MODUM - DATA INTEGRITY FOR SUPPLY CHAIN OPERATIONS, POWERED BY BLOCKCHAIN TECHNOLOGY
modum.io sensor devices record environmental conditions while physical products are in transit. When a change in ownership occurs, the collected data is checked against a specific smart contract in the blockchain. This contract validates that the transaction meets all of the standards set out by the sender, their clients, or the regulator and triggers various actions: notifications to sender and receiver, release of goods, payment, etc.
Blockchain for supply chain
“Blockchain for supply chains” has become a prominent, and very promising application scenario for blockchains, enabling transparency between untrusted partners and traceability throughout production processes. The advantage of using blockchain technology in the supply chain is that it provides an open, immutable, global, online ledger for transactions, which includes a verification mechanism. Recently, various start-ups (Chronicled, Everledger, Skuchain, Blockverify, ubirch, Provenance etc.) and large corporate players (IBM, Microsoft, Walmart, Maersk, BHP Billiton, etc.) have begun to run proof-of-concept studies, committing significant R&D resources to building new platforms and fostering international collaborations. In mid 2016, when modum.io began operations, only a few working blockchain infrastructures were available. modum.io opted to use blockchains with proven industry applications. This decision allows the modum team to focus on the development of the business case and to be able to stay relatively neutral or “agnostic” with respect to the growing portfolio of blockchain solutions. modum.io chose the pharma industry as its first business case because this sector requires highly automated and cost-effective logistics solutions, which guarantee data integrity. As the pharma industry has one of the highest standards for product safety, security, and stability, it is the ideal candidate to act as a “blockchain-enabler”; having successfully proven a viable blockchain solution with the highest requirements, scaling into other verticals is feasible.
The general maturity of the Ethereum network and development stage of Solidity validated modum.io’s choice to use Ethereum for its pilots or proof-of-concepts. While Ethereum remains one of the most cutting-edge blockchains with great developer and commercial interest, modum.io will stay open to other options for blockchain use in this rapidly changing market. In particular, requirements from our clients for permissioned blockchains or systems with low or no transaction fees call for substantial flexibility and resources from modum.io in order to truly become and remain blockchain agnostic. From a risk-perspective, social and technical uncertainties of blockchain infrastructures (governance, scalability, interoperability), make blockchain agnosticism an essential foundation of modum’s business strategy in order to be able to provide the best infrastructure to every customer.
MODUM - Regulatory driven first application
The first product of modum.io offers an efficient system to comply with recently tightened regulatory requirements for the transport of medicinal products for human use in the European Union. Chapter nine of the Good Distribution Practice regulation (GDP 2013/C 343/01) now requires proof that shipped medicinal products have not been exposed to conditions (particularly temperature) that may have compromised their quality.1 National regulatory bodies enforce GDP regulations on the over 10,000 wholesale distribution authorization holders in the EU to ensure drug safety, whereby the consequence of non-compliance can lead to licenses being revoked.2 It is likely that regulation in the United States (draft chapter 1083: “Good Distribution Practice”) will follow in a similar direction.3 To date, pharmaceutical companies meet requirements via expensive, temperature-stabilized trucks and containers from third-party logistics providers (3PLs). For the majority of medicines (which are not temperature sensitive) this is excessive from a cost and regulatory perspective.
GDP 2013/C 343/01) Regulation.
An efficient solution to meet regulations modum.io offers a more efficient supply chain solution, which enables companies to prove compliance with GDP regulations using blockchain and Internet-of-Things (IoT) technology. The modum solution allows significant cost savings for the distribution of medicinal products that do not require active cooling. The modum solution is: 1. Designed for pharma standards with a calibrated temperature sensor. 2. Automated to a high degree and fully wireless. 3. Easily integrated with existing customer systems, capable of being rolled out painlessly, with no gateways. 4. Able to provide a high level of data integrity, authenticity, independent verification, auditability, security, and flexible data ownership. 5. A low-cost solution that allows mass use.
How it works
Components of the modum system: dashboard, temperature loggers, and mobile application
to the following features and USPs: Before shipment occurs, the temperature logger ID, shipment ID, and alarm criteria are fixed within a shipment-specific smart contract. Upon receipt, this smart contract will allow receivers to check that regulations have been met. The evaluation criteria (in this case temperature ranges), cannot be changed retroactively. During the shipment, the temperature is monitored, whereby the data is stored in the internal flash memory of the logger. Using BLE (Bluetooth Low Energy) the shipment does not need to be opened in order to perform the checks. At each change of ownership, data authenticity is certified by the smart contract. The results of the evaluation are immutably stored in a blockchain as a proof-of-existence. Depending on the outcome, the receiver and sender are notified immediately, allowing them to release the product or arrange further corrective and preventative actions. Customers do not need to install additional hardware to use the system, downloading a mobile application is sufficient.
For the customer, the modum system provides: 1. A passive solution that includes a monitoring service with no special packaging required, without the need for expensive, active-temperature controlled logistic services. 2. The proof required by GDP regulations that medical products have not been compromised on shipment level.
Technical details of the modum system
MODUM TOKEN SALEmodum.io is a company with a real product, commercial traction, and with major partnerships. Its token sale has been carefully crafted to relate to the reliability of our service offering. The primary goal of the token sale is to establish mechanisms for modum.io to efficiently execute its vision: ‘to improve supply chain operations with emerging technology’ and to align the interest of token holders with the interests of the team. Therefore Lykke Corp. was chosen to advise on the token sale and all related activities. Token Economics
The modum token (MOD) is a profit share token with voting and profit participation rights. The maximum total supply is 30 million tokens. 20.1 million are offered in the token sale, 0.9 are used to cover the token sale costs and for the bug bounty program, and 9 million MOD are reserved for modum.io, to be vested based on major milestones. Token holders will vote to decide if the milestones are met and release the locked tokens. Locked tokens do not have profit share nor voting rights. Ethereum ERC20 technology was used to build the MOD token. The code of the smart contract and the tokensales application is open source8 and has been reviewed by Lykke Corp and Consecom (a Swiss IT Security consultancy).
MOD Token sale web app: token.modum.io
Token Sale start date: September 1st
Token Sale end date: September 22nd
Token Type: Ethereum ERC20
Price: 1 USD = 1 MOD
Benefits: Voting & profit participation rights
Purchase methods accepted: BTC / ETH / IOTA
Total token supply: 30 million (30,000,000) MOD
- Max. 20.1 million will be offered in a crowdsale:
- 2.1 million (7%) are offered in a pre-sale with a 50% discount.
- 18 million (60%) will be offered in public sale
- 6 million with a 30% discount
- 6 million with a 15% discount
- 6 million with 0% discount
Oversubscriptions of a bonus tier get allocated to the following tier.
9.9 million (33%) will be locked in a smart contract and released upon public voting:
- 0.9 million to cover the token sale expenditures and the bug bounty program.
- 9 million will be released over the next three years to retain profit sharing rights to modum.io AG.
modum.io will offer discounts for early investors according to the scheme outlined below. Upon successful transfer of your payment a confirmation email is sent. When the sale is complete, the invested amount will be converted to USD and the minted MOD tokens will be distributed. The estimated current bonus tier is visible on the token website. The displayed amount may change due to changing exchange rates and is therefore indicative. Final bonus tier and token allocation is done post transaction. For trustworthy exchange rates we rely on third parties, such as Lykke Corp.
Pre Token Sale
- 2,100,000 tokens
- 50% discount
- 0.5 USD = 1 MOD
1st Tier Token Sale
- 6,000,000 tokens
- 30% discount
- 0.7 USD = 1 MOD
2nd Tier Token Sale
- 6,000,000 tokens
- 15% discount
- 0.85 USD = 1 MOD
3rd Tier Token Sale
- 6,000,000 tokens
- 0% discount
- 1 USD = 1 MOD
Voting & profit sharing
With the publishing of the annual report modum.io can claim whether or not the present milestone was achieved. With the publishing of the report the start date of the voting period is set. The voting period lasts for two weeks. Every MOD token in circulation has one vote. Locked tokens cannot vote. The default vote is void. The quorum is defined by the number of executed votes within the predefined timeline. A simple majority is needed to decide if the milestone was met. If the milestone was met, the defined number of tokens are released to the modum.io wallet.
The board of modum.io decides and declares the amount of dividends when there is a profit. A payment equivalent to this amount is converted to Ether and sent to the modum smart contract. The modum smart contract evaluates the current holdings and distributes the profits to the token holders in Ether. The voting and profit share smart contract is open source
Bug Bounty Program
Modum.io is deeply engaged with the developer community and has maintained a ‘code is law’ value system while developing its platform. With every major platform release modum.io will open a new phase of its “Bug Bounty Program”. Every developer that submits a bug will receive a certain number of points based on the severity of the bug. The severity is calculated according to the OWASP risk rating model based on impact and likelihood.
In the first phase the smart contract of our token sale will be the first item to be checked by the community under the Bug Bounty Program. 3% of the total tokens issued will be held for the bounty program, with 25,000 tokens available for participants who find bugs in the token sale smart contract.
Malik El Bay, has experience in building products in the fast-paced startup environment. With two start-ups under his belt, he leads the team and strategic growth of modum.io.
Dr. Stefan Weber, a physicist with industry and start-up experience. He manages hardware development and compliance.
Sacha Uhlmann has a background in peer-to-peer systems and quality assurance. He leads the system development and is the lead architect of modum.
Simon Dössegger, a mechanical engineer who already exited his last start-up creating autonomous flying drones to GoPro. He leads the product strategy and business development.
Andreas Knecht, is a lead engineer and IoT guru. He is responsible for the hardware and firmware development.
Marc Heimgartner, Tim Strasser, Guilherme Sperb Machado, Moritz Schneider and Sebastian Stephan are the core developers of the modum system.
Michael Taylor and Ozan Polat spearhead the marketing and
communications team. They bring marketing experience from major tech- and innovative startup environments.
Dr. Thomas Bocek is the resident blockchain expert, with a PhD in decentralized and peer-to-peer systems.
Marc Degen, a blockchain investor, guides the modum.io team with deep digitalization knowledge.
Werner Spörri, chairman and former investment banker, contributes valuable financial and legal direction.
Pascal Degen, currently engaged as Head of Sterile Packaging at Novarwas tis, brings in-depth manufacturing knowledge from within the pharma sector.
Michel Schaer, founded a Swiss-based pharmaceutical distributor and provides insight regarding pharma wholesale and distribution.
Additionally, the modum.io team regularly consults with our advisors:
Prof. Dr. Burkhard Stiller (Communications Chair, University of Zurich) whose main research interests are in blockchain, IP-based networks, cloud and grid services, and the economics of IP services.
Prof. Dr. Erik Hofmann (Director of the Chair of Logistics Management, University of St. Gallen) who wrote the book Supply Chain Finance and Blockchain Technology.
MLaw Benedikt Schuppli, RA, is a legal counsel who works with the Swiss Fintech company Lykke Corp, which is building a global marketplace based on blockchain technology.
Dr. Ing. Heinrich Zetlmayer (Member of the Board, Lykke Corp) is a Board Member at Lykke Corp and advises on the business aspects of the token sale, being a former IBM top executive in charge of big-scale supply chain implementation programs.
- Max. 20.1 million will be offered in a crowdsale: