JNTR/STOCK
Table of contents
JNTR/STOCK assets represent preferred stock in Jointer. JNTR/STOCK changes value based on Jointer’s valuation as a company. Jointer has multiple profit sources which are publicly visible and verifiable on the blockchain.
JNTR/STOCK Value
JNTR/STOCK has a base face value starting at $10. The growth of the asset’s value will be dependent by two valuations: inside price and outside price. The inside price will be based on Jointer’s NAV (Net Asset Value) and the outside will be dependent on the public’s confidence in Jointer’s performance.
JNTR/STOCK’s initial valuation is $107M, which is Jointer’s verified seed investment valuation.
Inside price vs outside price
Jointer will respect the JNTR/STOCK outside price as long as it is equal to or more than the inside price, which then acts as a floor. Rather than being calculated on NAV like the inside price, the outside price derives from the price investors are buying / selling JNTR/STOCK on Secondary Exchanges.
Example
- Bob want to swap JNTR/STOCK for JNTR
- The JNTR/STOCK secondary market price is $85, therefore JNTR/STOCK’s outside price is $85
- The inside price is calculated at $100 through the verifiable company NAV
- The SmartSwap swaps JNTR/STOCK at the inside price, meaning Bob receives $100 JNTR and not $85
Jointer’s Income Sources
Jointer, as a company, has a number of income sources that allow it to increase in value: a management fee, carry on the JNTR/ETN, commercial property investment appreciation, and JNTR asset purchasing. Jointer’s ongoing income helps to boost the company’s NAV.
Management fee
Jointer utilizes 100% of the daily contributions through Commercial Real Estate investments (90%) and the Liquidity Reserves (10%) and mints a management fee to cover daily operational costs of the company. Jointer receives the 2% minted on top of the daily Auction and Network Staking supply in JNTR as the management fee. Since the management fee is issued on top of the daily minted supply, the fee does not reduce the supply value distributed to auction investors. The management fee is fixed at 2% and cannot be changed.
Example
If Auction day X mints 10,000,000 JNTR for auction and staking investors, Jointer’s 2% management fee would make the cumulative daily supply 10,204,081 JNTR. Auction investors and stalking investors will split 10,000,000 JNTR Jointer will receive 204,081 JNTR, increasing the company’s NAV
Carry
Jointer earns a carry by subtracting 10% from Investor’s JNTR/ETN index returns.
Example
If the index JNTR/ETN performs at 10% a year Investors total return after the 2x leverage Jointer provides equals 20% Jointer’s carry is 10% and subtracted from the 20% Therefore, the net profit for investors is 18% and Jointer receives 2%
JNTR Purchasing
Jointer uses 10% of the Auction contributions to purchase JNTR assets from the Liquidity Reserve.
JNTR Selling
Jointer receives income from selling JNTR using other channels besides the auction.
JNTR/STOCK Minting
JNTR/STOCK has a dynamic and decentralized minting model to ensure investors receive fair valuations that add value to their holdings.
Pre-Issuance
Jointer’s JNTR/STOCK pre-mint will equal Jointer’s valuation of $107M, a verified valuation.
Ongoing Minting
Ongoing minting occurs when investors purchase JNTR/STOCK using JNTR or JNTR/ETN.
Example
- Bob uses SmartSwap to send an order of $100 JNTR to purchase $100 of JNTR/STOCK
- Jointer mints JNTR/STOCK at the face value of $100 and the SmartSwap sends the JNTR/STOCK to Bob
Example 2
- Bob uses SmartSwap to send an order of $100 JNTR/ETN to purchase $100 of JNTR/STOCK
- Jointer mints JNTR/STOCK at the face value of $100 and burns the $100 of JNTR/ETN
JNTR/STOCK Burning
JNTR/STOCK is burned when Jointer buys JNTR/STOCK directly from investors.
Example
- Bob uses SmartSwap to send an order of $100 JNTR/STOCK to purchase $100 worth of JNTR
- Jointer burns JNTR/STOCK at the face value of $100 and the SmartSwap sends the JNTR to Bob
Purchasing JNTR/STOCK
Secondary Market Exchange
Jointer is in the process of finding suitable regulated exchanges to host JNTR/STOCK. Jointer will be completely transparent and provide all relevant information on Jointer’s NAV and performance to help the public set a fair outside JNTR/STOCK market value on exchanges.
Investors that buy JNTR/STOCK are required to go through KYC / AML as well as full accreditation checks based on the regulation in the user’s governing nation.
Arbitration opportunity
If investors use a secondary market exchange to purchase JNTR/STOCK below the recognized inside price, Jointer will still value the JNTR/STOCK at the inside price’s fixed floor value. Therefore, investors will have the opportunity for arbitrage between secondary market exchanges and the inside price that Jointer respects as face value.
SmartSwap
Jointer will allow users to swap their JNTR/STOCK through SmartSwap which is powered by Element Zero. Element Zero SmartSwap provides investors a decentralized trading option with a P2P and P2C trading technology built on Ethereum. The trustless SmartSwap provides a way to swap digital assets without using a hot wallet while guaranteeing an exact face value match. SmartSwap’s asset-to-asset swaps are precise, low risk, and 100% fee-free.1
JNTR/STOCK enjoys permanent permission to transfer to the SmartSwap contract. So, an investor can always swap JNTR/STOCK through SmartSwap.
In addition, investors are able to trade JNTR/STOCK using other P2P and P2C exchanges, such as Atomic Swaps. Such trades are limited between whitelisted wallet holders that have been cleared by Jointer for KYC and AML regulatory requirements and are subject to other regulations on a country-by-country basis. The transaction will fail if the receiving wallet is not whitelisted.
P2P Swap
SmartSwap P2P allows users to generate a transaction ID that can be sent directly to a specific person to swap with. Once the transaction ID is created and the users send their digital assets to that transaction ID, the swap will be available only to the counterparty that knows the transaction ID address. After the swap takes place, the SmartSwap will swap for the same face value and if there is any delta, it will be returned to the appropriate party.
Example
- Bob wants to swap $1,000 JNTR/STOCK with $1,000 ETH
- Bob sends his order to the SmartSwap and generates the transaction ID for the P2P swap
- Bob shares that transaction ID with his friend Lisa Since Lisa only sent $500 ETH against Bob’s JNTR/STOCK, the SmartSwap will execute the order of $500 JNTR/STOCK against $500 ETH
- The SmartSwap will detect the $500 JNTR/STOCK value discrepancy between the JNTR/STOCK and ETH and the delta will be returned back to Bob’s wallet
P2C Swap
SmartSwap P2C allows users to swap digital assets without knowing the identity of the counterparty. If SmartSwap cannot find one counterparty to fulfill a transaction it will search for as many counterparties2 as needed to cover the face value and complete the transaction.3 A partial swap is completed first while the rest of the funds remain pending until additional swaps are executed. Users with pending swaps are allowed to cancel the outstanding portion of the swap and receive a refund covering the outstanding amount to the wallet of origin.
Example
- Bob wants to swap $1,000 JNTR/STOCK with $1,000 ETH
- Bob sends his order to SmartSwap and SmartSwap immediately identifies a counterparty that wants to swap $500 ETH against JNTR/STOCK
- In this case, Bob will get the first $500 ETH and the rest of the $500 JNTR/STOCK will remain pending until the SmartSwap identifies more counterparties that want to swap ETH with JNTR/STOCK
Selling JNTR/STOCK
Secondary Market Exchange
Jointer is in the process of finding suitable regulated exchanges and National Stock Markets to host JNTR/STOCK. Jointer will be wholly transparent and provide all relevant information on Jointer assets and performance to help the public set a fair JNTR/STOCK market value on exchanges.
Regulation
From a regulatory perspective, JNTR/STOCK is Preferred Stock, as such KYC and AML and potential accreditation checks will be performed on all asset holders. Approved investors wallets will be placed on the whitelist, which will be periodically checked through partner API’s to ensure regulations are being met. Once asset holders are whitelisted, they can buy and sell JNTR/STOCK.
Yearly Buyback
As long as Jointer is a private company (complying with Regulation D), shareholder limitations and caps will apply. Therefore, the company may implement a yearly buyback program to clear the CAP table for JNTR/STOCK shareholders, if necessary for compliance. Every year before December 31, a buyback may be initiated to comply with Jointer investors (limit set at 2,000 investors per U.S. Regulations).
At the end of the year, Jointer will initiate a swap event of all JNTR/STOCK assets in exchange for JNTR. At this time, investors have the right to redeem the JNTR assets for other types of value through the reserve (such as digital currencies or stablecoin) that can be sold on a secondary exchange. During the beginning of January, after a short holding period (around 72 hours), Jointer may hold another event where users can swap JNTR back into JNTR/STOCK based on the current JNTR market value at that time.
Jointer keeps the right to initiate the swap on a select number of JNTR/STOCK holders. In such a case, Jointer will allow the 2,000 largest JNTR/STOCK holders to maintain their position if they so choose.
Target Investors
Jointer designed JNTR/STOCK for sophisticated investors seeking an upside in Jointer as a company.
JNTR/STOCK Quick Facts
- JNTR/STOCK are assets that represent preferred stock in Jointer
- Gains value based on the secondary market or the value of Jointer’s assets, whichever is higher
- Recognizing the importance of liquidity for investors led Jointer to develop Jointer’s Liquid Economy. The goal of the Liquid Economy is to provide trust and liquidity options to all of Jointer’s investors. To accomplish the goal, Jointer’s Liquid Economy is composed of the Liquidity Reserves’ Protocol and leverages the Law of Scarcity.