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To comply with Mica:
- Duration of the offer to the public (the token sale) should not exceed 12 months.
White paper requirements for Utility tokens according to MICA:
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32023R1114#d1e32-184-1
Conditions for excemption: the requirements for issuers of crypto-assets do not apply when:
- the crypto-asset is automatically created as a reward for the maintenance of the distributed ledger or the validation of transactions;
- the offer concerns a utility token providing access to a good or service that exists or is in operation → is the case
- the crypto-asset holder has the right to use it only in exchange for goods and services in a limited network of merchants with contractual arrangements with the offeror → is the case
Clear article: https://www.linkedin.com/pulse/utility-tokens-regulation-under-mica-manimama-t8e3e/
Alternative legal advisers:
Augmented bonding curve implementation
Can you write a White paper for our token launch. In order to comply with the MiCA regulations with respect to utility tokens.
The token has the following characteristics:
- It is managed and launched according to the Q/acc protocol
- It will use Privado for KYC
- Initial token supply will be x
- X % will be distributed to the community
nature of the token:
utility:
Earn CTZN
Receive ambassador rewards
Code contributions
Community development bounties
Spend CTZN
Use CTZN to cover gas fees for your community
Buy Citizen Wallet community hosting
Buy community plugins
Pay us for custom development for your community
Test flight access to newest citizen wallet features
Token distribution:
The Token is distributed in 3 phases;
- Token initialization: Tokens are distributed to the project and the q/acc team
- Early access period: Tokens can be minted on the bonding curve for a total maximum of 500k dollar.
- QF rounds: Tokens can be minted by anyone contributing to the the quadratic funding rounds on the Giveth.
Purpose: .... sustainabele funding of the citizen wallet development.
Technology:
The token will be issued on the Polygon ZKEVM chain.
Rights of token holders:
the process for purchasing:
Tokens can be purchased on .... after the users completes a KYC.
The purchase process has the following steps:
1. complete kyc
2. Transfer ETH or Polygon to....
3. Receive ....
using the token:
Keep the following points in mind to write the whitepaper:
- Focus on utility: Clearly explain what the token is or will be used for. Talk about its purpose in the ecosystem, such as accessing services, like the token-gated chat, or interacting with the platform.
- Emphasize the bonding curve & decentralization: Be clear that the project does not control token issuance or distribution. Issuance and distribution is automated through smart contracts and isn’t something the team can directly manipulate.Be clear that the bonding curve is a mechanism for distributing tokens based on demand. Tokens are issued automatically based on a bonding curve, and not sold by the team. Be clear that the bonding curve is a smart contract that predetermines token pricing based on supply.
- Comply with KYC/AML:The q/acc protocol uses Privado to provide zero-knowledge identification. This measure aims to implement current AML guidelines and prohibit US and UK participation for regulatory compliance.
- Use legal disclaimers: Always include disclaimers, telling users to consult with their own legal and financial advisors.
- Risks: disclose risks involved in holding or using the utility token.
- The white paper must be clear, fair, and not misleading to protect potential purchasers.