In economics, according to the life-cycle hypothesis suggested by Franco Modigliani, individuals used to careful planning of their consumption and savings behavior over their life cycle. They intend to arrange their consumption in the best possible manner over their entire lifetimes, doing so by accumulating when they earn and dissaving when they are retired.
In such a way, the key assumption in this theory is that all individuals choose to maintain stable lifestyles. This implies that they usually do not save up a lot in one period to spend furiously in the next period, but keep their consumption levels approximately the same. Nevertheless, across the globe, individuals and governments often face the situation when people are not saving enough to meet their retirement needs and then are forced to struggle to make both ends meet.
Seeking out the opportunity to address the emerging uncertainty within a global retirement scheme, the innovative concept of Auctus platform cuts out all intermediaries by utilizing blockchain and smart contracts that additionally allow retirement savers to aggregate their entire savings along with cryptocurrency investments. This holistic approach is empowered by analytics and robo-advisory that helps the saver to take better decisions and ultimately reach their saving targets faster.
According to the Auctus’ whitepaper, all holdings will simply be uploaded virtually in alpha version. Once all retirement savings have been uploaded to the platform, the user will be able to choose between portfolio recommendations created by the community in the human advisory marketplace, or be assisted by a robo-adviser that will recommend a tailored portfolio based on one’s goals and profile. After definition of saver’s goals, doable investment sum and possible risks, a user can purchase portfolio recommendation using AUC tokens.
According to Auctus token model, users are allowed to check the portfolio’s projection prior to deciding to buy it, and, in case the portfolio fits nice and well, they obtain it via MetaMask app. Notably, once the user confirms the transaction, the AUC tokens, corresponding to the price for the entire chosen period, are not transferred immediately to the adviser; but to an escrow smart contract instead. After that period ends, adviser gets the tokens in case a recommendation was good, otherwise tokens are redeemed by the user.
According to the project team, at a later stage it will also be possible to trade cryptocurrencies and tokenized assets straight from the Auctus Platform, developing further features such as automated rebalancing between cryptocurrency and traditional holdings.
Auctus’ token sale starts on March 21, 2018 and will last until March 31, 2018 with the maximum hard cap of $20 million. To participate in the token sale, every prospective participant will have to register for whitelist. The token sale whitelist is already available at the project’s website. Once registered, the participants shall be able to purchase AUC tokens using ETH during the Token Sale event.