Proof of Investment (POI)

Blockchain technology is developing very strongly in recent years. Derived from Bitcoin's Proof of Work technology, through many upgrades to meet the expanding needs of both system and applicability, new technologies, in turn, bring practical applications Much more practical, optimal, and efficient like Proof of Stake, Proof of Authority... This helps blockchain technology gradually become necessary and bring more practical applications.

Crypstarter Blockchain is a Network that allows creating an open economy on its own Ecosystem. Unlike other projects that apply blockchain technology to a business model or solve a separate problem. Crypstarter pursues the vision of creating an ecosystem with multiple economic models that work in sync. To achieve this, we are developing a completely new concept, Proof of Investment (POI) technology.

What is POI?

Proof of Investment (POI) is the NFT that an investor gets when an investment deal is signed off, in addition to other benefits that a normal deal would give, such as shares of the business. The POI records how much CST has been invested into the business and in exchange for how many of its shares and tokens.

The POI can be split into parts and resold to new investors in new deals, where the price of the company shares and tokens does not necessarily stay the same as in the first deal. Once a new deal is signed, the original POI is destroyed and new POIs are created. All new POIs still register to the Investment Smart Contract that governs the original investment deal so that the new POI owners can receive staking rewards according to the share amount that they own.

For example, investor A invests in business X and signed a deal of 1000 CST in exchange for 5000 shares and 10000 token Xs. Investor B wants to buy 2000 shares of X from investor A, so he negotiate a new deal with A. The new deal is 2000 shares of X and 2000 token Xs at 500 CST, which means investor A will sell 40% of his shares and 20% of his token Xs for 500 CST.

Once the deal is executed, investor B is provided with a new POI stating that he has invested 500 CST for 2000 shares and 500 tokens of X. On the other hand, investor A gained 500 CST from the sale, while keeping 3000 shares and 800 tokens. His POI is also discarded and replaced with another one with the amounts of 60% of the original, i.e., stating A has invested 600 CST for 3000 shares and 6000 tokens.

The staking reward from the original investment deal that A signed is now split with 60% goes to A and 40% goes to B when vested.

Last updated