Governance proposal continuity Flits project:

Overview

With regards to transparency, we feel it is important to show the investors of Flits the way in which governance funds are being used – to actively contribute to the growth of the Flits ecosystem. Therefore we have chosen to provide transparency to Flits investors and holders, by presenting a clear overview of expenses that have been and will be (partially) covered by the monthly governance.

Subjects:

Team

With the project growing, the Flits team is also expanding rapidly with freelancers, partners and interns (at the office). To attract bright (young) minds and expand the Flits team, this requires an financial contribution to finance these efforts.

Within the team there are 4 (four) disciplines;

• Communication and Marketing;
• Management and strategic decision making;
• Community and customer relationships (including support);
• Technical expertise and development; App and Blockchain;
• Additional Staff (freelancers, translators etc.);
  

*This calculation is based on 38 working hours per week, 1 (one) FTE = 38 Hours per week.

Marketing

With the products performance and Flits ecosystem growing, marketing is becoming more and more important for the success of Flits. Now the app is turning from a MVP/ MMP (Minimal Valuable Product/ Minimal Marketable Product) to a more complete and established ecosystem. Flits should therefore place more emphasis on marketing and communication.

Within this process Flits has defined 6 (six) categories that are covered in this development: 

• Third party sponsorship;
• Project partnerships;
• Additional FTE (s);
• Design & Branding (Including; freelancer);
• Loyalty program (referral program);
• Promotional activities (including banners, visuals etc.);

Legal

With regulations shaping the framework for crypto related companies in The Netherlands and Europe, we are investing in research and advice from a leading law firm specializing in Finance, Blockchain and Crypto. As legal is becoming more important (with new regulations and supervision from governmental organisations), we believe that legal will be leading the way, for the further development of the Flits project and Ecosystem. 

• Within the topic of legal we are focussing on 6 (six) main pillars that will be included in this subject;
• Investigating and advising on the topic of Emerging Regulations in the Netherlands and the European Union regarding crypto companies;
• Advice and support with third party contracts and partnerships;
• Advice with regards to the integration of new features in the app; feasibility, legality and degree of future resistance;
• Advice on administering and the structuring of internal processes related to the organisational framework and blockchain development for contact with Banks and Governments;
• Active risk management and risk analyses through the expansions of the Flits projects;
• Advising and building a legal framework regarding the Flits coin and its performance as an in-ecosystem-crypto-asset;

*This cost overview is an estimate, with the final costs potentially differing greatly. This overview is based on repeated contact with the law firm. However, there are too many external factors, not limited to; regulations, political climate, price fluctuation etc, to define a fixed budget. As is common with law firms Flits will agree on paying an hourly fee ranging between €197.50 and €296.50 ex. VAT (21% defined by Dutch law). 

Infrastructure

To provide optimized performance of the Flits ecosystem and products within the projects control, investing in AAA+ infrastructure for the project has high priority. This way Flits is able to create stability, providing partners and users with the best possible security and experience.

Infrastructure exists of 3 (three) different categories:

• Development Tools;
• Server structure;
• Additional software;

*These costs increase with new users joining the Flits app and ongoing development being performed. VAT is excluded on all prices in this chart. 

** Estimated costs at the end of the governance proposal include custom tools, development hours, improved security measures and new features.

Finance & Organisation

Being a registered company in the Netherlands means we have to commit to certain additional legislation costs relating to running a business. This includes mostly taxes and the accountant costs. 

Finance & organisation can be divided in 7 (seven) cost structures

• Project management tools;
• Accountant (Tax. Administration);
• Office;
• Additional software;
• Banking costs;
• Partnerships & Third party integrations;
• Company savings

*These costs increase with expansion of the Flits company. All displayed prices are ex. VAT.

**Being a company active in the market of Crypto related products and services, we require sufficient company funds to tackle price volatility of the market and to create a future proof concept. We try to tackle as much risks by working closely with leading partners and organisations to build a safe and future proof concept.

***We aim to keep innovating, improving and developing by increasing functionality of the Flits Ecosystem. To make this possible we reserve a budget to invest in these partnerships and integrations.