The annuity exchange would be part of a blockchain-based pension plan platform aimed at employers.
Auctus managers are now preparing to sell “Ether tokens,” or digital value contracts based on the Ethereum token standard, to raise cash that will be used to set up and run the pension and annuity systems.
The company has posted a document describing its pension program, and information about the token sale, on its website.
A blockchain platform is a set of rules and systems for recording bits of information, such as information about the value of a token, in a way that is visible to all but is believed to be difficult to copy or change.
The Ethereum Project is a web-based group that uses an international network of computers to manage the platform supporting the group’s Ether token. Users of Ether tokens see the tokens as a form of currency. One Ether token, or 1 ETH, has a market value equivalent to about $292 in U.S. dollars, according to Coinhills.com.
Auctus says its annuity distribution system would offer annuities from existing annuity issuers, through tools built into the Auctus employer pension plan system.
“Customers interested in the purchase of an annuity will compare available offers from top-rated insurance companies,” according to an Auctus pension program white paper. “After comparing and choosing the appropriate type, the respective annuity could be purchased in two different ways: as a lump sum or with a series of premiums.”
The Auctus Annuity Marketplace might charge commissions ranging from 1% to 8% of the value of the transaction, depending on the complexity of the annuity, according to Auctus.
Auctus managers predict they will spend about 9% of the revenue from the Ether token sale on partners and advisors, and about 2% on “bounties,” or advertising, marketing and public relations efforts.
Auctus managers acknowledge in the pension program white paper that annuity standards differ from country to country.
Auctus will get around that problem by creating blockchain-based systems for existing annuity issuers, so that the annuity issuers will be responsible for handling the legal requirements, according to the Auctus managers.
The blockchain-based annuity contracts will be transparent, and that should be helpful to regulators, the Auctus managers say.
The Auctus managers identify Felipe Silveira, an operations manager and partner at DTI Digital, in the Belo Horizonte area in Brazil, as the lead developer.
Raphael Vantroost is listed as the head of advisory and partnerships.
Vantroost is owner and founder of Swissline Real Estate, a real estate investment firm in Basel, Switzerland. Before that, he was a managing director at Noor Advisors, an investment firm active in the mergers and acquisitions market, in Geneva and Dubai.
The Auctus team does not appear to have any top-level members identified as holders of law or accounting degrees, or U.S. or international securities, insurance or pension management credentials.
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