SMTY Token Functionality

The native digital cryptographically-secured utility token of Smoothy (SMTY) is a transferable representation of attributed functions specified in the protocol/code of Smoothy, and which is designed to be used solely as an interoperable utility token on the network.

SMTY is a non-refundable functional utility token which will be used as the economic incentives which will be distributed to encourage users to contribute and maintain the ecosystem on Smoothy, thereby creating a win-win system where every participant is fairly compensated for its efforts. SMTY is an integral and indispensable part of Smoothy, because without SMTY, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on Smoothy. Given that additional SMTY will be awarded to a user based only on its actual usage, activity and contribution on Smoothy, users of Smoothy and/or holders of SMTY which did not actively participate will not receive any SMTY incentives.

To develop a self-sustainable, closed-loop economy, all the fees (e.g. trading fees, interest fees, penalty fees) collected by the network would be re-distributed as incentives for active contributors within the ecosystem.

SMTY does not in any way represent any shareholding, participation, right, title, or interest in the Company, the Distributor, their respective affiliates, or any other company, enterprise or undertaking, nor will SMTY entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in Singapore or any relevant jurisdiction. SMTY may only be utilised on Smoothy, and ownership of SMTY carries no rights, express or implied, other than the right to use SMTY as a means to enable usage of and interaction within Smoothy.

For Smoothy to function properly, users would need to be incentivised to play the role of liquidity providers and stake their digital assets into the market-making pools. As compensation for opportunity costs as well as impermanent losses, these liquidity providers which help to promote adoption of Smoothy by staking or including assets to liquidity pools in exchange for LP tokens would be rewarded with SMTY tokens (i.e. liquidity "mining" on Smoothy), according to each user's relative contribution.

It is anticipated that the community of SMTY holders would comprise a diverse field of developers, professionals and supporters of the project to develop Smoothy (including without limitation experts in software development, blockchain technology, cryptography, artificial intelligence, law or finance), which will be able to share and exchange balanced views on the overall direction of the project. In order to promote community governance for the network, SMTY would allow holders to propose and vote on governance proposals to determine features and/or parameters of Smoothy as well as protocol improvements, with voting weight calculated in proportion to their token holdings. For example, some critical parameters subject to voting include:

• Adding new stablecoin and its "ytoken"

• Adjusting soft and hard weights of a stablecoin

• Adjusting the protocol fee structure of Smoothy

For the avoidance of doubt, the right to vote is restricted solely to voting on features of Smoothy and/or changes to the governance process; the right to vote does not entitle SMTY holders to vote on the operation and management of the Company, its affiliates, or their assets, and does not constitute any equity interest in any of these entities. Smoothy is not intended to be any form of joint venture or partnership.

The emission schedule of SMTY is TBD.

In particular, it is highlighted that SMTY: (a) does not have any tangible or physical manifestation, and does not have any intrinsic value (nor does any person make any representation or give any commitment as to its value); (b) is non-refundable and cannot be exchanged for cash (or its equivalent value in any other digital asset) or any payment obligation by the Company, the Distributor or any of their respective affiliates; (c) does not represent or confer on the token holder any right of any form with respect to the Company, the Distributor (or any of their respective affiliates), or its revenues or assets, including without limitation any right to receive future dividends, revenue, shares, ownership right or stake, share or security, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property or licence rights), right to receive accounts, financial statements or other financial data, the right to requisition or participate in shareholder meetings, the right to nominate a director, or other financial or legal rights or equivalent rights, or intellectual property rights or any other form of participation in or relating to Smoothy, the Company, the Distributor and/or their service providers; (d) is not intended to represent any rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; (e) is not intended to be a representation of money (including electronic money), security, commodity, bond, debt instrument, unit in a collective investment scheme or any other kind of financial instrument or investment; (f) is not a loan to the Company, the Distributor or any of their respective affiliates, is not intended to represent a debt owed by the Company, the Distributor or any of their respective affiliates, and there is no expectation of profit; and (g) does not provide the token holder with any ownership or other interest in the Company, the Distributor or any of their respective affiliates.

Notwithstanding the SMTY distribution, users have no economic or legal right over or beneficial interest in the assets of the Company, the Distributor, or any of their affiliates after the token distribution.