STP Network is an open-source standard that is used to issue tokenized assets for the projects. The tokens based on the STP standard employ the protocol of on-chain compliance validator for verifying compliance with required regulations. The company behind the project is a Singapore-based company. The release was announced on May 29, 2019. STP Network is presented globally and has users in the US, Korea, Russia, China, and Southeast Asia.
The platform serves the projects that want to tokenize their assets, highlights compliance and ensures region-specific regulations such as AML (anti-money laundering) and KYC (Know Your Client) requirements.
The main idea of the project is to combine the benefits of IPO, ICO, and blockchain smart contracts. The founders of the STP protocol understand that it’s hard for many companies to enter an IPO as it takes much academic and financial research for a company to conduct an initial public offering. It can take years for the company to go public. Besides, this is a very expensive procedure.
But even the companies that can cope with these problems find it hard. The IPO process turned out to be rather disruptive for business operations as the employees are more focused on investor presentations during the procedure. This is done at the expense of real business development. Taking into account numerous shortcomings of IPOs, ICOs become a perfect solution for the enterprises, which need to raise funds without being distracted. However, there are many unclear points about legal issues. When the problems are eliminated, legal protection disappears as well, therefore, Know-Your-Customer (KYC), investor accreditation, and Anti-Money Laundering (AML) policy were introduced.
There is a high risk of noncompliance issues with securities regulations. STP token offerings provide the way of execution token offerings in a compliant and transparent manner. The solution combines features of IPOs and ICOs along with smart contract programmability. This is beneficial as this is a less expensive and more cost-effective method – it helps to raise funds faster. It is asserted that the STP protocol handles all regulations that are important for security tokens.
STP Network technology
The on-chain Compliance Validator checks jurisdictional and issue compliance. Its task is to provide compliance to the laws of jurisdictions and to comply with parameters and limitations imposed by the issuer. The issuer can ask to implement some specific requirements such as ‘one vote per token’ or limitation on the number of tokens in ownership (no more than 49%, for instance).
This can be done even if 100% of the token supply is in circulation. The on-chain Compliance Validator can handle such tasks with ease. Gas is pooled to be paid to stakers and members of the regulatory committee. The company enables the automatic distribution of programed dividends and other new assets. It’s also worth mentioning that the platform uses a new Proof of Business concept pioneered by Block72.
STP was the first token to be tokenized with the help of Standard Tokenization Protocol Standard to deliver the first example. This is an incentive structure aligning its participants and strengthening the network. The Standard Tokenization Protocol is used by members who fractionalize legal ownership of their assets. Created on the STP standard, the assets conform to the regulatory framework. In this way, issuers don’t have to bear the burden of compliance as this problem is solved already. STP token is used as gas for smart contracts to incentivize validators to prove that the transaction meets the requirements.
Assets tokenized via STP are compliant with global jurisdictions and can be transferred across any blockchain platform. It’s possible to use STP for creation, structuring and execution of tokenization for their offerings, getting liquidity, rapid and effective performance along with compliance assurances.
STP Network’s ICO and other details
During the ICO in May 2019, the company raised 7 million USD selling its STP tokens in two rounds. 5 million USD was raised in the first round of ICO and 2 million USD in the second one. The list of investors includes BlockVC and Neo Global Capital.
STP was listed on Coinone, Korean digital currency exchange on December 16, 2019, where the token is traded against the South Korean Won now, making the positions of the crypto coin more solid in the market of South Korea. Also, the cryptocurrency is traded on Bittrex International, Upbit, and BitMax exchanges.
It’s possible to earn by staking STPT with monthly staking interest up to 30%. 1000 STPT in the stake is the minimum amount required for that and 1200 STPT if staked on Coinone. The staking period lasts for 30 days with an automatic rollover into the next period. The yield depends upon the duration of the staking period.
Allocation of tokens: 25% + 5% of tokens is for private sale, round 1 and 2 correspondingly; 3.75% - unlocked on listing IEO, 25% goes to validation rewards; 15% is allocated for the development of STP ecosystem and 15% - to Block72 company; 7.50% - is provided to the Community; 3.75% - to STP team. The tokens are gradually unlocked.
STP team and partners
STP network was founded by Mike Cheo (CEO), who is also a founder of a cryptocurrency GBIC and takes the position of CEO in Block72, a global blockchain consulting company. The other co-founders of the platform are Sinhae Lee with experience in such companies as Coin inc and NerdWallet and Richard Lee who worked for the Infinity Group and was a partner of Blackmar Capital and GBIC.
The STP ecosystem includes diverse industry partners such as crypto exchanges, investment funds, token projects, etc. The partners of the ecosystem participating in Micro Token Offering events can win unlocked tokens of projects from the STP ecosystem. They also get additional resources and discounts. The members of the ecosystem can take advantage of their membership sharing resources and collaborating with each other.