We win: 1) higher growth rate in the energy usecase thanks to Richard being able to focus there 2) larger chance of new usecases being rolled out due to a larger, more competent Tomochain team focussing on just that. 3) Tomochain Dex, kek.
We lose: 1) a sense of security of having Richard at the helm not wanting to screw over Kyung and the Lition energy usecase. 2) possible enterprise adoption of enterprises that require or prefer to have their usecase run on Ethereum and thus a possibility opening up for a competing GDPR compliant second layer to appear offering sidechains on Ethereum.
Lition the company wins: 1) A bag of money (maybe shares in Tomochain the company)
Tomochain the company wins: 1) Revenue streams from staking LIT 2) Revenue streams from intellectual property rights on usecases. 3) Big bags of LIT
Tomochain the chain wins: 1) to be able to offer enterprises an extra layer of GDPR compliant blockchain technology which Ethereum no longer can. 2) possibility of Lition income streams to be directed to future Tomochain only projects.
Tomochain the chain loses: 1) a whole lot of Tomochain the company money that would otherwise have been invested into Tomochain only projects. 2) Having to share value generated through future usecases, which will be a result of Tomochain the Team work, with the Lition blockchain. 3) Missing out on Lition Energy usecase value.
>Recap: Acquisition Q&A Session with Lition CEO Richard Lohwasser from October 28th
Lition and Tomochain made headlines on October 28th with the announcement that TomoChain had acquired the enterprise blockchain unit of Lition. You can read the full acquisition announcement here. Lition Founder and CEO Richard Lohwasser stopped by the Lition Telegram after the announcement for an impromptu Q&A session. Introduction
Richard Lohwasser (RL): Dear community members, I see there are many questions about the recent announcement. I will join a video AMA this Friday together with TomoChain’s CEO, Long Vuong, to address the main questions that came up. What I can tell you already now is that the new entity will be a lot more powerful than the old one.
>Q: Will you be leaving Lition? RL: I won’t. The Blockchain is still the core of the energy business (all the trades run on it), and I will also remain active in the new Blockchain infrastructure company.
>Q: Why an Acquisition? RL: More on this on the AMA, but we realized that a new, merged company is a lot more powerful than a sole Lition alone. We needed a partner beyond a partnership. Lition has a European Sidechain solution — but no mainnet*, no international footprint, and by far not the resource of a TomoChain. But these resources are needed if you want to play in the major league. That’s exactly what we want to do. and need to, if we really want to make a difference. And that’s what we will do now.
Guys I'm still holding but I have no idea what's going on
Wyatt Murphy
>Q: Does this acquisition betray your blockchain community RL: I think we would betray the community in the long run if we would have just continued as is. In order to really support the community we cannot just deliver on a working blockchain or one or two use cases. It also wouldn’t be my ambition. To support the community, but also to create a large value of the coin, we need a stronger, more powerful blockchain company. And that’s why we needed a strong partner. To *not* betray the community. >Q: Can you address the issue of incentives? Are the incentives correct to make sure that TOMO does not funnel all value to the TOMO ecosystem rather than the LIT token? RL: You are fully right. This is a concern we therefore took very seriously, and now have incentives that align TomoChain with LIT holders. This was a go-or-no-go negotiation point for us. Anything else would not be fair to the people that believed in Lition. Q: Would this partnership effect the staking rewards when energy product comes out? How would Tomo chain effect the stakes of that? >RL: The staking rewards are a result of sidechain transactions. these are the peer to peer trades of our electricity customers, so this is independent of the TomoChain deal. >Q: How much of a role will you play in the merged company? How long will you stay? Also, will your energy business be dependent on LIT infrastructure for the foreseeable future? RL: I’ll remain active in the Blockchain infrastructure. The Energy Use case remains fully dependent on the LIT infrastructure. We have to anyway, as there is no other GDPR-compliant, scalable public-private blockchain solution out there.
>Q: I’m not sure if you can answer this, but have you received a % ownership of TomoChain the company? If so, I would feel fine about this desu because your incentives would also be aligned. Tbh, I’m feeling more fine with this as time goes on anyways. Thank you for your replies by the way. RL: I cannot go into details. But what I can tell you is that the incentive mechanism we agreed with TomoChain is that both I personally, but also TomoChain, have “skin in the game”. Our incentives are aligned with yours. >Q: What do you say to those who think the acquisition may ruin the project? RL: This is up to everyone’s personal judgement. What I can tell you is that from both a technical point of view and a business point of view the new company can achieve A LOT more than Lition alone. To become a major, global player you need the global reach, a fully coupled technology, and many real business use cases. Lition alone didn’t have it. Now it has. And only as a global player the blockchain will reach real mass adoption. That’s the motivation for the deal. >Q: All side chains remain paid in LIT and work under LIT Nodes right? Just another mainnet got added — so only + on value? RL: Correct >Q: What’s your favourite Lego set Richard? RL: Star Wars AT-AT ;)
I think people should be significantly more upset that the team lied about the number of transactions for 2020 in the whitepaper. We literally don't even have 100000 which is what they supposedly had in early 2019. Imagine where LIT would be with 1.5 million transactions in the energy sidechain? This is what people should be upset by, not the Tomochain acquisition.
germany went full autism with corona. not many people thought about switching their energy provider. >new lockdown starting Nov 2 btw energy business still did better than most others cause people need it however changing providers in uncertain times like a global pandemic isnt much of a thing on a macro scale.
Daniel Davis
You got a good answer, yet you come over here crying what you're pea sized mind don't seem to grasp.
>why should TOMO keep LIT running in the long run? Because they own a lot of LIT and they spent millions literally for the sole purpose to use it. >They could gutter them and build parts from LIT into the TOMO chain. When will people realise that LITION IS NOW A PART OF TOMOCHAIN. Tomochain own the technology and the tokens that Lition used to hold. They are just as incentivised to boost LIT as they are to boost TOMO.
>This is really obvious and has been addressed possibly 100 times. Tomochain is a mainnet, Lition is layer 2. These are two completely different things. You also must be aware that Lition is GDPR compliant which is something that Tomochain needs. I'm not even kidding this is extremely obvious and you shouldn't even be in crypto if you don't understand basic stuff like this.
Buying. Havent read a single post or news article or even been on the site. But you guys have a general that isnt rari or link. Confirmed moon what else to say?
Over and out.
Hunter Perry
Bullshit. We don't even have 100k or 400k transactions in the sidechain and this should have been achieved in 2019 not 2020. COVID-19 absolutely does excuse their massive lies when it comes to transactions. They've also kept on saying that growth for the energy business is really good despite COVID-19. I can guarantee you are Hank Moody, Renew or some other telegram shill. This is absolutely inexcusable.
*COVID-19 absolutely does NOT excuse their massive lies when it comes to transactions.
Carter Miller
they said they have 15k customers on the tesla pitch page and no im not one of those guys. idk what ur issue is nigga but i live in germany and business climate here is sad.
Benjamin Miller
Do you plan to switch?
Chase Wood
Do I seriously have to repeat myself? >We don't even have 100k or 400k transactions in the sidechain and this should have been achieved in 2019 not 2020. COVID-19 absolutely does not excuse their massive lies when it comes to transactions. We should be somewhere between 400k and 1.5 million transactions. The fact that we are STILL below 100k which was the absolute bare minimum number that they provided is ridiculous. We should have been at 400k before COVID even was around. The team have continued to say that the energy business is doing great and has largely been affected by COVID. Richard said that they are still on target for their customer goals in May this year. And if you looked at pic related they were on target to reach 1.5 million by 2020. There's a massive difference between this and 50k. Stop excusing this bullshit.
Wyatt Davis
Richard said they already had enough to give 20% staking gains and that there were a bunch of transactions still on the centralised private ledger. So that should work out at about 190k transactions.
John Jenkins
Yeah but I can't I'm in debt with my old one atm kek. I hate energy utility companies so much. Probably the reason Richard is focusing 100% on the energy business now which is great.
Benjamin Cox
>Richard said they already had enough to give 20% staking gains That's for the nodes vested onto the sidechain. The LPS isn't vested onto the sidechain. Everyone right now is getting more than 20% no matter where they are staking. That's what Richard meant. >and that there were a bunch of transactions still on the centralised private ledger. The ones on the sidechain are "dummy" transactions. Transactions won't be "added" but they will replace the existing ones. We've been given no reason to believe that they will be significantly higher or higher at all. The dummy transactions would be similar in volume to the real transactions. >So that should work out at about 190k transactions. I've already addressed why it's unlikely that there will be but we should have been at 400k transactions in early 2020 anyway. Stop excusing the team for being misleading.
Angel King
I'm a bit confused, which numbers are you comparing/where are you getting them from?
I only have seen customer goals, but not transaction goals.
Tyler Campbell
Richard with the unexpected heel turn. You hate to see it, but we have no choice but to move on to support our new bugmen overlords
