Abstract

The Zulu Republic is a place that exists on the blockchain, where people, businesses, and organizations can thrive on their own terms — a place where the real promise of the cryptocurrency revolution can be realized.

Citizens of the Zulu Republic live anywhere and everywhere, united by a shared vision for a future of economic freedom and empowerment — of taking back our destinies from powerful centralized institutions.

Combining the benefits of blockchain smart contracts with a viable cryptocurrency model, Zulu Republic combines the best of both conventional and decentralized currency models, with an emphasis on user experience, adoptability, sustainability, and transparency.

Our mission is to create the world’s first truly viable micro-economy on the Ethereum blockchain, powered by the ZTX payment token, and to develop a model for reducing the volatility that categorizes many current-generation cryptocurrencies, thereby empowering people to take control of their own financial lives while making it easier than ever to do so.

The Zulu Republic ecosystem will be bolstered by a series platforms that use the ZTX token, the first of which, Zulu Pay, is currently under development, to be followed by future ventures voted on by Zulu Republic citizens and developed and/or seeded by the Zulu Republic Foundation.

Concept and Background

We believe that people and businesses should have the power to control their own money, free from powerful centralized intermediaries, and with the added security offered by the blockchain. This is the fundamental ambition behind cryptocurrency technology, which is increasingly changing our idea of value exchange and shattering the monetary paradigm of infinite debt creation and unsustainable growth.

The exponential changes we see happening in technology today are mirrored by profound transformations and disruptions in our social and economic lives. Each year, more and more people are living, working, and exchanging value across physical borders, whether by choice or by necessity. Centralized, hierarchical institutions and governments are under ever-increasing pressure from this upheaval, and public trust in them is at an all-time low.

At the same time, technological disruption is bringing a greater possibility for global abundance and independence than ever before. We envision a world of true economic freedom, where people are empowered to take back their financial agency and thrive like never before possible.

Economics

Cryptocurrencies have revolutionized the global economy, giving people a means to exchange value securely and quickly, independent of location, and without intermediaries for the first time in history, often with much lower fees than conventional remittance services. Thanks to the cryptographic strength of blockchains, we no longer need to place our trust in vulnerable third parties, and the threat of fraud and bad actors is increasingly reduced.

However, this economic revolution is still reserved for those with a minimum of technological literacy and a high tolerance for volatility, placing regular cryptocurrency use beyond the reach of the general public. Few if any platforms exist for joining the cryptocurrency revolution that are truly user-friendly.

With an emphasis on user experience and monetary policy, the Zulu Republic aims to mitigate the adoption problem, leveraging blockchain technology to create a sustainable cryptotoken ecosystem composed of individuals, merchants, and larger businesses, bolstered by enterprise-level activity and product “exports”—creating a place where people can not only make use of blockchain technology in their daily lives but thrive in the process of doing so.

Technology

The Zulu Republic is built on and strengthened by the latest web-development technologies, while also taking advantage of the unique strengths of the Ethereum blockchain.

Ethereum was designed to add much more functionality to the blockchain than payments alone, yet its most substantial innovation — the Ethereum Virtual Machine (EVM) smart contract — provides a unique opportunity to program a transparent monetary policy into the currency model, thereby creating a truly viable, reduced-volatility cryptotoken.

Application

At the heart of the Zulu Republic is the ZTX token and four initial platforms: Zulu Pay (financial hub), Zulu Commons (voting platform), Zulu Ventures (business seeding platform), and the Zulu Republic Educational Platform.

ZTX is an ERC-20 payment token that uses the power, security, and transparency of Ethereum smart contracts to manage volatility, without the need for intermediaries. Combined with the Zulu Pay app, the ZTX token will empower users to take advantage of blockchain transactions in their daily lives.

The ZTX token model is designed for general public usage, and to be supported by an ecosystem of business models and applications powered by ZTX.

Zulu Republic Passport

A republic is only as good as its people.

Zulu Republic users achieve citizenship status and receive a Zulu Republic Passport after completing an onboarding process that includes KYC verification.

The purpose of the Zulu Republic Passport is to provide a comprehensive self-sovereign digital identity solution that provides benefits both within and external to the Zulu Republic ecosystem. By leveraging the unique properties of the blockchain, the Passport will provide a trust-minimized digital identity hub, giving users complete control over their own information while maintaining a high degree of privacy, security, and convenience.

The Zulu Republic Passport is a convenient, one-stop KYC solution that can be used for onboarding with any third-party service that accepts the Passport for verification purposes, such as online cryptocurrency exchanges and other financial service providers. Users verify their information on a case-by-case basis and only when required, preventing access by vulnerable third-parties and reducing the risk of exposure to hackers in centralized databases. The Passport also benefits businesses by removing KYC compliance burdens from their own operations, allowing them to focus on what matters: their own products and services.

Within the Zulu Republic ecosystem, the Passport also confers the following rights:

  • To receive unlimited 5% token-back rewards when purchasing within the Republic.
  • To vote on changes to the ZTX monetary policy and reserve distribution
  • To vote on seeding new Zulu Ventures from the reserve funds
The Zulu Republic Foundation

The Zulu Republic Foundation is a Swiss non-profit organization charged with managing the underlying technology of the Zulu Republic ecosystem.

The mission of the Zulu Republic Foundation is to advance the development of decentralized technologies, to promote human rights and empowerment around the globe, and to reduce the global digital divide.

In support of this mission, the Zulu Republic Foundation is responsible for the following activity:

  • Developing open-source distributed ledger technologies (DLT)
  • Developing self-sovereign identity technologies (SSI)
  • Creating and distributing educational content on the subjects of digital security, privacy, and blockchain technology.
  • Maintaining and managing the ZTX token and reserve, as well as any additional Zulu Republic smart contracts.
  • Incubating and seeding businesses and non-profit organizations that utilize ZTX and/or its underlying open-source technologies in their daily operations.
Value Proposition in Brief
  • Reduced-volatility cryptocurrency model to facilitate adoption by everyday users while the market is still maturing
  • Industry-leading 5% bonus for verified users
  • Use case scenario for ZTX adoption, featuring both consumer and business services, P2P microlending, and non-profit funding mechanism within the same platform
  • Proprietary business models in development for vertical market deployment to seed the ZTX ecosystem

Zulu Pay

More than just another payments app, Zulu Pay is the central hub of the Zulu Republic ecosystem, designed to bring seamless, user-friendly blockchain transactions to the world. Zulu Pay is powered by ZTX, with features that individuals, merchants, and large businesses will love. Whether sending, shopping, selling, or even managing inventory, Zulu Pay lets you transact in ZTX with just a few taps, all wrapped-up in a beautifully-designed, multi-device platform with built-in best practices and a fun, engaging user interface.

By increasing adoption, usage, and transaction volume of the ZTX token, Zulu Pay also helps support the Zulu Republic ecosystem by adding value to the token model, while also freeing even the most technologically-inexpert users to take full advantage of cryptocurrency transactions for the very first time.

Individuals and Freelancers

With Zulu Pay, you can sign up and send ZTX within seconds, with the opportunity to earn a 5% token-back bonus at verified merchants. After a user-friendly onboarding process, a personal Zulu Pay wallet is automatically created, and users can add ZTX to their account with a credit card or via an external exchange in moments. From there, shopping and sending peer-to-peer transactions is as easy as scanning a secure scancode within the app. Zulu Pay is more versatile and secure than using cash, with every transaction recorded on the blockchain.

When shopping with verified merchants, users have the option to keep the 5% token bonus or donate all or a portion of it to an approved non-profit organization. Rewards can also be earned by inviting friends, family, or colleagues to sign up and start using Zulu Pay.

Trading ZTX within Zulu Pay is quick and simple, and cashing out to fiat currency can be done within the app via an external exchange partner. In the future, we also plan offer peer-to-peer ZTX transactions with no added fees (gas).

Freelancers and digital nomads can use Zulu Pay to create and send invoices on-the-fly, as well as to track and manage their products and services.

Merchants and Large Businesses

With a Zulu Pay merchant account, businesses can accept both POS and online transactions directly in ZTX, without slowing down the purchasing process. Registering for a verified merchant account incentivizes purchases by providing a 5% token bonus (at no cost to the merchant) on every purchase for customers who use Zulu Pay, stimulating both user onboarding and merchant sales.

When a customer pays for an item or service in ZTX, the tokens are transferred to the merchant account within minutes, and merchants can choose to either hold ZTX in their Zulu Pay wallet or cash out in fiat currency at regular intervals. Settlement of ZTX to fiat is conducted seamlessly within the Zulu Pay platform via an external exchange partner.

Zulu Pay will also offer a number of valuable additional features for both small and large businesses, including transaction records and reporting, e-commerce and inventory integration, invoicing, and analytics.

Merchants are verified by Zulu Republic Citizens, and can offer token-back rewards based on two levels:

  • Level 1: Merchant is verified by 1 citizen. Can give up to 5,000 USD worth of ZTX back per year.
  • Level 2: Merchant is verified by 100 different citizens who have made transactions, or by a Zulu Republic authorized verification entity. Can offer unlimited token-back rewards.
Philanthropic Organizations

Zulu Pay is about to make it easier than ever for charitable organizations to create engaging fundraising campaigns, whether targeted to individuals or businesses.

Verified organizations can create a Zulu Pay wallet for each campaign, each with a custom scan code that can be added to campaign posters, billboards, or web assets, allowing users to donate directly from the app on the fly. With built-in fraud protection, Zulu Pay also alerts users in the case of unverified scan codes, ensuring that only the desired organization receives the donation.

Non-profit organizations with a verified Zulu Pay account can also apply to be featured within the app itself for increased visibility.

Zulu Pay Smart Microlending

By choosing the Zulu Pay P2P microlending feature, verified users in approved countries can shop with verified merchants even if they don’t have any ZTX in their wallet, up to a total credit line of 10% of the average monthly income in their country of residence. Lending takes place on a peer-to-peer basis within the Zulu Pay platform.

ZTX holders can earn interest on their token holdings by choosing to lend a portion of their ZTX to a smart lending investment pool built into the Ethereum smart contract.

In lieu of the regular 5% token bonus going to the user, it is used to incentivize lenders to contribute to the ZTX lending pool.

Credit Risk insurance is activated at the time of lending and insures fiat cash value based on the order book price from the third party exchange.

Increased credit limit will also be offered to users upon request with additional verification procedures.

Microlending Flowchart

Technology

Zulu Pay is built using the latest web technologies, featuring React-native development, custom-built APIs, and Ethereum smart contract integration.

Regulatory Compliance

Zulu works closely with Swiss regulators to go above and beyond Swiss regulatory requirements, which are among the most stringent in the world. Legal advisory for both the Zulu Pay and the Zulu Republic Token Sale is provided by KPMG Switzerland.

Privacy

Zulu Pay uses a mixed permissioned/permissionless system, which means that both anonymous and verified account options are available. Anonymous (unverified) accounts will offer limited functionality, including the inability to receive token-back rewards.

Progress

Zulu Pay is currently under development and we expect to launch in mid 2018. Core platform functionality will also be demonstrated in beta via the custom platform developed for the Zulu Republic Token Sale.

ZTX Token & Smart Contract

Technology

The ZTX Token is an Ethereum-based (ERC20) payment token designed for use both within the Zulu Republic ecosystem through Zulu Pay, as well as independently by blockchain-savvy users who wish to transact or trade in ZTX on third party platforms or exchanges.

The most crucial technical component of ZTX are Zulu Republic’s Ethereum Virtual Machine smart contracts, which function as the ZTX reserve and control the parameters for token distribution — distributing token-back rewards, regulating the Zulu Republic smart lending pool, and stabilizing the exchange value of ZTX — securely and transparently.

Token Distribution
  • Initial Distribution: 200 million tokens (20% of total supply)
  • Token Divisibility: 18 decimal places
  • Lifetime Maximum Token Supply: 1 billion tokens

The initial distribution of ZTX will be 200 million tokens, to be distributed as follows:

  • 100 million: Airdrop to first users
  • 100 million: Held for use by the Zulu Republic Foundation

After the initial distribution, additional tokens will be released by the smart contract gradually over time, according to a pre-determined, transparent set of parameters (currently under development), increasing token supply and distributing token-back rewards to Zulu Pay users as necessary, with an upper limit of 1 billion lifetime total tokens. In this way, monetary policy is not controlled directly by Zulu but by the smart contract itself, which can be periodically audited and improved according to voting initiatives by Zulu Republic citizens, and is always publicly visible.

Zulu may also periodically buy back ZTX tokens for use within Zulu Ventures.

Economics & Transparency

One of the primary barriers to the adoption of cryptocurrencies by the general public is their volatility. The unique functionality offered by the Ethereum blockchain, however, allows us to design the Zulu Republic to be a self-sustaining economic ecosystem built around the ZTX token.

By programming and executing monetary policy directly within the Ethereum smart contract, our goal is to help stabilize volatility and ensure sustainable growth for the value of ZTX into the future. Ethereum also provides the benefit of transparency, allowing us to make the specific ZTX distribution parameters publicly visible on the blockchain, with the option to subsequently adjust them with future updates to make the ZTX ecosystem even stronger.

We also aim to strengthen ZTX by offering a 5% token-back bonus for verified purchases, stimulating onboarding, virality, and transaction volume within the Zulu Pay platform.

Zulu Republic Smart Reserve

The Zulu Republic Smart Reserve is a smart contract designed to manage the reserve supply of 800 million ZTX tokens. The reserve is maintained by the Zulu Republic Foundation.

The reserve serves multiple functions:

  • To distribute the 5% token-back bonus to users when making purchases at verified merchants.
  • To function as escrow and guarantee for the Smart Lending Pool
  • To stabilize the fiat exchange value of ZTX within an acceptable range according to a transparent set of parameters.
  • To release 1% of remaining ZTX to the Zulu Republic Foundation for use in future initiatives.
Token Utility

ZTX is the final token that will be used within the Zulu Republic ecosystem by both users and by Zulu Ventures.

Security

The Zulu Republic ICO smart contract is externally audited by top industry experts, using ERC20 compliant payment tokens, and is compliant with Swiss regulations, which are among the most stringent in the world.

In addition, the process for participating in the token sale is specifically designed to protect users from the dangers of phishing and fraudulent attacks. There will be no official, publicly shared address to send ETH to during the token sale. Rather, all activity for participation in the token sale will take place within our dedicated app. Users will be warned that the Zulu Republic Smart Contract address will not be posted online before or during the token sale and that they should consider any purported wallet address to be fraudulent.

KYC Procedures

All users upon registering as Zulu RepublicCitizens” will pass a comprehensive identity verification process facilitated by a reputable 3rd-party service provider. Only upon successful completion of the KYC procedure will users be awarded a Zulu RepublicPassport”, entitling them to purchase ZTX in the token sale and afterwards, and to receive the additional benefits outlined above in the sectionZulu Republic Passport”. 

Zulu Commons Voting Platform

Citizens of the Zulu Republic will be able to vote on initiatives when a minimum monthly balance of ZTX is maintained. This aligns voters’ interests with that of platform users and ZTX holders.

  • 10% of total citizens are required in order to call a global referendum.
  • 50% voter quorum required for vote to be effective.
  • A voting right is conferred when the account has a balance and has made a minimum of 1 transaction in the past 30 days.

Zulu Republic Educational Platform

The Zulu Republic Foundation will also host a platform for general education in the broader cryptocurrency space, inviting key figures and thought leaders in the industry to share their ideas and experience, with an emphasis on cinema-quality video content.

Roadmap

  • Zulu wallet and passport development (current)
  • ZTX Airdrop begins (Summer 2018)
  • Educational Platform launch (2018)
  • Zulu Pay merchant platform launch (2018)
  • Zulu Republic Passport launch (2018)
  • Zulu Commons Voting Platform launch (2018-2019)

*Roadmap subject to change. Terms and conditions apply.

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