Have you ever wondered how many different ICOs there are out there? Almost every day we see the start of a project and it is quite difficult to find a bright idea among such a variety. Today we will talk a project that falls into this category – Eternal Trusts. On October 1 it will finish its ICO. While we still have time to get to know this project better, we will speak with its CEO – Kirill Silvestrov, who will tell us all the details of crypto-protocol based on trust.
Hello, Kirill. Tell us about how Eternal Trusts was created. Why did you decide to implement this idea?
7 years ago, while I was doing my MBA in the INSEAD business school in Singapore, one of the assignments was to show how money works over time. The professor told us to evaluate the power of compound interest. The case study was a very specific investment made 400 years ago – the sale of Manhattan Island by Native Americans for 23 dollars, which is now considered one of the most unlucky trades in the history of mankind. If this small amount of money had been managed in a bank account for 10% per annum, nowadays it would have grown up to five hundred quadrillion dollars. This was the first time I started thinking about how we can use this long-term power of compound interest to benefit people.
Then, some time later, about 4 years ago, I was talking to Swiss lawyers that were specializing in creating the so-called trust funds or simply trusts. Typically, a trust is a special type of legal agreement that provides a trusted third party with the right to hold and spend assets according to a specific goal set by the trust settlor. Trusts can, in theory, exist for unlimited amount of time, and the assets put in those trusts are managed and grown according to low-risk investment strategies. At the same time, the Trustee, or the manager of the trust, can not only protect your money, but also spend it on your long-term goal that you initially proposed, be it supporting your family or a charity of some kind in the long-term.
The problem is, trustees still work on centuries-old principles, that’s why a trust fund is a very expensive legal infrastructure to establish and to manage, which requires a lot of paperwork. I kept looking for a fiduciary product that would look appealing for a mass market today. With the emergence of blockchain and smart contracts technologies, it became obvious that acting on behalf of someone or executing some long-term goals can be algorithmized and made much more secure and transparent. That’s how the idea of creating a smart contracts-based fiduciary solution evolved.
What we’re doing is building the world’s first fiduciary crypto protocol for trustees, fiduciaries, and estate planners. The inherent qualities of blockchain and smart contracts allowed us to design a crypto model of a trust fund which outperforms and outcompetes its traditional predecessor. We make this model available for integration to any financial service providers interested in accepting cryptocurrencies, integrating blockchain into their business processes for better security and flexibility, and offering an innovative model of trusted asset administration to their clients. That’s how we plan to revolutionize the whole industry of wealth management.
What potential benefit do you think it will bring to mankind?
Setting up a trust is a guarantee that your legacy will have a lasting influence. I believe that everyone should have an opportunity to fulfill his or her fiduciary needs. However, since the trust market has not experienced any radical change with the advent of new technology and is still based on centuries-old principles, trusts as traditional legal structures are currently incapable of securely incorporating digital assets such as apps, cryptocurrencies, and tokens. As I stated before, the management fees involved are not affordable for most people, and the range of potential purposes is constrained by the limited expert networks that collaborate with trustees.
The mission of Eternal Trusts is to transform the fiduciary & wealth management market into an open ecosystem of innovative, secure, transparent, and affordable financial services. We offer our crypto protocol to banks, trustees, estate planners, and any other financial service providers that need fast and scalable collective decision making for administering assets and spending them to optimally fulfill a given purpose. The versatility of the protocol will allow those companies to fulfill a variety of fiduciary purposes for their clients: to structure succession or inheritance, to algorithmize financial support of their families for many years to come, to create pension plans, to support charitable goals, and to fulfill custom, extraordinary long-term purposes.
Is your product the first one on the market in this area? How does your idea differ from other similar ones?
So far, there has not been a product for trustees that would allow them to securely administer crypto assets. We are the first full-fledged smart contracts-based solution for the fiduciary industry. We aim to provide a constructor of customizable fiduciary dApps with interfaces for onboarding clients, a framework for recording private and public data of the clients onto the blockchain for indefinite storage, a system of smart contracts that establishes rules of interaction between participants, a “wallet” for accepting, trading, and storing cryptocurrencies; and several other crucial mechanisms that replicate the traditional “purpose trust” framework, making it flexible, transparent, and affordable for the end user. No one has come close to that. Also, we believe that our protocol has the potential to spawn many new business models.
Why did you decide to work with EOS, while most of the projects function on Ethereum?
Although Ethereum has first mover advantage, it is criticized for its lack of scalability and high transaction costs. Because of that, there have been no seriously valuable decentralized apps built on Ethereum, and the ecosystem is dominated by speculative trends.
We’ve done a very thorough research on the Ethereum ecosystem usability to pick the most optimal blockchain for creating decentralized purpose trusts. This research included experiments with NEO blockchain and Trinity token swaps to be integrated instead of Ethereum. At the same time, we did a lot of testing that focused on comparing EOS and NEO. When EOS launched its MainNet and proved to be a fully operational smart contract framework for all our use cases, we’ve done a series of architecture reviews with our partners Techracers and decided to update our architecture and go towards a hybrid blockchain on Hyperledger and EOS. I am confident that our tech team has made a decision that is only going to boost the performance and stability of the Eternal Trusts platform.
Tell us about the creation of ET Token and its potential benefit to the investor
ET Token is an EOS-based service token that will serve as a reward between participants within the fiduciary processes of the ET-based dApps. There are strict rules for token holding specified by the protocol architecture. To acquire and retain their rights within the ET Protocol ecosystem and to create dApps, participants must purchase a predefined amount of tokens.
Currently, those companies who hold a large enough amount of our token will be able to preorder a fiduciary dApp during the token sale, or, after October 1 all other trustees & fiduciaries will be able to purchase it with fiat to have a consulting company install it, to launch the smart contracts and activate the roles of the participants. We have been negotiating with potential corporate users of the protocol, mainly trustees and estate planning consultants, many of whom have purchased the ET tokens and are ready to integrate as soon as the protocol is up and running on the mainnet. As our ecosystem of innovative trustees and fiduciaries will be growing, anyone who bought tokens during the token sale will eventually be able to:
- Structure succession or inheritance of their crypto assets;
- Algorithmize financial support of your family for many years to come;
- Create pension plans;
- Grow your capital through tokenized asset management;
- Fund charitable purposes with your capital;
- Fulfill customized and extraordinary long-term purposes of yours.
As you can see, there are unprecedented benefits of becoming a token holder. So I suggest everyone to hurry up and join our limited token sale that will end on October 1.
What are the faces of Eternal Trusts? Who is on the project team and why were these people chosen?
Eternal Trusts is a cutting edge company spearheaded by experts in blockchain and finance that boast decades of experience in their respective fields. I am an investment banker with an MBA from INSEAD and more than 15 years of experience on C-level positions. Mark Lea, our head of legal, is an ex-adviser to the Government of Singapore on the establishment of trust legislation and the Trustees Act of Singapore, to the Hong Kong government, and to the Malaysian government on the development of the Labuan legislation. Benoit Vulic, our Chief Investment Officer, has more than 10 years of asset management experience in leading global investment companies. Everyone in our team is very experienced and determined to lead the disruptive trend of financial industry decentralization.
Can you share with your future investors your plans for implementing the project after the ICO?
In the coming weeks, we aim to release a demo dApp that will serve as a proof of concept. This is going to be the world’s first dApp that replicates the functionality of the traditional Dynasty Trust Fund for the crypto world. Family offices, trustees, and fiduciaries will be able to fork and customize this dApp in collaboration with our development team to fulfill their fiduciary tasks in a more effective, more secure, and faster way. In the final release, we plan on providing a fully-functional, customizable dApp with a convenient interface for onboarding clients, defining purposes, beneficiaries, trusted parties, and potential “triggers” for transactions. Our dApp is promised to be mobile-friendly, fast, and secure. It will always remain open-source and will serve as a foundation for others to build their apps upon.
After the core functionality of the dApp constructor is ready, we will be finalizing, packaging and distributing the codebase for the clients’ dApps and assisting early adopters in the development process.
How do you think Eternal Trusts will develop in a few years?
In the next 5 years, we aim to fully disrupt the centuries-old industry of fiduciary services by creating a much more autonomous and affordable alternative via the crypto technologies. Our mission is to create a reasonably priced way for everyone to achieve their long-term aspirations and hopes, no matter how complex they are or what kind of new products and services they may involve.
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