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What is Papyrus?
Papyrus is a blockchain-based ecosystem for the $230 billion digital advertising market that has been designed to solve its long standing transparency issues and create an open, trustworthy, and mutually beneficial environment for advertisers, publishers and end users. Among the most disturbing issues in the digital ad market are massive fraudulent traffic, brand safety violations, and the growth of ad blocking software. All this has ultimately created a lack of trust between participants.
The Papyrus team has innovated an open architecture that balances the interests of all parties using a token economy
End users will finally get control over their data and their engagement with ads. They will be able to manage settings for what data they share with advertisers and which ads they are ready to see. Advertisers will be able to incentivize end users with compensation for sharing data that can be used for precise ad targeting and for their attention given to ads. This model creates new real time possibilities for optimization in terms of engagement between advertisers and end users. With the Papyrus dashboard, users will no longer be bombarded with irrelevant and irritating ads, and advertisers will have to create new, more customized and user-centric journeys to attract users and make them feel valued. This is marketing as it was once imagined, but has not yet been translated to the digital environment. Papyrus will reverse this in today’s dysfunctional digital ad market.
Publishers will get more revenue if they are good actors. With a history of their market participation, audience quality, and advertising demand visible to other participants, they will be motivated to continuously improve. This history will be unalterable and permanently stored securely and accessible by other participants through a decentralized consensus within the blockchain. Every party in the market will be able to evaluate a given publisher’s aggregated data before deciding on advertising deals and bids. Additionally, the margin cuts on middlemen (ad agencies, trading desks, affiliate networks, ad platforms and networks, etc.) between advertisers and publishers will be reduced due to the openness and transparency of the ecosystem. Papyrus plans to incentivize the developer community and to encourage the integration of the existing ad platforms through automatic token reward mechanisms for the components that run and are demanded by advertisers and publishers within the ecosystem. This way, the margin cuts on intermediary services will eventually move towards zero and publishers and end users will be able to receive nearly the full amount of ad payments while service providers and developers will prosper as a result of the growing value of the Papyrus token. Finally, within the Papyrus ecosystem, publishers will be better protected from malvertisements and inappropriate ads as ad verification vendors will be integrated into the Papyrus ecosystem as SaaS providers that work to clean up the supply chain in exchange for token rewards.
Advertisers will remain “anchor tenants” of the ad cycle and have restored authority to establish trust within the supply chains they work with. Within Papyrus, every advertising event (ad impression, click, page view, etc.) will be transparent for stakeholders and open for validation and any third party auditor will be able to do this. Advertisers will be protected by built-in chargeback mechanisms in Papyrus executed for traffic considered to be fraudulent by the consensus of verifiers. Transparency and conditional payments, along with fewer costs for intermediaries, will allow advertisers to run campaigns and receive much greater value for the same amount of money. They will have greater revenue security to make choices about their ad budgets and more flexibility in creating great ad content.
To learn more about Papyrus, visit the token sale page, read the whitepaper, or use the live Telegram chat to ask the team any questions.
—Igor Alferov, Founder
ICO Alert: How does the Papyrus token (PPR) function within the platform and why is it needed?
Papyrus: The Papyrus token (PPR) is a fixed supply token that will be sold during several TGE rounds. The token has several applications within the Papyrus ecosystem. The first and most obvious use is for making all the payments in the ad buying chain — advertisers will initially pay for their ad campaigns, then service fees will be paid to various participants, such as tech platforms and service providers, then compensation will be paid to publishers and end users — all payments being made in PPR in real-time using Papyrus state channels and smart contracts controlling the value distribution. Another PPR token application is for depositing Proof-of-Stake bonds that will be mandatory for all ad market players who want to use the ecosystem. This is necessary to support the mechanisms ensuring fair play and protecting the ecosystem against fraud. Finally, the token holders will be directly involved in the ecosystem governance — this includes dispute resolution voting and voting for the upgrades and changes in the ecosystem itself.
ICO Alert: For those who are unfamiliar, just how large is advertising’s role in the current internet economy? What are some of the current inefficiencies within the system and how will Papyrus look to solve them?
Papyrus: Digital advertising is huge and growing rapidly. In 2017, worldwide digital ad revenue is estimated to exceed $230 billion. Furthermore, industry experts expect this to increase by more than 45% over the next 4 years. The role advertising plays in the modern internet economy cannot be overstated. It is a major source of funding for digital content and services, making them widely available at little or no cost to users, and it is a key driver for digital evolution in general. It has to be said, however, that the subscription-based alternative to the digital ad economy has been gaining traction recently. The striking inefficiency of the existing advertising stack is one of the main factors behind this growth. Obviously publishers who are now facing declining revenues have to consider alternative monetization approaches(or delivering costly improvements to the ad chain on their side. The figures vary, but the average publisher may often get less than 40% of the advertiser’s budget — with all the remaining budget being ‘eaten’ by various intermediaries who taking service fees completely out of proportion to the value they add. Papyrus plans to aggressively address this problem:
With blockchain technology, Papyrus will create absolute transparency in advertiser budget distribution — all payments will be verifiable on the blockchain. Ad market parties (infrastructure players) will be required to commit their fee limits upfront upon registration in the ecosystem and will be forced to stick to their commitments or penalties in the event there are any violations. Violations will be visible in the operations trace left in the trusted blockchain-backed log storage. This is a strong incentive to play fair.
Papyrus will lower entry barriers for new players by supporting registry-based discovery of parties, a sort of ‘who’s who’ of the ecosystem, and by encouraging competition on the KPI level by tracking multi-dimensional reputation for each participant based on their transactions.
ICO Alert: Is fraud a big issue within the advertising industry? How is Papyrus seeking to limit or eradicate piracy cases on the platform?
Papyrus: The issue of massive fraud is probably the single greatest concern for the digital advertising market and the biggest threat to the advertising industry as a whole. One of the most commonly observed types of fraud is non-human / fraud traffic. Estimates vary as it is challenging to identify all the fraud and to actually measure it, but some reports find the volume of non-human traffic approaching 50%! This is obviously frustrating for advertisers as they don’t get the value they pay for. Their responses to this issue vary from employing third party anti-fraud analytics (often extremely costly to integrate) to merely cutting their digital ad budgets.
Papyrus plans to addressing the problem by plugging anti-fraud vendors (‘Auditors’) directly into the core of the ad bidding and payment protocol at various stages — audits can take place prior to the actual bidding, after the impression occurs, and even after user actions result in a conversion. Based on the audit results, the bid may not occur, or the payment may be cancelled and the evidence of fraudulent activity affecting the involved parties’ reputation. As a result, participants will be economically discouraged from generating fraud traffic.
Fraudulent traffic is not the only problem that Papyrus addresses with this approach — we plan to connect ad verification, viewability, and brand safety vendors (different auditor types) as service providers as well.
ICO Alert: How is Papyrus seeking to draw advertisers and publishers to the platform? What specific benefits do they receive over choosing more traditional advertising market alternatives.
Papyrus: During the prototyping and the initial launch Papyrus will be working with advertisers and publishers on an individual basis, helping them understand the benefits and providing tech engineering assistance to actually integrate into the ecosystem. A smart-contract driven motivation scheme will be launched for early adopters so they will receive bonuses based on ad volumes running through Papyrus. It is worth noting that the integration will also happen at the level of entire ad tech platforms for both buyer and supplier sides — this will result in multiple advertisers and publishers starting who will immediately benefit from using the ecosystem with a minimum integrating effort. Basically they just have to sign up. When the Papyrus solution gains traction and volume — other ad market players will be naturally attracted to join as the benefits will become obvious to everyone. For advertisers these benefits include:
— Greatly increased efficiency of advertising campaigns
— Ad budget spending transparency
— Reduction of costs on intermediaries and service quality improvement
— Maximum fraud protection, brand safety, and viewability control
Publishers may expect:
— Higher revenues due to decreased ‘intermediaries tax’
— Instant payments in tokens resulting in improved cash flow.
— Ability to prove the quality of their inventory to advertisers through the earned reputation, and thus the ability to get better bids
— Ability to engage adblock users who are registered in the Papyrus ecosystem
— Support for complex monetization models whereby users can pay for premium content and services using their ad exposure compensation.
ICO Alert: What are some of the advantages individual users can expect to find when using Papyrus?
Papyrus: In the today’s advertising world, the interests of the end user are neglected — users and their data are treated as a resource, valuable but nothing more. It is generally not even considered theft to take and aggregate user data for marketing and targeting purposes. Papyrus aims to change this and turn end users into first class citizens of the advertising ecosystem capable of choosing what ads they want to see and when they would like to see them. By giving end users more control over their ad experience and data sharing, Papyrus will ensure better targeting and, eventually, better, more relevant ads delivered to the user. Increased ad quality as enforced by independent audit service providers will also contribute to better user experience. Finally, users will be able to receive compensation for their interaction with ads and for sharing up-to-date preferences, for example in the form of access to a publisher’s premium content and services or simply in tokens.
The long term effect of this new arrangement is still unknown, but in almost any case scenario, enabling users in the ad cycle will clearly affect the nature of advertising and the creative effort of advertisers to reach target audiences. This is a win for balance in relationship between technology, commerce and culture.
ICO Alert: What is Papyrus’s market adoption strategy? How do you plan to deal with the big players of the traditional ad market, like Google or Facebook?
Papyrus: Generally speaking, our market adoption strategy can be broken down thus:
Partnership efforts: as our product brings clear benefits for the existing market players, we are focused on finding the right integration models for their businesses to gain efficiency by leveraging Papyrus. We have already signed a partnership deal with the supply side platform AirPush, one of the largest mobile advertising platforms in the world with 300k+ mobile apps using its SDK, and are currently in talks with many other potential partners. Most of them are still in early stages, but a lot of these partnerships will be announced soon.
Automatic incentivization for early adopters. They will be automatically rewarded with tokens for handling certain traffic volumes within the ecosystem. This will incentivize them to join earlier and to be the first to bring benefits and efficiency to their customers and to secure more Papyrus tokens in the process. The token incentivization program will be launched soon and then will be gradually phased out with the growth of the Papyrus market adoption.
When we have integrated both supply and demand side platforms, Papyrus will focus on educating advertisers about Papyrus and blockchain advantages. They will be the biggest winners of blockchain adoption as they will receive much more value for their money. The technology is new, however, and it will take time to develop a good command of it. Soon we will be launching pilot integrations with several big advertisers who have already shown their interest. This will be a great opportunity to learn what works best quickly.
Papyrus is planning to actively participate in the IAB Tech Lab Blockchain Working Group and similar organizations in order to synchronize our efforts with those of other market players. Papyrus is also planning to create an alliance of friendly companies who also aim to disrupt the ad industry with blockchain. We have already agreed on strategic collaborations with AirPush, BitClave and Bancor and we are in talks with AdEx and will continue striking new partnerships. Our advisory board provides tremendous support in this respect, bringing years of experience and their great networks of top-level connections in the advertising market. Among our Business Development Advisors are such world-class experts as Tim Brown, Director of Global Agency Strategy and Partnerships at SAP, and Rahul Chandra, VP of Corporate Business Development at Netcracker.
After we have gained sufficient traction with larger amounts of traffic flowing through the ecosystem and have proven our market benefits, Papyrus will start negotiations with larger platforms, including Google and Facebook. Since they also might benefit hugely from our technology. Since we are an open-sourced and non-profit ecosystem, they might be interested in integrating with the existing working ecosystem on a win-win model rather than developing a competing model from scratch. When several big advertisers express their willingness to work with Papyrus-linked transparent platforms — this trend will speed up.
ICO Alert: Can you briefly describe the trio of projects up for release in late 2018/19, known as Protostar, Uprise, and Equilibrium?
Papyrus: Protostar, Uprise, and Equilibrium are the three planned sequential releases of the Papyrus ecosystem envisioned in our current roadmap.
Functionality-wise, the Protostar release is focusing on addressing the majority of the planned goals for traditional web advertising — establishing and running a growing ecosystem for advertisers, publishers, end users, ad tech platforms (SSPs, DSPs), and service providers (Auditors), with scalability and decentralized governance mechanisms (payment channels and log storage) fully functioning. It will have all required integration libraries, SDKs, and UI applications available.
The Upstart release will focus on fully covering advertising for mobile and emerging dApps domains and it will have more sophisticated user data management tools to create a full-fledged data marketplace.
Equilibrium will support alternative blockchain solutions for the ad market as well as address any new challenges identified along the way. From the business development perspective, each release will involve a lot of effort in terms of integrating more and more partners. Papyrus currently has an target outline of at least 20 ad tech platforms and service providers for the Protostar release, and at least 50 for Uprise.
ICO Alert: The Ethereum network has occasionally suffered from slow transaction times. Is there any concern that this may affect the Papyrus platform?
Papyrus: In the initial prototype version, the Papyrus ecosystem will in fact be susceptible to Ethereum network issues. Even though individual ad bidding transactions are not directly reflected in the blockchain (due to obvious scalability limitations), but are rather paid through Papyrus off-chain state channels and tracked in separate decentralized storage — the Ethereum blockchain is used to finally settle the bulks of payments and to establish ordering, authenticity, and immutability of the large chunks of data secured in storage. We have faith that occasional short-term delays will be tolerated, but multi-hour delays will of course disrupt normal operations.
This state of affairs, however, will be radically improved with the release of a full-fledged scalability layer where both state channels and storage facilities will be switched to a specialized supplementary blockchain with a minimum dependency on the mainnet Ethereum blockchain. In the future, Papyrus also plans to investigate other existing and emerging options for the base blockchain as they mature, for example, EOS.
ICO Alert: As a non-Papyrus question we like to ask for unique predictions for the ICO and cryptocurrency space in the future. Where do you see both in the next 3–5 years?
Papyrus: The Papyrus team is composed of professionals from ad tech, marketing and software development segments and we he have a common belief that blockchain is the most unique and disruptive phenomenon of the modern world. We are witnessing a true paradigm shift in the history of human civilization: money is being issued not by centralized forces like governments but by technological platforms. Online token economies and entire ecosystems for various markets governed by token-holders are being created. In these ecosystems, economic laws are controlled by smart contracts — algorithms that can’t be changed by colluding parties and are enforced automatically. This creates community-driven and meritocracy-based ecosystems that will eventually make all aspects of our life better and more efficient. The financial operations and banking areas are already being disrupted by blockchain.
We at Papyrus aim to disrupt the digital advertising market, but disruption will also mean the creation of new markets. Although still in the early stages, we have a pipeline of projects focused on disrupting content creation. Within the next 3 to 5 years we see a world where blockchain-based projects and cryptocurrencies — after having survived and been strengthened through normal market volatility and trial and error — will achieve solid ground and will start reshaping our world a based on the way we make transactions. This is positive and we want to be at the heart of this creative, cultural movement.
To learn more about Papyrus, you can visit the token sale page, read the whitepaper, and ask our team any questions in our live Telegram chat.
Participate in the token sale — add button here
The Papyrus ICO has three rounds spanning two years, with a presale and crowdsale during each round. The first round began on October 12, 2017 and ends on November 2, 2017 at 14:00 UTC.
There is a hard cap of $5,000,000 and the price per token is $1. Anyone interested in purchasing $50,000 or more can email email@example.com for a private sale with unique bonuses.
The goal of the first ICO round is to bootstrap the Papyrus prototype ecosystem and start pilot integrations with Papyrus partners, including antifraud vendors, publishers, SSPs and DSPs, as well as to accelerate the development of a Papyrus expert community. More info on the second and third stage can be found on the website in the roadmap.
Token Distribution Information
The current round of the crowdsale is selling PRP tokens. These tokens are protoype utility tokens to be used on the platform and will be exchanged for PPR tokens after the second round of the ICO. The PPR tokens are ‘permanent’ utility tokens to be used on the platform. The total amount of tokens sold in the first round of the crowdsale will be equivalent to 15% of the total PPR tokens exchanged after the second round of the crowdsale.
PRP tokens will be distributed to contributors shortly after the end of the first round of the crowdsale. The second round of the crowsale is planned for Q2 2018 and the third round of the crowdsale is planned for no earlier than some time in 2019.
— 80% will be sold during the first round of the crowdsale
— 20% will be allocated for advisory board, bounty campaign, Papyrus partners, pilot integrations with ad platforms and the founding team.
Use of Crowdsale Proceeds
— 50% will be used for Papyrus ecosystem marketing and promotion, hiring business developers and community managers around the globe, as well as for building relationships and making pilot projects with expert advisors and companies from the advertising and blockchain industries.
— 25% will be used for research and development, including the hiring of development team employees.
— 5% will be reserved to cover infrastructure costs, such as hardware and office expenses.
— 5% is reserved for legal costs and counsel.
— 15% is reserved for motivation for early project supporters and the project founding team.
Alexander Shvets, Product Director
Alexander has more than 7 years of experience in ad tech and more than 12 years in software development He is responsible for product vision, coordination between the business, marketing and developer units. He has in-depth knowledge of advertiser demand, publisher pain points and agency environments. Alexander has experience as an entrepreneur and is a co-founder of Marilyn, a leading advertising automation system in Europe. Before Marilyn, he was immersed in Aori, an advertising aggregator for SME since 2010.
Leo Eletskikh, Technology Evangelist
Leo has considerable experience in the mobile sphere, including mobile traffic quality analysis and fraud prevention activities at Adjust, application analytics at App Annie, and as a driver of both user acquisition and sales with Alibaba Group. Leo also has a background in investment and banking. He is the founder of Tabee and Softlation and continues to advise at these projects.
Elena Obukhova, Communications Director
Elena has more than 16 years of experience in marketing communications and PR in the Media and IT industries. She has diverse professional experience in the development and implementation of communication and promotional strategies. Her background in leading Media and IT companies includes international television and film production and right holder StarMediaGroup, Sheremetyevo International Airport, CTC Media Group, television channels holding NMG Group and social media network OK.ru.
Tanya Krishtopa, Product Manager
Tanya has more than 6 years of experience in web and mobile traffic acquisition. She is strong at traffic quality analysis and fraud prevention and shared her considerable experience with the multinational companies Banka Intesa, online travel agency anywayanyday.com, and the largest Russian search engine Yandex. Her knowledge includes infrastructure development for traffic acquisition and adtech processes automation.
Alexander Kholodov, Lead Software Engineer
Alexander is a Lead Software Engineer at Papyrus responsible for backend development and ad-related technologies. He has a solid background in advertising platform development from his 5 year tenure at Mail.ru and Yandex, two of the largest digital ad-systems in Europe. He has more than 10 years of experience in highload services development with firms such as my.com, Yandex and badoo.
Andrey Vlasenko, Lead Software Engineer
Andrey has a degree in computational mathematics and cybernetics from Moscow State University and has a strong technical background and hands-on experience in software engineering. Andrey participated in the infrastructure development for “connected cars” products at tech innovator WayRay as a backend architect & team lead. Andrey has also been a senior software engineer at Sberbank Technology where he has gained significant experience with instant payment technology and financial markets risk management automation in the financial sector.
For a full list of team members and advisors visit the Papyrus website.
View the Papyrus Website here.
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(1) Papyrus Website, Papyrus, (2017)
(2) Papyrus Whitepaper, Papyrus, (2017)