Horizon State Whitepaper

Tuesday, June 19, 2018
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H O R I Z O N S T A T E - Democratic tools for the 21st Century Decentralised Engagement and Decision Platform It is time that the way society collectively makes decisions met the expectations set by the rest of our modern world. Horizon State has built technology whereby constituencies can be engaged with immediacy, and results can never be tampered with. Our blockchain voting system has been open to a national constituency and in use since February 2017. White paper 1.02 Copyright © 2017 Horizon State horizonstate.com 1

Table of Contents Motivation 3 4.0 Market Opportunity 13 Immediate Relevance 13 Examples of Usage Scenarios 14 1.0 Vision & Capabilities 4 Token Use 17 Introduction to Horizon State 4 Voting, the Blockchain & Decision Tokens 5 Increase Participation by Increasing 5.0 Towards Brighter Horizons 18 Engagement 5 Real World Use: Our MVP 18 Building an Ecosystem 5 Strategic Focus 20 Benefits Realisation 6 Roadmap 21 MVP Released 6 6.0 Decision Token Sale 22 2.0 Decision Making Public Token Sale Timeline 22 & Blockchain 7 Contribution Period Details 23 Deployment on the Ethereum Blockchain 7 Use of Token Sale Proceeds 23 Addressing Existing Limitations 7 Features Tackling The Big Issues 8 7.0 Team 24 Executive Team 24 3.0 A New World 10 Board of Advisors 25 The Continuum of Voting 10 Informed & Collaborative Decisions 10 Beyond Voting 11 Democracy-as-a-Platform 11 Compliance and Regulatory Requirements 11 Constituency 12 Stages and Limits 12 Flexibility 12 Audit 12 Transparency and Traceability 12 Copyright © 2017 Horizon State horizonstate.com 2

H O R I Z O N S T A T E - Democratic tools for the 21st Century Motivation We live in a world where the smartphones in our pockets have more computing power than NASA had to get us to the moon, yet the way we govern our societies and organisations remains the equivalent of a pocket calculator. Existing models for collaborative decision making obstacles have prevented us from achieving this thus once served our growing democracies well, yet today far, but do not have to hinder us any more. they are increasingly slow, expensive, and ineffectual. These tools are now available. Thanks to the distributed Public trust in their outcomes is eroding and results in ledger technology we can create systems that directly voter apathy. Campaign promises are regularly broken, engage and empower constituencies, employing and major decisions are taken without consultation or mechanisms enabling them to vote smartly and transparency. Our society is hurtling into the future, but efficiently, giving them confidence that their voices our democratic processes are stuck in the past, failing will be heard, and allowing them to see, first hand, the to advance at the same pace. results of their voting activities. Democracy is much more than our electorates, our Horizon State has built this. Our platform is soon to be representative models, or our boards and management extended and used by political independents, publicly teams. Democracy is the opportunity to participate listed companies, and communities within developing in the decision making processes that relate to the nations. We are looking toward brighter horizons, to a shared matters which affect us. Democracy is about place where our countries and organisations conduct reaching consensus on how to best use our shared themselves with accountability and efficiency, a place resources. Democracy is about advancing our collective where voices can be heard securely and simply. We are well-being, providing opportunities to those who have taking our technology to a global audience and it will while protecting those who do not. underpin the process of opinion and vote solicitation We need better shared decision making tools and everywhere, from the smallest councils in national processes in almost every facet of our community lives. public service, to multinational enterprises. We need them to be transparent and trusted, allowing It is time for our democratic processes to meet the deliberation and inclusion, removing barriers rather than expectations set by every other part of modern life. stacking them up. Technical, legislative and budgetary Copyright © 2017 Horizon State horizonstate.com 3

H O R I Z O N S T A T E - Democratic tools for the 21st Century 1.0 Vision & Capabilities Introduction to Horizon State decision making. It is a method to engage constituents on matters that affect them with immediacy. It is a Horizon State has built a token-based blockchain framework where representatives can collaborate with voting and decision-making platform that delivers their constituency with unprecedented efficiency. It is unprecedented trust through the integrity and post- a method for families, communities, staff, and indeed unforgeable attributes of distributed ledger technology. entire citizenships to inclusively participate in the Horizon State delivers a secure digital ballot box that decision making processes that govern their lives. cannot be hacked, wherein results can never be altered and voter identities are protected. Votes cast can be Our product is already being used commercially by MiVote, an Australian political movement featured in the counted transparently, in real time, by anyone in the Financial Review1, The Guardian2, Fast Company3, ABC4, world. These counts can happen in perpetuity, as results and on Triple J5. Our early stage platform has facilitated are permanently retained on the blockchain and can the casting of thousands of votes to the blockchain never be changed. More than that - Horizon State allows since February 2017. voters to verify their own vote is accounted for, while maintaining their anonymity. Horizon State now intends to take this product to the world. The platform promotes participation, facilitates deliberation and creates opportunity for informed 1. (2017, April 12). MiVote wants to bring remote control politicians to the Senate | afr.com. Retrieved September 3, 2017, from http://www.afr.com/news/ politics/mivote-wants-to-bring-remote-control-politicians-to-the-senate-20170411-gvicfe 2. (2017, April 14). MiVote aims to shake up democratic process with a click and a tap .... Retrieved September 3, 2017, from https://www.theguardian. com/australia-news/2017/apr/14/mivote-aims-to-shake-up-democratic-process-with-a-click-and-a-tap 3. (2016, September 7). Can Direct Democracy Be Revived Through New Voting Apps?. Retrieved September 3, 2017, from https://www.fastcompany. com/3063379/can-direct-democracy-be-revived-through-new-voting-apps 4. (2017, March 3). MiVote: A Senator in your Smartphone? - Download This Show - ABC .... Retrieved September 3, 2017, from http://www.abc.net.au/ radionational/programs/downloadthisshow/mivote/8318392 5. (2017, February 11). MiVote: Can your phone save democracy? - Hack - triple j - ABC. Retrieved September 3, 2017, from http://www.abc.net.au/triplej/ programs/hack/mivote-launches-online-direct-democracy-voting-platform/8261112 Copyright © 2017 Horizon State horizonstate.com 4

H O R I Z O N S T A T E - Democratic tools for the 21st Century Our business development pipeline also includes Beyond the voting platform already in use, Horizon State advanced discussions with a diverse client base, is developing an immersive digital engagement and including multinational NGOs, publicly listed companies, deliberation platform which aims to overcome obstacles and independent politicians. to voter engagement and opinion solicitation. The medium of participation will not be limited to computers This paper presents the platform that Horizon State has or handheld devices. Research and development efforts built so far, lays out the token model we intend to use, are currently underway to employ capabilities based and discusses the road ahead, its challenges, and future on NLP (Natural Language Processing), AI (Artificial horizons. Intelligence) and VUI (Voice User Interfaces - such as Google Home, Microsoft Cortana and Amazon Voting, the Blockchain & Decision Alexa). The results of this work will allow to us create Tokens an immersive experience around the decision making process - an experience where information delivery is The blockchain lends itself perfectly to casting votes. It transformed. Static, passive fixed-content consumption is an immutable public ledger, trustless, and inspectable can be augmented by, or even replaced with, dynamic, by all. A vote cast to the blockchain is unforgeable and personalised conversations. the voting results recorded on it are undisputable. Horizon State is a blockchain-based platform and Building an Ecosystem ecosystem that enables efficient vote casting and decision making processes. The platform operates A truly great service enables synergy by being open and through the use of Decision Tokens (HST). These are inclusive. Horizon State’s philosophy aligns with this used for running the decision and voting processes by by removing boundaries that hinder communication, providing the ‘gas’ for voting and other services within interaction and cooperation. We are building an the ecosystem. extensible platform that will allow us, as well as partner developers, to deploy a variety of products and services to the ecosystem that will further aid the processes of Increase Participation by decision making and voting, all of which will use the Increasing Engagement Decision Tokens as the fuel for this ecosystem. Voting, in essence, is the final act in the personal Horizon State aims to provide an extensible, pluggable decision making process. The overall voter journey platform for decision making tools, processes and entails gaining knowledge and understanding of the applications. There are a number of decision making issue under deliberation, developing an opinion, opting systems used all around us, each of which has to participate and thereby influence the outcome, and different requirements: general elections, postal votes, only then casting their vote. union elections, shareholders meetings to name a Many elections today experience low participation few. In addition to providing a suite of services and and high levels of voter apathy6. This may be due to implementation types, Horizon State will be working individuals feeling a sense of distance from the issues, with partners and service providers to build dApps that the process of voting is too arduous, or can’t really (Decentralised Applications) on top of our platform. see their own vote making much difference in the Those dApps will provide services for organisations overall scheme. This is true across the spectrum of using Horizon State to facilitate decision making voter engagements, from general elections and local processes, improve deliberation and participation, or councils, all the way to shareholders assemblies. provide customised registration and authentication modules. 6. (2017, May 15). U.S. trails most developed countries in voter turnout | Pew Research .... Retrieved September 3, 2017, from http://www.pewresearch. org/fact-tank/2017/05/15/u-s-voter-turnout-trails-most-developed-countries/ Copyright © 2017 Horizon State horizonstate.com 5

H O R I Z O N S T A T E - Democratic tools for the 21st Century Some possible examples of such dApps could be: Benefits Realisation • Content delivery by population slices Local councils, boards of directors, societies, non-profit • Smart contracts for unique voting mechanisms organisations, unions, political parties and governments • Statistical modelling tools share common requirements when requesting opinions from people. High participation rates promise • Sophisticated simulators and what-if analysis that decisions made will encompass most of the • Smart surveys constituency. Low cost processes promote inclusion • Smart voting agents and deliberation. Transparency and trust in the vote • Power BI dashboard integration reduce doubts, litigation and contention. • Prediction tools Horizon State addresses these needs by providing unforgeable, fully transparent voting processes, at a fraction of the cost per vote of traditional voting mechanisms. Horizon State offers a range of benefits to each of the different types of users involved: User Group Features Benefits Organisations Horizon State provides a secure, • Auditability efficient and trustworthy fully- Businesses, councils, non for profit • Trust of constituency transparent means of voting organisations, etc. • Reduced costs • Reduced Lead Times • Faster Turnaround Voters Horizon State provides tools for an Increased participation through immersive voting process, adjusting enhanced engagement, which Citizens, party members, shareholders, to the user’s preferred methods of promotes voting etc. consuming information and voting Representatives Horizon State offers tools and a Increased engagement and deliberation platform for continuous decision strengthen the ties between a making, voter consultation, fundraising representative and their constituency, and analytics elevating trust and openness Service Developers/Providers Horizon State is an extensible platform, Opportunity to create new services on where software developers and service top of the platform, to generate income providers can create new services and expand the ecosystem MVP Released In early 2017, Horizon State’s blockchain-based voting solution was launched for Australia’s MiVote membership, using it to participate in the country’s decision making process. The MiVote movement has run 4 nationally-inclusive polls in total as of September 2017, committing thousands of votes to the Ethereum public blockchain through our product. Copyright © 2017 Horizon State horizonstate.com 6

H O R I Z O N S T A T E - Democratic tools for the 21st Century 2.0 Decision Making & Blockchain Deployment on the ERC20 token standard: Standardised functions enable Ethereum Blockchain seamless issuance, distribution and control of Decision Tokens in a formal, uncomplicated manner. Conforming Robust Network: A secure vote is the most critical to ERC20 standards affords us flexibility now, and component of Horizon State’s technology, which is for unforeseen token applications and agreements why we have chosen distributed ledger technology in the future. This flexibility will enable and promote (DLT) to achieve this. Beyond DLT being our technology interoperability of our dApps both within our own of choice, our first commercial product sits atop of ecosystem and externally to 3rd party applications. Ethereum due to its network size and subsequent vote security7. Addressing Existing Limitations Industry support and awareness: The Ethereum Ethereum’s production blockchain achieves Enterprise Alliance has moved the needle more approximately 13 transactions per second, or 7 for significantly than any other development in commercial ERC20 tokens. While the current level of transaction blockchain technology. Paired with the largest throughput would not suffice for national-scale community of developers in the world of blockchain, the elections, Ethereum is the most well progressed Ethereum ecosystem offers the most extensive pool of blockchain in respect to the implementation of resources to draw from as our staff count increases. massively improved scaling solutions. 7. (2017, May 21). Ethereum is Now the Most Secure Public Blockchain, Overtaking Bitcoin. Retrieved September 3, 2017, from http://www.trustnodes. com/2017/05/21/ethereum-now-secure-public-blockchain-overtaking-bitcoin Copyright © 2017 Horizon State horizonstate.com 7

H O R I Z O N S T A T E - Democratic tools for the 21st Century Numerous changes to the Ethereum network which are The blockchain technology provides us with web 3.0: likely to commence in 2018 will significantly improve a decentralised, democratised and trustless means to transaction scaling. Technologies such as Raiden will deploy and consume services. This is possible largely take us to over 1 million transactions per second, and due to the power of smart contracts, which Horizon upcoming Ethereum releases will enable sharding and State uses to deliver a medium for vote submission proof of stake, further hardening the system. and collaborated decision making processes. These processes are delivered in a way that requires no trust Research and new developments in this area are in any intermediary. Utilising blockchain technology, we coming fast for the Ethereum development team. Their are able to store an irreversible and immutable record of latest scaling solution - Plasma - includes off-chain votes. As a result, opportunities for vote tampering are transactions, and has the potential to allow billions of eliminated, and the chain of custody can not be broken. computations per second8. Horizon State’s use of blockchain technology addresses security of the vote, and indeed of broader kinds of Features Tackling The Big Issues participatory commitments. As data stored on the Trust, Confidence and Security blockchain itself is tamper-proof, once the voter has voted and checked their vote was registered, there is no There is an inherent element of trust when a secret vote way to alter it. Where voter anonymity is a requirement, is cast. The voter has to trust that the chain of custody the system ensures that it is not tied to the vote in any of their vote is unbroken from the moment they cast it way that is meaningful to anyone other than voters to the moment results are published. Today, this trust themselves, who can check that their vote was entered must encompass many intermediaries: centralised, and counted correctly. opaque data stores held by private enterprises; automatic or manual vote counters; volunteers, paid Anonymised Voting - Real election officials, etc. Implementation In the United States, where electronic voting machines The MVP used by MiVote entailed the separation of are prolific, it has been demonstrated that they can the voter profile from the vote itself, while ensuring be compromised with relative ease. In 2005 it was that each user of the Horizon State system only shown that it was possible to hack into a Diebold voting had the opportunity to vote once. The votes, cast as 9 machine to change tallies in the time it takes to cast transactions to Ethereum’s public blockchain, contain a vote , while DefCon hackers broke into U.S. voting 10 no voter identity information. Their association to the machines this year. Whitehat hackers showed it was 11 voter is anonymised and hashed to ensure voters can possible to alter individual votes, inject malicious code not double-vote, but still allows users verify their own into election servers and potentially exfiltrate voter’s votes. identities and ballots, in addition to documenting There is ongoing and vigorous development taking numerous electronic procedure contraventions with by place in the Ethereum ecosystem, and upcoming election officials during the 2013 Estonian elections.12 8. (2017, August 18). Ethereum scaling solution, Plasma, could facilitate ... - Brave New Coin. Retrieved September 3, 2017, from https://bravenewcoin. com/news/ethereum-scaling-solution-plasma-could-facilitate-billions-of-transactions-per-second/ 9. (2006, May 11). Major Vulnerability Found in Diebold Election Machines - Schneier on .... Retrieved September 3, 2017, from https://www.schneier.com/ blog/archives/2006/05/election_machin_1.html 10. (2016, August 5). How to Hack an Election in 7 Minutes - POLITICO Magazine. Retrieved September 3, 2017, from http://www.politico.com/magazine/ story/2016/08/2016-elections-russia-hack-how-to-hack-an-election-in-seven-minutes-214144 11. (2017, July 29). These Hackers Reveal How Easy It Is To Hack US Voting Machines. Retrieved September 3, 2017, from https://www.forbes.com/sites/ thomasbrewster/2017/07/29/def-con-hacking-election-voting-machines/ 12. (n.d.). Security Analysis of the Estonian Internet Voting ... - J. Alex Halderman. Retrieved September 3, 2017, from https://jhalderm.com/pub/papers/ ivoting-ccs14.pdf Copyright © 2017 Horizon State horizonstate.com 8

H O R I Z O N S T A T E - Democratic tools for the 21st Century technologies such as zkSNARKs13 will open more takes place. This record of votes will now exist in options for our development teams as we iterate upon perpetuity, will be able to be recounted with precisely existing solutions. the same number of votes and precisely the same outcome every time into the future for sake of posterity. Unencumbered Access Additionally, voters can independently verify that their The process of planning and executing geographically vote was entered and was tallied. centralised or postal votes for communities and nations Cost is long - and infrequent as a result. On the other hand, the gathering of opinions and casting of votes by In a typical democratic system using the methods of using modern content delivery systems, responsive vote solicitation (such as plebiscites, referendums web interfaces, and mobile apps, enables efficient and elections) Horizon State’s blockchain solution will setup and distribution models. Paired with blockchain, reduce the cost of voting by at least a factor of 10. As a robust solution finally exists for sensitive decision a real world example, Australia will conduct a non- making processes and secure vote submissions that compulsory postal vote on September 12, 2017, costing need not be wedded to long and expensive methods taxpayers over $120 million dollars.14 Considering the of orchestration. There is no longer any reason that 15.7 million eligible and active voters in Australia, this companies and governments cannot engage their equates to a cost of $7.70 per vote. Meanwhile the cost constituents as frequently as is required for better of a federal election has risen to $227 million, or $15 collective outcomes. per vote.15 Transparency Horizon State’s MVP blockchain voting solution fares significantly better when compared to traditional voting Traditional methods of voting provide no clarity systems. Our cost per vote - excluding the cost of initial surrounding a constituent’s vote, whether it has been platform development - remains less than $0.50. This accurately cast or actually counted. Our platform will cost will reduce further as blockchain scaling solutions enable any individual to tally the number of votes and are implemented. which way those votes went, as the voting process 13. (n.d.). zkSNARKs in Ethereum: Great News For Ethereum, Anonymity, and .... Retrieved September 3, 2017, from https://steemit.com/academia/@ blakemiles84/zksnarks-in-ethereum-great-news-for-ethereum-anonymity-and-fungibility 14. (2017, August 8). Government to spend at least $120m on postal plebiscite - ABC News .... Retrieved September 3, 2017, from http://www.abc.net.au/ news/2017-08-08/government-to-spend-at-least-$120m-on-postal/8787384 15. (n.d.). Election could cost $227 million : Election Watch - Australia 2016. Retrieved September 3, 2017, from http://electionwatch.unimelb.edu.au/ australia-2016/articles/2016-federal-election-to-cost-$227-million Copyright © 2017 Horizon State horizonstate.com 9

H O R I Z O N S T A T E - Democratic tools for the 21st Century 3.0 A New World The Continuum of Voting Horizon State will provide an integrated content management and delivery capability designed Decisions are rarely binary in nature, but our current specifically to encourage discussions and informed models often enforce binary choices. Horizon State’s debates relating to the campaigns running on the platform provides the flexibility for non-binary voting platform. This will provide a place for people to share to accommodate the different needs of different their views, debate with their peers, and continuously customers. The requirement for some decision making engage in the process of voting. Smart artificial processes will require votes that are split between two intelligence engine and advanced use of bots will or more options, assigning weights proportional to allow voters to use their time efficiently, focusing and the voter’s feelings. Other customer needs include the engaging in-depth on the matters that are important to requirement to delegate votes to trusted proxies. them, while still keeping abreast of other issues voted on. Horizon State caters for these scenarios, and others, aligning the vote process with the values and laws of As the content is generated by the organisations, the organisation running a constituent engagement and candidates and people themselves, no external party collaborative decision making process. can manipulate the information presented. Candidates running in an election will use the system Informed & Collaborative to enrol themselves, present their beliefs and promises, Decisions and engage with the voters. The candidates will be able Like-minded individuals or ad-hoc parties can to use additional Horizon State capabilities like funding assemble groups or movements through the platform’s or analytics to further their causes and compete more community module. This can work for people effectively. demanding more support for refugees, or for residents Horizon State will provide campaigns with multiple wanting to influence their local council to fix a sinkhole options to define, identify and authorise the voting in a side street. The power of joined voices will carry population. The platform will use a PAM (Pluggable into the system in the form of a stronger, united vote. Copyright © 2017 Horizon State horizonstate.com 10

H O R I Z O N S T A T E - Democratic tools for the 21st Century Authentication Module) architecture to allow different transferred automatically between connected services, organisations to use their own authentication to bring us what we want to consume, where we want to mechanisms (or any they feel meet their requirements). consume it. This modular approach, in use throughout the system, Horizon State will use those technologies to develop ensures compatibility with many different 3rd party systems to support individual decision making by projects such as uPort. digesting, crystallising and presenting information to Users will be able to control their level of engagement, decision-makers in the format, capacity and depth they exposure and social impact. They will be able to audit want. We envision that users will be able to create their their own votes - present and historical. They will be own bots in the system to gather information, display able to manage their personal profile on the system notifications, and maybe even make decisions on their (which can be anonymously used for analytics, below). behalf. Horizon State will enable voters to share discussions or issues they are passionate about on social media, find Democracy-as-a-Platform like-minded individuals, and much more. Democracy and collaborative decision making have many flavours. Each country, institution, union or Beyond Voting organisation may have their own interpretation of In Horizon State, a campaign is the elementary democracy, and their own rules to exercise it. In building block of any vote. The campaign management Switzerland alone, for example, there are 26 Cantons, layer allows organisations (such as governments, each with its own processes and regulations. There is institutions etc) to create a poll on Horizon State. A no one democracy to rule them all. Around the world we poll in this sense is the issue(s) being voted on, be see direct and representative democracies, presidential it a shareholders vote on members of the board or a and parliamentary, authoritarian and participatory, equal general election. and weighted votes - the list goes on. Horizon State will provide customers with the ability to Horizon State’s mission is to enable democracy and create a campaign, define the vote issues, questions participation that are in line with the various needs and processes, manage its content, advertise the rules of different customers. The platform is therefore not for candidacy, define the set of users who can vote opinionated, and unlike other alternatives, does not try (constituency) and more. and shoehorn the different methods of practice into a single box. We have taken a different approach - one As part of its operation, Horizon State will gather a vast that provides the user with the tools to mold their own amount of data. Employing appropriate anonymisation, flavour of the decision making processes. the platform will provide users of different types with information gleaned from this data. Vote analysis by Using Horizon State’s platform and the capabilities voter attributes, geographic or socio-economic slices inherent with the development of smart contracts used will all be made available. The analysis tools will also through the platform, a customer setting up their votes let candidates and organisations run what-if scenarios, can configure the ways the vote works in an efficient testing policies and promises with real data. way, using mostly a graphical interface. The future of decision making aids is already here. Both the internet and internal systems employ artificial Compliance and Regulatory intelligence and clever bots to advance their agenda or Requirements business. The applications we use adjust their behavior Different jurisdictions have different laws, compliance to fit us. Customer service has been augmented in mechanisms and regulatory requirements. Horizon many places by bots chatting to users, and data is State will enable users to define a voting flow that Copyright © 2017 Horizon State horizonstate.com 11

H O R I Z O N S T A T E - Democratic tools for the 21st Century adheres to their processes. With some types of public share-holders holdings, some organisations vote works, for example, the law requires notification regularly, many times throughout the year, others use of the issue to be debated, then a period of public representatives elected at set frequencies. submissions followed by deliberation before going to a Horizon State allows users to define the way their votes vote. will be run, counted and inspected. Full anonymity or In cases like this, the user will be able to configure their full transparency are both available, with degrees in campaign to align with this flow, and provide irrefutable between. proofs along the way that the process was followed. Audit Constituency The process of voting, especially when blind votes are Not all voting campaigns address the same voting involved, can be mistrusted and contested. To address populace. A general election engulfs the entire country, this, and be able to trust that votes provide meaningful while voting for a senate representative is limited to results, institutions have audit mechanisms to ensure residents of the state. regulations are adhered to and the votes are not tampered with. Using the blockchain as an underlying Shareholders meetings are for company shareholders vote collection and counting mechanism provides only, whereas membership in international tamper-proof and visibility attributes to Horizon State’s organisations such as the WWF (World Wide Fund for solution. These capabilities can be further enhanced Nature) - crosses borders and sovereignty boundaries. by the users through the ability to add auditors and Horizon State allows the user to define characteristics audit requirements. These actions themselves are then of their constituency on a campaign-by-campaign basis. audited, as an inherent capability of the platform. Stages and Limits Transparency and Traceability Some votes have multiple stages, each with a different The nature of the blockchain is that transactions set of rules. For example - in the French presidential committed to it are there in perpetuity, and both elections of 2017 no candidate won a majority in the organisations and their constituency can examine the first round, and a second run-off round between two votes cast and their correct tally. Horizon State will candidates was held. While the two rounds had the provide out-of-the-box mechanisms for voters to verify same constituency and were in essence the same that their own vote was cast successfully and tallied campaign - they had different rules and a different correctly, providing adequate anonymisation when set of candidates. Using Horizon State, the rules and required. candidates can be modelled into a smart contract, The platform will provide built-in audit function and using a preferential list - the run-off round may be encouraging transparency across its ecosystem of avoided altogether. services. A set of APIs (Application Programming Interfaces) and SDKs (Software Development Kits) will Flexibility be provided as well, for users or software providers to expand upon the basic offer. Enabling the building of Administrations around the world use multiple methods extra functions this way will allow organisations solve of voting. The US Senate for example uses both any special requirements they may have. blind votes and roll calls for different deliberations. Companies use weighted votes based on their Copyright © 2017 Horizon State horizonstate.com 12

H O R I Z O N S T A T E - Democratic tools for the 21st Century 4.0 Market Opportunity New customers including political independents, collaborative decision making in many shapes and multinational corporates and non-governmental sizes. This includes vote and opinion solicitation, organisations are currently being engaged. Each information delivery and constituent deliberation. customer using the system will drive significant demand for the HST tokens which are required to Immediate Relevance commit constituent votes to the blockchain. In the last month alone we have witnessed numerous Governments of developing nations, with citizens major events taking place globally with significant numbers in the vicinity of 30 to 100 million who have relevance to how Horizon State could improve the ambitions for innovation have been identified as primary status quo. Our platform tackles the big issues opportunities for the propagation of our technology. discussed today: lack of security and confidence in the While we have focused the first production release process and system, lack of transparency, and high cost on solicitation of votes with immediacy and security, of running voting processes. our technology is applicable to many organisation Some examples where Horizon State platform could types and many forms of democratic processes. HST offer game changing value proposition: will not only be used for the process of running what are specifically votes, but for the broader purpose of Copyright © 2017 Horizon State horizonstate.com 13

H O R I Z O N S T A T E - Democratic tools for the 21st Century Scenario Issue Recent Examples Federal Elections16 17 High cost per person/vote The cost of federal elections in Australia has risen to $227 million, or $15 per vote. This will expand beyond $300 million by 2021. Census18 High cost per person/vote 2011 budget allocation per country, • New Zealand - $90,332,087 @ $20.41 per person • Canada - $630,373,000 @ $18.25 per person • United Kingdom - £482,100,000 @ £8.66 per person Election Integrity Security, confidence and trust Allegations of election authority’s system being hacked to manipulate the elections results in Kenya19 Horizon State is well positioned to offer the next- Examples of Usage Scenarios generation platform for data collection systems (Census) and election systems at a fraction of the cost #1 Poll: Should the Council Build a New per vote. Dam? Given the cost increase and latest system reliability A local government’s water-works department wants issues related to the recent Australian census,20 the to build a new dam to service the needs of the growing Australian government is considering to move to a population and alleviate the pressure on the local census once every 10 years. infrastructure. The site identified for the dam borders on a nature reserve and some people are worried about Horizon State represents incredible cost savings, the effect building a new dam might have on the native improved data and vote collection efficiency allowing species. countries to run census multiple times a year instead of once every 5-10 years, for a fraction of their existing The council may use Horizon State to poll their costs. Moreover, censuses can be run in parts, constituents. They would purchase the HST tokens across specific slices of the population, and many from either the token exchanges or via a portal on the other variations that may improve quality of data, Horizon State product, where the price of the token is participation and results. set by the free market. They then use those tokens as the gas to power their voting on the platform. The larger the number of people they want to poll, the more tokens they will need. As there is a finite number of tokens created during the ICO process, and no more will be created afterwards, the laws of supply and demand will dictate the token price. 16. (n.d.). Election could cost $227 million : Election Watch - Australia 2016. Retrieved September 3, 2017, from http://electionwatch.unimelb.edu.au/ australia-2016/articles/2016-federal-election-to-cost-$227-million 17. (2017, August 31). Australian Marriage Equality Vote: Everything You Need To Know .... Retrieved September 3, 2017, from https://www.lifehacker. com.au/2017/08/australian-same-sex-marriage-vote-everything-you-need-to-know/ 18. (2009, October 27). 25_ECE rev - UNSD - the United Nations. Retrieved September 3, 2017, from http://unstats.un.org/unsd/censuskb20/ Attachment459.aspx?AttachmentType=1 19. (2017, August 10). Kenya election system was hacked, Raila Odinga alleges - CNN. Retrieved September 3, 2017, from http://www.cnn. com/2017/08/09/africa/kenya-election/index.html 20. (2016, August 14). Census 2016: A case study in the confluence of failure | ZDNet. Retrieved September 3, 2017, from http://www.zdnet.com/article/ census-2016-a-case-study-in-the-confluence-of-failure/ Copyright © 2017 Horizon State horizonstate.com 14

H O R I Z O N S T A T E - Democratic tools for the 21st Century #2 Shareholders Assembly - Vote on the many times as they want - the system will only count Board Membership the last vote cast. This lets residents change their minds all the way up until the close of the race, at which A publicly traded company needs their shareholders time results are known immediately, with no need for a to elect new members of their board of directors, and lengthy process of vote counting. confirm extension of existing directors. The company buys enough HST to run the vote. The vote has to take into account the fact that shareholders who hold more #5 Public Submissions shares carry more weight to their vote. It also needs to allow voting by proxy. This scenario may use extra A town has been approached by the local mall owner, modules on top of the core-voting capability, and use of requesting consent to extend the mall by building those extra modules will be paid for with HST. a second level of shops atop the existing one. As required by law, the town should accept submissions for and against the extension. Using Decision Tokens, #3 Party Vote - Show of Hands constituents are able to submit their opinions, inspect submissions by others and deliberate on them The constitution of the Advantage Party, running in the till a decision is made. A slow process lacking in general election in Brazil, requires voting for the party transparency and participation has been transformed leader by show of hands. However, their members are into an inclusive and clear one. spread throughout the country and it is not feasible to assemble them all in one place for a public vote. The party uses Horizon State’s platform to create a public, #6 Union Amalgamations non-anonymised vote. They also purchase enough tokens to register 5 candidates, and each candidate The leaders of the Electricity Generators Employees then uses more HST to use the deliberation and Union met with the leaders of the Aluminum Smelters campaigning modules. As the vote is run, members can Union - the largest commercial users of power in the vote from the comfort of their home or work. They can country. As the leaders found a lot of common ground all be accounted for and their votes are public, as per and interest, they decided to approach their respective the constitution. Horizon State will allow party members unions and suggest they amalgamate. As unions are to inspect those votes while hiding the voters’ details bound to consult with their members on any decision to from the wider population. amalgamate, they bought HST tokens to cast a ballot of all 110,000 members of both unions. These votes are normally conducted as postal ballots, #4 Mayoral Race with significant costs and administration overheads. A city has decided to use Horizon State’s platform to run The vote count at the cut-off time was immediate and their local elections for mayor and council members. the amalgamation was approved by members. Using the city’s treasury to buy HST, a campaign is set Now that the two unions have amalgamated, the new up, candidates register, a deliberation platform and super union will need to conduct a further ballot of several analytic and budgetary tools are configured to members to determine which union officials will hold assist in the election. The voting is open for a couple of elected positions for the next term of union leadership. weeks, with constituents allowed to cast their vote as Copyright © 2017 Horizon State horizonstate.com 15

H O R I Z O N S T A T E - Democratic tools for the 21st Century #7 Non-Profit the platform’s mobile apps for the election, and add the political parties as candidates for the constituents A global non-profit organisation creates a campaign to choose from. Using the Decision Tokens for the on Horizon State’s platform to poll their 100,000+ vote, people can participate in the election from the members and agree on the use of their 3 Billion dollars comfort of their home, and are no longer required to in donations budget over the next five years. The make the lengthy journey to the nearest available voting poll allows members to assign their preferences for station. Additionally, allegations of voter fraud, votes percentages of the budget to coarse-grained causes. manipulation and denial of access that were rife in the Once the poll is completed, the allocation of funds to previous elections, are no longer an issue. the various causes is done, based on the desire of the membership. #9 Census Not all of the members voted, and the organisation Every 5 years, the national statistics bureau surveys the had some Decision Tokens left at the end of the vote. entire population residing in the country for important As the value of the HST increased since the time the statistical information that guides the government organisation acquired them, they can now be sold policies for the next five years. The requirements of the back to the market at a small profit - making the entire census call for a very short window of time when the process even cheaper than originally anticipated. residents are to complete the survey, and as a result - significant investment goes into purchasing or leasing equipment to be able to handle this load. Utilising #8 General Elections Horizon State’s platform, millions of survey answers can be cast in a very short time. Taking advantage of the The government of a small African country decides platform’s API and SDK, the census data relating to a to take advantage of the high penetration of mobile single person can make use of profile attributes already phones in their population and run the next general entered by the person. election on Horizon State’s platform. They white-label Copyright © 2017 Horizon State horizonstate.com 16

H O R I Z O N S T A T E - Democratic tools for the 21st Century Organisations & Institutions $ HST HST HST HST Via: Exchanges, Portal to decentralised exchanges Platform Token Holders Polling of constituents/users Price of HST set by free market. Token Use Additional future modules will drive platform usage even further. Crowdfunding functions, donations Horizon State will engage governments, large management, staff and volunteer management, corporations, blue-chip customers, local councils, events and campaigns management and actionable unions, education facilities and non-profit organisations intelligence platform are already in our roadmap to be to promote the use of the Decision Tokens. We will delivered in the near future. actively create products and services across the ecosystem that will require the use of HST, thus driving Mechanisms of Supply & Demand the token value and demand. The Decision Tokens (HST) are a finite resource - with the total amount of tokens ever in existence determined The cost of federal elections in Australia has risen during the ICO, up to a maximum of 1 Billion. to $227 million, or $15 per vote.21 Our analysis of the economic benefits expects Horizon State’s blockchain HST is used throughout the Horizon State ecosystem to solution to be 10-15 times cheaper per vote. purchase services, such as the casting of votes. As the breadth of services offered by the platform grows, and Horizon State’s low cost-per-vote will attract as the number and scale of users increases - so will the government departments and large corporates, enabling demand for the token. them to run very high number of votes. This will drive significant demand for the HST tokens which are From the ability to white label our app, to new module required to use the platform and commit constituent creation, the extensibility of the platform will enable votes to the blockchain. additional features and services over time - with HST being the core currency utilised. 21. (n.d.). Election could cost $227 million : Election Watch - Australia 2016. Retrieved September 3, 2017, from http://electionwatch.unimelb.edu.au/ australia-2016/articles/2016-federal-election-to-cost-$227-million Copyright © 2017 Horizon State horizonstate.com 17

H O R I Z O N S T A T E - Democratic tools for the 21st Century 5.0 Towards Brighter Horizons The internet heralded a new era of opportunity for the the best use of evolving democratic methods and evolution of our engagement, decision making and technologies for access. democratic tools and processes. Yet, with twenty years Horizon State’s vision is revolutionising methods for of internet technology iteration, a system for internet our democratic processes. This includes broadening based voting that is secure, engaging and cost-effective discussions, promoting engagement, widening access, has not been possible. improving efficiency, and reducing associated costs. Until now. In that light, we exist to devise and design opinion solicitation and voting mechanisms; authentication and Our technology has become the first to enable the eligibility systems; education mediums; and information recording of votes to a digital ballot box for a customer delivery systems - all inspired by the blockchain with a public and national membership. Distributed technology empowering them to be distributed, ledger technology now positions organisations and unforgeable, and incorruptible. governments to conduct decentralised voting processes that are not only more secure than prior internet voting solutions, paper ballots, and electronic voting machines, Real World Use: Our MVP but with vastly improved economic metrics. Achievements Blockchain plays a critical role in solving the problems On August 2016, Horizon State’s team commenced that exist with traditional systems: security, immediacy, development of the first commercial blockchain voting transparency, and cost. More than that, our technology product. shifts the constituent engagement paradigm, making Copyright © 2017 Horizon State horizonstate.com 18

H O R I Z O N S T A T E - Democratic tools for the 21st Century On February 10 2017, Horizon State technology was Different organisations will have different ways of publicly launched for Australia’s MiVote. Their national identifying their eligible voters. For votes which membership began participating in the decision making would relate to matters of national politics, users will process on matters that affect the nation. be checked against the Electoral Role. For private organisations, eligibility may be defined by the granting On March 2017, distributed ledger voting was enabled. of access to specific individuals or common domains. MiVote’s second and subsequent campaigns have seen constituent votes cast to the Ethereum public Casting Votes blockchain. The MiVote movement has now run 3 User votes are cast to the Ethereum public blockchain. blockchain-enabled nationally-inclusive polls. Fees are paid for the processing and verification of MiVote is currently expanding their movement and votes, which take the form of transactions. Each vote Pictured: Horizon State blockchain voting technology in use our platform into additional international territories, is sent with a relationship to a campaign ID, but without starting with the United States of America. MiVote is identifiable relationship to the voter. also currently involved in further discussions with 23 The system requires no knowledge or understanding countries, 7 parliaments, and numerous multinational of blockchain to participate. The fees are paid by charitable organisations. organisations and institutions who wish to facilitate Voter Access these activities, and end users interact using a mobile app - a product similar to experiences they are already The first release of our product was designed familiar with. Horizon State believes firmly that the specifically for MiVote’s needs. The user experience of successful blockchain applications will be the ones casting votes as it exists today for non-parliamentary that stand as valuable utilities that require the use of matters aims to achieve frictionless access and broad unforgeable ledgers. Users do not need to understand inclusivity. All Australian residents are permitted to the technical realities of the blockchain to use Horizon participate. Access to voting entails the sending of a State. They only need to trust in its promise. one-time access code to a unique Australian mobile number. Copyright © 2017 Horizon State horizonstate.com 19

H O R I Z O N S T A T E - Democratic tools for the 21st Century Strategic Focus • Providing secure, pluggable mechanisms for identification and authentication. While already in use, we consider our current offering to • The creation of an ecosystem of 3rd party provider be an MVP (Minimum Viable Product) only. As such, we plugins supporting social networks (e.g. Facebook), have a detailed plan of extending the product. Our vision commercial products (e.g. Dynamics CRM, is to create a platform that provides many functional Salesforce.com, and Power BI) and collaboration layers on top of the voting process itself. Our roadmap products (e.g. Yammer and Slack). includes elements such as campaign management, user engagement, deliberation facilitation and more. • The expansion of our engineering team and establishment of a global sales force and support Our strategic focus over the next 3 years include: hubs. • The continued building and commercialisation of a modular blockchain-based technology stack. The following dates indicate our aspiration to create a platform capable of delivering the functions mentioned • Developing platforms for engagement, deliberation, above. It is our intent to be able to recruit enough decisions. people to work on executing this plan together. • Research and Development of innovative platform extensions and functionality. Copyright © 2017 Horizon State horizonstate.com 20

H O R I Z O N S T A T E - Democratic tools for the 21st Century Roadmap The delivery timeframes below follow on from the current functionality Horizon State delivers. OCTOBER 2017 HST token to be listed on exchanges for free market trade. Q4 2017 Subsidiaries established at strategic international locations including the USA and Australia as well as international sales team expansion underway. Q2 2018 SDK and API released for customer use within their existing web and native application interfaces. Q1 2019 Release of suite of voting apps, bots and extensions for key messaging and communications tools. The suite will include integrations to products such as Yammer and Slack. Q3 2019 Release of a crowdfunding platform module which enables users within a customer system (such as political independents) to raise capital to achieve goals such as funding their campaigns. Q3 2020 AI systems for information gathering and research analysis released. This technology intends to automatically collate, cross- reference, and distribute peer reviewed content to constituents. Beyond collation, analysis and delivery, the intent of this AI is to assist in helping constituents consume the information that will be of most value to their decision making process, in formats that best suit them. Copyright © 2017 Horizon State horizonstate.com 21

H O R I Z O N S T A T E - Democratic tools for the 21st Century 6.0 Decision Token Sale Horizon State will be issuing an ERC20 token called a Decision Token (HST). In the first iteration, the Decision Token will be used by organisations and institutions to pay for the use of the product. In the future as the product suite of Horizon State is enhanced, additional token use cases will be added. ICO Configuration Public Token Sale Timeline Funding types accepted ETH 14 October 2017 Public token sale Maximum total token 1,000,000,000 HST deposit address made supply public only at https:// horizonstate.com Available to token sale 600,000,000 HST (60%) participants Horizon State 16 October 2017 400,000,000 HST (40%) allocation * Public token sale begins; day 1 token Funding Goal $30M USD bonus matches presale bonus Hard Cap 200,000 ETH Post ICO Final Token Structure 30 October 2017 Public token sale ends (if not exhausted Total Supply 48,240,070 HST earlier). Token contract will enforce Circulating Supply 30,862,962 HST no minting after the token sale ends. 100% bonus to AirDrop ICO participants Staff and advisor tokens will have vesting conditions spanning a two year period to Excess Tokens Frozen here ensure vision alignment. * (28% allocated for company reserves, 8% for staff, 2% for advisors and 2% for bounties) Copyright © 2017 Horizon State horizonstate.com 22

H O R I Z O N S T A T E - Democratic tools for the 21st Century Contribution Period Details A staggered allocation period will be run, with varying token allotment depending on entry phase: Token sale period HST token allocation per 1 ETH Presale (September) 3750 October 16 3500 There will be no minimum or October 17 – 23 3250 maximum ETH amounts set to October 24 – 30 3000 for token sale participants. Use of Token Sale Proceeds Contingency costs 5% Platform Development 55% Legal & Compliance 5% Sales & Marketing 15% Business Operations 20% Platform Development primarily focus on creating a content and distribution channel for Horizon State’s blockchain platform Platform development will include expanding the core offering. The marketing team is also tasked with public development team to deliver the product roadmap and and token holder relations delivering publicity activities, build the platform. advertising and customer interaction. Business Operations Legal & Compliance Business Operations will be focused on identifying It will be necessary to engage legal counsel in new and forming partnerships with new customers and jurisdictions to ascertain the laws and regulations leveraging existing partnerships with MiVote across the of each sovereign country to ensure the platform globe. In addition, the function will also ensure internal adheres to licensing requirements and remains in good administrative processes are executed with efficiency standing with regulatory bodies. and best practice. Sales & Marketing Contingency Costs Unforeseen business expenses and ad-hoc International B2B marketing, channel partner consultancy fees. management, sales, and regional growth. Marketing will Copyright © 2017 Horizon State horizonstate.com 23

H O R I Z O N S T A T E - Democratic tools for the 21st Century 7.0 Team Executive Team Jamie Skella Nimo Naamani Formerly Director of UX at Tatts Formerly Chief Technology Officer at Group and the Australian Football iPayroll. Entrepreneur and software League. Jamie devised and developer with 20 years of experience directed development of MiVote’s building products. blockchain voting MVP. linkedin.com/in/nimonaamani/ linkedin.com/in/jamieskella/ Dan Crane Jason Theron Formerly Chief Online Officer at Formerly Google Technical Analyst an Australian Stock Exchange for Fronde and Datacom consultant. top 100. Cryptoasset researcher, Distributed systems and cloud solutions investor and ICO advisor. specialist. linkedin.com/in/infoaddict/ linkedin.com/in/jason-theron-58381a5/ Daniel Vertes IPO engagement, accounting, and process optimisation expert. 10 years experience in the role of Chief Financial Officer. linkedin.com/in/daniel-vertes-20a28946/ Copyright © 2017 Horizon State horizonstate.com 24

H O R I Z O N S T A T E - Democratic tools for the 21st Century Board of Advisors Oren Alazraki Adam Grenier 20 years of leadership and Head of Marketing Innovation at Uber; executive experience in the IT formerly Head of Growth Marketing sector, including a number of at Uber. Startup advisor and growth General Management roles, most marketing consultant. Board of recently at Datacom - a company Directors at MiVote. with over 5,600 people and linkedin.com/in/akgrenier/ revenues of over $1.2 billion. linkedin.com/in/orenalazraki/ Daniel Gasteiger Dr Marta Poblet Blockchain advisor to the state of Associate Professor at RMIT. 40+ Zurich and United Nations. Founder scientific articles on topics including of companies in Zurich focused on digital democracy and crowdsourcing. blockchain business platforms and Co-founder, Institute of Law and eGovernance. A former Chief of Technology at the Autonomous Staff at UBS. University of Barcelona. linkedin.com/in/gasteiger/ linkedin.com/in/marta-poblet-a448055 Professor John Flood Dr Jane Thomason Professor of Law and Society. Formerly Senior Social Sector Specialist Inaugural Director of Law Futures at the Asian Development Bank in Centre at Griffith University. Manila, and Member of Devex Strategic Honorary Professor of Law at Impact Advisory Council. Blockchain- University College London. for-good hackathon judge and linkedin.com/in/john-flood-44b50a16/ commentator. linkedin.com/in/dr-jane-thomason-85997276/ Copyright © 2017 Horizon State horizonstate.com 25

H O R I Z O N S T A T E - Democratic tools for the 21st Century A historic change in our democratic processes awaits. Copyright © 2017 Horizon State horizonstate.com 26