| [Table 2] Template for white papers for crypto-assets other than asset-referenced tokens or e-money tokens | |||||
| Template for white papers for crypto-assets other than asset-referenced tokens or e-money tokens [abstract] | |||||
| General information | |||||
| 00 Table of content | boolean true | ||||
| 01 Date of notification | date | ||||
| 02 Statement in accordance with Article 6(3) of Regulation (EU) 2023/1114 | boolean true | ||||
| 03 Compliance statement in accordance with Article 6(6) of Regulation (EU) 2023/1114 | boolean true | ||||
| 04 Statement in accordance with Article 6(5), points (a), (b), (c), of Regulation (EU) 2023/1114 | boolean true | ||||
| 05 Statement in accordance with Article 6(5), point (d), of Regulation (EU) 2023/1114 | boolean true | ||||
| 06 Statement in accordance with Article 6(5), points (e) and (f), of Regulation (EU) 2023/1114 | boolean true | ||||
| SUMMARY | |||||
| 07 Warning in accordance with Article 6(7), second subparagraph, of Regulation (EU) 2023/1114 | boolean true | This summary should be read as an introduction to the crypto-asset white paper. The prospective holder should base any decision to purchase this crypto –asset on the content of the crypto-asset white paper as a whole and not on the summary alone. The offer to the public of this crypto-asset does not constitute an offer or solicitation to purchase financial instruments and any such offer or solicitation can be made only by means of a prospectus or other offer documents pursuant to the applicable national law. This crypto-asset white paper does not constitute a prospectus as referred to in Regulation (EU) 2017/1129 of the European Parliament and of the Council or any other offer document pursuant to Union or national law. |
|||
| 08 Characteristics of the crypto-asset | textBlock | standard. - Token Supply. The total supply of the Token is fixed at 9,300,000,000 (9 billion three hundred million) units. - Token Role. The Token is the native token of the Pairo Platform ("Platform"). The Platform itself serves as the tool for a trust-based, community-driven governance framework that promotes inclusive and transparent participation in decision-making in relation to the Pairo project ("Project"). - Project Description. Through the Platform and the Tokens, the Project emphasizes inclusion, transparency, and collective governance over centralized control, positioning Token holders as engaged participants with governance rights and a role in shaping the strategic direction of the portfolio of assets and activities conducted by the Pairo Foundation ("Foundation"), and other companies, member clubs, or similar groups which may join the Project over time. Concretely, the Project aims at empowering individuals, particularly those with limited financial means and traditionally excluded from such processes, to - engage in real-world asset acquisition and management via a digital platform, by contributing to and engaging with an asset portfolio, without holding legal ownership in any of the assets constituting such portfolio; - steer the allocation of donations toward public-benefit initiatives, such as funding for animal shelters, clean water projects in Africa, or educational programs in underprivileged regions; - steer the distribution of sponsorship funds to registered community members based on their applications; and - votes on any other suggested topic and in any area, even if unrelated to real estate or donation purposes. All of the above are hereafter referred to as "Governance Topics". - Token Functionality. The Token serves exclusively for governance purposes in relation to Governance Topics ("Governance Functionality"). The Governance Functionality is (a) purely technical: the Token does not confer any rights nor impose any obligations on its holders; (b) provided "as is" by the Platform, without any guarantees by the Foundation; (c) purely consultative. The votes provide non-binding indications of preference to be implemented by the Foundation, which remains free to depart from them whenever it considers such deviation to be in the best interests of pursuing its purpose.E180 The Token is a crypto asset other than e-money token and asset-reference token under Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets ("MiCAR"). |
|||
| 09 Further information about utility tokens | textBlock | ||||
| 10 Key information about the offer to the public or admission to trading | textBlock | ||||
| Part A - Information about offeror or person seeking admission to trading | |||||
| A.1 Name | text | ||||
| A.2 Legal form | text | ||||
| A.3 Registered address | |||||
| Registered addess | text | ||||
| Country | enumeration | ||||
| Sub-division | text | ||||
| A.4 Head office | |||||
| Head office | text | ||||
| Country | enumeration | ||||
| Sub-division | text | ||||
| A.5 Registration date | date | ||||
| A.6 Legal entity identifier | LEI | ||||
| A.7 Another identifier required pursuant to applicable national law | text | ||||
| A.8 Contact telephone number | text | ||||
| A.9 E-mail address | text | ||||
| A.10 Response time (days) | integer | ||||
| A.11 Parent company | text | ||||
| A.12 Members of the management body | |||||
| Member #1 | id | 1 | |||
| Identity | text | ||||
| Business address | text | ||||
| Function | text | ||||
| Member #2 | id | 2 | |||
| Identity | text | ||||
| Business address | text | ||||
| Function | text | ||||
| Member #3 | id | 3 | |||
| Identity | text | ||||
| Business address | text | ||||
| Function | text | ||||
| A.13 Business activity | textBlock | (i) the development, management, distribution, and publication of a technology that enables autonomous and collective participation in project-based decision-making and collaboration processes, and (ii) promotion of participation therein. |
|||
| A.14 Parent company business activity | textBlock | ||||
| A.15 Newly established | boolean | ||||
| A.16 Financial condition for the past three years | textBlock | ||||
| A.17 Financial condition since registration | textBlock | The Foundation may also receive donations in the future, although the occurrence of such activities and donations cannot be assured. The Foundation's accounts will undergo an external audit in 2026, covering the period from incorporation in 2025 through the end of 2026. The Foundation is under the supervision of the Federal Supervisory Authority for Foundations (Eidgenössische Stiftungsaufsicht), a division of the Federal Department of Home Affairs. This oversight includes an annual review of management and audit reports. |
|||
| Part B - Information about issuer, if different from offeror or person seeking admission to trading | |||||
| B.1 Issuer different from offerror or person seeking admission to trading | boolean | ||||
| B.2 Name | N/A | . | |||
| B.3 Legal form | N/A | . | |||
| B.4 Registered address | |||||
| Registered addess | N/A | . | |||
| Country | N/A | . | |||
| Sub-division | N/A | . | |||
| B.5 Head office | |||||
| Head office | N/A | . | |||
| Country | N/A | . | |||
| Sub-division | N/A | . | |||
| B.6 Registration date | N/A | . | |||
| B.7 Legal entity identifier | N/A | . | |||
| B.8 Another identifier required pursuant to applicable national law | N/A | . | |||
| B.9 Parent company | N/A | . | |||
| B.10 Members of the management body | |||||
| Member #1 | N/A | . | |||
| Identity | N/A | . | |||
| Business address | N/A | . | |||
| Function | N/A | . | |||
| B.11 Business activity | N/A | . | |||
| B.12 Parent company business activity | N/A | . | |||
| Part C - Information about the operator of the trading platform in cases where it draws up the crypto-asset white paper and information about other persons drawing the crypto-asset white paper pursuant to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114 | |||||
| C.1 Name | N/A | . | |||
| C.2 Legal form | N/A | . | |||
| C.3 Registered address | |||||
| Registered address | N/A | . | |||
| Country | N/A | . | |||
| Sub-division | N/A | . | |||
| C.4 Head office | |||||
| Head office | N/A | . | |||
| Country | N/A | . | |||
| Sub-division | N/A | . | |||
| C.5 Registration date | N/A | . | |||
| C.6 Legal entity identifier | N/A | . | |||
| C.7 Another identifier required pursuant to applicable national law | N/A | . | |||
| C.8 Parent company | N/A | . | |||
| C.9 Reason for crypto-asset white paper preparation | N/A | . | |||
| C.10 Members of the management body | |||||
| Member #1 | N/A | . | |||
| Identity | N/A | . | |||
| Business address | N/A | . | |||
| Function | N/A | . | |||
| C.11 Operator business activity | N/A | . | |||
| C.12 Parent company business activity | N/A | . | |||
| C.13 Other persons drawing up the crypto-asset white paper according to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114 | N/A | . | |||
| C.14 Reason for drawing the white paper by persons referred to in Article 6(1), second subparagraph, of Regulation (EU) 2023/1114 | N/A | . | |||
| Part D - Information about other token project | |||||
| D.1 Crypto-asset project name | text | ||||
| D.2 Crypto-asset name | text | ||||
| D.3 Abbreviation | text | ||||
| D.4 Crypto-asset project description | textBlock | Through the Platform and the Tokens, the Project emphasizes inclusion, transparency, and collective governance over centralized control, positioning Token holders as engaged participants with governance rights and a role in shaping the strategic direction of the portfolio of assets and activities conducted by the Foundation, and other companies, member clubs, or similar groups which may join the Project over time. Concretely, the Project aims at empowering individuals, particularly those with limited financial means and traditionally excluded from such processes, to - engage in real-world asset acquisition and management via a digital platform, by contributing to and engaging with an asset portfolio, without holding legal ownership in any of the assets constituting such portfolio; - steer the allocation of donations toward public-benefit initiatives, such as funding for animal shelters, clean water projects in Africa, or educational programs in underprivileged regions; - steer the distribution of sponsorship funds to registered community members based on their applications; and; -votes on any other suggested topic and in any area, even if unrelated to real estate or donation purposes. All of the above are hereafter referred to as "Governance Topics" |
|||
| D.5 Details of all natural or legal persons involved in implementation of crypto-asset project | |||||
| Person #1 | id | 1 | |||
| Type of person | enumeration | ||||
| Name of person | text | ||||
| Business address of person | text | ||||
| Domicile of company | enumeration | ||||
| D.6 Utility token classification | boolean | ||||
| D.7 Key features of goods or services for utility token projects | text | ||||
| D.8 Plans for the token | |||||
| Description of past milestones | textBlock | - Official establishment of the PAIRO Foundation; - Launch of the Pairo Website and web version of the Platform. |
|||
| Description of future milestones | textBlock | The milestones below are indicative and could be subject to change based on strategic, regulatory, or market considerations. - Launch of the Offer in Q1; - Launch of the smartphone version of the Platform, in Q2 - First execution of votes involving the now-unlocking on-chain treasury, in Q3. Please note that any votes executed prior to that time which involve financial resources will be carried out using other funds held by the treasury or made available to it, depending on the specific execution requirements of the vote. - Listing on Tier 1 centralized exchanges, in Q4. |
|||
| D.9 Resource allocation | text | ||||
| D.10 Planned use of collected funds or other tokens | text | ||||
| Part E - Information about offer to public of other tokens or their admission to trading | |||||
| E.1 Public offering or admission to trading | enumeration | ||||
| E.2 Reasons for public offer or admission to trading | textBlock | ||||
| E.3 Fundraising target | |||||
| Target expressed in currency | monetary | EUR | |||
| Target expressed in units | decimal | ||||
| Target expressed in digital token identifier | text | ||||
| E.4 Minimum subscription goals | |||||
| Goals expressed in currency | monetary | EUR | |||
| Goals expressed in units | decimal | ||||
| Goals expressed in digital token identifier | text | ||||
| E.5 Maximum subscription goals | |||||
| Goasl expressed in currency | monetary | EUR | |||
| Goals expressed in units | decimal | ||||
| Goals expressed in digital token identifier | text | ||||
| E.6 Oversubscription acceptance | boolean | ||||
| E.7 Oversubscription allocation | text | ||||
| Issue price details | |||||
| E.8 Issue price | decimal | ||||
| E.9 Official currency determining issue price | enumeration | ||||
| E.9 Any other tokens determining issue price | text | ||||
| E.10 Subscription fee | |||||
| Fee expressed in currency | monetary | EUR | |||
| Fee expressed in units | decimal | ||||
| Fee expressed in digital token identifier | text | ||||
| E.11 Offer price determination method | text | ||||
| E.12 Total number of offered or traded other tokens | integer | ||||
| E.13 Targeted holders | enumeration | ||||
| E.14 Holder restrictions | text | -The Foundation, in accordance with applicable laws and internal policies, may impose restrictions to potential Token buyers (for example, KYC, jurisdiction verification, accreditation and other checks to verify purchaser's eligibility). Any checks performed to implement such restrictions, notably KYC checks, may be conducted either by the Foundation itself or a third-party service provider on behalf of the Foundation. - The Trading Platforms in accordance with applicable laws and internal policies may similarly impose restrictions to buyers and sellers of Tokens on the Trading Platforms. Any checks performed to implement such restrictions, notably KYC checks, are not conducted by the Foundation. - Sanctions and embargoes: The Foundation imposes its own restrictions in agreements it executes with the Trading Platforms, requesting the Trading Platforms to exclude persons or entities located in any jurisdiction subject to comprehensive sanctions or embargoes according to Swiss or EU law, as well as anyone listed on sanctions lists maintained by Switzerland, the EU, UN, UK, or US ("Prohibited Persons"). - Non-EU Jurisdictions: The Foundation may impose additional restrictions on prospective non-EU Token holders as necessary to comply with non-EU regulatory frameworks. |
|||
| E.15 Reimbursement notice | boolean true | ||||
| E.16 Refund mechanism | textBlock | ||||
| E.17 Refund timeline | text | ||||
| E.18 Offer phases | textBlock | ||||
| E.19 Early purchase discount | textBlock | ||||
| E.20 Time-limited offer | boolean | ||||
| E.21 Subscription period beginning | date | ||||
| E.22 Subscription period end | date | ||||
| E.23 Safeguarding arrangements for offered funds or other tokens | textBlock | ||||
| E.24 Payment methods for other token purchase | textBlock | ||||
| E.25 Value transfer methods for reimbursement | textBlock | ||||
| E.26 Right of withdrawal | textBlock | ||||
| E.27 Transfer of purchased other tokens | textBlock | All Token transfers occur in accordance with the network's standard processing times and are subject to blockchain confirmation. Once completed, the transaction is immutable and permanently recorded on the ledger. |
|||
| E.28 Transfer time schedule | text | ||||
| E.29 Purchaser's technical requirements | textBlock | ||||
| Other token services provider characteristics | |||||
| E.30 Other token service provider (CASP) name | text | ||||
| E.31 CASP identifier | LEI | ||||
| E.32 Placement form | enumeration | ||||
| Trading platforms characteristics | |||||
| E.33 Trading platforms name | text | ||||
| E.34 Trading platforms market identifier code (MIC) | text | ||||
| E.35 Trading platforms access | text | ||||
| E.36 Involved costs | textBlock | ||||
| E.37 Offer expenses | textBlock | ||||
| E.38 Conflicts of interest | textBlock | ||||
| E.39 Applicable law | textBlock | ||||
| E.40 Competent court | textBlock | The arbitral proceedings shall be conducted in accordance with the Swiss Rules of International Arbitration of the Swiss Arbitration Centre in force on the date on which the Notice of Arbitration is submitted in accordance with those Rules. The number of arbitrators shall be three. The seat of the arbitration shall be Zürich, Switzerland. The arbitral proceedings shall be conducted in English. |
|||
| Part F - Information about other tokens | |||||
| F.1 Crypto-asset type | text | ||||
| F.2 Other token functionality | textBlock | decision-making in relation to the Project. - Governance Functionality. The Token serves exclusively for governance purposes in relation to Governance Topics. The Governance Functionality is: (a) purely technical: the Token does not confer any rights nor impose any obligations on its holders. (b) purely consultative. The votes provide non-binding indications of preference to be implemented by the Foundation, which remains free to depart from them whenever it considers such deviation to be in the best interests of pursuing its purpose. (c)provided "as is" by the Platform, without any guarantees by the Foundation |
|||
| F.3 Planned application of functionalities | textBlock | No future applications or functionalities are promised. |
|||
| A description of the characteristics of the other token, including the data necessary for classification of the crypto-asset white paper in the register referred to in Article 109 of Regulation (EU) 2023/1114, as specified in accordance with paragraph 8 of that Article | |||||
| F.4 Type of crypto-asset white paper | enumeration | ||||
| F.5 Type of submission | enumeration | ||||
| F.6 Other token characteristics | textBlock | - Issued based on the ERC-20 standard. - Issued without any legally enforceable rights or entitlements to their holders (see Section G.01). - Issued to serve as a utility token with the functionalities outlined in Section F.02. |
|||
| F.7 Commercial name or trading name | text | ||||
| F.8 Website of the issuer | text | ||||
| F.9 Starting date of offer to the public or admission to trading | date | ||||
| F.10 Publication date | date | ||||
| F.11 Any other services provided by the issuer | textBlock | ||||
| F.12 Language or languages of white paper | text | ||||
| F.13 Digital token identifier code used to uniquely identify the crypto-asset or each of the several crypto assets to which the white paper relates, where available | text | ||||
| F.14 Functionally fungible group digital token identifier, where available | text | ||||
| F.15 Voluntary data flag | boolean | ||||
| F.16 Personal data flag | boolean | ||||
| F.17 LEI eligibility | boolean | ||||
| F.18 Home member state | enumeration | ||||
| F.19 Host member states #1 | enumerationSet | ||||
| F.19 Host member states #2 | enumerationSet | ||||
| F.19 Host member states #3 | enumerationSet | ||||
| F.19 Host member states #4 | enumerationSet | ||||
| F.19 Host member states #5 | enumerationSet | ||||
| F.19 Host member states #6 | enumerationSet | ||||
| F.19 Host member states #7 | enumerationSet | ||||
| F.19 Host member states #8 | enumerationSet | ||||
| F.19 Host member states #9 | enumerationSet | ||||
| F.19 Host member states #10 | enumerationSet | ||||
| F.19 Host member states #11 | enumerationSet | ||||
| F.19 Host member states #12 | enumerationSet | ||||
| F.19 Host member states #13 | enumerationSet | ||||
| F.19 Host member states #14 | enumerationSet | ||||
| F.19 Host member states #15 | enumerationSet | ||||
| F.19 Host member states #16 | enumerationSet | ||||
| F.19 Host member states #17 | enumerationSet | ||||
| F.19 Host member states #18 | enumerationSet | ||||
| F.19 Host member states #19 | enumerationSet | ||||
| F.19 Host member states #20 | enumerationSet | ||||
| F.19 Host member states #21 | enumerationSet | ||||
| F.19 Host member states #22 | enumerationSet | ||||
| F.19 Host member states #23 | enumerationSet | ||||
| F.19 Host member states #24 | enumerationSet | ||||
| F.19 Host member states #25 | enumerationSet | ||||
| F.19 Host member states #26 | enumerationSet | ||||
| F.19 Host member states #27 | enumerationSet | ||||
| F.19 Host member states #28 | enumerationSet | ||||
| F.19 Host member states #29 | enumerationSet | ||||
| Part G - Information on rights and obligations attached to other tokens | |||||
| G.1 Purchaser rights and obligations | textBlock | Moreover, to the fullest extent permissible by applicable laws, the Foundation is not liable for any damages arising from the holding, use, transfer, or interactions involving Tokens and the Platform. This limitation applies to all forms of damages, including direct, indirect, incidental, punitive, and consequential damages. |
|||
| G.2 Exercise of rights and obligations | textBlock | ||||
| G.3 Conditions for modifications of rights and obligations | textBlock | ||||
| G.4 Future public offers | textBlock | ||||
| G.5 Issuer retained other token | integer | ||||
| G.6 Utility token classification | boolean | ||||
| G.7 Key features of goods or services utility tokens | text | ||||
| G.8 Utility tokens redemption | text | ||||
| G.9 Non-trading request | boolean | ||||
| G.10 Other tokens purchase or sale modalities | text | ||||
| G.11 Other tokens transfer restrictions | text | ||||
| G.12 Supply adjustment protocols | boolean | ||||
| G.13 Supply adjustment mechanisms | text | ||||
| Other token schemes details | |||||
| G.14 Token value protection schemes | boolean | ||||
| G.15 Token value protection schemes description | textBlock | ||||
| G.16 Compensation schemes | boolean | ||||
| G.17 Compensation schemes description | textBlock | ||||
| G.18 Applicable law | textBlock | ||||
| G.19 Competent court | textBlock | The arbitral proceedings shall be conducted in accordance with the Swiss Rules of International Arbitration of the Swiss Arbitration Centre in force on the date on which the Notice of Arbitration is submitted in accordance with those Rules. The number of arbitrators shall be three. The seat of the arbitration shall be Zürich, Switzerland. The arbitral proceedings shall be conducted in English. |
|||
| Part H – Information on underlying technology | |||||
| H.1 Distributed ledger technology (DTL) | text | Distributed Ledger Technology ("DLT") describes a decentralized and distributed network system architecture where multiple participants maintain and verify a shared database. Unlike traditional databases, DLT systems do not rely on a central authority to ensure data consistency and security. Rather, they distribute control across a network of computers (nodes) and require all changes to be recorded and agreed by the nodes. This distributed approach enhances the resilience and security of such a system, and transparency of the data stored in it without the need for trust between the actors of the systems. Blockchain technology is a subset of DLT, where the distributed database maintains a continuously growing list of records, called blocks, which are linked together in chronological order and secured using cryptographic techniques. A blockchain generally has the following key characteristics: - Security: A blockchain employs advanced cryptographic methods to secure data. Each block contains a cryptographic hash (a "digital fingerprint") of the previous block, a timestamp, and transaction data. - Consensus: Blockchains rely on a predefined consensus mechanism establishing how new blocks, and the transactions included therein, are approved by nodes. - Immutability: once data is recorded in a block, it cannot be deleted nor altered retroactively without also changing all subsequent blocks, which would require consensus from the majority of the nodes. - Transparency: Transactions on a blockchain are usually visible to all, thereby providing transparency. Private blockchains, without or with limited transparency, however, do also exist. - Accessibility: Blockchains are usually permissionless, thus accessible to all, whether to act as a node or to submit transactions to be recorded thereon. Permissioned blockchains, with limited accessibility for nodes and/or users, however, do also exist. Information on the Ethereum Blockchain The Token is issued on the Ethereum permissionless public blockchain. Launched in 2015, Ethereum introduced a Turing-complete virtual machine, enabling developers to create and execute programmable contracts without intermediaries, commonly referred to as smart contracts. Since then, Ethereum benefits from widespread adoption and has constant on-chain activity (with on average 1 to 1.3 million transactions per day over the last year). Ethereum has undergone significant upgrades, including its transition to Ethereum 2.0 via the Merge, which replaced its original Proof-of-Work (PoW) consensus mechanism with Proof-of-Stake (PoS) to improve energy efficiency and scalability (more details on consensus under Section H.04). Its code has been audited several times. Ethereum's native cryptocurrency, Ether (ETH), serves as the primary medium of exchange within the network. It is used to pay for transaction fees (gas), incentivize validators, and participate in governance and staking. Ethereum operates with a layered architecture that separates different functions for modularity and scalability: - Execution Layer (Ethereum Virtual Machine - EVM): The EVM is the computational layer that processes smart contract execution and dApp interactions. It enables Turing complete programming, allowing developers to write and deploy complex applications using languages like Solidity and Vyper. - Consensus Layer (Beacon Chain): The Beacon Chain handles validator coordination, staking, and the consensus mechanism implementation. It ensures security and finality for transactions processed by the Execution Layer. - (Optional) Data Availability & Scalability Solutions (Rollups & Sharding): Rollups (Optimistic & ZK-Rollups) can be used to offload computation from the main Ethereum chain while retaining security; Sharding (Future Upgrade) is planned to be implemented to divide network operations across multiple smaller chains (shards) to enhance scalability. For more details, visit Ethereum's official documentation and repositories: (i) Ethereum Foundation: https://ethereum.org (ii)Ethereum Developer Resources: https://ethereum.org/en/developers/ (iii)Ethereum GitHub Repositories: https://github.com/ethereum/ |
|||
| H.2 Protocols and technical standards | text | Those of the blockchain on which it is issued, as described under H.01.33 Those of its issuance smart contracts, based on the ERC-20 standard defining rules, notably, for token transactions and interactions. Those of the Platform and the smart contracts related thereto enabling the Governance Functionality |
|||
| H.3 Technology used | textBlock | Holding and Storing Tokens: No additional technology is required to hold Tokens, as they remain on Ethereum in accordance with its standard operation; however, users may choose to utilize additional technologies such as specific wallets, incl. multi-signature wallets, cold storage solutions, or other storage and security products and services |
|||
| H.4 Consensus mechanism | text | Ethereum has over 800,000 validators as of date of writing. Key features of Ethereum's PoS system: - Validators and Staking: Participants must stake at least 32 ETH to become a validator, securing the network while earning staking rewards. Smaller ETH holders can participate via staking pools. -Epochs and Slots: Ethereum's PoS mechanism divides time into epochs and slots, ensuring an orderly block validation process. -Slashing Mechanism: Validators who engage in dishonest behavior risk losing a portion of their staked ETH as a penalty. |
|||
| H.5 Incentive mechanisms and applicable fees | text | transactions and executing smart contracts. The EIP-1559 upgrade introduced a base fee model to improve fee predictability and burn a portion of transaction fees, reducing ETH inflation. As a result, the key fee components are the following: -Base Fee: Minimum amount burned per transaction, adjusting dynamically based on network demand. As a result, ETH has periodically become deflationary when network activity is high, as more ETH is burned than issued, reducing overall supply. - Priority Fee (Tip): Optional fee paid to incentivize faster transaction processing. - Max Fee: Maximum gas price a user is willing to pay, ensuring cost control. Trading Platforms may besides charge service fees in accordance with their own policies. |
|||
| H.6 Use of distributed ledger technology | boolean | ||||
| H.7 DLT functionality description | textBlock | ||||
| Other token audit details | |||||
| H.8 Audit | boolean | ||||
| H.9 Audit outcome | textBlock | It will include static-code analysis, penetration testing, and formal verification. An audit report will be made public, including findings and mitigation status. Disclaimer: While audits strengthen security, they do not guarantee the absence of all vulnerabilities. Undetected issues or new exploits could still arise, and investors should consider these risks. See also Part I (Information about the risks). |
|||
| Part I - Information on risks | |||||
| I.1 Offer-related risks | textBlock | - General Contractual and Counterparty Risk: The Foundation neither operates nor controls, oversees, or manages the functioning of the Trading Platforms where the Token will be admitted for trading or listed. (i) When Token holders buy or sell the Token on Trading Platforms, the Foundation is not a contractual party to these transactions. As a result, any legal relationship between Token holders and the Exchange is governed solely by the terms and conditions set by each Trading Platform at its discretion. (ii) The Foundation assumes no responsibility or liability for the operations, services, security, performance, or any outcomes—whether financial or technical—arising from transactions conducted on these Trading Platforms. (iii) The Foundation provides no assurances regarding any Trading Platform itself and assumes no responsibility or liability for any regulatory, compliance, operational, financial, technical, or reputational failures that may adversely affect its activities. This includes, but is not limited to, circumstances where such failures result in disruptions, restrictions on trading, or the Trading Platform halting or ceasing its operations entirely, due to sanctions, bankruptcy or alike. The foregoing may result in substantial or even total losses for the Token holder. - Pausing and Delisting Risk: The Foundation cannot guarantee that the Token will remain listed or tradeable on any Trading Platforms. Delisting (or the temporary pausing of such listing) could significantly hinder the ability of Token holders to buy, sell, or otherwise transact in Tokens. In the event of delisting, Token holders may face challenges in finding alternative markets or counterparties willing to trade Tokens, which could adversely impact the Token's liquidity and market value. Delisting could also negatively impact the price of the Token, due to modified demand for the Token and/or reputational impact. - Trading Risk: The Foundation does not control the secondary markets. There can be no assurance as to the secondary market (if any) in the Tokens, and specifically: (i) it cannot guarantee the depth, stability, or sustainability of any secondary market for Tokens. Limited market depth or trading activity may result in reduced liquidity increased price volatility, and challenges in buying or selling Tokens at desired prices; and (ii) it cannot guarantee the healthy and consistent availability of buying or selling opportunities for Tokens or the integrity of their market price. Trading activity may be affected by manipulative practices such as wash trading, front-running, and similar schemes. While Trading Platforms are subject to varying regulatory frameworks that may or may not prohibit such practices and impose oversight to detect and deter them, the Foundation assumes no responsibility or liability for their effective prevention or enforcement. - Unsolicited Admission to Trading Risk: Third parties can elect to support Tokens on their Trading Platforms without any request nor authorization or approval by the Foundation or anyone else. Token integration on any third-party platform does not imply any endorsement by the Foundation that such thirdparty services are valid, legal, stable or otherwise appropriate. - Operational and Technical Risk: Trading Platforms operate interfaces that allow users to trade cryptoassets for fiat currencies, such as U.S. Dollars and Euros, or other crypto-assets. The reliance on the Trading Platforms' internal system for asset storage and transfer adds an additional layer of counterparty risk, as users are exposed to potential operational, technical, or human errors during these processes. As a result, the Foundation assumes no responsibility or liability for any losses arising from these risks. (i) Trades on these Trading Platforms are executed based on a centralized matching algorithm and are often recorded off-chain, meaning they are not directly related to transparent on-chain transfers of crypto-assets, and could dissimulate detrimental trade matching or rogue practices. The traded assets are recorded solely on the Trading Platforms' internal ledger, with each internal ledger entry corresponding to an offsetting trade involving either government currency or another crypto asset. (ii) Additionally, funds deposited by users for trading may be co-mingled by the Trading Platforms, rather than stored in unique wallet addesses for each user. This practice results in the centralization of a large volume of assets in a single location, which in turn increases the potential risk of damage or theft, particularly in the event of a hack or security breach. (iii) Furthermore, users who wish to trade or withdraw their Tokens must deposit them into the Trading Platforms, increasing the risk of loss in the event of a failure of the deposit or withdrawal processes set up by the Trading Platforms. - Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.1 to I.5. |
|||
| I.2 Issuer-related risks | textBlock | - Legal and Regulatory Compliance Risk: Crypto assets and blockchain-based technologies are subject to evolving regulatory landscapes worldwide. Regulations vary across jurisdictions and may be subject to significant changes. This could lead to changes with respect to trading of the Token and increase the Foundation's costs and/or obligations in admitting the Token for trading. Changes in laws or regulations may negatively impact the value, legality, or functionality of the Token. Non-compliance can result in investigations, enforcement actions, penalties, fines, sanctions, or the prohibition of the trading of the Token impacting its viability and market acceptance. The Foundation could also be subject to private litigation. - Reputational Risk: The Foundation face the risk of negative publicity, whether due, without limitation, to operational failures, security breaches, or illicit activities, all of which can damage the Foundation's reputation and, by extension, the value and acceptance of the Token. - Key Individuals Risk: The success of a crypto projects can be highly dependent on the expertise and leadership of key individuals. Loss or changes in the Foundation's leadership could lead to disruptions, loss of trust, or project failure. - Internal Control Risk: Any failure by the Foundation to develop or maintain effective internal controls or any difficulties encountered in the implementation of such controls, or their improvement could harm it, causing the issuer to have to report such failures. Such failures could lead to a loss of trust and further harm the business of the Foundation, causing disruptions, financial losses, or reputational damage affectingthe Token. Fraudulent activity or mismanagement by the Foundation could directly impact the usability or value of the Token or damage the credibility of the Platform and the Project at broad. - Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.1 to I.5 |
|||
| I.3 Other tokens-related risks | textBlock | components which may affect the Tokens. - Market Risk: Crypto assets, including Tokens, are highly volatile and can experience significant price swings in short periods, increasing the risk of sudden and substantial losses. Such valuation risk arises as the market value of a crypto asset may not always reflect its underlying utility or fundamentals and is subject to subjective assessment. Tokwn holders are thus exposed to potential for losses due to the Token's (i) potential fluctuations in value, driven by various factors such as supply and demand dynamics, investor sentiment, and broader market trends, incl. changes in interest rates, general movements in local and international markets, technological advancements, regulatory changes, and media coverage. Notably, momentum pricing of crypto assets has previously resulted, and may continue to result, in speculation regarding future appreciation or depreciation in the value of such assets, further contributing to volatility and potentially inflating prices at any given time. (ii) liquidity risk, where a lack of depth in secondary markets – if any – or limited trading volumes can hinder the ability to execute trades at favorable prices, which could lead to significant losses, especially in fast-moving market conditions. As a result, holders of Tokens may experience challenges in managing their holdings, with the value of the asset subject to unpredictable fluctuations and potential depreciation. (iii) solvency and collateral risk, if the Token is used to finance further activities, especially in leveraged positions or as collateral for loans. Significant fluctuations in the value of the Token could adversely affect the solvency of its holder, particularly if the token is pledged as collateral. A drastic decline in its value may trigger margin calls or automatic liquidations, which could further depress the Token's price, creating a negative feedback loop. This volatility poses the risk of forced asset sales, potentially resulting in substantial losses for the holder and amplifying downward pressure on the market price of Tokens. - Custodial Risk. The method chosen to store Tokens, like any crypto asset, carries inherent risks related to the security and management of the storage solution. The chosen storage method—whether hot or cold wallets, or centralized custody—can significantly impact the safety, liquidity, and accessibility of Tokens, with direct consequences for the holder's ability to access, trade, or retain their assets. - Scam Risk. This is the risk of loss resulting from a scam or fraud suffered by Token holders from other malicious actors. These scams include – but are not limited to – phishing on social networks or by email, fake giveaways, identity theft of the Foundation or its management body, creation of fake Tokens, offering fake Token airdrops,among others. - Anti-Money Laundering/Counter-Terrorism Financing Risk: This is the risk that crypto-asset wallets holding Tokens or transactions in Tokens may be used for money laundering or terrorist financing purposes or identified to a person known to have committed such offenses. There is thus a risk that a public address holding Tokens could be flagged in relation to Anti-Money Laundering or CounterTerrorism Financing efforts. In such cases, receiving Tokens could result in the holder's address being flagged by relevant authorities, Trading Platforms, or other service providers, which may lead to restrictions on transactions or the freezing of assets. Consequently, holders of Tokens may face legal or regulatory challenges if their address becomes associated with illicit activities, impacting their ability to freely access, trade, or transfer their tokens. - Taxation Risk: The taxation regime that applies to the trading of Tokens by either individual holders or legal entities will depend on each Token holder's jurisdiction. The Foundation cannot guarantee that the holding of Tokens, the reception of Tokens, conversions of fiat currency against Tokens, or conversions of other crypto assets against Tokens, will not incur tax consequences. It is the Token holder's sole responsibility to comply with all applicable tax laws, including, but not limited to, the reporting and payment of income tax, wealth tax or similar taxes arising in connection with the appreciation and depreciation of the Token. - Market Abuse Risk: The market for crypto assets is rapidly evolving, spanning local, national, and international platforms with an expanding range of assets and participants. Any market abuse, along with a potential loss of confidence among holders, could adversely impact the value and stability of Tokens. Notably, (i) significant trading activity may take place on systems and platforms with limited oversight and predictability. Sudden and rapid changes in the supply or demand of a crypto asset, particularly those with low market capitalization or low unit prices, can result in extreme price volatility. (ii) Additionally, the inherent characteristics of crypto assets and their underlying infrastructure may be exploited by certain market participants to engage in abusive trading practices such as front-running, spoofing, pump-and-dump schemes, and fraud across different platforms, systems, or jurisdictions. - Legal and Regulatory Risk: There is a lack of regulatory harmonization and cohesion globally, which results in diverging regulatory frameworks and possible further regulatory evolutions in the future. These could negatively impact the value, utility, and overall viability of Tokens and, in extreme cases, force the Foundation to cease operations. Notably, (i) while Tokens do not create or confer any contractual or other obligations against any party, certain non-EU regulators may nevertheless classify them as securities, financial instruments, or payment instruments under their respective legal frameworks. Such classifications could impose specific regulatory constraints, leading to significant changes in how Tokens are structured, issued, purchased, or traded. (ii) Evolving regulations could substantially increase the Foundation's compliance costs and operational burdens related to facilitating transactions in Tokens. (iii) New or restrictive regulations could result in the Token losing functionality, depreciating in value, or even becoming illegal or impossible to use, buy, or sell in certain jurisdictions. (iv) Regulators could take enforcement action against the Foundation if they determine that the Token constitutes a regulated instrument or that the Foundation's activities violate existing laws. Such actions could expose the Foundation, its affiliates, directors, and officers to legal and financial penalties, including civil and criminal liability. - Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.01 to I.05. |
|||
| I.4 Project implementation-related risks | textBlock | - Novel Ecosystem Risk: The Token holder understands and acknowledges that the Pairo ecosystem, as evolving around the Platform, is built on emerging and rapidly evolving technologies, which inherently carry significant risks. The underlying software, blockchain infrastructure, smart contracts, and related technologies are still in their early stages of development, meaning there is no guarantee that the process of receiving, using, or holding Tokens will be uninterrupted or error-free. As with any novel technology stack, there is an inherent risk that the underlying blockchain, smart contracts, or associated components may contain weaknesses, vulnerabilities, or bugs, despite audits being conducted. Such issues could lead to unintended behaviors, security breaches, or critical failures, potentially resulting in the partial or complete loss of Tokens or their functionality. Additionally, unforeseen technical limitations, incompatibilities, or the emergence of superior alternatives could further impact the stability, security, and long-term viability of the Pairo ecosystem. - Industry and Competition Risk: The Project is and will be subject to all the risks and uncertainties associated with any new venture, visionary projects, including the risk that the project cannot be realized in line with its original purpose or vision about the Platform. Other projects may have the same or a similar vision as the Project. There are several other crypto-assets and projects, and new competitors may enter the market at any time. The effect of new or additional competition on the Token or its market price cannot be predicted or quantified. Competitors may have significantly greater financial and legal resources than the project and there is no guarantee that the project will be able to compete successfully, or at all, with such competitors. Moreover, increased competition may severely impact the profitability and creditworthiness of the project and involved entities. - Dependency/Withdrawing Partners Risk: The Platform relies on third-party technologies, infrastructures, and protocols, which could impact its functionality, security, and long-term sustainability. Loss or changes in the key partners providing such technologies can lead to disruptions, loss of trust, or project failure. Any disruptions, vulnerabilities, regulatory scrutiny, or changes in operation of third-party technologies (such as modifications to its mechanisms, governance, or economic incentives) could directly affect the usability and security of the Platform, which may result in a negative effect for the Tokens. If the third-party technologies experiences technical failures, security breaches, or regulatory intervention, it could severely impact the stability and performance of the Platform, potentially limiting its intended functionality and value. This reliance on external infrastructure increases systemic risk, as unforeseen issues in third-party protocols could cascade into disruptions within the Token ecosystem. - Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.01 to I.05 |
|||
| I.5 Technology-related risks | textBlock | the technical risks outlined below or a combination thereof. - General Cybercrime Risk: The Token holder acknowledges that, despite best efforts to enhance security, the technological components supporting the Token —including its blockchain infrastructure, smart contracts, wallets—may be vulnerable to cyberattacks. Malicious actors may exploit software vulnerabilities, attack consensus mechanisms, or compromise private keys to gain unauthorized access to Tokens. Risks include hacking attempts on the Platform, smart contract exploits, phishing attacks, malware infections, and other forms of cybercrime that could result in the theft, loss, or unauthorized transfer of Tokens. Since digital assets exist entirely in a technological environment, they are inherently exposed to evolving cyber threats, some of which may be undetectable or irreparable until after significant damage has occurred. - Blockchain-Level Risk: The Token holder understands and accepts that, as with other blockchains, the blockchain used for the issuance of the Tokens could be susceptible to consensus-related attacks, including but not limited to double-spend attacks, majority validation power attacks, censorship attacks, and byzantine behavior in the consensus algorithm or be subject to forks. Any successful attack or fork presents a risk to the Token, the expected proper execution and sequencing of Token -transactions and the expected proper execution and sequencing of contract computations as well as the Token balances in the wallet of the Token holders. - Smart Contract-Level Risk: The issuance and transfers of Tokens rely on smart contracts deployed on a blockchain network, which introduce specific technical and security risks. (i) Smart contracts are self-executing, meaning any vulnerabilities, coding errors, or unforeseen logic flaws in the issuance contract could result in unintended consequences, such as the incorrect distribution of tokens, loss of funds, or permanent locking of tokens. Additionally, smart contracts are exposed to potential exploits, including hacking attempts, reentrancy attacks, and other forms of malicious activity that could compromise the security of the issuance process. (ii) Once deployed, the smart contract governing the issuance of Tokens cannot be easily altered or corrected, meaning any discovered vulnerabilities may be difficult or impossible to fix without significant coordination, community approval, or even a network fork. Furthermore, changes to the underlying blockchain protocol—such as updates to consensus mechanisms, transaction processing rules, or gas fee structures—could affect the functionality or cost-efficiency of the issuance smart contract. These risks could lead to disruptions in token issuance, security breaches, or a loss of confidence in the Pairo ecosystem, potentially impacting the Tokens' value and usability. - Network-Level Risk: It cannot be excluded that any technical failure, malfunction, or vulnerability within the Ethereum network could directly or indirectly impact the value of the Token. The network could be subject to critical exploits, such as reentrancy attacks, logic errors, or oracle manipulation, which could lead to unintended token transfers, assets being drained from the system, or tokens being irretrievably lost. Fixing such issues may require significant coordination, governance approval, or even disruptive measures such as protocol migrations or forks, none of which are guaranteed to be successful. - Finality or Irrevocability of Transactions: There is a risk that transactions may be irreversible, depending on the tools and service providers used to initiate them. Access to and any claim on such transactions could be lost indefinitely or permanently. For example, this could occur if (i) a blockchain address is entered incorrectly and the true owner is never identified, (ii) the private key associated with the address is lost, (iii)the address belongs to an entity that will not return the crypto asset, or (iv) the address belongs to an entity that may return the asset but requires additional actions, such as identity verification. -Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.01 to I.05 |
|||
| I.6 Mitigation measures | textBlock | ||||
| Part J - Information on the sustainability indicators in relation to adverse impact on the climate and other environment-related adverse impacts | |||||
| J.1 Adverse impacts on climate and other environment-related adverse impacts | textBlock | environment-related adverse impacts of the consensus mechanism of the following: Ethereum, the blockchain on which Tokens are issued and will be transacted by its holders, including in relation to the Platform. Even based on an annual forecast of up to 1 million transactions per chain in the first year and acknowledging that these estimates are forward-looking and may prove inaccurate, the total energy consumption of the Token over the first year is estimated to be less than 500,000 kWh. In any scenario, it is not expected to exceed this threshold. |
|||
| Mandatory information on principal adverse impacts on the climate and other environment-related adverse impacts of the consensus mechanism | |||||
| General information about adverse impacts | |||||
| S.1 Name | text | ||||
| S.2 Relevant legal entity identifier | text | ||||
| S.3 Name of the crypto-asset | text | ||||
| S.4 Consensus mechanism | text | ||||
| S.5 Incentive mechanisms and applicable fees | text | ||||
| S.6 Beginning of period to which disclosed information relates | date | ||||
| S.7 End of period to which disclosed information relates | date | ||||
| Mandatory key indicator | |||||
| S.8 Energy consumption | energy (kWh) | ||||
| Sources and methodologies | |||||
| S.9 Energy consumption sources and methodologies | textBlock | ||||
| Supplementary information on principal adverse impacts on climate and other environment-related adverse impacts of consensus mechanism | |||||
| Supplementary key indicators | |||||
| S.10 Renewable energy consumption | percent | ||||
| S.11 Energy intensity | energy (kWh) | ||||
| S.12 Scope 1 DLT GHG emissions - controlled | GHG emissions (tCO2e) | ||||
| S.13 Scope 2 DLT GHG emissions - purchased | GHG emissions (tCO2e) | ||||
| S.14 GHG intensity | GHG emissions (tCO2e) | ||||
| Sources and methodologies | |||||
| S.15 Key energy sources and methodologies | textBlock | ||||
| S.16 Key GHG sources and methodologies | textBlock | ||||
| Optional information on principal adverse impacts on the climate and on other environment-related adverse impacts of the consensus mechanism | |||||
| Optional indicators | |||||
| S. 17 Energy mix | percent | ||||
| S.18 Energy use reduction | |||||
| Energy use reduction target (absolute value) | energy (kWh) | ||||
| Energy use reduction target (percentage) | percent | ||||
| S.19 Carbon intensity (kgCO2e/kWh) | decimal | ||||
| S.20 Scope 3 DLT GHG emissions - value chain | GHG emissions (tCO2e) | ||||
| S.21 GHG emissions reduction targets or commitments | textBlock | ||||
| S.22 Generation of waste electrical and electronic equipment (WEEE) | mass (tonnes) | ||||
| S.23 Non-recycled WEEE ratio | percent | ||||
| S.24 Generation of hazardous waste | mass (tonnes) | ||||
| S.25 Generation of waste (all types) | mass (tonnes) | ||||
| S.26 Non-recycled waste ratio (all types) | percent | ||||
| S.27 Waste intensity (all types) | mass (tonnes) | ||||
| S.28 Waste reduction targets or commitments (all types) | textBlock | ||||
| S.29 Impact of use of equipment on natural resources | textBlock | ||||
| S.30 Natural resources use reduction targets or commitments | textBlock | ||||
| S.31 Water use | volume (m3) | ||||
| S.32 Non recycled water ratio | percent | ||||
| Sources and methodologies | |||||
| S.33 Other energy sources and methodologies | textBlock | ||||
| S.34 Other GHG sources and methodologies | textBlock | ||||
| S.35 Waste sources and methodologies | textBlock | ||||
| S.36 Natural resources sources and methodologies | textBlock | ||||