White Paper

JOULE is the world’s platform for decentralized Global Popularity Index built on blockchain, as well as a payment network. 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 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 Joule Index wisely, another way to earn Joule tokens is by referral. Users can receive a recurring reward by teaching others about Joule and taking up a few responsibilities. Each trade incurs a small transaction fee. Through the Referrer Commission scheme, a referrer can earn part of the transaction fees contributed by their referrals every month. A second use case to earn Referrer Commission is through spending Joule as a payment method at businesses. Each time you PAY Joule tokens to a business’s blockchain address, they will contribute a percentage to the ecosystem, part of which will become Referrer Commission. In other words, it is one simple referral network with two separate use cases to earn commission.

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 by teaching others blockchain technology.

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 is also the crypto-currency in the ecosystem.

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: Public figures’ 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.

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.

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.

A Joule Account balance has this breakdown:-

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

Joule is built on the EOS mainnet public blockchain. On the “Account” page, user can use the Wallet to “Receive”, “Pay”, “Withdraw” and “Buy Joule”.

RECEIVE – Display your Joule Account Name (10-character) and QR Code for others to send tokens to your account. From another user’s Joule Account, simply “PAY” to your Joule Account Name. From an external EOS Wallet, transfer to blockchain address “jouleappcont” with Memo/Tag being your Joule Account Name.

PAY – Send tokens to another User (free) or a Merchant (with fees & commission).

WITHDRAW – Send tokens to an external blockchain address on EOS mainnet.

BUY JOULE – Purchase more Joule tokens with Paypal or credit card.

Transaction History – Display all records of the above 4 types of transactions.

Net Postions
Each Joule account has a portfolio of net (Long or Short) positions on various items. “QTY” is the quantity in no. of units; “Ref. Price” is the reference price where your position was last marked to market, which is done at least daily. A net position can be closed out by making an opposite trade because Long and Short trades offset each other.

Open orders on Queue
It lists the current orders you have placed that are still waiting to be matched by others. You can Cancel Order here, or wait for open orders to expire automatically at Day Close.

Trade History
It lists all your completed trades in Joule Index.

Each net position requires an amount of tokens to be locked up for better risk management. Currently, the reserves 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 to be locked up to be reserves. The reserves amount is adjusted when a new transaction is made and hence the number of units in the net position is changed. Locked up reserves will be released back to Available fund when the net position is closed out.

Each successful trade incurs a transaction fee on each side of Long and Short. Currently, the unit fee is 0.05J per unit traded. 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.

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 his/her Referrals’ average, the actual receivable commission will be reduced proportionally by this discount factor:
(Referrer’s own volume) / (Average volume of all direct Referrals)

When you “PAY” Joule tokens to a merchant account, the merchant will contribute 2% fee to the ecosystem. Part of the fees will become Referrer Commission.

The merchant will contribute 2% merchant fee on the Joule tokens spent by Users, in which one-fifth will be rewarded to each eligible Referrer. This is a recurring reward each month. Note that if a Referrer’s own spending volume in a particular month is less than his/her direct Referrals’ average, the actual receivable commission will be reduced proportionally by this discount factor:
(Referrer’s own volume) / (Average volume of all direct Referrals)

TThis Referrer Commission is calculated separately from Joule Index trading discussed above. In other words, the individual volumes and discount factors are calculated independently between the two use cases.

In order to earn the recurring reward of Referrer Commission, 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 refill enough 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 password is lost.

• Select an item and "Trade" to see all current orders in queue. Decide to place a Long or Short order at what price, press the arrow button and input the order 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 reserve amount of 5J per unit is locked up to take a net position. Reserves will be reduced and released back to Available fund if and when the net position is closed by making an opposite trade later.
• 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.
• The latest transaction price on the exchange is displayed as Market Price.
• 6. Marked-to-Market: At each Day Close, for each item, the average trading price in the last 10 minutes is taken as the closing price. The system will use it as the Reference Price to calculate any gains and losses of all net positions of all users and update their account balances accordingly.
• 7. If the account balance becomes negative, user should use the BUY JOULE function to acquire more tokens, or ask their friends to share some tokens to top up the account.

• The Joule platform has been up and running before tokens are released.
• 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 growth of the platform and ecosystem.
• Joule tokens will be sold in-app and on secondary markets gradually. The offered prices will be based on the latest prevailing market prices. The available quantity of tokens released is capped proportional to the number of registered users based on an objective formula: tokens available for sales = (10000J x No. of users).
• The majority of the proceeds from token sales will be put on reserves mainly in Bitcoin to back the Joule tokens and a small portion will be used to fund the ongoing development and operating expenses.

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