Restart Energy Telegram Q&A #2 — Summary
The second RED Telegram Q&A took place on June 11th, 2018. In order to provide clarity for the entire RED community, we decided to put together a summary covering all the answers provided therein.
Team Members in this Q&A:
Armand Doru Domuța — CEO & Founder
Denis Rouă — Chief Editor
Does Heliopolis need to stake 15 million MWAT to become a Type A franchise?
Armand: Any company that takes a Type A franchise needs to stake MWAT, even if it’s a 50/50 JV like the one we are doing in Italy with Heliopolis!
What is the percentage holding of Heliopolis in this partnership?
Denis: The JV with Heliopolis will be done as equal partners, so 50% of the capital will be theirs and 50% ours. This also means equal distribution of staked tokens.
On the technology front, what is being worked on currently? The KWT tokens?
Armand: On the Tech side we are running closed Beta tests of the KW tokens trading system this month.
If all Type A franchises were activated, all the MWAT tokens would be in escrow. What would happen to type B franchises in that case?
Denis: In such a scenario, RED reserves the right to lower the amount of tokens required for franchises. We've stated as much in our WP, page 14: “* Restart Energy reserves the right to lower the required amount of tokens franchises need to hold, if the percentage of MWAT locked in franchise accounts becomes too high and hampers smooth platform operations.”.
This would also mean that early franchises might find themselves with a lot of MWAT to spare — meaning new franchises could immediately rent from them (once TRS is voted in) and gain access. However, such an issue is still a few years off at best (or worse, depending on how you view it).
If more than one person has applied for Type B franchise. How will you choose?
Denis: There can be multiple Type B franchises in one city/area/country. Only Master Franchises and Type A franchises are exclusive. There’s plenty of customers to go around and we will help them coordinate as well.
I was under the impression that a Type B RED city franchise could be set up by one person. But on the application form it asks for “number of employees” and “capital available”. I thought this would only be applicable for a Type B RED regional franchise.
Armand: A Type B can be taken by a single person. The questions in the form are for RED to consider the evaluation priorities. Franchises that can bring more resources will receive a priority evaluation.
Currently, 1 MWAT is trading for 0.00005531, from what I read on the website you need 10,000 (10k) Tokens to become RED City Franchise. that means with just 1 ETH I will have around 18k tokens. Or is my understanding not correct?
Armand: https://restartenergy.io/franchise
TYPE B — FRANCHISE TOKEN TIERS:
10,000 Tokens — RED City Franchise — allows token holders to broker energy sales in their city of choice, within their country of residence. So am I right with just 1 ETH worth based on current price I can be a Type B franchise?
Armand: That’s correct
Armand: After the launch of the platform all franchise applications need to have the minimum MWAT and stake it on RED-P until we evaluate the application.
So assuming I’m not interested in selling, I can ‘rent mwat tokens’ out and receive ‘dividend payouts’ monthly, right?
Armand: Not yet. That’s only if we decide to implement the TRS.
So assuming it’s not going to be implemented, what are the perks of holding the tokens apart from free energy?
Armand: MWAT will soon become the only token that allows users to have real energy delivered
Denis: Chances are quite high that the TRS will be voted in, as there is a demand for it from our community.
As for the perks of holding MWAT — as a utility token, it has a purpose: giving you access to RED-P and energy trading — this is the single most important feature of MWAT. The RED Loyalty System also adds value to the system from producer-donated KWT, but it should not be taken as the primary value. Third, you have our franchise model that lets you create your own power retail company with RED backing you up!
The rest is for you to decide.
Will the Beta launch with the implementation of the TRS system or does that come further down the line? if so is there a timescale for that?
Armand: The TRS system will be discussed after the country-wide launch of RED.
Will the escrow ETH address be shared in the future?
Armand: All the tokens will be staked on the platform smart contract.
How many partnerships done in 2018 and what is the capacity of that partnerships in terms of kWh?
Armand: We have partnerships with more than 20 producers plus the partnership with PATRES that represents +100 producers, the capacity depends on the number of transactions on the RED Platform.
We recently heard the MWAT token will be accessible on one of the top 5 exchanges but we've not heard anything since. Is that still in progress?
Armand: It’s certainly in progress but as you know there have been some problems with fake trading and price manipulation amongst some of these top 5 exchanges. An example is the CEO and large part of the OKEx management team leaving the company for other exchanges due to fake trading. Our company doesn't want to be associated with such practices so we are looking for quality partners. Moreover, after RED is launched it will become the first token in the world that can be used to access real energy which will make it more attractive to the communities of the larger exchanges.
Any plans on MWAT wallet?
Armand: The RED Platform users will have MWAT/BTC/ETH/KWT/fiat wallets on the platform.
Is there any possibility of an OTC deal anymore?
Armand: What do you mean OTC deal? MWAT can be purchased from Kucoin and Sistemkoin
I was wondering if you still hold unsold tokens, if so, I would be interested to buy some in the 1.5 million Range.
Armand: I’m sorry the team doesn't have any tokens for sale. You would have to buy from one of the exchanges mentioned.
Have you thought about possibilities such as an alternative trading system application to the SEC?
Armand: Thank you for reaching out with the alternative trading system proposal. We will certainly be looking into it. As it is right now, MWAT works like an access key to the RED Platform software.
1. As a hodler of MWAT tokens who wants a franchise, but lives in a country outside the countries listed for operation by MWAT, how do I own a franchise in Romania while residing in Nigeria?
2. What is the cost of operating and owning a franchise in Romania?
3. How safe is the regulation for non-citizens to operate a franchise in Romania?
Denis:
1. You’d need legal representation and a team in the country you’d be interested in. Essentially, you’d require a business opened here — but it is doable if you’re willing. As for exactly what you’d need — I advise you to contact our sales department and inquire further there, they should be able to point you in the right direction: sales@restartenergy.ro
2. That entirely depends on your business model. Again, you’d best be served asking by email (and giving further details), as our staff there would be familiar with such questions.
3. As an EU member state, you would be protected by the same regulations that apply EU-wide. If anything, red tape would probably be your biggest issue, but that’s the case for most EU member-states.
Hi Armand, is Germany still on Plan? You said last AMA it will be in 2018. is there already a Type A Franchise in Germany?
Armand: RED is in an advanced process of launching a local subsidiary, as Germany is the biggest prosumer market in the EU. If during the set-up we find an appropriate partner for a Type A, we will let you know.
Wow great news, so you think that will be active by October?
Armand: We hope to be active there by the beginning of next year. In the process of recruiting an experienced manager there.
Ok thanks, so I will close a Short contract with my energy Provider ;)
Armand: :) You have a 21-day switching term anyway.
There is an article indicating that Restart Energy is going to buy more hydropower plants and build a geothermal with an EU grant is that true?
Armand: We are evaluating all the options but we are focusing our efforts on launching the platform!
Will the existing franchises of Restart Energy in Romania be put on the RED platform?
Armand: We will try to move all the producers and consumers from Romania on the RED platform.
When can we expect the RED platform to launch for everybody, any estimation?
Armand: Open Beta in August and Launch in September.
There’s a total of 400m MWAT tokens right? So assuming most of it is held by franchises, and end users who want to purchase power have to own MWAT tokens right? so users who want to buy power will have a pay a high price depending on market forces right?
Denis: 500 M in total, actually. 470 M is the current circulating value.
Armand: Yes. Everyone that wants access to RED needs to purchase MWAT. We will also MWAT to be purchased on RED-P with fiat.
So users can use a credit card to purchase and it automatically converts to MWAT tokens? but if the token price on the exchange keeps fluctuating, how will the user be able to know how much exactly are they paying for?
Armand: There will be access packages on RED containing a certain number of MWAT tokens based on the users’ consumption or how much KW they want to trade. The MWAT sold on the Platform will be priced much higher than on exchanges.
So that means the price is fixed?
Armand: For the access packages YES, but NOT for the KWT.
I’m not clear in understanding the 0.11 KWT given as initial incentive. Who will bear the incentive cost of that if every MWAT holder sells it?
Armand: Suppliers on the RED Platform, starting with Restart Energy, will be bound to deliver that energy to valid consumer accounts.
There will be several types of accounts on the platform: Simple (trading), Consumer (needs supplier switch done by RED), Producer (needs PPA with Restart), Prosumer (Consumer + Producer), Supplier (Type A), Broker (Type B).
Great, so assume from the total supply lets say 200 million MWAT comes to RED-P at the cost of 0.05 euros per MWAT, means that’s worth of 10 million euros so whos gonna bear that incentive (can we call that a loss to a company?)
Armand: I wouldn't call it a loss. It’s more like a premium to onboard new customers.
Hi team. In regards to the actualisation of the blockchain-based platform, have you encountered any unforeseen issues that were not previously thought of, and if so, how have you tackled them? Or has it been smooth-sailing thus far?
Armand: The development is moving along at a steady rate. We have a clear schedule now on what will be delivered in the first stage. For the second stage, we are looking at some solutions like convincing producers to accept MWAT as a payment (instead of BTC/ETH) and some hardware tools to account for the fractional ownership in crowd-financed renewables.
What are currently the biggest challenges u have to face with for next few months?
Armand: That’s a good question, I think a big challenge is to establish RED as a preferred marketplace for renewable energy. To make it very simple for producers and consumers to use RED for energy needs so that they forget about any other options.
Armand, if token holders sell their KWT in a different country, doesn't that mean it will be paid in a different currency? How does that facilitate the withdrawal from a different country? That will trigger multiple bank transfer from a different country which is slow and cost inefficient. How to solve these? Please advise. Thanks.
Armand: It’s simple. We start with simple card payments and BTC/ETH deposits and move to a bank that offers multi-currency support. This is not a problem.
Armand: It’s very important to position RED as an industry leader, taking a Power Position in the sector, to gain consumer trust in the markets that we want to enter.
If I may ask, how much of energy in kWh is produced by RED to existing customers in Romania, and how many of the real customers are educated towards a blockchain-based market.
Armand: It’s our job to introduce our existing customers and producers to RED. We will start with the industrial consumers that are looking at every tiny cent they can save, because electricity is a major cost factor in their products.
Could we have some details of the beta developers and their LinkedIn profiles or their background?
Denis: Take a look at our second update — the details are there: https://blog.restartenergy.io/red-update-2-consolidating-a-strong-foundation-18bdfb9d5fd1
Sadly, we can’t post their LinkedIn profiles, as that would lead to headhunters trying to recruit them regularly.
So 0.75 KWT will be what’s estimated in 2019, that every MWAT staked on the platform will receive, regardless of there being 450mill or 50mill staked on the platform or will there be a bigger share for those that are staked if there are only 50mill on the RED-P?
Armand: This number depends on the number of transactions taking place on RED-P, not on the number of MWAT.
So, the platform needs some sort of license or something like a crypto exchanges does?
Armand: It’s more of a special activity code that is already implemented.
Good to see you on the CryptoRich show, Denis. That blonde lady seemed to be taking notes while you were talking — schooled. Good to see the team making moves to garner more attention in crypto-circles, in addition to the energy sector.
Denis: Thank you, That was my first YT interview/panel ever, so I was a bit nervous at the start, but got over it soon enough.
She and I got along quite well — she’s the CEO of a rather well-known marketing firm. Apropos, I’ll likely be joining Crypto Rich again on his channel — he invited me back. Steve Good invited me to be on his show as well, but we still need to contact each other and hash out the details and our schedules. We’ll let you know when those invites turn into actual videos. :)
Armand: Another interesting fact: Restart Energy is launching a nationwide program for installing EV charging stations that will be powered with MWAT!!! The project will be launched through a Guinness Record EV drive connecting 3,000 Cities in Romania!
Armand: We have so many exciting developments but I don’t want to spoil any surprises.
How many electric cars are currently on the Romanian roads and what is expected for the (near) future? Profitable exploitation of charging stations will need (many) electric cars on the road. Would be insightful to get these numbers. Thanks team.
Denis: Currently, not a lot of cars in Romania are fully-electric, but there’s a large increase expected in the market for the next few years (1,000% & above) and we’d like to establish ourselves as the leaders in the field before the market fully takes off. It is an opportunity precisely because of the current low numbers and matches perfectly with our company’s vision of a clean-energy future.
I will also mention that once fully set up, we intend to integrate the EV stations with RED-P, enabling users to pay for chargings with KWT!
If there are more producers that use the platform, will there be more donated kWh?
Denis: More use of the platform = more KWT donated through the RED Loyalty System. It’s a matter of energy bought from producers leading to an increase of such.
To use an example: if 2 producers sold a combined total of 50 MW of energy on the platform, the amount donated would be equal to if a single producer sold that same 50 MW (though not quite, as two producers might have negotiated different percentages — from 1% to 5%, but it illustrates a point).
I hope that sheds more light on the issue.
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We would like to thank everyone involved for their participation. See you soon for our next Q&A!
