Auctus, found online at Auctus.org, is a project that aims to create smart contract-powered pension funds. Find out how it works today in our review.
What Is Auctus?
Auctus aims to disrupt the pension industry using blockchain technology. Today’s pension industry isn’t very transparent. Investors and retirees often struggle to plan for their retirements because it’s difficult to determine exactly how much money they’ll be paid during retirement.
That’s where Auctus sees an opportunity. Auctus uses the Ethereum blockchain and smart contracts to provide total transparency, immutability, security, and automated processes. All rules of the pension fund are encoded in smart contracts to increase compliance and regulation. The blockchain acts as the middleman, which means lower overhead costs. That leads to lower fees and better returns overall.
Overall, Auctus claims to be the future of pension markets.
How Does Auctus Work?
Auctus’s key feature is the use of smart contract auditable code. The platform uses this code to ensure full transparency and compliance to the fund’s rules. Smart contracts also allow calculations for contributions, employer matching, benefits, and other features – including the selection of investment profiles, registration of beneficiaries, administration fee calculations, and portability between funds.
Basically, Auctus’s smart contract and blockchain-based system replaces the entire pension fund management structure.
It cuts out the financial management middleman and replaces it with the blockchain. The end result is lower costs, better security, better transparency, and a more efficient investment fund for the people who actually rely on that fund.
Auctus plans to monetize the business through platform fees, an annuities marketplace, and fund setup and customization costs.
Auctus offers all of the following features:
- Ongoing monitoring
- No hidden fees
- Faster processing for benefits
- Fully transparent
- Flexible and scalable
- Easily auditable and compliant
What Problems Does Auctus Seek To Solve?
The developers of Auctus believe today’s pension fund industry could benefit from disruption. Here are some of the problems in the industry, as identified in the Auctus whitepaper:
Poor governance practices are rampant across the pension fund industry, leading to poor performance. Auctus believes a system with total transparency would facilitate control by regulators and participants, thereby promoting better governance.
There are no standardized contribution collection processes, which frequently leads to operational issues. Keeping records of transfers can be difficult for smaller pension funds. Large pension funds don’t have this problem, but they still need to maintain expensive systems to manage transaction records.
Not all pension fund participants are aware of the costs involved with their pension fund. Management fees are just one cost. Other costs include transaction, trading, and asset custody fees, as well as regulatory, administrative, and reporting costs. All of these costs are hidden. They reduce net investment returns and can significantly lower the amount of money available for retirement – and yet many investors don’t fully understand these fees.
According to the Auctus whitepaper, about 20% of pension funds have reported fraudulent activity in the past two years. Common fraud includes stealing fund assets, misrepresentation, ghost accounts, and transaction fraud.
Data management is crucial for any investment fund. Current systems, however, make it difficult for managers and trustees to have confidence in the data available to them.
These issues have become increasingly worse over time. Auctus cites issues like the financial crisis of 2008 and the aging population as reasons why the pension fund industry is struggling to compete. Auctus aims to solve these problems using the Ethereum blockchain and smart contracts.
The Auctus Token Sale
The Auctus pre-sale is scheduled for October 3 to October 6. The main ICO is scheduled for November 14 to November 28, or until a hard cap is reached.
The pre-ICO rate is 1 ETH = 2500 AUC, while the ICO rate rises to 1 ETH = 2000 AUC.
Out of the total supply of tokens, 51% will be available to the public through the crowdsales. 20% are for the Auctus core team, 18% are reserved for future stakeholders, 9% are for partnerships and advisors, and 2% are for bounties.
The AUC tokens are ERC20-complaint tokens on the Ethereum blockchain.
Who’s Behind Auctus?
Auctus is led by Felipe Silveira (Lead Developer), Raphael Vantroost (Advisory and Partnerships), Guilherme Gusman (Front End Engineer), and Vinicius Melo (Strategy).
Felipse has 12+ years of software development experience, and has 7+ years of experience as Operations Manager and Partner at DTI Digital, an IT consulting firm.
The company aims to launch a demo of their platform before the end of Q4 2018, with the full Auctus Platform launch occurring in Q1 2018.
Auctus is a blockchain-based platform that aims to disrupt the pension fund industry. The platform uses smart contract auditable code to ensure full transparency and compliance while reducing fees and maximizing returns for investors.
To learn more about Auctus and how the platform works, visit Auctus.org today. The token sale is taking place throughout October and November.