IV. Working Capital 25% V. R&D Product and Market Development 30% TOTAL 100% Rest TM Copyright2021@RestoNXT 20 Anticipated Roadmap: Implementation Plan Technology Development Functional study for platform and app development. Functional study for backend technology. Use the blockchain to store all relevant inputs. Build modules for fraud detection, transaction processing, and reports reading. Build a settlements module. Build a tokenized rewards tracking module. Research and Development Market study and research for the technology to develop apps and system for ecosystem participating entities. Localised models for target markets. This will include integration with RESTO partners and apps. Focus on designing and bundling use cases into different products for partners within the ecosystem. Miscellaneous Build a strong business development team within the target markets. Brand management inclusive of promotions, advertisements, etc. Create networks, strategic partnerships, and participating partners through MOU and JV. Public Appreciation Rest TM Copyright2021@RestoNXT 21
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