Tokenomics D (Budget Allocation)

Use of Proceeds

Overall, 18% of the total $YPA supply will be used for raise as can be seen above. The total raise will be $3,500,000. Here is the breakdown of what this raise will be used for.

Payroll

Management Fee - Executive Leadership & Strategy, Business Development, Ad Stack Procurement and maintenance, Access to premium partners, Delivery of data stack, Talent & Influencers.

Marketing

A/P- Vendors - Third Party Vendors, PR, Marketing, Brand Activations, Consultancy, Hiring Agency

YappaFi Dev + Ops - Monthly Tech Burn will gradually increase as we expand operations and the development team partnership.

Accounts Payable

Licence Fee - Worldwide License, Tech Delivery & Support, Logo, Name and Likeness, Patent Use and Protection, Custom Tech Build, Dedicated Server Stack, Sentiment Analysis Suite, Product utilization, YappaFi Conversations, Bubbles, Ecom Tool, Admin Portal, Reporting & Documentation.

Taxes

Corporate - Fundraising efforts, Government Compliance, Legal Services

Misc & Expenses

Below is a list of projected Revenue streams and expected ratios in correlation to overall revenues:

Not including Revenue generated from : Whitelabeling of YappaFi, NFT Royalties, NFT minting Fees, Node Yields, Node Management Fees & AI Training

In regards to node revenue, we have calculated projected earnings from node yields based on current market prices of the digital assets being staked, in this case (31/08/22) $1600 Ethereum (38) & $0.83 MATIC (39). Each vendor will be charged 40 ETH, which will give them full access to the data stack and will cover node management fees alongside giving rights to topic choices.

6 Vendors $384,000 : 4.3% yield = $13,209.60

12 Vendors $768,000 : 4.3% yield = $26,419.20

24 Vendors $1,536,000 : 4.3% yield = $52,838.40

50 Vendors $3,200, 000 : 4.3% yield = $110,080

100 Vendors $6,400,000 : 4.3% yield = $220,160

Equating for 100 vendors generates $220,160 which will be shared with vendors and additionally used for token buybacks and / or eco-system rewards for the users.

In regards to Polygon nodes, we will be issuing users’ first payout of $YPA tokens, once they have accumulated a $5 value. During that accumulation period the first $1 generated will be used to create a Polygon Node for the user. The second $1 generated will be used for maintenance fees. This will allow us to later store the user’s individual data and data stack access within the Polygon network, preferably using Polygon ID.

The scenario below indicates the users followed by their monetary value, and the yield generated, in line with projected user growth.

3000 users = $3000 + 12% yield = $360

9500 users = $9500 + 12% yield = $1140

22,000 users = $22,000 + 12% yield = $2640

60,000 users = $60,000 + 12% yield = $7,200

100,000 users = $100,000 + 12% yield = $12,000

500,000 users = $500,000 + 12% yield = $60,000

As the price of $ETH & $MATIC tokens increase, it will require us to have more users and vendors to create one node, working in favor of earlier adopters. For example, if $MATIC nodes go to the valuation of $10, it would require 10 individual users. At this point we would allow users to opt in whether they would like to become a node or not. This same principle would apply to Ethereum and vendors. Thus encouraging early adopters, for both users and vendors.