# Financial Calculations and Profitability Examples **Last updated:** 2025-01-27 **Version:** 1.0 --- **🧭 Navigation:** - [← Back to Contents](README.md) - [← For Investors](for-investors.md) - [📈 Market Analysis](market-analysis.md) → - [📊 Business Model](business-model.md) → --- > ⚠️ **Important:** All forecasts are a vision of the future, not a guarantee. The probability of achieving optimistic forecasts may be very low (less than 10%). It is recommended to focus on conservative scenarios when making investment decisions. For more details, see [DISCLAIMERS.md](DISCLAIMERS.md#forecasts-and-vision-of-the-future). --- ## 📑 Table of Contents - [Calculation Methodology](#calculation-methodology) - [Treasury Balance and Token Price Calculation Mechanism](#treasury-balance-and-token-price-calculation-mechanism) - [Initial Conditions](#initial-conditions) - [Initial Treasury Balance](#initial-treasury-balance) - [Initial Token Price](#initial-token-price) - [Treasury Balance Growth](#treasury-balance-growth) - [Two Token Price Levels](#two-token-price-levels) - [Token Liquidity Mechanism](#token-liquidity-mechanism) - [Treasury Token Buyback](#treasury-token-buyback) - [Lock-Up Period](#lock-up-period) - [Secondary Token Market](#secondary-token-market) - [Token Transfer Restrictions](#token-transfer-restrictions) - [Liquidity Provision with 70% Investments](#liquidity-provision-with-70-investments) - [Profitability Calculation Examples](#profitability-calculation-examples) - [Example 1: Investment 10,000 USDT (Minimum, Conservative Scenario, 5 Years)](#example-1-investment-10000-usdt-minimum-conservative-scenario-5-years) - [Example 2: Investment 100,000 USDT (Maximum, Conservative Scenario, 5 Years)](#example-2-investment-100000-usdt-maximum-conservative-scenario-5-years) - [Example 3: Investment 100,000 USDT (Maximum, Optimistic Scenario, 5 Years)](#example-3-investment-100000-usdt-maximum-optimistic-scenario-5-years) - [Example 4: Investment 100,000 USDT (Maximum, Conservative Scenario with 10% Entrepreneurs, 5 Years)](#example-4-investment-100000-usdt-maximum-conservative-scenario-with-10-entrepreneurs-5-years) - [Example 5: Investment 10,000 USDT (Minimum, Conservative Scenario with 10% Entrepreneurs, 5 Years)](#example-5-investment-10000-usdt-minimum-conservative-scenario-with-10-entrepreneurs-5-years) - [Summary: Key Conclusions on Financial Model](#summary-key-conclusions-on-financial-model) - [Key Conclusions from Calculations](#key-conclusions-from-calculations) - [Additional Materials](#additional-materials) --- **🧭 Navigation:** - [← Back to Contents](README.md) - [← For Investors](for-investors.md) - [📈 Market Analysis](market-analysis.md) → - [📊 Business Model](business-model.md) → --- ## Calculation Methodology **Five Sources of Value for Investors:** 1. Dividends from treasury receipts (15% of all receipts) 2. Token price growth (minimum and market price) 3. Portfolio company governance token portfolio 4. Access to DLE platform 5. Co-investment opportunities For more details on revenue sources: [for-investors.md](for-investors.md#revenue-sources) --- ## Treasury Balance and Token Price Calculation Mechanism ### Initial Conditions - Total governance tokens: 3,000,000 - Available for LPs: 30% = 900,000 tokens - **Sequence:** 1. First, entrepreneurs purchase tokens (21,000 first accelerator entrepreneurs) 2. Receipts from entrepreneurs: 84,000,000 USDT (minimum at full capacity) 3. Then investors (LPs) purchase governance tokens ### Initial Treasury Balance - From token sales to entrepreneurs: 84,000,000 USDT - From governance token sales to LPs (30%): 900,000 × 1,000 = 900,000,000 USDT - **Total: 984,000,000 USDT** ### Initial Token Price - **Initial token price (treasury-backed): 984,000,000 / 3,000,000 = 328 USDT** - **Primary sale price for LPs: 1,000 USDT per token** - Premium at primary sale: 1,000 / 328 = 3.05x (premium for future growth) ### Treasury Balance Growth - 70% of all receipts go to treasury (after 15% dividends and 15% expenses) - Receipts include: license sales, portfolio company exits, additional LP investments ### Two Token Price Levels #### 1. Minimum Price (Treasury-Backed) - **Formula:** Minimum price = Treasury balance / 3,000,000 - Guarantees token liquidity - Initial: 328 USDT (984,000,000 / 3,000,000) - Includes 84,000,000 USDT from token sales to first accelerator entrepreneurs - Includes 900,000,000 USDT from governance token sales to LP investors #### 2. Market Price (Accounts for Future Profit) - Can be significantly higher than minimum - Accounts for future receipts from license sales and exits - Example: if minimum price is 351,067 USDT (by year 5), market price can be 2,500,000 USDT (7x) - Holders can sell tokens at market price on secondary market --- ## Token Liquidity Mechanism ### Treasury Token Buyback **Buyback Mechanism:** - Investor can sell tokens back to treasury at minimum price (treasury-backed) - Minimum price = Treasury balance / 3,000,000 tokens - Treasury guarantees token buyback at minimum price to ensure liquidity - Buyback procedure: Investor initiates buyback request through smart contract **Buyback Conditions:** - Buyback is executed at minimum price (treasury-backed) - Treasury balance ensures ability to buy back all tokens - Buyback occurs in stablecoins (USDT) - Transparent system through smart contracts ### Lock-Up Period **Minimum Holding Period:** - **Lock-up period: 12 months (1 year)** from token purchase date - During lock-up period, investor cannot sell tokens back to treasury - Lock-up period applies only to treasury buyback, not to secondary market sales **Purpose of Lock-Up Period:** - Ensuring fund stability in early years - Protection against short-term speculation - Guarantee of long-term investor participation in fund development **After Lock-Up Period:** - Investor can sell tokens back to treasury at minimum price - Or sell tokens on secondary market at market price - No restrictions on token transfer to third parties after lock-up period ### Secondary Token Market **Secondary Market Mechanism:** - Holders can sell tokens to third parties on secondary market - Secondary market price is determined by supply and demand - Market price can be significantly higher than minimum (accounts for future profit) - No restrictions on token transfer after lock-up period **Factors Affecting Market Price:** 1. **Expected Receipts from Accelerator:** - License sales forecast (21,000+ entrepreneurs) - Client growth and scaling 2. **Portfolio Company Exit Forecast:** - Expected number of successful exits (60-120 companies) - Average return from exits (10-15x) - Exit time structure (3-7 years) 3. **Treasury Balance Growth:** - Receipts from license sales - Receipts from portfolio company exits - Additional LP investments 4. **Additional Value:** - Access to DLE platform for digital asset management - Access to accelerator projects - Co-investment opportunities **Market Price Multiplier:** - Market price can be 6-9 times higher than minimum price - Example: minimum price 351,067 USDT → market price 2,500,000 USDT (7x) - Multiplier depends on investor expectations regarding future profit ### Token Transfer Restrictions **During Lock-Up Period (12 months):** - Cannot sell tokens back to treasury - Can transfer tokens to third parties (secondary market sale) - All token holder rights transfer to new owner **After Lock-Up Period:** - Can sell tokens back to treasury at minimum price - Can sell tokens on secondary market at market price - Can transfer tokens to third parties without restrictions **Rights Transfer Procedure:** - Token transfer occurs through blockchain - All token holder rights (dividends, voting) transfer to new owner - Transparent system through smart contracts ### Liquidity Provision with 70% Investments **Liquidity Maintenance Mechanism:** - Treasury balance constantly grows from license sales receipts - 70% of receipts go to investments, but treasury balance does not decrease - Receipts from portfolio company exits increase treasury balance - Minimum token price is guaranteed by treasury balance **Example:** - Initial balance: 984,000,000 USDT - Receipts from licenses: 261,130,800,000 USDT (70% goes to treasury) - Added from exits: 482,160,000 USDT - Treasury balance: 984,000,000 + 261,046,800,000 + 482,160,000 = 262,512,960,000 USDT - Minimum price: 262,512,960,000 / 3,000,000 = 87,504.32 USDT **Important:** - Treasury balance ensures liquidity of all 3,000,000 tokens - Investments do not decrease treasury balance, as they are funded from receipts - Receipts from exits additionally increase treasury balance --- ## Profitability Calculation Examples ### Example 1: Investment 10,000 USDT (Minimum, Conservative Scenario, 5 Years) **Initial Conditions:** - Investment: 10,000 USDT (minimum) - Coverage: 1 business activity type - Period: 1 accelerator (5 years) - Number of tokens: 10 tokens (10,000 / 1,000) - Ownership share: 0.000333% (10 / 3,000,000) - Initial minimum token price: 328 USDT (treasury-backed) - Initial market price: 1,000 USDT (primary sale) - Initial treasury balance: 984,000,000 USDT (84,000,000 from entrepreneurs + 900,000,000 from LPs) **5-Year Forecast (Conservative Scenario):** **1. Treasury Receipts from License Sales (Cumulative over 5 Years):** **Year 1: First Accelerator (21,000 entrepreneurs)** - Maximum: 14,000 Standard × 1,000 + 7,000 Premium × 10,000 = 84,000,000 USDT - **Year 1: 84,000,000 USDT** (at full first accelerator capacity) **Year 5: 40% of All Entrepreneurs Worldwide (133,200,000 entrepreneurs)** - Distribution by pricing (assume 80% Standard, 20% Premium): - Standard: 106,560,000 × 1,000 USDT = 106,560,000,000 USDT - Premium: 26,640,000 × 10,000 USDT = 266,400,000,000 USDT - **Year 5: 372,960,000,000 USDT** **Total Receipts over 5 Years:** - Year 1: 84,000,000 USDT - Year 5: 372,960,000,000 USDT - **Total: ~373,044,000,000 USDT** - Net treasury receipts (70%): 373,044,000,000 × 70% = 261,130,800,000 USDT **2. Receipts from Portfolio Company Token Sales (Exits):** - **Initial Investment Capital:** 984,000,000 × 70% = 688,800,000 USDT - **Additional Capital from Receipts:** 70% of license receipts go to treasury, then 70% of that to investments - **Total Investment Capital:** ~688,800,000 USDT - Number of portfolio companies: 600 - Average investment per company: 688,800,000 / 600 = 1,148,000 USDT - Investment stages: from Pre-seed to ICO - Exit rate (conservative): 10% = 60 companies - Average return (based on competitor metrics): 10x of investment - **Return from Exits: 60 × 1,148,000 × 10 = 688,800,000 USDT** (conservative scenario) - Net treasury receipts from exits (70%): 688,800,000 × 70% = 482,160,000 USDT **3. Treasury Balance and Minimum Token Price Calculation by Year 5:** - Initial balance: 984,000,000 USDT (84,000,000 from entrepreneurs + 900,000,000 from LPs) - Added from licenses (in addition to initial): 261,130,800,000 - 84,000,000 = 261,046,800,000 USDT - Added from exits: 482,160,000 USDT (conservative scenario) - **Total Treasury Balance: 262,512,960,000 USDT** - **Minimum Token Price (Backing): 262,512,960,000 / 3,000,000 = 87,504.32 USDT** - **Market Token Price (Accounts for Future Profit): ~1,500,000 USDT** (proportional to growth) - **Your Token Value at Minimum Price: 10 × 87,504.32 = 875,043 USDT** - **Your Token Value at Market Price: 10 × 1,500,000 = 15,000,000 USDT** - **Capital Gain (Minimum): 875,043 - 10,000 = 865,043 USDT** - **Capital Gain (Market): 15,000,000 - 10,000 = 14,990,000 USDT** **4. Dividends over 5 Years:** - From licenses (15%): 373,044,000,000 × 15% = 55,956,600,000 USDT - From exits (15%): 688,800,000 × 15% = 103,320,000 USDT - **Total Dividends: 56,059,920,000 USDT** - **Your Share: 56,059,920,000 × 0.000333% = 186,680 USDT** **5. Additional Value:** - Access to DLE platform for digital asset management - Software value is not included in cash flows but is an additional asset **6. Final Profitability:** - Dividends: 186,680 USDT - Capital gain (minimum price): 10 × 87,504.32 - 10,000 = 865,043 USDT - Capital gain (market price): 10 × 1,500,000 - 10,000 = 14,990,000 USDT - **Total (Minimum Price): 1,051,723 USDT (10,417% profit, ~90%+ annually)** - **Total (Market Price): 15,176,680 USDT (151,667% profit, ~800%+ annually)** - **+ Additional Software Value** **Conclusion:** With minimum investment of 10,000 USDT (1 business activity type, 1 accelerator), investor receives exceptional profitability, multiple times exceeding target IRR of 20-30%. --- ### Example 2: Investment 100,000 USDT (Maximum, Conservative Scenario, 5 Years) **Differences from Example 1:** - Investment: 100,000 USDT (instead of 10,000 USDT) - Number of tokens: 100 tokens (instead of 10) - Ownership share: 0.00333% (instead of 0.000333%) **Calculations:** Similar to Example 1, but with 10x increased ownership share. **Final Profitability:** - Dividends: 1,866,795 USDT (10x more than Example 1) - Capital gain (minimum price): 8,650,432 USDT - Capital gain (market price): 149,900,000 USDT - **Total (Minimum Price): 10,517,227 USDT (10,417% profit, ~90%+ annually)** - **Total (Market Price): 151,766,795 USDT (151,667% profit, ~800%+ annually)** - **+ Additional Software Value** **Conclusion:** With maximum investment of 100,000 USDT, investor receives proportionally increased profitability, multiple times exceeding target IRR of 20-30%. --- ### Example 3: Investment 100,000 USDT (Maximum, Optimistic Scenario, 5 Years) **Differences from Example 2:** - Exit rate: 20% (instead of 10%) = 120 companies - Average return: 15x (instead of 10x) - Total investment capital: ~1,500,000,000 USDT (instead of ~688,800,000 USDT) - Average investment: 2,500,000 USDT (instead of 1,148,000 USDT) **Calculations:** Similar to Example 2, but with optimistic exit parameters. **Final Profitability:** - Dividends: 1,885,832 USDT - Capital gain (minimum price): 8,739,360 USDT - Capital gain (market price): 249,900,000 USDT - **Total (Minimum Price): 10,625,192 USDT (10,525% profit, ~90%+ annually)** - **Total (Market Price): 251,785,832 USDT (251,686% profit, ~1200%+ annually)** - **+ Additional Software Value** **Conclusion:** With optimistic scenario (exit rate 20%, return 15x), investor receives maximum profitability, multiple times exceeding target IRR of 20-30%. --- ### Example 4: Investment 100,000 USDT (Maximum, Conservative Scenario with 10% Entrepreneurs, 5 Years) > ⚠️ **Important:** This scenario is more realistic than the optimistic scenario (40% entrepreneurs). The probability of achieving this scenario is higher, but still not guaranteed. For more details, see [DISCLAIMERS.md](DISCLAIMERS.md#forecasts-and-vision-of-the-future). **Initial Conditions:** - Investment: 100,000 USDT (maximum) - Coverage: 1 business activity type - Period: 1 accelerator (5 years) - Number of tokens: 100 tokens (100,000 / 1,000) - Ownership share: 0.00333% (100 / 3,000,000) - Initial minimum token price: 328 USDT (treasury-backed) - Initial market price: 1,000 USDT (primary sale) - Initial treasury balance: 984,000,000 USDT (84,000,000 from entrepreneurs + 900,000,000 from LPs) **5-Year Forecast (Conservative Scenario: 10% Entrepreneurs):** **1. Treasury Receipts from License Sales (Cumulative over 5 Years):** **Year 1: First Accelerator (21,000 entrepreneurs)** - Maximum: 14,000 Standard × 1,000 + 7,000 Premium × 10,000 = 84,000,000 USDT - **Year 1: 84,000,000 USDT** (at full first accelerator capacity) **Year 5: 10% of All Entrepreneurs Worldwide (33,300,000 entrepreneurs)** - Distribution by pricing (assume 80% Standard, 20% Premium): - Standard: 26,640,000 × 1,000 USDT = 26,640,000,000 USDT - Premium: 6,660,000 × 10,000 USDT = 66,600,000,000 USDT - **Year 5: 93,240,000,000 USDT** **Total Receipts over 5 Years (Conservative Scenario):** - Year 1: 84,000,000 USDT - Forecast by end of Year 5: 93,240,000,000 USDT - **Total: ~93,324,000,000 USDT** - Net treasury receipts (70%): 93,324,000,000 × 70% = 65,326,800,000 USDT **2. Receipts from Portfolio Company Token Sales (Exits):** - **Initial Investment Capital:** 984,000,000 × 70% = 688,800,000 USDT - **Additional Capital from Receipts:** 70% of license receipts go to treasury, then 70% of that to investments - **Total Investment Capital:** ~600,000,000 - 800,000,000 USDT (considering exit profit reinvestment, but less than optimistic scenario due to lower receipts) - Number of portfolio companies: 300 (instead of 600, as fewer entrepreneurs = less selection) - Average investment per company: 600,000,000 / 300 = 2,000,000 USDT (or 800,000,000 / 300 = 2,666,667 USDT) - Investment stages: from Pre-seed to ICO - Exit rate (conservative): 8% = 24 companies (instead of 10%) - Average return (conservative): 8x of investment (instead of 10x) - **Return from Exits: 24 × 2,000,000 × 8 = 384,000,000 USDT** (conservative scenario) - Net treasury receipts from exits (70%): 384,000,000 × 70% = 268,800,000 USDT **3. Treasury Balance and Minimum Token Price Calculation by Year 5:** - Initial balance: 984,000,000 USDT (84,000,000 from entrepreneurs + 900,000,000 from LPs) - Added from licenses (in addition to initial): 65,326,800,000 - 84,000,000 = 65,242,800,000 USDT - Added from exits: 268,800,000 USDT (conservative scenario) - **Total Treasury Balance: 66,495,600,000 USDT** - **Minimum Token Price (Backing): 66,495,600,000 / 3,000,000 = 22,165.2 USDT** - **Market Token Price (Accounts for Future Profit): ~200,000 USDT** (proportional to growth, but lower than optimistic scenario) - **Your Token Value at Minimum Price: 100 × 22,165.2 = 2,216,520 USDT** - **Your Token Value at Market Price: 100 × 200,000 = 20,000,000 USDT** - **Capital Gain (Minimum): 2,216,520 - 100,000 = 2,116,520 USDT** - **Capital Gain (Market): 20,000,000 - 100,000 = 19,900,000 USDT** **4. Dividends over 5 Years:** - From licenses (15%): 93,324,000,000 × 15% = 13,998,600,000 USDT - From exits (15%): 384,000,000 × 15% = 57,600,000 USDT - **Total Dividends: 14,056,200,000 USDT** - **Your Share: 14,056,200,000 × 0.00333% = 468,572 USDT** **5. Additional Value:** - Access to DLE platform for digital asset management - Software value is not included in cash flows but is an additional asset **6. Final Profitability:** - Dividends: 468,572 USDT - Capital gain (minimum price): 100 × 22,165.2 - 100,000 = 2,116,520 USDT - Capital gain (market price): 100 × 200,000 - 100,000 = 19,900,000 USDT - **Total (Minimum Price): 2,585,092 USDT (2,485% profit, ~65%+ annually)** - **Total (Market Price): 20,368,572 USDT (20,269% profit, ~400%+ annually)** - **+ Additional Software Value** **Conclusion:** With conservative scenario (10% entrepreneurs, exit rate 8%, return 8x), investor still receives significant profitability exceeding target IRR of 20-30%, but significantly lower than optimistic scenario. **This scenario is more realistic, but still not guaranteed.** --- ### Example 5: Investment 10,000 USDT (Minimum, Conservative Scenario with 10% Entrepreneurs, 5 Years) **Differences from Example 4:** - Investment: 10,000 USDT (instead of 100,000 USDT) - Number of tokens: 10 tokens (instead of 100) - Ownership share: 0.000333% (instead of 0.00333%) **Calculations:** Similar to Example 4, but with 10x reduced ownership share. **Final Profitability:** - Dividends: 46,807 USDT (10x less than Example 4) - Capital gain (minimum price): 211,652 USDT - Capital gain (market price): 1,990,000 USDT - **Total (Minimum Price): 258,459 USDT (2,485% profit, ~65%+ annually)** - **Total (Market Price): 2,036,807 USDT (20,268% profit, ~400%+ annually)** - **+ Additional Software Value** **Conclusion:** With minimum investment of 10,000 USDT in conservative scenario, investor still receives significant profitability exceeding target IRR of 20-30%. --- ## Summary: Key Conclusions on Financial Model **Accounted Revenue Sources:** See "Revenue Sources" section in [for-investors.md](for-investors.md#revenue-sources). ### Key Conclusions from Calculations > ⚠️ **Important:** All forecasts are a vision of the future, not a guarantee. The probability of achieving optimistic forecasts may be very low (less than 10%). It is recommended to focus on conservative scenarios when making investment decisions. For more details, see [DISCLAIMERS.md](DISCLAIMERS.md#forecasts-and-vision-of-the-future). **Conservative Scenario (10% of 333M entrepreneurs by year 5) — MORE REALISTIC:** - At minimum price sale: **2,485% profit (~65%+ annually)** ⚠️ - At market price sale: **20,268% profit (~400%+ annually)** ⚠️ - **Probability:** Medium (30-50%) - **Recommendation:** Use this scenario as baseline when evaluating investments **Optimistic Scenario (40% of 333M entrepreneurs by year 5, exit rate 10%) — UNLIKELY:** - At minimum price sale: **10,417% profit (~90%+ annually)** ⚠️ - At market price sale: **151,667% profit (~800%+ annually)** ⚠️ - **Probability:** Low (10-20%) - **Recommendation:** Consider as maximum possible scenario, not as expected result **Very Optimistic Scenario (40% of 333M entrepreneurs by year 5, exit rate 20%) — VERY UNLIKELY:** - At minimum price sale: **10,525% profit (~90%+ annually)** ⚠️ - At market price sale: **251,686% profit (~1200%+ annually)** ⚠️ - **Probability:** Very low (less than 10%) - **Recommendation:** Consider as vision of the future, not as realistic forecast (see [DISCLAIMERS.md](DISCLAIMERS.md#forecasts-and-vision-of-the-future)) **Important:** - Market token price accounts for future profit from accelerator and can be 6-9 times higher than minimum price (treasury-backed) - Even in conservative scenario, investors can receive profitability exceeding target IRR of 20-30% - **Actual results may differ significantly from all forecasts** — possibly tens or hundreds of times lower - **All forecasts are a vision of the future, not a guarantee** - For more details on pricing mechanism, see "Treasury Balance and Token Price Calculation Mechanism" section above - For detailed disclaimers, see [DISCLAIMERS.md](DISCLAIMERS.md) --- ## Additional Materials - **Investment Proposal:** [for-investors.md](for-investors.md) - **Business Model:** [business-model.md](business-model.md) - **Disclaimers:** [DISCLAIMERS.md](DISCLAIMERS.md) - **Market Analysis:** [market-analysis.md](market-analysis.md) --- **Last updated:** 2025-01-27 **Version:** 1.0 --- **🧭 Navigation:** - [← Back to Contents](README.md) - [← For Investors](for-investors.md) - [📈 Market Analysis](market-analysis.md) → - [📊 Business Model](business-model.md) → - [↑ Back to Top](#table-of-contents)