Wirex Listing of BTS
Name/bfid 201905-wirex-integration
Category Integration
Freelancer Blockchain Projects BV - Blockchain Projects BV
Total $375,500
Duration 2019/05/01 - 2019/11/15 (6 months)
Worker ID 1.14.183
Discussions
Accounting & Reporting workers.bitshares.foundation/201905-wirex-integration

Motivation

In recent history, the BitShares Community has been talking a lot about furthering the use of the BitShares Blockchain and its core native token BTS with the clear goal of a broader adoption, increased volume, liquidity, and outreach. On this subject, marketing and ease-of-use are just as important, and we, Blockchain Projects B.V., want to tackle the next consequent step for that.

In our view, one of the vital points is an increase of use-cases for BTS amongst a larger group of people and the use of BTS in transferring it to others in any given circumstance.

Ideally, we manage to get BTS listed on a credit/debit card with tight fiat (offramp) integration. By this, we would leave the restriction to crypto-currency exchanges and become accessible to Millions of ATMs and Merchants.

Once we have such a card that accepts BTS the next step is to aim for BitAsset integration. From a technical viewpoint the effort is marginal, most work will be in the background to comply to the regulatory requirements.

Worker Intent

Months of preparations, intensive phone calls and business development lead to a verbal agreement from credit card processor Wirex to list BTS. We believe that Wirex comes with a reasonable cost-benefit ratio and has an excellent reputation in the space. Wirex comes with 2.2 million registered users and the WirexApp provides access to Euro, British Pound and US Dollar and supports Bitcoin, Litecoin, Ethereum, Ripple, WAVES, NANO, DAI and XLM.

Notably, its debit card services run over VISA.

Wirex is a well established and fully regulated company, properly outfitted with KYC and compliance. All information on its services, terms and conditions can be found on wirexapp.com. Its service also entails an affiliate program and a reward for use. We invite everyone to read up on the details.

We see this as a highly desirable functionality. As BTS is listed on known technical structures we have been offered this opportunity at much less than the usual price.

Depending on their worker load and schedule, Wirex technical team can integrate BitShares within 4 weeks.

Legalities

We might need to secure additional legal opinion letters at their request, but fortunately the BitShares Blockchain Foundation has a complete legal opinion paper that was done by PaulHastings that applies for U.S. jurisdictions. The budget accounts for efforts of transferring that to the European jurisdiction as Wirex resides in London and is licensed by UK FCA (this budget is optional and only spent if required)..

Marketing Aspect

Marketing BTS to Wirexapp has been worked on for many months already and has resulted in an actual offer from Wirexapp. Apart from being a major advertisement for the BitShares Blockchain, namely one of the oldest and most stable blockchains around, the community would massively increase its outreach and get access to over 2 million people that might be not aware of BitShares and BTS. This would generate publicity world wide and result in free press coverage that would otherwise need a hefty marketing budget to stem by itself with the same outreach. Not to mention the potential increase in transactions and utility of our blockchain.

Budget Requirements

We need to establish and save funds as part is paid on signing the agreement (setup fee). We have come to an understanding that Wirex would integrate BTS if funding is secured. What is left is to now ask you, the BitShares community, to approve the required budget to take this further.

This worker comes with three milestones:

  • The worker becomes active: This gives a clear signal towards Wirex that integration is desired. We start with preparations of legal requirements as needed.
  • The worker is fully funded: The integration part at Wirex kicks in after paying the setup fee.
  • Operations: Ongoing monthly expenses for Wirex are covered for as long as the funds suffice, but limited to 12 months.

In case the worker is not fully funded, but covers expenses, project management and fees, the time BTS is available on Wirex may be shorter than 12 months. In case legal requirements cannot be met, any left-over funds will be returned.

The world wide operations of the Wirex services will cost a monthly fee of 5,000 $. That is a continuing obligation and compared to other services very reasonable. A one-time fee from Wirex applies that includes technical integration work (includes the previously mentioned setup fee). An optional budget is added to cover any necessary legal expenses if required. Lastly, there is a management and escrow overhead.

Final acceptance is up to Wirex due to regulatory input from their lawyers. In case of refusal, the funds will be returned (minus expenses).

   
Wirex one-time 250,000 $
Wirex recurring 12 months total 60,000 $
Escrow fee BitShares Blockchain Foundation* 15,500 $
Project Management 25,000 $
Reservation potential legal cost** 25,000 $
Total 375,500 $
   

Project Partner

Blockchain Projects B.V., a Dutch company, will take the lead in project managing the integration and take care of legal requirements. We would like to emphasize, that no side-agreements or kickbacks for Blockchain Projects exist that would benefit us. The BitShares Blockchain Foundation has agreed to become the escrow for this worker proposal and take care of contracting on the legal side.

Summary

The BitShares community has long requested integration into a credit card network. With many businesses in the space appearing and disappearing again due to more strict regulatory requirements, we believe that now is a good time to introduce BTS to Wirex.

Additionally, if required by Wirex, we will pursue a legal opinion letter for BTS that applies specifically to European regulations for the BitShares community, which will be made available to the BitShares Blockchain Foundation as well.

We see an integration of BTS as an enormous opportunity for the BitShares Blockchain Community. With one stroke, many imminent topics would be hit that were addressed in marketing, liquidity and utility. Therefore we urge the BTS voters to consider supporting this worker proposal.

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