White Paper

Executive Summary

JOULE is the world’s platform for decentralized Global Popularity Index built on blockchain. In science, Joule (“J”) is a measurement unit of heat energy. Here, as a metaphor for the heat energy, Joule is the measurement unit of the popularity of an item (e.g. a political leader) or how hot it is. Joule is also the crypto-currency (token symbol: JUL) on the platform. On a scale of 0J to 100J, the popularity index of an item is tracked by the latest market price on a unique Joule exchange. Users place orders on the exchange to take Long or Short positions on an item based on their observation of the world, their own views and trading strategies. The trading is a zero-sum game. If the market price goes up, Long positions gain and Short positions lose. Conversely, if the market price goes down, Long positions lose and Short positions gain. The system will automatically match orders and reflect the gains and losses of all users every day. Each user keeps a portfolio of such net positions and an account balance of Joule tokens. In essence, through the price discovery mechanism of the Joule exchange, global users collectively determine the popularity index, which reflects the fair value of the public figures.

Besides making gains by trading wisely, another way to earn more Joule tokens is by referral. Users can receive a recurring reward by promoting the platform and taking up a few responsibilities. Each trade incurs a small transaction fee on both the Long and Short sides. Through the Referrer Commission scheme, a referrer can earn part of the transaction fees contributed by their referrals every month.

In a nutshell, the value propositions of the Joule platform are: To empower People’s Voice and be a trusted source of Global Popularity Index; To empower people to earn an extra income in crypto-currency. Participation is simple; just “follow the news, feel the heat, trade your views and teach your friends.”

Introduction - What is Joule?

JOULE is a decentralized platform built on the EOS blockchain to determine real-time Global Popularity Index. In science, Joule (“J”) is a measurement unit of energy. On the platform, Joule is the measurement unit of the popularity of an item (e.g. a political leader). For simplicity, the popularity index of any item (tracked by the latest market price) is on a scale of 0J to 100J with a price interval of 0.1J. For example, an item “President A” with market price 55J is more popular than another item “President B” with market price 45J. Through the price discovery mechanism of the Joule exchange, market forces of all users collectively determine the popularity index, reflecting a fair evaluation of public figures. Joule (token symbol: JUL) is also the crypto-currency in the ecosystem.

Value Propositions of Joule app

To Users: The Joule platform is a way to engage with the world on global issues of common interest. It also provides opportunities to gain crypto-currency.

To mass media: Political figures are selected by their own countrymen, but their actions often influence the whole world. Mainstream media usually only track their own local citizens’ views. Joule fills this gap by providing a channel of global opinions in real time.

What are Long and Short positions?

Rational participants in a market always try to maximize their value. On the Joule exchange, users take a Long or Short position on an item based on the news, their observation of the world, their own views and trading strategies.

A basic trading principle is: If you think the market price of an item is undervalued, you should go Long; if you think it is overvalued, you should go Short. If it turns out you are correct, you have beaten the market and made gains. In other words, if market price goes up, Long positions will gain and Short positions will lose. Conversely, if market price goes down, Long positions will lose and Short positions will gain. While individual users take net positions and make gains or losses, Long-and-Short is a zero-sum game in the whole market.

Example: If the market price of an item goes up by 1.0J from 50.0J to 51.0J, then: - (A) a net Long position of Quantity 10 gains (1.0J)*10 = 10J (B) a net Short position of Quantity 2 gains (-1.0J)*2 = -2J [i.e. a loss] Collectively, the total gains and losses in the whole market balance out between the Long and Short sides.

How are gains and losses settled?

Long and Short transactions by a user on the same item can offset each other to result in a net position. A net position remains in effect until it is closed out by an opposite transaction. Each user account has a portfolio of net Long or net Short positions on various items and an account balance of Joule tokens. The system will automatically calculate the gains or losses based on updated market prices and reflect them in Available balance of each account every day-close in a process called marked-to-market.

Account Structure

Each Joule account has a portfolio of net (Long or Short) positions on various items and an account balance with this breakdown:

  • Available: tokens freely usable and movable
  • On-Orders: tokens temporarily on hold for open orders in queue
  • Margins: tokens locked-up for net positions (margin = 5J per unit)
  • Total balance: sum of the above

The Joule app is built on the EOS blockchain. Each Joule account is associated with an EOS wallet to sign transactions and transfer funds. Within the “Account” page of the app, user can “Deposit” and “Withdraw” Joule tokens between the Joule account and EOS wallet. With the EOS wallet, user can transfer funds in Joule, EOS or other compatible tokens with other EOS wallets, such as their friends’. As always, users need to save and take full responsibility of their EOS private key carefully.

Margin Requirement

Each net position requires an amount of tokens to be locked up for risk management. Currently, the margin requirement is 5 Joule tokens per unit of item. It is standardized across all items. For example, a net position (either Long or Short) of 10 units of an item requires 5J x 10 = 50J of margin to be locked up. The margin amount is adjusted when a new transaction is made and hence the number of units in the net position is changed. Locked up margin will be released back to Available fund if the net position is closed out.

Transaction Fees

Each successful trade incurs a transaction fee on each side of Long and Short. Currently, the unit fee is 0.05J per unit transacted. A round-trip trade (e.g. Long, and then Short to close out position) will incur this transaction fee twice. The fee is standardized across all items. For example, a trade of Long 50 units of Item A incurs a transaction fee of 0.05J x 50 = 2.5J. Then, later on, another trade of Short 20 units of Item A incurs a transaction fee of 0.05J x 20 = 1.0J.

Referrer Commission

Part of the transaction fees contributed by a user is credited to the Referrer’s account as a reward. Currently, the Referrer Commission is set at 0.01J per transaction unit during the month. This is a recurring reward each month. Note that if a Referrer’s own transaction volume in a particular month is less than the Referrals’ average, the actual receivable commission will be discounted proportionally by this factor: (Referrer’s own volume) / (Average volume of all Referrals)

Referrer’s Role & Responsibility

In order to earn the recurring reward of Referrer Commissions, a Referrer has the following responsibilities:

  • Teach Referrals about the system and provide basic technical support.
  • In case a Referral has a negative balance and fails to deposit additional fund by the notified deadline, the Referrer will have to bear the shortfall owed to the system. The amount will be deducted from the Referrer’s Available fund.
  • Referrer should also trade actively to get the maximum Referrer Commissions.
  • Referrer also plays a role in social recovery of a referral’s account in case the account is hacked or the password is lost.

Basic Operations of the Joule platform

  1. Select the item and go to the Trading page to see all the orders in queue. Decide to place a Long or Short order at what price, press the corresponding arrow button and input the desired quantity. The price range of any item is 0.0J to 100.0J with a price interval of 0.1J.
  2. Long and Short transactions would offset each other to result in a net position. Quantity is the number of units of that item.
  3. A unit margin fund of 5J per unit is locked up to hold a net position. This margin will be released back to Available fund if and when the position is closed by an opposite trade in future.
  4. A transaction fee of 0.05J per unit is charged on each side of Long and Short. Part of the transaction fee, 0.01J per unit, would be credited to the Referrer at month end according to a certain formula.
  5. The latest transaction price on the exchange is displayed as Market Price.
  6. Marked-to-Market: At each day end, for each item, the average trading price in the last 10 minutes before day close is taken as the closing price. The system will calculate the gains and losses of all net positions of all users and update their account balances.
  7. If the account balance becomes negative, the user should Deposit more fund from the crypto wallet.

Basic Operations of the Joule platform

  1. Select the item and go to the Trading page to see all the orders in queue. Decide to place a Long or Short order at what price, press the corresponding arrow button and input the desired quantity. The price range of any item is 0.0J to 100.0J with a price interval of 0.1J.
  2. Long and Short transactions would offset each other to result in a net position. Quantity is the number of units of that item.
  3. A unit margin fund of 5J per unit is locked up to hold a net position. This margin will be released back to Available fund if and when the position is closed by an opposite trade in future.
  4. A transaction fee of 0.05J per unit is charged on each side of Long and Short. Part of the transaction fee, 0.01J per unit, would be credited to the Referrer at month end according to a certain formula.
  5. The latest transaction price on the exchange is displayed as Market Price.
  6. Marked-to-Market: At each day end, for each item, the average trading price in the last 10 minutes before day close is taken as the closing price. The system will calculate the gains and losses of all net positions of all users and update their account balances.
  7. If the account balance becomes negative, the user should Deposit more fund from the crypto wallet.

JOULE Foundation

  • The issuer of the Joule tokens.
  • Responsible for the on-going development of the platform.
  • Responsible for advocacy and promotion of the platform to the public.

Token Distribution

  • The Joule platform will be up and running before tokens are released.
  • Some Joule tokens will be given out to new accounts for the early adopters as an incentive for trial.
  • Maximum supply of Joule tokens is one trillion. 20% of tokens will be retained for the team. Another 20% of tokens will be reserved for ongoing development and promotion of the platform.
  • Joule tokens will be sold in secondary market crypto-exchanges regularly each week. The offered prices will be based on the latest prevailing market prices. The quantity of tokens released each week is proportional to the number of new users signed up during that period, based on an objective formula: tokens released in a period = (1000 JUL x No. of new users)
  • Part of the proceeds from token sales will be used to fund the EOS RAM fees needed for creating new accounts, on top of ongoing development and operating expenses.

Core Team

Arthur Lai, Founder
Developer, serial entrepreneur, experienced in multinational business

Quentin Desouza, Technology Advisor
Engineer, entrepreneur, technology business owner

Online Contacts

Website: www.jouleindex.com
Telegram: t.me/jouleindex
Email: info@jouleindex.com