STK tokens - Cryptocurrency For Instant Global Payments on Ethereum Blockchain
On November 13, 2017 STK (“STK Global Payments”) will conduct a Token Generation Event (TGE) and will
make the STK token available for purchase on the STK token sale site (www.stktoken.com). The STK token
will enable real time point of sale (POS) transactions directly from users’ private cryptocurrency wallets.
We predict the ability to make purchases in-store and online using cryptocurrencies will speed up mass
adoption of the technology. The STK token is part of a global solution to facilitate borderless transactions.
To make instant payments at point of sale from a blockchain wallet requires we do a real-time exchange
of cryptocurrency into fiat. The STK token provides access to our state channels which a) ensure there
is sufficient cryptocurrency (i.e. Bitcoin, Ether) in the digital wallet and b) users spending fiat at point of
sale will complete the purchase from their cryptocurrency assets. STK automatically opens a state channel
between each user and STK’s own wallet. STK tokens fund the transaction, much like gas funds Ethereum
transactions. The first implementation will be with STACK’s digital wallet. STK tokens will be implemented
on the public Ethereum blockchain and adhere to the ERC20 protocol.
STK Global Payment’s vision is to create a globally accessible alternative to traditional banking, allowing
you to store your money safely, access it instantly and transact with it anywhere, in any currency including
crypto by using the STK token, right from your smartphone, using the STACK app. Creating a digital wallet
as a companion to a traditional card solution, the STACK app enables you to use any of your currencies at
point of sale, anywhere in the world.
CURRENT LIMITATIONS OF BLOCKCHAIN SETTLEMENT
Because very few merchants accept cryptocurrencies at point of sale or online, consumers must exchange
cryptocurrencies into their local currency to make everyday purchases. Through any existing exchanges this
can be time consuming, and comes with sizeable fees. Though some companies have made products that
enable retailers to accept Bitcoin payments, they are currently available at only a tiny number of locations.
Our goal is for this exchange to occur in real time, anywhere credit cards are accepted, and with fees
comparable to transaction costs on Ethereum. At present, the confirmation time for Bitcoin transactions
averages 10 minutes2, far too long for point of sale purchases. Ethereum transactions are faster, at an
average time of 24 seconds, but even this is too slow for point of sale.3 Furthermore, neither the merchant
nor the local currency provider are willing to wait the required amount of time for the transaction to be
confirmed on the blockchain, which is critical to protecting both parties against fraud.
STK SOLUTION: STK STATE CHANNEL AND STK TOKEN
There is a two-pronged problem that the STK solution will solve:
1) A lack of merchant acceptance of cryptocurrency.
STACK has partnered with an existing payment network that will allow the cryptocurrency
wallet to be used at 39 million merchant locations.4
2) Payments at point-of-sale must complete in near-instant time.
Rather than writing each payment transaction to the blockchain, STACK, will create State
Channels between the customer and STACK. These channels are an established way to provide
real time transaction guarantees on the blockchain. Once this is done, customers’ transactions
will be funded through STK’s liquidity pool to make point of sale purchases instantly.
To use this system, the user is required to hold a STK token which grant access to the STK State Channel and
will be limited to those who have STK tokens.
STK IS A SOLUTION THAT CAN BE IMPLEMENTED GLOBALLY,
WITH THE FIRST IMPLEMENTATION OCCURRING WITH STACK
In order for users of the STACK wallet to transact in real-time, the STK solution will be integrated into the
STACK digital multi-currency wallet. This functionality can only be accessed with a STK token. The STK token
will be used to pay for the operating cost of setting up the State Channel. Because STK tokens can change
in value, the price per transaction is calculated similarly to how gas prices are on Ethereum.
State Channels are a technique for making off-chain transactions with the same security guarantees as an onchain
operation. State Channels allow us to conduct blockchain interactions as if they were being conducted
on-chain, but require only that two or more users exchange information with each other5. Participants in a
State Channel may exchange a large number of transactions between one another instantaneously, requiring
an on-chain operation only when the channel is closed. State Channels provide the speed required for
STACK’s point-of-sale purchase mechanism: at the moment of purchase, the user sends STK tokens to
STACK in exchange for STACK using their liquidity pool to make a fiat purchase through the global payment
network. This is a cost effective approach to enabling transactions.
HOW DOES THIS WORK IN PRACTICE?
1. Creating a State Channel:
The user loads their STK token into the STACK mobile wallet, which authorizes the creation of a State
Channel with the STK platform. Both the user’s device and STACK keep a local copy of the current state
of the channel. Creation of a state channel requires an on-chain operation.
2. Conducting Transactions and State Changes:
When the user initiates a point of sale transaction using STACK, they receive a visual prompt in the STACK
wallet showing the value of the transaction, similar to using traditional tap-to-pay mobile applications.
Behind the scenes, the user authorizes a transaction to send the equivalent cryptocurrency to the STK
Almost immediately, the STK platform receives the signed transaction, counter-signs and stores a copy
of that new state off-chain. STK then authorizes its local currency account to pay the requested purchase
through its global payment network rails on behalf of the user. Because the transaction occurs off-chain,
there is virtually no delay except for a small amount of computation time and network latency.
3. Keeping Funds Ready:
So long as the State Channel is open, there are no fees for conducting any number of transactions
between the user and STK. Moreover, there is no fee for keeping the channel open.
4. Withdrawing Funds:
If the user wants to retrieve all or part of their STK token in the channel that has not been sent to STK, they
can do so by withdrawing their funds. The user signs and publishes a withdrawal request, which requires
an on-chain operation. It is possible to make partial withdrawals, so the user is always secure in being able
retrieve his or her ether while still keeping the channel open for future transactions with the STK network.
To close a State Channel, one of the parties signs and publishes a close request to the State Channel. This
initiates a period during which either party can submit their most recent transactions, which determines
the final state of the state channel.
WHAT IS STACK?
STACK is an alternative to traditional banking with a better way
to spend, save and share your money, fee-free and straight from
your mobile. Our app provides its members with smart solutions to
personal finance, with features like real time notifications, effortless
savings, financial IQ and mobile tap-to-pay functionality. STACK
is creating a community of users who celebrate the moments that
matter most by sharing stories of transactions on the STACK World
Stream. The STACK wallet is a working product that currently is in
private beta with a waiting list of 20,000 people.
STACK accesses a global payment network that enables worldwide
acceptance of the STACK wallet around the world. The STACK
wallet is a container for 10 sub-accounts that can hold up to 10
distinct currencies – both local currency and crypto.
Unlike other crypto payment solutions, STACK also provides alternative financial services in local currencies.
Our digital local currency account is a gateway to widespread cryptocurrency adoption, pairing it with
access to mainstream financial services and smart new features on a simple, user-friendly platform. Currently
STACK is in beta, and mobile tap-to-pay functionality is already built in.
TOKEN GENERATION EVENT
STK tokens will be available for purchase on the STK token sale site (www.stktoken.com) commencing
November 13, 2017 at 17:00:00 Coordinated Universal Time (UTC). The cost per STK token is $0.16 USD.
STK tokens for sale represent 55% of all STK tokens. A maximum of 310,345 ETH and a minimum of 3,600
ETH will be accepted for the sale of STK tokens. STK tokens are not available for purchase for residents of
United States of America or Canada
In order to further develop and promote the STK platform, STK will conduct a token generation event
that will offer for sale 550,000,000 STK tokens out of a 1 billion total supply. The proceeds of the TGE will
be used for marketing, solution development (both iOS and Android), integration of STK with STACK and
the operation of crypto to local currency exchange. The remaining will be reserved for the liquidity pool,
bounty programs and referrals. Any unsold tokens will be burned.
STACK MONEY SERVICES
STACK is a revolutionary new approach to personal finance, providing a fee-free alternative to traditional
banking with a globally accessible platform to spend, save and share your money, in any currency, at any
time and straight from your mobile. STACK is creating a community of users who celebrate moments that
matter by sharing stories and providing personalized solutions to reach financial goals faster than ever
before. Our digital fiat account provides a gateway to widespread cryptocurrency adoption by pairing it
with access to mainstream financial services and smart new features on a simple, user-friendly platform.
The current financial technology (FinTech) ecosystem is fragmented with different companies in isolated
segments, providing singular solutions (i.e. lending marketplace, alternative finance, payments & international
remittances and P2P money movement, and blockchain). STACK’s goal is to be a full-service personal
finance solution. In addition to the cryptocurrency wallet, STACK creates a positive, sustainable relationship
between users and their money, without the stress associated with most financial products or transactions.
STACK offers its members fee-free, digital money services including:
• Real time conversion from crypto to local fiat currency at point-of-sale
• Tap-to-pay functionality on the STACK mobile app and on participating 3rd party mobile wallets
• Multi-currency wallet (crypto and fiat currencies)
• Chip-and-PIN EMV card
• Social sharing to celebrate moments that matter on the STACK World Stream
• The ability to withdraw cash from any ATM
• Tips, tools and tailored advice to reach your financial goals, faster
Each STACK account includes a STACK card – a prepaid card – which complements the STACK digital
wallet. STACK payment facilities which include the physical and virtual prepaid card can be used in almost
200 countries at over 39 million points of acceptance today. This is possible through our card issuance
partnerships with global payment networks. Moreover, users and businesses can exchange their blockchain
assets seamlessly from one user to another, with transparency that is currently lacking in a centralized
Data will be used to provide personalized recommendations, simple ways to save, relevant offers and
STACK UP Savings
• Create savings goals as broad or as specific as you like.
• Automated round-ups help you save a little or a lot.
• Categorize your goals to receive relevant offers and rewards based on what you’re saving towards.
• Being smart with your money means you’ll have more of it to spend on the things that matter.
STACK gives you personalized tools to help you reach your goals faster.
Spend Trends keeps you on track, providing insight into your spending and saving goals (i.e.
the categories where you are overspending). STACK will be able to index your spending
against similar peer sets and cohorts so that you’ll know exactly how well you are stacking up
against others in your same financial situation.
Receive offers and rewards that are tailored just for you.
Categorized spending helps you see where your money goes.
STACK uses industry-leading safeguards to protect your money, data and privacy, so accounts are secure
• Chip and Pin EMV Cards
• Transition Notifications
• In-app card freeze, pin resets
STACK has built in KYC, AML and fraud monitoring processes.
• Onboarding process utilizes waterfall methodology to verify the user using Trulioo’s
• AML Watchlist to comply with domestic and global Anti-Money Laundering (AML), Counter
Terrorist Finance (CTF), and sanctions enforcement regulations.