Since the conclusion of the pre-sale, HydroMiner has worked tirelessly to ensure the long-term feasibility of its project, particularly with regards to business legitimization and sustainability. Its first priority is to protect its investors by ensuring that HydroMiner is able to operate far into the future, bringing value to all its stakeholders, including token holders and local communities.
HydroMiner recognizes that ICOs, as a new tool in venture capital, have come under increasing scrutiny from financial and regulatory bodies. In view of this, it has acted pre-emptively to ensure that its project is prepared to navigate the ever-evolving environment of regulatory, legal and tax frameworks.
Having engaged with legal firm Stadler Völkel to incorporate HydroMiner as a Limited Liability Company in Austria, the company has also fine-tuned its token sale model to ensure compliance with all relevant Austrian legal regulations.
HydroMiner believes that the implications of this new model will provide further assurance and confidence to its stakeholders of the company’s strength and viability, as blockchain technology gains prominence and recognition in Austria and beyond.
— HydroMiner (@hydro_miner) October 20, 2017
A revised, fully compliant model of tokenization
After much open discussion and careful deliberation under legal advice, HydroMiner would like to announce a new model of tokenization.
This consists of several revisions and refinements pertaining to the H2O token and revenue generation structures to bring the business into full compliance with the necessary requirements of the entire spectrum of Austrian financial and market regulations, including the Austrian commercial code. This also clarifies HydroMiner as a non-securities business entity.
The overall ICO structure is a maximum supply of 25 million H2O tokens offered at the same early-entry discounts. H2O token sales will continue throughout 2018 as and when capacity is available.
But there are multiple implications brought about by this new, compliant tokenized model, as follows:
1. Token stucture
HydroMiner has now established the H2O token as a voucher issued to represent mining time credits. In other words, tokens acquired during the crowd sale can be exchanged for equivalent credit values of mining time beginning from March 2018.
In order to perform the redemption, H2O token holders must first register on the HydroMiner platform. Once registered, they can then redeem the H2O tokens for mining time credits. Each token can be redeemed for specific credit values of time and energy consumption which will represent actual usage on the HydroMiner mining farms. Users will be able to choose to mine any of the coins offered on the platform, at any time (not necessarily in March 2018).
As H2O tokens must now be bought with the intention for redemption of mining credits on the HydroMiner platform, there is no longer a need for a token buy back clause. As such, the development team have also relinquished holding rights and there will be no token holdings reserved for them.
2. Revenue model
Payments will also no longer be made to an Ethereum address. Instead, payouts will be credited to the HydroMiner platform and the web wallet, where uses can request withdrawals if balances are sufficient.
In line with a more viable and realistic business structure, payments to users will reflect revenue generated directly from the activation of mining credits redeemed, for as long as they remain active. In other words, to generate revenue, users must redeem mining credits.
All contributors will need to whitelist the Ethereum address that they intend to use in the ICO. The whitelisting form will be made available soon on their website. Contributors will be required to provide details of their email address and Ethereum wallet address intended to be used. All non-whitelisted contributions will fail.
— HydroMiner (@hydro_miner) October 20, 2017
About HydroMiner, the green cryptocurrency mining start-up
HydroMiner began life in 2016 as a modest mining rig run by sisters Nadine and Nicole Damblon in their own apartments in Austria. It has since grown into a large-scale mining operation powered by carbon-neutral hydro-power stations in the Austrian Alps.
It was then that the Damblons realized that it was possible to bridge green energy with the increasingly power-hungry crypto mining industry. Austria is a leader in renewable energy, generating the highest percentage of energy from renewable sources among countries in the European Union. Today, more than 670 run-of-river power plants and some 1,800 small-scale hydro power stations generate almost a two-thirds of Austria’s electricity needs.
Utilizing hydro power for crypto mining has a major dual advantage: apart from vastly cheaper energy, there are potential savings from using flowing river water in cooling systems. Additionally, the use of renewable energy promises to lower the sizeable carbon footprint of the crypto mining operation.
The HydroMiner ICO
HydroMiner currently operates two hydro power stations near the Austrian capital of Vienna.
Among the earliest ICOs to launch in Austria, the HydroMiner token sale aims to raise funds to finance an expansion of mining capacity through the rental of more hydro power stations. Its tokenized model will also allow investors to participate in an industry-first initiative in eco-friendly crypto mining.