Whitepaper v1.0

    January 2023


    Universal Fungible Token (Symbol: UNFT), is the native token in a Cosmos Application-specific Blockchain. Its abundant utilities are reflected in the UNFT ecosystem.  
    UNFT ecosystem, a digital currency ecosystem based on blockchain technology, aims to achieve mutually beneficial and reciprocal sharing and cooperation between countries and regions.
    We provide innovative digital currency financial services by creating a global digital currency payment and settlement system and network, effectively accomplish the interoperability among digital currencies, and between digital currencies and fiat money, thus explore the possibilities and utilities of digital currency functioning as a valuable financial tool in the market. 
    We are committed to improving the stability, efficiency and convenience of the financial systems in the globe especially in the countries with severe exchange rate volatility, through UNFT ecosystem we build and promote, to accelerate the development of the digital economy. 


    The risk of currency exchange rate distortion encountered in international trade is particularly prominent in a large number of countries. The currency exchange rates are often greatly affected by political and economic factors, resulting in sharp exchange rate fluctuations, which brings tremendous risks to importers, exporters and investors.
    For a long time the U.S. dollar has been one of the dominant reserve currency, and about half of international trade is invoiced in dollars, and about half of all international loans and global debt securities are denominated in dollars [1]. However, many countries do not have sufficient U.S. dollars reserves. Thus they often face threat of foreign debt crisis and inflation. These problems will further exacerbate the risk of instability and distortion of their national currency exchange rates.  
    Due to aforementioned factors, the countries will face great difficulties in international trade. And in plenty of cases, those countries are often forced to take measures to devalue their currencies to maintain trade balance. In general, a weaker currency makes imports more expensive, while stimulating exports by making them cheaper for overseas customers to buy. A weak or strong currency can contribute to a nation's trade deficit or trade surplus over time [2]. 
    The risk of exchange rate distortion and insufficient U.S. dollars reserves are two of the most common and biggest problems encountered in a lot of countries in international trade. These problems not only affect importers, exporters and investors, but also have a huge impact on the economic and social development of the countries. 


    We establish the UNFT ecosystem, a digital currency ecosystem based on blockchain, via a variety of product and services provision. 
    We mint stablecoin for countries that are backed 1:1 by their fiat currencies. The stablecoins can not only overcome the currency exchange rate fluctuations and the shortage of U.S. dollars reserves in the country, but also improve the liquidity of the financial system.  
    The stablecoins minted can be traded via a Decentralized Exchange (DEX) built by us for other stablecoins and mainstream digital currencies. 
    We will also develop a digital currency payment gateway, which enable payment with mainstream digital currencies including the stablecoins we mint, and it will facilitate the digital currency payment as an important payment tool in various fields, such as in international trade, for global settlements, financing, and so on and so forth.  
    All of these products and services will be developed on an application-specific blockchain we create and launch on Cosmos blockchain which enable us to better manage and supervise the entire system. 
    UNFT is the native token of the application-specific blockchain, which will become the fundamental digital currency in the entire UNFT ecosystem.


    Stablecoins are cryptocurrency whose value is pegged to another asset, to maintain a stable value in the ultra-volatile world of crypto. Stablecoins pursue price stability by maintaining reserve assets as collateral or through algorithmic formulas that are supposed to control supply [3].
    • Collateralized stablecoins, usually are backed by fiat money[1], cryptocurrencies, or commodities, using certain assets as collateral, such as Bitcoin-collateralized stablecoin DAI, which supports the mint of DAI by using Bitcoin as collateral. The collateral remains in reserve with a central issuer or financial institution, and must remain proportionate to the number of stablecoins in circulation [4]. When assets are deposited or withdrawn from reserves, collateralized stablecoins are minted or burned.  
    • Algorithmic stablecoins are pegged to the value systems of other assets via smart contracts that increase or decrease supply based on current market values. When an algorithmic stablecoin trades above its peg, coins are minted, lowering its value; when it trades less than its peg, coins are burned, raising the price [5].
    The most important factor to consider when assessing stablecoins is how well they keep their pegs. To respond to changes in supply and demand, collateralized stablecoins involve liquid assets that can be traded quickly. Algorithmic stablecoins never use collateral, rather depend on smart contracts to provide theoretically infinite liquidity [5].
    The stablecoin we mint in each country is a collateralized stablecoin, which is backed 1:1 by the fiat money in the country. Fiat collateral remains in reserve with a custody bank account in a local financial institution, and remains proportionate to the number of stablecoins in circulation. Specifically, its mint is to control the supply of stablecoins through the fund in and fund out of fiat money in the bank account. When the fiat money deposits in the bank account increase, the exact same amount of stablecoins will be minted, and when the amount of fiat money decreases, the stablecoins will be burned proportionally.
    [1] https://en.wikipedia.org/wiki/Fiat_money


    In order to comply with regulatory requirements, we open offshore accounts in banks in local countries, cooperating with local banks or financial institutions to be able to cash in and cash out. In this way, the connection between stablecoins minted and the fiat money system off-chain can be achieved.
    In international trade, stablecoins can be a key to the exchange rate distortion. Moreover, as the value of stablecoins is pegged to the fiat money, adopting it as a currency for international trade is particularly trustworthy.  
    In addition, the use of stablecoins can also solve the problem of insufficient U.S. dollars reserves. In the countries where international trade is constrained by the lack of U.S. dollars reserves, the wide use of stablecoins can alleviate the problem. 


    Application-specific blockchain[2] instead of public blockchain is adopted to establish the UNFT ecosystem:
    • First of all, the application-specific blockchain provides higher transaction throughput and faster transaction in speed, making transactions more prompt and efficient.
    • Secondly, the application-specific blockchain can better customize to the needs of certain industries, such as the complexity and customization needs of smart contracts. 
    • Finally, application-specific blockchain can provide better privacy protection and data security. 
    UNFT ecosystem is built and launched on the Cosmos blockchain[3]:
    • First, Cosmos is an open source blockchain network, with its built-in composability, interconnected blockchains, and the ability for developers to maintain sovereignty over their blockchain, it provides a cross-chain interoperability capability, which is very important for our application-specific blockchain, because it enables our application-specific blockchain to interact with other blockchains, thereby improving its value.  
    • Second, modular nature of the Cosmos SDK, provides a wealth of modules and tools that can help us quickly build and deploy our application-specific blockchain, and its expanding modules make it increasingly easier to develop complex blockchain applications.  
    • Third, Cosmos has a strong community that provides a great deal of technical support and assistance, which can help us solve possible problems encountered in the process of launching application-specific blockchain. 
    • Fourth, Cosmos adopts the BFT consensus algorithm, which can provide high security and stability, and ensure the data security of our application-specific blockchain.
    To conclude, Cosmos provides the characteristics of cross-chain interoperability, high modularity, strong community and high security, which can help us create, launch and operate our application-specific blockchain smoothly.
    [2] https://www.alchemy.com/overviews/what-is-an-appchain
    [3] https://v1.cosmos.network/intro


    We will build a decentralized exchange (DEX) similar to Uniswap on the application-specific blockchain. The DEX provides services of exchanging among digital currencies. The availability of the exchange service is because the Cosmos blockchain provides a cross-chain interactive ecosystem, which can easily connect different blockchain networks and realize cross-chain assets exchange. 
    The DEX will adopt an automated market maker, enabling users exchange cryptocurrencies including stablecoins minted, by connecting users directly without an intermediary. Simply put, automated market makers are autonomous trading mechanisms that eliminate the need for centralized exchanges and related market-making techniques. We will also implement direct wallet-to-wallet transactions on our DEX, removing middlemen and reducing transaction costs.  
    The DEX will implement smart contracts to ensure the security and fairness of transactions. These smart contracts will only be executed after the parties of the transaction reach an agreement to ensure the fairness of the transaction.
    Liquidity mining as an incentive strategy will be used. The liquidity providers can obtain steady stream of rewards on our DEX, thereby improving the liquidity of DEX.
    The DEX will be an efficient, trusted and reliable decentralized exchange that can realize the exchange between stablecoins we mint and other digital currencies.


    The key service in the UNFT ecosystem, is the digital currency payment gateway. The digital currency payment gateway is to handle and facilitate the processing and receipt of digital currency payments for merchants. Customers pay in digital currency, in return, businesses receive fiat currencies in their bank accounts. Therefore, companies can offer alternative payment options to customers, eliminating uncertainties concerning digital currency. 
    The gateway supports the payment of multiple digital currencies, and supports cryptocurrency-fiat settlement and meets financial regulatory and cross-border payment compliance requirements. 
    The digital currency payment gateway supports both online payment and offline payment. The online payment interface includes Web payment of decentralized wallets and centralized wallets, and mobile payment of centralized wallets. The offline payment interface supports in-store payment. 


    In the UNFT ecosystem, two types of tokens will be minted.


    UNFT is the native token of our application-specific blockchain, which means it is the foundational digital currency in our application-specific blockchain. UNFT will be used for transactions, payments, collateral, and consensus via the application-specific blockchain.
    Cosmos Hub[4] is one of the interconnected blockchains that comprise Cosmos Network. The connection between blockchains is achieved through Inter-Blockchain Communication protocol, which enables our application-specific blockchain to interact with the Cosmos Hub in a decentralized manner, thus allowing our native token UNFT to circulate on the Cosmos Hub.  
    The supply of UNFT includes the following aspects:
    • Token supply, in total we mint 1’000’000’000 (1 Billion) UNFT Tokens. This amount is fixed and will not be restocked. 
    • Token allocation, 20% for private placement, 30% for public offering, 20% for the team and advisors, 10% for marketing, and 20% for node machine incentives.
    • Token lockup, tokens obtained from private placement and public offering will be unlocked in a short period of time. Tokens obtained by the team and advisors will be unlocked within 2 years. Tokens from marketing will be unlocked within 3 years, and from node machine incentives will be unlocked at a rate of 5% per year.
    Inflation rate, the inflation rate will be kept within 3%, achieved by constantly adjusting the distribution speed of node machine incentives.
    [4] https://hub.cosmos.network/main/hub-overview/overview.html


    Collateralized stablecoins will be minted for the countries. The stablecoins minted is backed 1:1 by the fiat money in the custody bank account in the local bank in the country.
    When a customer deposits money into the custody bank account, a corresponding amount of stablecoins will be minted and distributed to the customer. When a customer withdraws money from the custody bank account, the corresponding amount of stablecoins will be burnt. It makes sure that the number of stablecoins in circulation is always consistent with the amount of funds in the custody bank account, thereby ensuring the stability of the stablecoins. 
    Regular stablecoins audit reports will be conducted to ensure the credibility of stablecoins. The reports will include information such as the number of stablecoins minted and burnt, and the balance of funds in the custody bank account. All audit reports should made available to the public in a timely manner for absolute and complete transparency. 


    Token utilities


    Stablecoins of the countries

    Native token UNFT

    Gas fee

    Transaction costs certain fees




    Tokens can be used to pay for goods and services



    Airdrop Rewards

    Tokens can be used as incentives to encourage customers to participate or contribute




    Token holders can participate in community voting and contribute to decision-making of the development of the project



    Dividend right

    Tokens can be used as a proceeds distribution tool, and holders can get their fair share of profit




    Tokens can be locked up for rewards




    Token holders can earn more tokens incentives by exchanging them for other tokens or currencies




    Motivate participants and distributors to increase sales and brand awareness of the project



    Liquidity mining

    Provide liquidity on DEX for mining rewards




    Become a node in the network by locking up tokens, this mechanism can maintain the security and stability of the network



    Project financing

    Can be used as a financing tool to help businesses obtain capital






    January 2023

    White paper completed

    March 2023

    Private placement

    April 2023

    Demo completed

    May 2023

    Launch of the application-specific blockchain

    June 2023

    Stablecoins minted, and DEX and digital currency payment gateway in Beta stage

    July 2023

    DEX platform and digital currency payment gateway officially launch

    August 2023

    Public offering

    Q4 2023

    Implementation in international trading business


    The legal and regulatory compliance is ensured.


    We, as the stablecoins issuer, open offshore accounts with local banks in the countries.
    First, according to relevant laws and regulations, the issuer needs to undergo strict identity verification and authentication before opening an offshore account. 
    Second, after opening an offshore account, the issuer will regularly report its account status and transaction history to the regulator.
    In addition, the issuer shall strictly abide by the relevant regulations on anti-money laundering and anti-terrorist financing, and strictly review and report any suspicious behaviors and transactions.
    We make sure that our operations comply with the requirements of relevant laws and regulations. We establish a good cooperative relationship with local regulators and ensure that our operations comply with relevant provisions of anti-money laundering and anti-terrorist financing. We also regularly submit our account details and transaction history to regulators.


    Digital currency business will not be carried out in the local country. 
    All digital currency business is processed in the offshore account opened locally. It is a compliant but highly effective approach.


    Funds details of the offshore accounts will be disclosed in the stablecoins report, which can guarantee to the greatest extent of the transparency and credibility of the stablecoins: 
    • First of all, the report of offshore accounts can prove the accuracy and authenticity of the stablecoins backed by substantial assets.
    • Secondly, the report of the offshore account is a proof of the tax compliance of the stablecoins, ensuring that the stablecoins complies with the local tax regulations.
    • Finally, the report of the offshore account ensures that the financial status of the stablecoins conforms to international universal standards.
    To conclude, disclosure of the offshore accounts details can ensure that our stablecoins have a high degree of transparency and credibility, conforms to international standards, and comply with local regulatory requirements.


    The issuer manages client’s funds through custody offshore accounts:
    • First of all, issuers will comply with the relevant regulations of local regulators when using offshore accounts.
    • Secondly, issuers ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations when managing client funds through offshore accounts.
    • Finally, issuers ensure compliance with local financial reporting and audit regulations when managing client funds through offshore accounts.


    With the innovative product design, and the trusted and reliable product and services development and launched on the blockchain, we believe that UNFT ecosystem will help improve the efficiency and convenience of the financial system for the countries confronting economic development difficulties. 


    [1]  Congressional Research Service (2022). “The U.S. Dollar as the World’s Dominant Reserve Currency”. Retrieved from​ https://crsreports. congress.gov/product/pdf/IF/IF11707
    [2]  TROY SEGAL (2021). “Currency Fluctuations: How They Affect the Economy”.  Retrieved from https://www.investopedia.com/articles/forex/080613/effects-currency-fluctuations-economy.asp
    [3]  Elliott Davis.“STABLECOINS: FIAT-BACKED vs CRYPTO COLLATERALIZED ALGORITHMIC. Retrieved from https://www.elliottdavis.com/stablecoins-fiat-backed-vs-crypto-collateralized-vs-algorithmic/
    [4]  Cryptopedia Staff (2022). “What Are Stablecoins?”. Retrieved from https://www.gemini.com/cryptopedia/what-are-stablecoins-how-do-they-work
    [5]  LCX Team (2022). “Collateralized vs Algorithmic Stablecoins: How do they differ?. Retrieved from https://www.lcx.com/collateralized-vs-algorithmic-stablecoins-how-do-they-differ/