Trucpal, adopting STO to empower the new digital logistics economy and realize the network flywheel effect
Trucpal is an underlying platform that introduces security-based tokens into the platform economy to serve the Chinese freight industry. The Trucpal team has 9 years of experience in R&D and operations in the freight industry, as well as many years of blockchain research. The Trucpal Token is based on real freight transactions, backed by a Chinese operating company, and issued in compliance with US securities laws.
Digitalization: Reforming the Road Freight Industry
In 2018, China’s first survey report on truck drivers, “China Truck Driver Survey Report №1”, showed that the number of truck drivers in China is as high as 30 million, and 76% of the total freight in China is completed by trucking. In other words, Over 30 million truck drivers carry 76% of China’s total freight volume. However, due to factors such as identity constraints, individual drivers are hard to provide value added tax invoices to proof the transportation works they had finished. Which cause troubles on tax deduction for companies that doing business with them.
Trucpal is an underlying platform for the road freight industry, including freight solutions for individual drivers. Which uses the blockchain, big data, cloud computing and other advanced technological means to build a platform to integrate and allocate transportation resources, so that network fleets can join it, sign transportation contracts with shippers as carriers, assume carrier responsibilities, and entrust the actual carriers (truck drivers) to complete the road cargo transport services, while completing the legal ticketing.
Embracing the Ownership Economy: Sharing the Benefits of the Network with Users
The blockchain tokenomic allows users to stay financially aligned with the projects they back and share the benefits of the network. This new economic model is called the “ownership economy”.
The Trucpal Token is based on the revenue of the new capacity ecosystem built by HGC, and the service fees collected for each transaction on the Trucpal ecosystem will be distributed to the Trucpal Token holders in a percentage. team and partners; 20% to shareholders of HGC Cayman Islands companies; 20% or 200 million tokens to (qualified) investors as STO.
STO: The Compliance Securities Token Offering
Compared to the high barriers to raising capital in traditional financial markets, STOs lower the barrier to entry for investors and give more capital the opportunity to participate. This means that companies like the Trucpal team that are disruptively innovating can raise capital quickly without paying high fees, greatly increasing the flexibility of their projects.
The Trucpal Token offering is based on the Reg D and Reg S exemptions from the U.S. Federal Securities Act of 1933, which meets the current U.S. SEC requirements for digital currency regulation. At the same time, to conduct STO in the U.S., the issuer needs to be audited by an accounting firm, to reform the company’s governance structure, and then submit materials to the U.S. Securities Supervisory Commission (SEC). only capital that has met the qualified investor determination and passed anti-money laundering/prevention of capital terrorism regulations will have the right to invest in STO. so STO is not only financing, but also advance compliance preparation. Not only will it not affect the company’s future overseas listing plan, but it is also an early docking of overseas capital, which will give the company more confidence of success if it needs an IPO in the future.
Bi-nominal Hybrid Token: Realizing the Flywheel Effect of Network Development
The Trucpal team proposes a “Bi-nominal Hybrid Token” design that enables Trucpal Token to be widely used in the trucking ecosystem for different transaction scenarios in a regulatory compliant manner, in order to motivate users, activate and maintain user stickiness, and further encourage the development of the ecosystem.
First, Trucpal is based on the ERC1404 standard, which is the SEC-approved standard for security token. Second, 500 million tokens will be locked to DeFi with an exchange rate of 1 Trucpal Token equals 1 DeTrucpal Token, generating DeTrucpal Tokens according to the ERC20 standard. Third, 1 DeTrucpal Token equals N Trucpoint with a variable exchange rate. users on the Trucpal App Users on the Trucpal App can earn Trucpoint rewards by referring or contributing GMV. Similar to Bitcoin mining, as the GMV on Trucpal App increases, the difficulty of mining will rise, after which users who redeem 1 DeTrucpal will have to pay more Trucpoints. subsequently, more services and fees will be paid to Trucpal’s development company — HGC, and 75% of HGC’s revenue from the Trucpal Smartbook will be This will ultimately create a flywheel effect and promote a thriving community.
After 40 years of rapid economic development and industrial internet innovation, China has become the world’s most promising digital transportation market. trucpal has established a first-mover advantage in the industry through business model innovation, construction of open systems and compliant operations. In thinking about how to participate in building the digital logistics industry of the future, the Trucpal team saw the huge opportunities and changes brought by blockchain technology and the pass-through economy, and revolutionized the perfect integration of compliance securities token issuance with its own business. The attempts and explorations made by the Trucpal team will surely bring a colorful touch to the development of blockchain and the logistics industry.
