The $AUDIT token is now live! We are grateful to everyone who supported us, whether through participation in liquidity bootstrapping or by helping to spread the word.

We aim to provide clarity on the utilities and features of $AUDIT, ensuring the information is comprehensive and digestible.

In general, tokens in the Web3 ecosystem serve various purposes. For $AUDIT, the broad definition of a "utility and governance token" aligns well with our vision.

While we outlined the token utilities in our lite paper, let’s dig deeper into each aspect.

Client Loyalty

AuditOne has improved our reward user loyalty program. The result is a token-locking mechanism for clients on our platform, enabling them to participate in governance and receive rewards or discounts.

These amounts may adjust based on token price fluctuations in secondary markets. Initially, 10% of the locked amount is allocated to the DAO treasury to further support the ecosystem.

$AUDIT holders can receive a discount on our services. The discount is calculated based on the amount locked. Users can receive a 1% discount by locking a minimum of 4,000 AUDIT while locking up to 100,000 AUDIT can earn them a 25% discount.

If tokens are unlocked before the 365-day lock period (e.g., due to liquidity needs), 50% will be returned to the auditor or client, and the remaining 50% will be burned. 

Locked Amount Discount:

Earn a discount by using AUDIT tokens for the services below:

• Smart Contract Audit
• Bug Bounty
• AI Systems Audit
• KYC Verification
• Penetration Testing
• Trust Layer Integration
• 360 Degree Audit

Step-by-Step Guide: How to Lock AUDIT Tokens
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Step 1: Get AUDIT Tokens

• Purchase AUDIT Tokens: You need to acquire AUDIT tokens. You can buy them here.

Step 2: Lock AUDIT Tokens

1. Visit the Website: Go to Audit One Services.
2. Select Lock AUDIT Token: Navigate to the option for locking AUDIT tokens.
3. Role Selection: Choose Client as your role.
4. Connect Your Wallet: Ensure your wallet is connected to the platform.
5. Lock Action: Select the option to lock your tokens.
6. Minimum Lock Amount: The minimum lock amount is 4000 AUDIT tokens.
7. Submit and Confirm Transaction: Review the details and confirm your transaction. Once submitted, your tokens will be locked.

Step 3: Check Status of Locked Tokens

1. Role Selection: Select Client as your role again.
2. Connect Wallet: Make sure your wallet is connected.
3. Action - Check Status: Select the option to check the status of your locked tokens.
4. View Status: Your status will be displayed, including:some text
   • Staked amount
   • Discount rate
   • Date locked since

Step 4: Unlock Tokens

1. Action - Unlock: Select the option to unlock your tokens.
2. Normal Withdrawal:

• You can withdraw your tokens without any penalties if the lock period has been completed.
• Full Funds Returned: All locked funds will be returned to your wallet.

3. Emergency Withdrawal:some text
   • If you're withdrawing before the lock period ends, this will be considered an emergency withdrawal.
   • A 50% penalty will be applied to the withdrawal.
4. Execute Withdrawal: Confirm and complete the withdrawal process.

Governance

Traditionally, decision-making at AuditOne has been centralized and top-down. However, as a community-driven platform with hundreds of auditors, progressive decentralization is logical. Initially, the token was distributed within our community (holders of White Hat Harry) to ensure aligned incentives before trading commenced on the Decentralized Exchange MagicSea.

We plan to transition to a more decentralized governance model, allowing the community to vote on auditor committees and auditing rules. We will also introduce a DAO community treasury, enabling community members to draft proposals and vote on fund allocation.

Community Treasury: The DAO treasury will support early-stage projects needing audit funds. In return, the DAO will receive token allocations from these projects. This approach provides financial benefits while supporting project deployments. The treasury funds will be allocated based on community votes, ensuring that projects with high potential and community support receive necessary audits.

Regarding the funding of the DAO treasury, it has received a token allocation from the initial mint and receives 10% of the funds sent by auditors and clients to the locking smart contract of the loyalty program.

Voting Mechanisms: The governance model will implement a proposal and voting system. Community members can submit proposals related to audit guidelines, platform improvements, or treasury fund allocations. Each $AUDIT token represents a vote, empowering token holders to influence decisions directly. This decentralized approach fosters greater transparency and community engagement, aligning with our vision of a community-driven platform.

Coverage Pools by Subsidiary Insura

Web3 insurance protocols, like Nexus Mutual, face the challenge of addressing severe exploit risks, which can result in significant financial losses. Effective risk assessment and premium calculation are crucial. Nexus Mutual has pioneered a community-driven insurance model where members share the risk, and the community assesses claims. This model leverages members' collective expertise and stake to ensure accurate risk evaluation and fair claims processing.

We believe auditors are best positioned to evaluate technical risks, creating a direct link between audits and post-deployment coverage. Insura Limited, a subsidiary of AuditOne, will develop risk coverage pools for projects that have undergone multiple audits (including at least one from a recognized audit firm). The $AUDIT token will play a central role in these coverage pools, functioning as a fee and payout instrument similar to the NXM Token at Nexus Mutual.

Coverage Mechanism: The coverage pools will operate by allowing projects to lock $AUDIT tokens as collateral for insurance coverage. The premium rates and coverage limits will be determined based on the project's audit history and risk profile. In case of an exploit, the coverage pool will compensate the affected project using the locked $AUDIT tokens. This system ensures that only thoroughly audited projects receive coverage, minimizing the risk for insurers.

Risk Mitigation: To mitigate early-stage risks, we will implement relative and absolute coverage limits. This means that coverage amounts will be capped based on the project's size and risk assessment. Additionally, the community will participate in evaluating and approving coverage applications, ensuring a democratic and transparent process.

Access to SaaS Tooling & Investment Research

AuditOne has not only onboarded security experts but also tokenomics experts and investment analysts. For over six months, we have been assembling investment research pools based on requests from venture capital firms. This research is published on CoinIntel.xyz a few weeks after being handed over to VC firms to prevent investment connections. Access to this research will be exclusive to $AUDIT token holders.

Additionally, we are developing SaaS tooling with an AI component to assist auditors and projects. Our in-house trained smart contract audit assistant, currently in the Alpha stage, can identify previously discovered issues in the smart contracts with around 50% accuracy and we aim to improve this to 70-80% in the coming months, enhancing the efficiency of human auditors without replacing them.

Participation in Equity Fundraising Rounds

Our partner, Tokenize.it, specializes in tokenizing equity shares of companies in Germany. We will allow $AUDIT holders (minimum amount to be defined) to be whitelisted for future equity fundraising rounds among VCs. Our community will be informed in advance about upcoming fundraising rounds, fostering deeper connections and engagement with the platform’s future endeavors.

We hope this detailed breakdown provides a clear understanding of the utilities and features of the $AUDIT token. Thank you for your continued support and commitment to our vision.