Ventures

Our First Venture

Our Aim

To bring profitable ventures with a emphasis on cryptocurrency payments.

1. NFT Rug Cover

2. SONS Lifestyle Competitions (Roadmap V2)

NFT RUG COVER

The aim is to make rug pulls no longer an issue when navigating the minting process in the in the whole NFT space.

NFT Rug Cover will however only be primarily be offered to Solana based projects until further establishment of the venture and subsequent hirings. This cover will be offered through a NFT mint, in which the minted NFT will act as the cover policy.

We are already in development of our client portal platform with the aim to have this service beta tested by September 2022. With a view to integrate its launch immediately after with cover policies in place by Autumn 2022.

What Will This Cover Do?

Our cover will provide a limited cover (meaning we will cover losses to a set amount) which will be assigned to your identity and your wallet and the activities that contain within that wallet. The cover lasts for a period of 1 year from your registration date with the client portal.

In order for your cover to be activated it would first need to be registered with us through a world leading CRM system that is publicly traded on the NYSE who provide a full end-to-end encryption. Your details will be held by one of the U.S top CRM software companies, who boast a client list of some of the biggest publicly traded companies on the stock exchanges.

Why do we request verification? - This is to ensure we are only dealing with the legitimate holders who are not aiming to exploit the fund. By having certain security measures we have managed to dramatically reduce our exposure to fraudulent activity and ensure we are not open to fraudulent mints by individuals whose sole aim is to drain the liquidity of the fund.

Registering Your Cover

Every holder would need to submit a form of identification along with a KYC'D wallet address at one of the main exchanges (such as Coinbase) to the encrypted software. this not only helps us remain in contact with yourself regarding mints and project updates as we verify them but also so we can monitor for fraudulent activity and trend analysis of claims.

Without registering on our client database your claim would not be valid.

**We will never ask for any seed phrase or vital information regarding access to your wallet.

Registration of the NFT is simple, it will require the holder to transfer their cover based NFT to a security deposit vault held under our control but registered as you the owner through the CRM. This is where every active cover will remain unless the owner requests to cancel their cover to sell on the secondary market. (Cancelling to sell on secondary covered under ''Secondary Heading")

Once your Cover has lapsed (Meaning your cover period has ended) or you have depleted your allocation of limited cover, you will be required to either renew your cover for the cost of the initial mint price, or cease the ownership of your NFT held within the security deposit box.

For a cover to remain in place the holder would need to register the cover 14 days prior to any mint claim/s (failure to do so could void that claim).

How Many Active Covers Can I Have?

Our Standard minting cover will be allocated at 3 Solana per wallet, with the same identity verified holder being able to hold up to a maximum of 3 cover policies allocated to separate wallets. No single wallet can have multiple cover options active at any one time within the same wallet.

This will provide cover for the following

Minting cover for multiple projects that are launching their project through the minting process or auction setting. Each cover will remain active for that specified mint until the project/s have verified their listing on to secondary marketplace.

NOTE: The cover amount may increase or decrease as our risk analysis adapts and profitability increases. Each holder will be notified in advance of any allocation increase/decrease through their client dashboard.

Managing The Risk

To ensure our risk of losses are minimised, we will be utilising multiple data and verification processes for upcoming projects. Conducting not only research on the individuals but also the proof of concepts from a business perspective. We will also utilise the facilities of multiple high value projects within the Solana ecosystem to assist us with our overall imaging of a project to determine the risk level to our holders and ourselves.

For maximum cover payout to be issued of 3 SOL, holders would need to mint from our curated extensive list of vetted projects that have been assigned a specified risk level that we collate through the vetting service and through partnerships with other projects.

Not every mint is covered, if an individual mints a high risk project we have not endorsed they will be unavailable to claim. A cover holder can request us to cover a specific project (more on this below).

Viability of the project.

When looking at the long term viability of the project we looked at how we can ensure the project is not victim itself to corruption from fraudulent mints, scammers, and opportunists.

We have included a number of counter measures to counteract each threat. Some of which we can cover within this whitepaper, some we can not due to security.

Un-Approved/ "Non Classed" Risk Projects

Individuals can raise ticket with us through their dashboard providing its within a maximum of 14 days prior to the un approved projects mint date.

We will acknowledge this submission within 72 hours, Where we will then look to conduct a deep dive into that project, to uncover the projects viability and risk level.

Should we find the level acceptable we will acknowledge our findings with the ticket raiser along with, which cover (if any) is in place and at what level. We could then look to update the projects to the rest of the holders as either approved or unapproved for future use.

Other Benefits

Both SOSMC holders and holders of a NFT Rug Cover have access to some hugely beneficial services to help them build a strong portfolio of collectables that would not normally be available to them without some serious financial outlay and research.

Each holder will have access to dynamically updated risk reports that they can utilise for not only covered mints but also access to some of Solana best upcoming ideas within the space. We will be acting as agents between projects and potential holders providing both parties with credibility and risk management.

Each policy holder will have access to our user client dashboard software which is used by leading publicly traded insurance companies throughout the world. The software we are will be provided under contract by one of the leading CRM providers in the world.

Renewing The Cover

To renew the cover, the current holder would renew with us directly for the initial mint price of 2 SOL within 14 days of the cover coming to an end.

Should you wish to renew the cover, the NFT based cover will remain locked away in our SDB and payment would be made to ourselves through either Solana or FIAT currencies as instructed in the renewal terms.

If you wish to not renew, we would with hold the NFT based cover and resell the cover on secondary.

Flow Chart Of Ownership And Cover

To gain a better understanding of cover ownership please see below.

Secondary Listings

For our secondary marketplaces of all Sons of Solana NFT's we will only be submitting listings with Magic Eden (and soon to be OpenSea). Any change to this will be updated through our official links pages on our social channels.

All secondary listings will be subject to a royalties fee, which will act as our service fee covering administrative costs in providing the facility of cover. The royalties/service fee will be set at 30%. (The new purchaser upon registration with us will be eligible for a refund of 30% of the total fee collected to help lower their purchase costs)

Example: If we collect 0.5 SOL royalties from a sale, 0.15 (30% of the royalty received) will be refunded upon registration of the policy.

Based off fair-value (for the service being provided by us in addition to the cover options provided to them), along with the added benefits to holders to some exclusive data and the vetted whitelist spots from the most exciting new projects. We anticipate a resale on secondaries to carry a suggested minimum floor price of around a 75% increase of the maximum Solana payout.

If a buyer who bought from secondary retains the policy after a year from their registration they will qualify for the renewal at 2 SOL, averaging down their total spend on cover dramatically.

This is to bring fairness to the cover whilst being able to maintain a realistic floor price that's still tradable on secondary without incurring any considerable losses fro the holders when buying at the floor price. This offers holders (who have not been fortunate enough to mint from our initial minting process) the chance to receive the same benefits and value for money.

NFT Cover Funding Vault.

To maximise the compounding effect of unused funds within the vault. While it remains unused as a liquidity pool it will be staked/invested using low risk strategies such as validator staking to maximise its potential SOL holdings.

Initial Minting Proceeds & Profit / Loss.

With a predicted initial minting revenue of 7000 SOL which will be used as the cover liquidity pool for all new covers being issued.

4700 SOL will be used for the liquidity of the cover policies with a further 700 added to reserves, whilst the total amount of SOL remains within the cover fund vault it may or may not be subject to low risk staking activities/investments to maximise SOL holdings and generate further profitability for SOSMC holders.

800 SOL will be used as team salaries and venture working capital.

The remaining 800 SOL will added to the community fund held as further reserves and investment for the SOSMC holders, where it will remain to be used for project sustainability as directed per the DAO.

We will maintain a soft and hard cap of available funds.

Soft cap 3,400 SOL (-10%) - Should funds drop to this level the reserves will come into place.

Hard cap 5,000 SOL (+10%)- Should our funds go higher than this amount we will either raise our cover levels or re-invest profits into different investments/staking activities to grow the reserve funds further.

From the 2nd year of revenue

Team will be allocated 30% of its gross revenue each subsequent year, which will enable the continued dedication and expansion of this venture.

SONS Community will be allocated the remaining 70% of its gross revenue where it will be decided through the DAO of any future investment causes.

Profit

Profitability of the policies is determined based on market conditions and subject to full ownership of covers and their renewals each year. With a profit range of between (+60) to (+80%) profit generated from our cover activities.

This is not including any returns generated from royalties and investment from staking SOLANA or other crypto investments..

As the project becomes more profitable each year as we further develop into new blockchains helping to create a bigger liquidity pool we can also adjust the policy ranges to reflect this adding more coverage and variant policy types.

We will also be looking to how we can implement a revolutionary cover system

Loss

The loss of the total policies is estimated to be below 40% with the current total amount of rugs as a percentage for the whole NFT space currently sitting between 35-38% off all NFTs launched having experienced some form of rug activity. As a more realistic figure based on this with our implementation of vetted projects lists we estimate with a more accurately projected predicated loss range of between 12-19% from covered projects.

Terms & Conditions

Full terms and conditions will be found on our website and upon registering your NFT with NFT Rug Cover.