Ummati Platform (UP) - a tool for community building.

1. Abstract
A large number of people worldwide lack access to financial services. Social networks represent a huge
pool of unrealized potential among these underserved populations. By leveraging this potential within a peer
to peer platform underutilized resources can be capitalized. At the same time, investors wishing to profit
from foreign direct investment are forced to invest via large international investment funds due to regulatory
and infrastructural barriers and costs associated with direct investment in low income, high growth markets.
This can result in a lack of oversight which results in many people unwittingly investing in projects that are
outside of their moral comfort zone. The difficulty of managing investments in a foreign country from a
logistical as well as legal perspective has until now made peer to peer, crowdsourced international finance all
but impossible.

By the representation of social networks and behavior within a network as a reputation value on an
immutable distributed ledger, it is possible to generate a dynamic reputation score for both entrepreneurs and
projects backed by communities or social networks. Automated contracts can incentivize the success of
projects for a community by automating fractional profit distribution to backers of a project. By backing a
project, a non-participant can earn a small share of the profits as well as building their own reputation.
Reputation can be used to help secure financing, as the basis of a blockchain consensus protocol, and to
enhance profits from future projects which a user might back.The value of this reputation can facilitate a
virtuous cycle of communities rallying around projects. Such a platform can be used to lower the barriers to
equity financing and profit sharing in the context of international microfinance, and facilitate more efficient
formation of transnational investment communities. Automated contracts and blockchain based value
transfers can help to make smaller projects more competitive with conventional managed investment funds,
as well as allowing people to put their money to work in a manner consistent with their moral values and
vision for the future.

2.Introduction

Financial institutions have been grappling for some time with how to expand their reach into the vast
population of global unbanked. Many modes of banking utilized in high income countries are simply not
viable in lower income countries. At the same time, low income countries often have booming populations
and high levels of growth, representing considerable opportunity.

Many barriers exist to including some people in the financial system- for example, many people in
some countries may not even have identity documents, tax receipts, or documented salaries, as many
countries have high levels of informal work force participation. This makes traditional approaches to credit
and lending considerably more difficult.

Some innovative approaches in the last few years have found ways to incorporate data from mobile
phone usage and social media to implement group lending approaches that have had lower rates of default
than more traditional approaches to credit risk analysis.

These approaches, while representing major gains in effectiveness, still have a number of issues. For
instance, the lack of individualized, hands on investment leaves many investors feeling alienated from the
investment process and concerned about what is being done with their money. This is particularly true of
Muslims, whose moral objection to interest and other practices presents a major barrier from both the side of
lenders or investors, and for borrowers or entrepreneurs.

It is also becoming increasingly clear that the efficiency gains of big data come with a heavy social
price tag. The assumption that math is somehow impartial ignores the fact that numerical analysis can very
easily exclude members of certain social groups from many opportunities due to statistical considerations. In
other words, the use of data analysis and algorithms can reinforce class divisions and maintain or deepen
inequalities or social tension for the sake of profit. It is, however, just as possible to utilize the normative
impact of data analysis and representation to generate a normative push towards other outcomes, but this
requires alternate conceptions of value- it means finding a way to shift the very conceptions of value. This
requires the assigning of value to alternate modes of production, and the currency shakeup being caused by
the proliferation of blockchain technologies represents a major opportunity in this regard.

The word Ummati means my community in Arabic, but because of the presence of the word in
Islamic texts, it is a word that is instantly recognizable and has strong positive connotations to the the more
than one in six people on earth who identify as Muslims. While the platform is not intended exclusively for
Muslims, the lack of a single investment platform that considers the moral concerns of the large and growing
population of Muslims is a huge market gap. However, as the vast majority of moral and spiritual values
overlap between different belief systems, the structure of a platform designed with these concerns in mind is
ideal for any conscientious investors.

This structure is intended to allow like minded people to form social investment communities
comprised of both supporters and investors who share common interests, regardless of their geographical
location. Initially local communities can rally behind projects to inspire investor confidence, but as
successful projects and contracts are completed and reputation is built, the communities backing and
supporting projects can become more diverse, geographically distributed, and capitalized.

3. Issues at hand
Lack of an online investment platform designed according to Islamic financial jurisprudence

Interest is one of the primary concerns that prevents Muslims from participating in financial institutions,
causing the Islamic banking sector to outpace growth in the conventional banking sector(cite). Another issue,
however, is that conventional investment funds often clash with other religious concerns. Practicing Muslims
generally don't wish to support companies that profit from alcohol, gambling, or exploitation and
commodification of women's bodies, like companies involved in pornography.

Lack of environmental and social consciousness

Increasing numbers of Muslims and non-Muslims alike are concerned with supporting unethical
companies. Many of the investment funds offered by employers are connected to companies that are
involved in displacing indigenous communities, destruction of rainforests, or horrendous labor conditions of
farmers or factory workers. As a younger generation more concerned with these issues becomes more
concerned with financial planning, demand will continue to grow for customizable investment options, so
that investors can know just exactly what it is that is being done with their money.

Lack of engagement in traditional lending

Nearly everyone in high income countries has a bank account, and they know vaguely that the money in it
is being loaned out to other people. Demand remains high for bonds and other investment instruments that
can yield high returns on savings, but many people would like to be more engaged in this process. As the
increasing demand for fair trade projects shows, growing numbers of people like to have an emotional
connection to the people they are affecting with their decisions as consumers. This is visible in the many
brands of coffee with pictures of smiling farmers on the packaging- people like to feel that they are having a
positive impact with their money.

Complexity of international investment

A decentralized, peer to peer model of international investment has simply not been viable due to the
difficulty of understanding what constitutes a good investment in a foreign country, and the difficulty of
communication and drafting legal agreements. This has meant that international investment has been
dominated by large firms that have the funds to manage these challenges.

Varying levels of appetite for risk

An investor's appetite for risk might vary according to their life situation. Demand is growing for tools
that allow the management of an investment portfolio that can actively manage the diversity of asset classes
and risk.

Opportunities missed by lending algorithms

Most fintech startups are rightfully concerned with avoiding defaulters, but no lending algorithm is
perfect. There will always be some excellent entrepreneurs with great ideas and the social networks,
motivation, and knowledge to execute them who slip through the cracks because they are disqualified by a
certain set of data points.

No clear concept for entrepreneurs to build credit

New fintech lending algorithms often incorporate hundreds of parameters in calculating a credit score.
This makes it exceedingly difficult for someone trying to get credit by this approach to build their credit,
because it's not clear how it is being calculated.

The national paradigm

National currencies and borders lead to huge losses in efficiency. This often creates a major advantage for
large enterprises who can use the volume of their business to cover the costs of dealing with different
currencies, and the complexities of international fund transfers. The national paradigm also makes it quite
difficult for small businesses to collaborate and cooperate on an international level, so most of the
opportunities afforded by working on an international level end up being scooped up by large multinational
corporations, making upward mobility quite difficult for small entrepreneurs and investors.

Difficulty of equity financing for microenterprises

Lack of liquidity has been one of the major complaints of investors in microenterprises. It is simply not
worth it to put in the legal and regulatory effort associated with securitization of a business that consists of a
goat.

Lack of efficiency associated with centralization

While a large corporation has certain advantages when it comes to doing business internationally, in
many cases, particularly in the financial industry, they represent middle men between investors and
entrepreneurs.
4. Lack of integrity in modern Islamic banking industry
While there are many advantages to the modern Islamic banking sector over conventional banking, some
of the contracts used are extremely questionable, and many Muslims prefer to avoid them. A particularly
good case study is murabaha, or "cost-plus" financing. The word murabaha was used extensively in classical
Islamic jurisprudence to talk about a transaction where two parties agree that one party will purchase
something from the other party for an agreed upon profit. For example, Ali agrees to buy a horse from Bob
because he knows that Bob knows where to find the best horses. Bob tells Ali that he will buy the horse for
Ali for 100 and sell it to him for 110. The extra is for Bob's knowledge of horses and physical retrieval of the
horse.

About 40 years ago, a researcher in Islamic finance devised a contract based on the murabaha.(cite) It
combined the traditional murabaha with a deferred sale contract. Each of these contracts in itself is allowed
under the law, there is, however, a tradition which establishes a principle that it is generally impermissible to
make one contract contingent on another.(cite) In this contract, the financier purchases an asset at one price,
and agrees to sell it the "beneficiary" or lender at an agreed upon profit mark up, to be payed in installments.

This is essentially a legal loophole, and many Islamic scholars have spoken out against it.(cite) At this
point, this type of contract has come to dominate the Islamic banking industry, with up to 90% of the sector
involving murabaha. Quantitiative studies have been conducted that have demonstrated that the effect of the
modern murabaha is the inverse of the classical murabaha.(cite) None the less, when justifying the use of the
modern murabaha, its proponents often cite universally respected classical scholars who approved of the
classical murabaha as evidence to support the practice.

Islamic banking has become an industry worth over a trillion dollars,(cite) and a legal ruling by a
scholar can haved a major impact on demand for an asset or asset class, so it's no surprise that the scholars
who voice disapproval for this contract are generally not invited to sit on national and corporate advisory
boards. Nor are they given any significant platform to get their voices out to the masses. There is widespread
dissatisfaction among many Muslims with this situation, which means the presence of an alternative is likely
to see major mobilization of large segments of Muslim consumers.

5. Market opportunity - A Perfect Storm

One estimate projects that by 2020 20% of the market for finance will be captured by fintech initiatives.

Islamic banking has consistently been outpacing the growth of conventional banking.The demand for
Islamic banking is not only from Muslims, but also from non-Muslim investors. Interest in Islamic banking
piqued when it was observed in the 2008 financial crisis that Islamic banks were not hit nearly as hard as
their conventional counterparts, largely due to the impermissibility of many types of derivatives in Islamic
financial jurisprudence. This has caused many investors to view investing in Islamic finance as a means of
hedging against instability, which remains a very real concern.

At the same time, the mobile banking revolution presents an opportunity to 'leapfrog' expensive
existing infrastructure. As the M-Pesa phenomenon in Kenya has illustrated, financial services provided via
mobile platforms have the potential to beat traditional banks to the punch in less industrialized markets.
Mobile phones can bypass existing financial infrastructure which is more difficult to deploy, and
subcontracting paperwork to local agents can further reduce costs.

Furthermore, blockchain technology can be utilized to bypass many of the bureaucratic hurdles
usually associated with international finance. This presents a tremendous draw, by enabling p2p international
crowdfunding of small and medium enterprises. Furthermore, legal expenses can be reduced by the
utilization of "smart" automated contracts.

In the Ummati platform, all of these major disruptive trends are combined to ride a megacurrent of
change poised to sweep the financial industry.

5. Ummati Platform

How is it possible to utilize blockchain technology to capitalize on the global unbanked, the fintech
revolution, and the moral concerns of conscientious individuals?

In a peer to peer financing model, an investor has the ability to choose what projects they invest in. By
the generation of reputation scores for individuals and projects, investors have an easy means of browsing
projects according to the likelihood of generating a return, and can chat with the entrepreneurs as well as
other investors and supporters of a project. Since even very small projects can be represented as
cryptographic tokens, a higher degree of liquidity can be achieved since these tokens themselves,
representing equity in a project or business, can be bought and sold. This can also allow users to customize
how much risk they take, and a decentralized wallet system can allow users 100% ownership and control
over their assets.

Since cryptocurrency is immune to traditional capital controls, financing by means of cryptocurrency

has great potential to mobilize large groups from all over the planet to support projects of any size that reflect
their shared values. With existing financial infrastructure, this has until now been mostly the domain of
wealthy investors or huge multinational funds under the management of major financial institutions.

A user friendly way of representing the value of social networks and projects that they are backing
can enable improved sourcing of support for projects from a global investor pool.

Ummati Platform proposes to do just that- to make it possible to for investors worldwide to not only
visualize projects, but the communities that support those projects as well, and even to become part of those
communities if they wish. In this way, groups of like minded individuals from around the world could
conceivably compete with the international funds currently responsible for most foreign direct investment in
low income countries.

The core innovation of the Ummati platform consists of several components:

The linking of a single address with verified user accounts.

Using the recording of all transactions on the network, including the outcomes of contracts, to enable
the generation of a reputation score for each user account/address.

The ability of a user to support projects and stake their reputation on the outcome of a project
through 'project backing,' and derive small profits from backing successful projects.
6. Components of the Platform
6.1 Reputation Score and Identity Verification

The reputation score is derived from two main sources. The first is identity verification, and the second
is being either a project administrator or a project backer. When a contract is created, it contains conditions
that send a tiny amount of the token to the project administrator and the project backers upon its completion.
The token contains additional data with coded markers that are then read by a reputation algorithm to derive
the reputation score. This can be gradated or binary- meaning either a success or fail marker, or full success,
partial success, partial failure, or total failure.

The identity verification plays a key role in establishing trust, and can include many factors that are
included in conventional lending algorithms. These data may include social network information,
geolocation data from mobile phones, as well as identity documents. The more information volunteered by
the user, the higher the initial reputation value. This is also represented by minute quantities of tokens sent to
the address of the user. To determine the reputation value of any address, the reputation algorithm analyzes
the blockchain via a block explorer, scanning for encrypted data included in the transactions. These data are
then aggregated to determine the reputation value.

6.2 Project Reputation

Project reputation is an aggregated sum of the reputation of all project backers.

6.3 The Project Backing Mechanism

When a project token is issued, it has payout instructions linked to a secondary contract. The
secondary contract distributes a percentage of the profits to all addresses listed. When a user backs a project,
their address is included in a list of the addresses of all the project backers. The payout scales so that the
percentage of profit set aside for backers is proportional to their reputation at the time of backing. This
means that the reputation score has a tangible value, because it directly translates to earning potential from
backing projects. It also means that the incentive of a backer to support the success of the project is two-fold;
first, they stand to gain a small amount of real earnings as profits are paid back into the contract, and
secondly, they stand to increase both their future earning power and their ability to attract financing in the
form of their reputation score.

The amount of profits distributed to backers is customizable, but generally would not exceed more
than a few percent of total profits. A profit sharing agreement might look something like 50% for the project
administrator(s), 45% for investors, and 4% for project backers and 1% for platform admininistrators. In the
case of a $70,000.00 trade deal with a $18,000.00 in profit and a 6 month turnover, this would mean
investors would get their principal back with an 11.5% profit (23% annual return on investment), while
project backers would split $720.00, according to the percentage of their individual contribution to project
reputation, as described in (list section).

This may not seem like much, particularly if a project has dozens or hundreds of backers, but if a user
backs numerous projects, this could add up quickly. It also requires no real work on the part of the project
backer, other than putting their reputation on the line for a project.

From the perspective of the overall success of the platform, this arrangement has two major
advantages. One is that it puts a lot of pressure on project administrators or entrepreneurs to do their best to
succeed. It's not an abstract bank or some rich board members that will be hurt if they are unable to honor
their contract- it's their own neighbors, family, and friends, and small investors who may truly believe in the
nature of their social enterprise. Second is that it is likely to be conducive to viral growth of the user base, as
explained below.

6.4 Viewing Options

Here are a few of the viewing options that facilitate navigating projects and users on the platform.

List of Users: In the user interface it is possible to view a list of all users and to sort the users by the
following criteria: amount invested, total earnings on investments, highest percentage return on
investment, highest reputation, percentage successful projects backed, number of projects backed.

List of Projects: The project listings can be sorted as follows: number of backers, reputation of
project, size of project, project turnover (timeline), expected return on investment, reputation of
project administrator, ratio of projected return on investment to project reputation.

Map view: This view allows the browsing of a map view of projects with color coded pins that
represent search criteria. For example, the number of project backers can be coded according to a
color spectrum, so a user can see projects with broad based community support in specific countries.

Filters: Filters are utilized to view projects within a certain country or locality, or those in certain
categories, including those related to social enterprise, like organic agriculture, renewable energy,
recycling, single mothers, education, conservation, and so forth.

The default sorting of projects is according to reputation, so those with the most backing will have the
highest visibility. This means that a new member to the platform can increase the visibility and attractiveness
of their project to investors by convincing their social network to join the platform and back their project.
People joining are incentivized by the possibility of supporting and helping their friend, and they also stand
to make a little bit of money out of the deal. Once they see the presence of investors on the platform, they
may be inclined to list their own projects as well and to try to recruit more backers for their own project. This
can lead to rapid growth of the user base without any financial outlay by the platform itself.

6.6 Profiles

Each user and project includes a profile. The user profiles include at minimum a list of all projects
backed, invested in, or administrated, and the outcome of these projects. Additionally, users may upload
supporting documents relating to their qualifications as a project administrator or a project backer, including
education and professional experience, or references to projects undertaken outside the platform.

Project profiles may include photographs, schematics, information about team members, collateral
agreements, or other supporting documents.

6.7 Field Agents

The field agent is essentially a high level project backer that has a strong enough reputation for backing
winning projects that they can devote more time to helping projects attract investors. They could act as
strategic local advisers to projects, helping entrepreneurs to navigate local customs, and may use their
position to establish collateral agreements from project backers that protect investor money in the event of
project failure. They can be assigned as field agents by a project administrator and project backer, which
entitles them to a larger percentage of profits, as well as the ability to post documents to project profiles.
Field agents can also be given a percentage of fees for processing deposits and withdrawals.

6.8 Chat Options

The platform should contain a general discussion area, as well as local discussion areas for sub-
categories and individual projects. In addition, private message capability can be built in. Users can also
establish new subcategories for discussion and organization of projects. By being engaged in projects that
straddle multiple regions, diverse people with similar interests can communicate to establish and coordinate
projects that combine the unique resources and talents of different parts of the world, creating a truly global
marketplace accessible to anyone who has a smartphone with an internet connection.

6.9 Wallet

Each user account is linked to a single address on the blockchain, and likewise each contains a single
wallet. Via the implementation of colored coins, each wallet can appear as any number of wallets in the user
interface containing different currencies and assets.

6.10 Assets

Any asset supported on the platform can be traded against other assets on the exchange. Assets could
include, for example:

Cryptocurrencies

Cryptocurrency indexes

Projects

Risk weighted project indexes designed according to various user methodologies

Precious metals

6.11 Exchange

The exchange is intended for non-technical traders and to increase the liquidity of investments. The
purpose is more to allow investors to adjust their portfolios than to enable high speed training. In order to
maintain the appeal to Muslim users, the exchange will be semi-decentralized. What this means is that users
can have full control over their assets and private keys, but that the asset issuance and trade matching are
managed by the platform. This means that users have the option to manage their own private keys, but that
the exchange reserves the right to deny the issuance of any asset or stop the trading of any asset based on
periodic assessments by Islamic scholars.

This is key for appealing to the hundreds of millions of Muslim clients to whom such a platform is
likely to appeal in the coming years- a large part of the appeal comes with the peace of mind of knowing that
they can invest and trade freely within the platform knowing that assets are screened according to Islamic
financial jurisprudence. This could be a potential draw not only for Muslims, but also for other communities,
since there is a high degree of overlap between most belief systems. This means practically that there will be
no projects involved in selling or producing alcohol, making or distributing pornography, interest banking,
gambling, or most kinds of derivatives not backed by any real assets.

6.12 Deposits and Withdrawals

Initially the easiest deposit and withdrawal methods to support are obviously cryptocurrencies. If users
wish, they can opt to have cryptocurrency deposits fully under their own management- in this case the
colored coins on the exchange would be permissioned to make transfers from the users wallet, but this data
would be encrypted and the user would be responsible for securing the keys. Upon account creation users
could choose between keeping funds in a cold wallet akin to traditional exchanges or to manage their own
wallets and be responsible for their own security.

The easiest fiat deposit methods to implement in high income countries would probably be paypal,
followed by electronic bank transfers. These methods are impractical for most people in target markets like
Indonesia or Nigeria, so it would make sense to try to partner with mobile carriers so that users could make
deposits by purchasing pre-paid mobile phone credit which is ubiquitous in low income countries, or by way
of existing mobile payments networks like M-Pesa. For more integrated users, bank deposit, wire transfer,
mobile payments, paypal, or debit card could all be utilized.

7. Plan for future expansion - the WeChat model

WeChat is one of the most popular chat apps in China. It began as a simple instant messaging service,
but as its user base has grown, more features have been added, including built in subscriptions to
publications, retail shopping features, a blogging platform, a mobile wallet, and professional social
networking services. Focusing on a particular market is necessary when building a service, but it is also
important to keep in mind plans for future expansion. It is also important to consider the interests of the
target demographic so that a platform can grow along with its user base.

Many companies have now proven the viability of a bitcoin wallet linked to the Visa payment network
via a debit card. The linking of cryptocurrency wallets with conventional bank accounts for withdrawals and
deposits is also an established industry practice. Still in its formative phases is a means of managing deposits
and transfers used for everyday payment. It is possible, with sufficient funding for the regulatory legwork, to
make spot exchange transfers from cryptocurrency wallets, or fiat wallets backed by cryptocurrency, to make
instantaneous transfers within national banking systems or zones like SEPA by linking the wallet balances to
an account within these systems with sufficient funds to cover day to day transfers.

If this could be achieved, it would mean that eventually users could decrease their exposure to the
conventional banking system to the point that they utilize the Ummati platform for all their retail banking
needs. The unique approach to crowdfunding would be the initial draw, but if we can provide a smooth
enough user experience and incorporate fiat payments, we can render traditional banks obsolete. It is also
likely that our target demographic would already have a high level of dissatisfaction with the financial
system, since the mission and narrative of the platfrom appeals to a younger audience hungry for social
change, and this audience would also be far more likely to be willing to try something new.

While it would be much more difficult to establish a dedicated fully online banking platform in its own
right, after attracting a user base by means of a social investment model, retail banking services can be added
one at a time.
8. Hybrid Business Model

Ideally, the platform should not be too dependent on any one funding avenue, but should have multiple
options depending on the will of the community and market conditions. For example, in a crypto bull market,
the creation of a token with a novel consensus protocol might secure enough funding to keep development on
track, but in a bear market it might be necessary to rely on equity financing. As such, it may be necessary to
split development into a foundation responsible for the blockchain and a corporation responsible for the
platform. The corporation would get a share of the pre-mine along with investors to finance operations if
necessary, however tokens will not be burned when they are used to claim coins from the premine- rather
they represent equity in the corporation as well and entitle investors to a share of the profits. 2.5% percent of
the mining profits are automatically directed the development team at the foundation.

The equity share owned by investors will initially be 10%, with subsequent sales possible in case of
necessity. This means entitlement to payouts of 10% of total profits on a quarterly basis.

8.1 Structure of ICO

Step 1: Pre-ICO round: This round aims to raise $800,000. Tokens purchased will carry the right to
participate with priority in the ICO round with a 50% bonus, effectively allowing participants in the pre-ICO
access to double tokens in the ICO.

Step 2: ICO round: The ICO aims to raise funds to cover development costs. 1,575,000 tokens will be issued
to investors. Tokens will be distributed according to the percentage of contibution of total funds raised with a
soft cap of $15,000,000.

Step 3: Coin launch. Tokens entitle owners to premined coins at a 1:1 ratio. Total premine of 21,000,000
coins not to exceed 15%. Of these 7.5% set aside for development team and 7.5% go to investors. Tokens
will be retained, not burned, and will entitle owners to a portion of the equity and dividends of Ummati
platform profits.

8.2 Use of Funds Raised

Development team salaries: 17%

Marketing budget, video production, media spots, conferences, design: 11%

Budget for contracting specialists/consultants: 14%

Legal fund, regulatory compliance: 14%

Security: 14%

Reserves to compensate users in case of hack/unforeseen circumstances: 28%

Server costs/miscellaneous: 2%

8.3 Development schedule

2 to 4 months: Further development of branding, website, publicity, and creation of an animated explainer
video, launch of the pre-ICO crowdfund.

4 to 10 months: Creation of as many positions for full time developers as funds raised allow, in addition to
part time contributors who work for a stake in the project. Development of contract prototypes, demonstrable
tests of the reputation algorithm. If time and resources allow, run tests for the alternate consensus protocol. If
not, build on an established blockchain, probably Ethereum or Ethereum Classic, or launch a PoW
blockchain. Launch of ICO at earliest possible juncture when interest appears to be strong enough, at the
latest summer of 2018/1439.

10-18 months: After launch of ICO, recruitment and training of more developers, as much qualitatively and
quantitatively as funds allow. Utilizing as much open source code as possible, prioritize development of
mobile app, wallets, trade engine, profiles, viewing options, withdrawal and deposit infrastructure, contract
templates and interface, and reputation algorithm. Consulting with Islamic scholars and the creation of an
advisory board of credentialed scholars. Launch of alpha. If provided resources are sufficient, continue
development and testing of reputation based consensus protocol. If tests prove successful, the native
cryptocurrency operating on the alternate consensus protocol could be launched in order to secure more
funding, and the platform ported to the new blockchain.

18-24 months: Creation of a number of pilot projects in conjunction with a marketing push in Indonesia.
Possible production of professionally produced videos detailing the impact of the pilot projects on people's
lives and showing the mechanics of the platform. Focus on the most successful projects as models for future
projects and for marketing.. Launch of beta based on data gathered from the alpha.

24-32 months: Launch of beta. Depending on regulatory challenges and funding, possible expansion of pilot
projects to Pakistan and Nigeria. Participants in the crowd fund are invited to participate with bonuses.
Marketing push in the US, Australia, and Europe, particularly among crypto-investors, since regulatory
approval for fiat deposits may take longer. Focus on regulatory aspects along with further testing and
refintement.

It is not realistic to expect to be able to have income streams sufficient to offer investors real value
within two years for this ambitious of a project. The implementation of a native currency is central to the
platform, which entails a large amount of risk, since this kind of consensus protocol has never been tried
before. It allows, however, the possibility for investors to realize greater profits in a shorter time frame than
most ICO's currently on the market, since the success of a novel consensus protocol could very well lead to a
significant increase in market value of the coin, whose premine would be swapped 1:1 to the ICO investors.

9. Use scenarios
To help visualize what exactly it is that Ummati can do, it may be useful to describe the action of the
platform with narratives. Non-interest bearing contracts in this context are generally suited to short term
contracts, particularly involving trade financing.

Example A

Husri is from Java, Indonesia. He lives in Dubai and his brother in law runs a small coffee roasting business.
He buys a thousand kilos at a time and packages and distributes it, but if he can lower his prices he can
secure a contract for 8000 kilos a month. This is viable if he imports the coffee himself. However, he cannot
afford to buy 24000 kilos all at once due to lack of cash reserves, and the minimum quantitiy for optimal
shipping rates is one container containing 24 tons.

Husri has cousins who are coffee farmers in Java. He offers to handle all of the customs forms and shipping
paperwork, and creates a profile and posts it on Ummati. His cousins and their neighbors are excited about
being able to sell coffee directly to the roaster and to cut out the middle men, because it means a higher price
for them. Husri instructs them to create accounts on Ummati. They verify their identities. They and their
families back the project.
 As more users back the project it climbs in the rankings and investors notice it. Some experienced investors
see clusters of confirmed geolocated ID's and social media accounts, and are able to discern it is a legitimate
project. They also see details about Husri's brother in laws company, and identify that the opportunity is
good. Several experienced investors purchase tokens in the project.

Novice investors see that the experienced investors are purchasing tokens in Husri's project profile, and more
buy in. Soon, it is listed as 'trending' and is fully funded.

The total expense to purchase the coffee and pay all fees, taxes, and duties involved, as well as the transport,
is $90,000. The profit is high since Husri and his brother in law are acting both as importers and roasters
now, so after selling all the coffee, the sales total 125,000 dollars. The profit split is agreed at 60/38/2 60
percent retained by Husri and his brother in law, 35 percent for investors, and 2 percent for backers and the
platfrom fee- with 0.5% for the platform and 1.5% for the backers.

Net profit for Husri and his brother in law is thus $21,000

Investors take $13,000.

Backers take $525.

Ummati platform takes $175.

The project has a 6 month turnaround, meaning that investors get a 14.44% return on investment on the
90,000 raised, or a 28.88% annual ROI.

Husri and his brother in law, as project admins, recieve a fair sized reputation increase. The backers receive a
small reputation increase.

All participants can view the metrics and see how much money was earned and how it was distributed.
Project backers can see who the top earning backer was- which would be the project backer with the top
earnings.

The project backers numbered 280, mostly in Indonesia. This means they average earnings of $1.87 for
backing the project. For example, perhaps the top earning backer earned $2.65. In Indonesia, many people
earn less than $100.00 a month, so 20,000 ($1.53) rupiah is a pretty big bonus for just signing up for a
platform and supporting a relative.

The project backers can view this balance in rupiah, the local currency, but it is actually denominated in
the native token. They have the option to invest it in other projects themselves, or to find a local
withdrawal/deposit agent who can exchange it for rupiah for a fee.

10. Determining Reputation

The following discussion is meant to go into more detail as to what the deployments and functioning of
the reputation system will look like.

A blockchain based process for building reputation has several advantages- in particular when combined
with a visualization of social networks. One is that the transaction data is incorruptible, cancelling one of the
attack vectors present in other p2p networks. Another is that reputation calculations can be included in
transactions using values already stored in metadata, reducing the resources needs to calculate the transaction
dimension of the value.
 The intitial reputation is scored by means of identity verification. The more information to which the
platform has access, the greater the certainty with which identity can be verified. These methods include
analysis of social media, selfies, identification documents, geo-location data from mobile phones, and
corroboration of other confirmed members of the network.

By claiming to know someone personally, a user would become permanently linked to the person for
whom they vouch, meaning if the person they claimed to know loses control of their account to someone
attempting to defraud the system, or if they break a contract with investors, that the person who
recommended them would be penalized as well. This encourages discretion in recommending others to the
platform- users will thus be more likely to recommend those who are personally known to them and who
already have good reputations with real rather than virtual social networks.

Likewise, project reputation introduces a mechanism whereby any user can stake their reputation on the
outcome of a venture, pending the project administrators approval. A set percentage of funds are set aside to
be distributed to project backers, allowing someone with no credit but a robust social circle to propel their
project to visibility within the platform.

10.1 Decentralized Audits

The reputation system functions essentially as a means of quantifying the social incentive for a given
action. This value should be used as an incentive for effecting whatever the needs of the network might be.
In the same way that a blockchain can verify transactions, nodes on a reputation network can verify the
authenticity of other types of interactions as well. A system of audits can add to the resilience of the network
in the case of a network based on p2p contracts. That is, users agree to be audited by one another in exchange
for increases in reputation.

The reputation increase would be proportional to the level of connectedness of the auditor. The higher
the level of connectedness, the more likely it is that they know eachother already and the more likely is is
that the auditor could be dishonest.

The need for an audit, however, is selected by certain behaviors that can be traced with high certainty to
attackers. Addresses exhibiting these behaviors would be given reputation deductions that would effectively
render their reputation 0 until they undergo an audit. A certain minimum reputation score is necessary for an
audit, and if subsequent audits found a previous audit to be erroneous, this would also affect the reputation of
the auditor negatively and the further increase the reputation of the auditor that uncovered the bad audit.