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Wednesday, June 6, 2018
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Table of Contents Introduction 1 Prediction Markets Explained 2 Prediction Markets and Blockchain Requirement 3 Meet Delphy 4 Delphy Token-DPY 5 Roadmap 6 Competitive Advantage 7 Leadership Team 8 Board of Advisors 9 Partners 9

1.Introduction Predictions markets will have a profound positive impact on the daily lives of our society. For centuries, society has relied on methods such as polls, trusted experts, superstition to predict the outcomes of future events. Forty years ago, the development of econometric models was a major breakthrough in the method of forecasting events by using statistically significant data inputs. The current age of Machine Learning and Artificial Intelligence as it relates to predicting outcomes are simply extensions of econometric models. Delphy is … Making The World More Predictable 1.1 Complexity Specializations upon specializations have made it more difficult for the average individual to understand underlying factors of technologies and their consequent impact on our future lives for better or worse. 1.2 Confusion The fall of traditional newspapers and news media due to the Internet has led to a swelling number of news sources. From 140 character tweets to YouTube videos by self-proclaimed experts and everything in between has made it extraordinarily easy to misunderstand or re- ceive misinformation as fact. Wisdo of the Crowd Collective opinion of a large enough group of indi- viduals is better than that of a single expert -1-

2.Prediction Markets Explained A predictions market is a platform of mini markets where groups of individuals make edu- cated, insightful investments about the future outcome of an event. Rather than purchasing stocks in companies (as in a stock market,) a prediction market is where you purchase out- comes of future events. Examples of future events for which you could buy outcomes in- clude things like the winner of an upcoming political election or whether or not a com- pany’s new product will be successful. For instance, the question or the future event to be predicted is the market. Consequently, the different outcomes are equivalent to the stocks and the probability of the event to occur represent the prices. Predictio Markets Making The World More Predictable Combining people’s opinions into the probabilities of a future event. While prediction markets and stock markets are similar, their reasons for existing differ. Stock markets are established primarily for the purpose of making money. In a stock market, money is made by purchasing stocks at lower prices and selling them at higher prices. Such buying and selling also happen in prediction markets, but this isn’t the primary reason for a prediction market to exist. Prediction markets exist because individuals or organiza- tions want to know the answer to something (i.e., the outcome of a future event.) Predictio Markets Buying DPY costs .505€ & will return 1€. Another key difference between stock markets and prediction markets is that the only way to benefit from a stock market is to participate in it; however, in a prediction market, anyone seeking insight into future events can benefit, whether or not they actually participate in the prediction market. -2-

3. Prediction Markets and Blockchain Require- ment Although prediction markets have both proven to be extremely efficient and created a tre- mendous amount of user interest, centralized implementations have resulted in fundamen- tal shortcoming - a lack of trust amongst the exchanges, traders and government entities. For-profit, centralized prediction markets have been accused of manipulating markets to generate more trading profits. Additionally, governments have wanted to safeguard against insider trading as well as govern prediction markets similarly to futures contracts. Peer-to-peer blockchain technology and token economics resolve these issues. First, government officials will realize that the trading data is stored on an immutable public blockchain. This tamper-proof blockchain data is replicated across the network and can eas- ily demonstrate innocence to authorities. Making The World More Predictable Second, Delphy is a non-profit foundation that only benefits upon the increase in token price through increase demand to use Delphy’s prediction markets. The token economics removes any incentive by Delphy to manipulate markets to increase trading profits. Lastly, government intervention could be a non-issue due to the decentralized nature of the Delphy prediction markets as the government would not have a central institution to shut down. Blockchain is the missing piece Resolving the trust problem of prediction markets. -3-

4. Meet Delphy Delphy is an open-source, decentralized, prediction market platform built on the Ethereum platform. Delphy incentivizes knowledgeable participants to share their wisdom regarding the outcome of upcoming events, effectively predicting the future. Delphy is currently the only blockchain-based predictions markets company headquartered in Asia giving our team a significant head start in the Asian market. Delphy will initially launch an end-to-end solu- tion focused on the cryptocurrency markets; however, the company is finalizing a developer API toolkit for third party organizations to create many different prediction markets apps. Making The World More Predictable Unlike several of the startup blockchain projects, Delphy’s Lean Startup’ approach is ena- bling the team to launch a prediction markets platform capable of thousands of daily trans- actions in Q1 2018. Instead of waiting for the Ethereum network to upgrade it’s capability to handle the required trading volume, Delphy has developed several proprietary techniques to store the trades as well as initially utilizing centralized oracles. Ultimately, Delphy plans to build an end-to-end decentralized platform, including reporting, when the appropriate blockchain can support this feature. -4-

Lastly, Delphy is developing a social platform to which will allow friends to easily interact and track each other’s positions. Creating a fun atmosphere to increase usage is critical to increasing the liquidity and number of markets on the platform. Making The World More Predictable -5-

5. Delphy Token-DPY Delphy’s DPY token is required to participate in Delphy’s prediction markets platform. The token escrows the value of the investment on the blockchain which creates slow token ve- locity (a very positive aspect of blockchain tokens). A market is created by creating a de- tailed question, the potential answers and depositing DPY tokens on the blockchain to seed the market. Traders will also use DPY tokens to buy and sell positions in the potential out- Making The World More Predictable comes of the event. -6-

6. Roadmap Delphy is on a journey to a fully decentralized prediction market platform. Prediction mar- kets’ smart contracts and trading volume will create a significant amount of transactions on the blockchain. As opposed to waiting for the Ethereum blockchain to upgrade, Delphy has developed proprietary techniques to log the transactions on the Ethereum blockchain which will enable Delphy to launch a fast transaction, low fee prediction market app in Q1 2018. Additionally, Delphy will be expanding our project scope to include development on Ethereum as well as a non-PoW blockchain. The Delphy team needs to continue our very aggressive pace of innovation and start development of our dApp. Our team, investors and community supporters do not want to wait to unlock the value of fully decentralized block- chain prediction markets until the Ethereum network can handle the huge network load of a prediction market platform. While we continue to have faith in the outstanding Ethereum community, Delphy needs to Making The World More Predictable diversify public blockchain risk, tap into other amazing blockchain communities, and defend against other prediction market upstarts. Due to the great number of synergies between the solutions on the different chains, the expansion to include a non-PoW blockchain should unlock tremendous value for the DPY token holders. Delphy will be launching the full end-to-end solution by Q1 2018 for the Chinese market. Over the next 2 quarters, Delphy’s engineering team will develop and launch international versions with multiple language support. -7-

7. Competitive Advantage Delphy will have faster transaction speeds and lower fees related to Augur and Gnosis. The time for Delphy to close a market and pay investments will be much faster than Augur and a little faster than Gnosis. Additionally, Delphy will continue to work toward a fully decentral- ized prediction markets platform and achieve that goal about the same time Ethereum is able to fully transition to a proof of stake network. Due to this strategy, Delphy will have an enormous head start at commercializing prediction markets apps. Components such as easy-to-use interface, social interactions amongst traders and most importantly a vibrant trading community. Making The World More Predictable -8-

8. Leadership Team Bo Wang Founder - Master Degree of Information Economics from Michigan University, Bachelor Degree of Information Management from Peking University. Block- chain entrepreneur and technical expert. Co-founder of Factom and Wanglu- tech, which brings Blockchain technology to a greater range of applications. Fox Holt VP of Business Development - MBA from Cornell University, double-degree of Computer Science and Economics from Centre College. Held leadership roles’ in GE, Morgan Stanley, and founder and CEO of Orthogonal Inc and Torque Making The World More Predictable Tech Capital. Almost 20 years of experience in diverse range of industries and markets ranging in size from start-ups to multinational organizations. Mike Product Managing Director - Founder and lead developer of JUZI Browser, ranked No. 6 among all internet browsers in China. More than 10 years of ex- perience in developing and product operation management. Original member of early Qihu 360. Jane Marketing Partner - 10 years experience in Internet and Venture Capital. Unique combination of marketing, financial and technical work experience in China. Creation Ventures, KPCB China, APEC China Business Council, Qihoo 360. Participated in investment project Tantan. -9-

9.Board of Advisors Bo Shen – Founder of FENBUSHI Capital Gang Wu – Founder of Bixin.com Roland Sun - Partner of Broad & Bright James Gong - Founder of ChainBf.com Making The World More Predictable 10.Partners - 10 -