Nature of the pWatt tokens
Last updated
Was this helpful?
Last updated
Was this helpful?
A Utility Token works like prepaid access, providing users with the right to use a specific service or application in the future. Although pWatts are backed by the clean energy-generation assets that are used in the construction and installation of Projects, their only functions are to give their holders access to obtain uWatts. They are Utility Tokens because their only use is to serve as originators of the uWatts issued once the Projects start operating and generating energy.
Thus, pWatts are a Utility Token, that have a fixed supply backed by the generation capacity of clean energy-generation assets and that raises certain rights for its holders and certain obligations for Unergy.
When a user purchases a pWatt, they acquire the unconditional right to receive uWatts once the Project on which its issuance is based starts operations and energy generation. When Unergy issues and sells a pWatt, it acquires the obligation to issue the corresponding uWatts to the holder of these pWatts once the respective Project has been financed and begun operation.
pWatts outside the Reserve
As explained in a , when a Project starts operation, there may be a portion of the pWatts that belong to certain whitelisted Wallets that are not added to the Reserve, and they instead stay in these wallets. The only way in which a pWatt can remain outside of the Reserve after becoming operational is for its holder to sign an investment agreement for financing the corresponding Project (or a portion of it). The income generated by said Project is distributed proportionally to the external holders in cash or cash equivalents.
Once a Project starts operating, any pWatt outside the Reserve is bound to the external holder’s Wallet and loses the ability to be transferred. pWatts at this stage turn into Investment Tokens, which have a fixed and limited supply and which give certain rights to its holders and certain obligations to Unergy.
An Investment Token usually represents equity or debt in a given project or business initiative for resources provided in cash or cash equivalents, which, when publicly offered, may be considered as securities. pWatts retained after a given Project becomes operational are based on an investment made in debt or equity in the Project from a whitelisted investor, which entitles the investor to receive a portion of the income generated proportional to their investment. It is important to note that these pWatts can never be publicly traded.
Although the pWatts of an operational Project that are not part of the Reserve are considered as Investment Tokens, they do not qualify as securities, since they are never offered publicly and they can only belong to a particular investor with whom Unergy has signed an investment agreement.
When pWatts of a particular operational Project are held by an investor with said characteristics, the investor acquires the right to receive part of the income periodically generated by the Project proportional to their initial investment in pWatts. Unergy acquires the obligation to pay the investor who holds the pWatts, the income periodically generated by the Project in a proportion equivalent to the investor investment, and this payment must be made in cash or cash equivalents.