DMS NFT Whitepaper

Executive Summary

❖ Overview

DMS is an AMI solutions provider in the global market.

We provide end-to-end smart metering solutions to electric utility companies in emerging markets.

Our current focus markets are the electric cooperative companies that operate under the rules and regulations of NEA (National Electricity Authority) and ERC (Electricity Authority Commission) in the Philippines, a major electric utility in Morocco, an electric utility in Tanzania and customers in Thailand and Turkey.

❖ Utility companies face the following problems:

▪ PRNewswire notes that emerging market electricity theft costs utility companies approximately USD 58.7 billion annually;

▪ Intermittent outages cause significant reputational damage and revenue loss;

▪ Manual meter reading, customer billing and collection processes result in high operational costs;

▪ Basic run-to-fail asset strategies result in under-optimised asset utilisation (e.g. asset failures, excess maintenance work and premature asset replacements). McKinsey notes that asset management-related expenses can account for up to 30% of a utility company’s operating expenses; and

▪ Lack of data analytics hinders the planning and monitoring of electricity consumption, and utility companies are unable to encourage consumers to modify their level and pattern of electricity consumption.

❖ DMS Smart Metering Solutions introduces smart grid asset management to:

a) help utility companies and electricity retailers recover lost revenue by monitoring tampering and detecting and preventing electricity theft;

b) minimise service down time and revenue loss, enabling utility companies to locate electrical faults with its accurate network reporting services;

c) significantly reduce operational staff costs, enable real-time meter readings and reduce billing errors by digitising both meter reading and billing processes;

d) enable the management of new types of assets along with the classic asset groups (e.g. circuit breakers, transformers, poles and meters, etc). More complex asset classes include hardware, firmware, software and communications infrastructure (e.g. RF mesh, cellular networks, power line communications, Wi-Fi, etc.);

e) leverage smart grid data to evolve asset management analytics. This provides utilities the ability to create actionable insights, develop asset control algorithms and machine learning principles, assist in the tracking of asset cost, performance and risk, and maximise return on asset investment; and

f) utilise its demand-side management technology to encourage consumers to shift usage from peak to off-peak periods.

❖ Objectives of the fundraising initiative

Our financial forecast, coupled with the current status of over USD 22 million in contracts under negotiation as of 2024, signifies a promising future for our company. That's precisely why we are extending a portion of this opportunity to those willing to be part of this journey in a manner that makes financial and strategic sense for both DMS and the future community we aim to build.

Introduction

In recent years, the emergence of Non-Fungible Tokens (NFTs) has revolutionized various industries, including art, gaming, collectibles, and even fundraising. NFTs are unique digital assets that are stored on a blockchain, which certifies their authenticity and ownership. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and interchangeable, each NFT possesses distinct characteristics, making it one-of-a-kind and irreplaceable.

NFT fundraising offers a decentralized and inclusive approach to raising capital, allowing creators and organizations to engage directly with their audience and supporters on a global scale. By tokenizing assets or creating unique digital collectibles, projects can generate revenue, reward early supporters, and build a community around their mission.

Problem Statement

NFT fundraising leverages the unique properties of NFTs to raise funds for projects, causes, or initiatives in innovative ways. Traditionally, fundraising has relied on methods like crowdfunding platforms, venture capital, or grants. While these methods have been effective, they often come with limitations such as geographical restrictions, high fees, and lack of transparency.

Technology Stack

❖ Blockchain:

Blockchain is a decentralized and distributed digital ledger technology that records transactions across a network of computers in a secure and immutable manner. Each block contains a cryptographic hash of the previous block and timestamped transaction data and is linked to the previous block, forming a chain. This ensures transparency, security and integrity of data without the need for intermediaries.

❖ Smart Contracts:

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They run on blockchain networks and automatically enforce the terms and conditions of a contract when predefined conditions are met. Smart contracts eliminate the need for intermediaries, reduce transaction costs, and increase transparency and efficiency in executing agreements.

❖ NFT standards using ERC-721:

ERC-721 is a widely adopted standard for creating non-fungible tokens (NFTs) on the Ethereum blockchain. ERC-721 tokens have distinct properties, such as ownership, rarity and metadata, making them ideal for representing digital collectibles, artwork, in-game assets and other unique items.

❖ Key features of ERC-721 tokens:

1. Uniqueness: Each ERC-721 token is unique and distinguishable from other tokens, allowing for the representation of one-of-a-kind assets.

2. Ownership: ERC-721 tokens can be owned and transferred between addresses on the blockchain. Ownership is recorded transparently on the blockchain, providing proof of ownership and preventing unauthorized duplication.

3. Indivisibility: ERC-721 tokens are indivisible, meaning that, unlike fungible tokens, they cannot be divided into smaller units. This property is essential for representing whole assets such as artwork or real estate.

4. Metadata: ERC-721 tokens can store additional metadata, such as descriptions, attributes and links to external resources. This metadata provides context and enhances the value of the token.

5. Interoperability: ERC-721 tokens are interoperable with other tokens and smart contracts on the Ethereum blockchain, allowing for seamless integration with decentralized applications (DApps) and token ecosystems.

By leveraging ERC-721 standards, developers can create and manage unique digital assets, enable peer-to-peer trading and ownership and unlock new opportunities for innovation and creativity in various industries.

Fundraising Details

We have developed 2 types of NFTs.

• Profit-sharing-based DMS Gold NFTs: The company is committing to share at least 10% of the company's yearly profit via airdrop amongst its Gold NFT holders. Gold NFT holders will receive 3 airdrops per year based on the NFT mint date. The total amount of Gold NFTs is limited to 5,000 and will not be increased.

• Project-based DMS Silver NFTs: These enable holders to participate in the financing of current and upcoming company projects. Each NFT represents 3 nodes, i.e. smart metering devices. Silver NFT holders will enjoy twice-yearly airdrops based on the mint date of each NFT. Each airdrop comes within the maturity time frame of the corresponding project. The company is committing to share 15-20% of the profit, depending on the project and timeline. The time cycle of the Silver NFTs is limited to one year, starting from the mint date of each NFT. After the yearly maturity and depending on the company’s project financing needs, either party may decide not to extend at least one month before the end of the yearly time cycle of each Silver NFT. In that case, the Silver NFT will be refunded at mint price to its final holder. If no request of cease has been made by any party before the last month of the yearly time cycle, the new cycle will begin.

• Our upcoming campaign consists of 2 major phases.

1. Private Network: During this stage, NFTs will be accessible through our private network. The campaign starts with a 2-month pre-launch phase with a 10% discount on Gold NFTs and a 5% discount on Silver NFTs.

2. Public Network: The NFTs will be accessible on the global market via blockchain platforms within 6 months after the official launch.

❖ Allocation of funds raised is shown in the chart below.

Roadmap

• Milestones and timeline for project development

• Key deliverables

❖ Team

• We have a strong team of industry experts comprising software, hardware, firmware, and system integration engineers, as well as an experienced management team with core competencies in various communication technologies, energy measurement and experience in ICT, smart metering and AMI solutions.

• Our CEO has over 30 years of experience and knowledge in ICT and smart metering technologies, having worked with various teams in technology development and obtained several prestigious accolades such as Products of the Year, Pioneer Status and E50awards.

• In the past 7 years, he has led the team with expertise in AMI technology to design and develop various components required for end-to-end smart metering solutions. Components of an end-to-end AMI solution are comprised of smart meters, RF Mesh modules, Data Concentrators, 4G/3G/2G communication modules, HES (Head End System), Dashboard & Report Generating modules, MDMS (Meter Data Management System), etc.

• The company is committed to making heavy strategic investments by adopting modern methodologies and techniques to design, develop and test high quality and reliable products and solutions that meet and exceed customer expectations globally.

• Conceptual unity and knowledge diversity is the key essence of our organizational culture. Teamwork, sharing and caring are the secrets of our success. We believe in a culture that nurtures wisdom and understands the responsibility and the spirit of the journey that we undertake.

• We transfer manufacturing technology of smart meters to our international business partners, enabling them to employ, manufacture and deploy smart metering products and solutions locally.

Legal Considerations

• DMS is a Singapore-based Private Limited company within the financial regulatory framework. Therefore, if at any time in the future NFTs become a legal obstacle, the company commits to the following:

• A) Full refund for each Gold NFT at mint price if it occurs within 3 years.

• B) 2X refund for each Gold NFT at mint price if it occurs after 3 years.

Appendices

❖ Go-To-Market strategy

DMS integrates business-to-business (“B2B”) smart metering solutions into the infrastructure of utility companies and electricity retailers. DMS is a one-stop smart metering solutions provider. It reaches out to customers via the following distribution channels:

• The respective in-country commercial and business development teams have on-the-ground knowledge and experience understanding potential customers’ requirements. The teams also continuously maintain good relationships with existing customers;

• DMS appoints overseas agents who can secure new business opportunities in new territories. Commission fees (5% of sales collection) are payable to the agents who successfully secure new projects;

• The sales and marketing department based in Singapore is in charge of submitting bids in the event of a request for tender from utility companies;

• Subsequent to the end of a 12-month warranty period, DMS is retained by its customers to provide regular maintenance of the system for up to 15 years, i.e. the estimated useful life of a smart metering system.