MSMEs have a very important role in global economic development, along with the development of technology MSMEs nowaday can compete with large companies because the perpetrators MSMEs no longer need to become large companies so the goods can be bought and ogled by consumers.
“The digital economy provides what is called economic democratization, because MSMEs are now in the platform and do not need to be great and big enterprises with too big marketing cost.” it can entered the platform and could have the same opportunity.
With the adaptation of blockchain technology to all exchange platforms included in this digital economic platform let me introduce ModuleTrade’s Value Ecosystem (“MVE”)
What is ModulTrade’s Value Ecosystem (“MVE”)
Leveraging on smart-contract blockchain-based technology, ModulTrade will build a value ecosystem for global trade, i.e. a digital networked value structure that is real-time, global, connected, digital and cost-effective, with features to support further fintech solutions developed by third parties.
MVE aims to connect participants to trade globally via four main components:
- Blockchain based Smart-contract multi-sided platform (MTP): to replicate banks’ trade finance instruments (Letter of Credit and Guarantee) and to offer MVE participants this service in a trustful and cost-effective way while also connecting them to other services like logistic and insurance;
- Trade related services platform: to simplify trade execution via 3rd party service providers (e.g. payments, logistic, financing, tax, bookkeeping);
- Trade & Reputation network: to facilitate monetary transactions of MVE participants within their reputation capital being a function of users reputable collaboration within the ecosystem;
- Marketplaces: to find reliable counterparties globally and to make optimal choices of goods & prices.
The problems faced by MSMEs so that they can not compete and enter the global market are:
- Lack of trust.
- High entrance fee.
- Difficulties In terms of access to funding
- Create a network of MSMEs partnerships
- The complexity of trade-related operations.
The Solution Proposed By Modultrade
ModulTrade aims to eliminate the main barriers for entry into global trade as well as:
- Bringing together a comprehensive range of services for the full B2B trade cycle;
- Helping MSMEs meet, commit and execute trade globally easily, in a trustful and efficiently manner; and
- Introducing the MTRc ( ModulTrade token ) as an efficient instrument of value exchange in ModulTrade ecosystem.
ModulTrade smart-contract Platform (“MTP”)
The main function of MTP will be to replicate banks’ trade finance instruments such as Letters of Credit (LC) and Bank Guarantees.
MTP will provide this functionality to MSMEs at a negligible price (cost of smart-contract execution on blockchain) if compared to 4-15% of the transaction amount charged by banks at the moment.
In this example of trade process banks provide trust into B2B trade cycle as a 3rd party with the “proven” reputation which community can trust. Banks guarantee that upon goods are delivered money will be paid to the Seller.
Banks take charge for providing Trust and for avoiding Manipulation.
- Buyer and Seller agrees on the trade and create a Smart-contract in the MTP
- MTP blocks money on the Buyer’s account to guarantee the payment upon delivery ; MTP instructs bank to reserve funds on the Buyer account/Credit card; OR MTP reserves funds in cryptocurrency within the smart-contract
- S The Seller sends goods via logistic company and submits Tracking number to MTP
- Upon Buyer’s receipt of goods, (Tracking delivery matches the address of the Buyer indicated in the Smart-contract) MTP instructs release of payment to the the Seller
Evolution of MTP
The next development stages will include integration of 3rd party service providers on t he level of active participants of the blockchain network forked by MVE. This integration will include functional agents such as:
- Insurance providers
- Trade financing lenders
- Logistics and shipment providers
The ModulTrade Crypto Token (MTRc), an ERC-20 token issued on Ethereum, is a key element of the new ModulTrade’s B2B multi-sided platform, that enables its users to connect to the ModulTrade platform and its ecosystem and to effect transactions.
MTRc shall be a premined token that will be distributed only during the pre-sale and Tokens sale campaigns. Therefore, the number of MTRc tokens will be fixed starting end of November, 2017 which will be guaranteed by the token smart contract.
Demand for MTRc is expected to be driven by MVE and by ModulTrade network growth. The more trade transactions are carried out through the ModulTrade network, the more MTRc demand will increase, thus improving the trade flows served within MVE
There will be a limited supply of 100 million MTRc in total. Part of it will be distributed through Pre-sale and Token sale in 2017.
- up to 10,000,000 tokens will be distributed during the Pre-sale .
- 30,000,000 tokens will be distributed during the Token Sale .
No more MTRc distribution will be done after the Token Sale ends.
The price of MTRc is set as follows:
Pre-sale price: 1MTRc = 1 ETH/ 700
Token sale price: will be not less than 1MTRc = 1ETH/700 and determined 2 weeks prior to main Token Sale