CyberMiles (Smart Contracts for E-Commerce)

CyberMiles & 5miles Background

CyberMiles is the blockchain technology being developed by CyberMiles Foundation, a blockchain research laboratory working closely with 5miles. 5miles was formed in 2014 by a world-class team from China and the US. Since its inception, 5miles has since raised approximately USD 62 million from top-tier investment firms such as SIG, IDG, Morningside, and Blue Lake. Since the launch of its app in 2015, 5miles has already established itself as a Top 10 shopping app, with more than 12 million users and USD 3 billion in annual transaction value. Its founding CEO, Dr. Lucas Lu, was previously a co-founder and CTO of Light In the Box, a company which went public on the NYSE. Before that, Lucas was the first GM of Alibaba’s Taobao Mobile platform

The CyberMiles Blockchain Protocol and CyberMiles Token

CyberMiles is a new blockchain protocol being developed and specifically designed and optimized for business and marketplace applications. The protocol will consist of a blockchain based “virtual machine” and defined modules of middleware software stacks, which operate outside the chain to support decentralized processes governed by smart contracts implemented on the network. CMT is the native crypto token currency being created to be integrated with and used on the CyberMiles network, and on decentralized applications on the network.

Initially, CMT is proposed to be issued and implemented on the public Ethereum blockchain as an ERC-20 compliant token. 5miles will integrate its existing “wallet” function to hold CMT balances, and allow users to utilize the tokens on the 5miles platform shortly after the tokens are activated. The CyberMiles protocol is being developed for implementation on its own open source blockchain. In this scenario, the initial CMT based on ERC-20 would be exchanged on a 1:1 basis with native CMT issued on CyberMiles’ blockchain, with any stored value & rights transferred to the native token.

CyberMiles Token Issuance

CMT Token Issuance

The CyberMiles Foundation proposes to initially generate and issue 1 billion CMT, however over time, this may expand and be capped at 10 billion CMT. Further information about when and to whom CMT are proposed to be allocated can be found below.

Upon the completion of the proposed CyberMiles token contribution (“Token Contribution”) for 700 million CMT, there will be a total of 1 billion CMT in circulation.

Token Contribution is proposed to launch soon after incorporation of the CyberMiles Foundation. For further information and updates regarding the Token Contribution, prospective participants are invited to provide their email address at http://cm.5miles.com. Further updates and announcements regarding the timing and the details of the Token Contribution will be communicated through the website.

Use of Token Contribution proceeds

The proceeds raised from the initial Token Contribution are intended be used for the following purposes:

Fund the development and establishment of the CyberMiles blockchain protocol;
Marketing and operating expenses related to the expansion and migration of 5miles’s platform to the CyberMiles’ blockchain network. Arrangements with 5miles and the CyberMiles Foundation will be at arms length; and
Research and development costs incurred by the CyberMiles Foundation in developing the CyberMiles platform.

Allocation of CMT

In addition to the hard cap of 700 million tokens to be issued for the Token Contribution, it is proposed that another 100 million tokens will be pre-allocated to 5miles, in consideration for its role in establishing the CyberMiles platform and developing the initial ecosystem for CMT. This will be a key component of a strategic partnership in which 5miles contributes its brand, technology, and integration of its 10+ million registered users with CyberMiles and CMT. A further 100 million tokens will be pre-allocated to the CyberMiles team & partners, for developing the technology & operating the Foundation. The token allocation for both 5miles and for the CyberMiles team and partners will be subject to a long-term (2.5-year) vesting period.

A further 100 million CMT are proposed to be held in reserve for future release by the Foundation to end-users, to jumpstart the use of the CyberMiles applications and to encourage participation in the ecosystem. The CMT to be distributed is intended spur adoption of various CyberMiles processes and applications (such as voting on dispute resolution, setting up CyberMiles wallets, etc.), and completion of Smart Contracts on the CyberMiles chain.

Token Supply Schedule

As transactions occur on the CyberMiles chain and Smart Business Contracts are executed, the transactions will be processed and validated through a delegated-PoS (“D-PoS”) consensus engine system, and will result in newly minted tokens to incentivize & compensate the network participants. The mechanisms for the D-PoS engine are in-development, but the CyberMiles Foundation will target an eight-percent (8%) compounded annual increase in the total number of tokens, from the close of the Token Contribution Event, until the 10th year anniversary. Upon the 10th anniversary of the Token Contribution Event, the Foundation will decide, based on the development of the CyberMiles ecosystem and with input from the community, on the targeted growth in the token supply for subsequent years. Regardless, the Foundation is proposing a long-term cap of 10 billion tokens as the maximum number of CMT tokens that can be issued and circulated.

Inflation Schedule

As discussed above, the delegated-PoS (Proof of Stake) mechanisms will be developed to effect the targeted outcome of 8% annual increase in total number of tokens, until the 10th anniversary of the close of the Token Contribution Event. Below is the targeted inflation schedule for the active supply of tokens:

Proposed, Targeted Number of Active CMT in Circulation (millions of CMT):