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Macabris is a DeFi protocol simplifying what life insurance companies are doing all the time

Receive increasing monthly payouts for 50 years, as long as the underlying celebrity is alive.

Macabris is a non-fungible token (NFT) on the Ethereum blockchain. Each token is unique and represents a specific celebrity. Owner of each token receives share of the monthly payout from distribution pool as long as the underlying celebrity is alive. Since total monthly payout amount is fixed, every token receives an increasing payout as other token celebrities keep on dying. 

What is Tontine?

A tontine is an investment plan for raising capital, devised in the 17th century and relatively widespread in the 18th and 19th centuries. Tontine enables subscribers to share the risk of living a long life by combining features of a group annuity with a kind of mortality lottery. Each subscriber pays an agreed sum into the fund and thereafter receives a periodical payout. As members die, their payout entitlements devolve to the other participants, and so the value of each continuing payout increases. On the death of the last member, the scheme is wound up.

What technology is behind Macabris?

Macabris is build on Ethereum ERC-721 Non-Fungible Token (NFT) standard. There are 7250 unique tokens, each representing a specific celebrity. The number of tokens is fixed: there will never be more or less.

What are the economics of Macabris?

Roughly every month a share of distribution pool will be paid out token holders. The pool is distributed in 600 installments. Every 30 days one installment will be paid out automatically and distributed to alive token holders. Example: let’s say there are 100 ETH in the pool and 100 alive celebrity tokens. Monthly payout is 1/600 * 100 = 0.1667 ETH, distributed per 100 alive tokens. As such, each token automatically receives 0.1667 ETH / 100 = 0.001667 ETH per token. Suppose, a month has passed, and 5 celebrities met their ends. There are total 95 alive tokens. Monthly total payout is the same – 0.1667 ETH, however it is distributed among the living tokens. Each alive token now automatically receives 0.1667 / 95 = 0.00175 ETH. Eventually, as more and more celebrities perish as the times goes by, the last remaining alive token will collect entire pool payout every month.

How long will the payments last?

The pool will be distributed in full in 50 years, a total of 600 periods. At the end of the periods the pool will be fully distributed and payouts will stop.

Which tokens receive a share of monthly payout from the Distribution pool?

All tokens that meet two criteria will receive an equal share of monthly payout: 1. a token is sold during ICO processes (i.e. revealed) and 2. underlying celebrity is marked as alive at the time the payout happens.

What happens when a celebrity dies?

Once a real-world death is confirmed, a celebrity is marked as dead by the Death Master. As the next payout happens, the token no longer receives the payout (it’s funds are instead proportionately distributed to other tokens that are alive). You may still trade a dead celebrity token.

Where do the funds in the distribution pool come from?

Funds in the distribution pool come from two sources: initial token sale and trade commission from subsequent token sales. During ICO, 80% of funds from sold tokens will be transferred to the Distribution pool. Wallet-to-wallet token transfer commission fee is 5%, 2.5% of which will go to the Distribution pool. The rest of fees will go to the Developer pool. As times goes by and tokens get traded between wallets, distribution pool will grow accordingly, and therefore – monthly payouts.

How are tokens marked as dead?

Macabaris is governed by multisig approach, managed by five wallets. 3 of the five wallets can replace any other governing wallet Majority vote is used to elect a “Death Master” wallet. Once the death of an underlying celebrity is confirmed from the public sources, the Death Master will marks it as dead in the contract. The five governing wallets can only access Developer pool and elected the Death Master. There is no way to access the Distribution Pool, change the rules or economics of smart contracts. Hence, Macabris is certain: same as death and taxes.

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Heavy Finance news: HeavyFinance started originating loans in Bulgaria and Portugal

HeavyFinance, a company transforming agricultural financing into an online marketplace, started lending in Bulgaria and Portugal. First investment projects were already listed on the platform in an attempt to rapidly expand in Mediterranean Europe.

According to the Fi-compass report Financial needs in the agriculture and agri-food sectors in Bulgaria, the market gap in the local agricultural sector is estimated between 289 million and 863 million euros. Furthermore, 19% of Bulgarian farmers struggle to get financing to increase working capital. There is a similar trend regarding land loans or heavy equipment loans. While financing a gap in Portugal is between EUR 95 million and EUR 383 million for the local agriculture sector.

“We’re happy to enter Bulgaria and Portugal to finally provide modern and custom-made financing solutions for farmers while offering a new secure market for investors. Both countries have favorable natural resources for the development of agriculture and progressive legislation for fintech companies, however, better financing is still needed to increase farming efficiency. We are addressing this need and planning to list many more loans from Bulgaria and Portugal on the platform this year”, said Laimonas Noreika, CEO and founder of the company.

Building local teams

The company has also started building a team in Sofia. Bulgarian expansion is done by a team coordinated locally by Filip Mutafis, known for his role in the successful establishment of Paysera in Bulgaria and Romania, a founding member of Bulgarian Fintech Association.

Nikolay Milenkov, sales and management expert also joined the company as Head of Commerce. He will bring his expertise previously gained as the Head of Leasing Operations and Customer Services at UniCredit Leasing and taking C level roles at IT companies.

While the expansion in Portugal is being led by Joao Martins, Head of Global Sales at IT company Vertex. HeavyFinance is planning to continue hiring in both Bulgaria and Portugal to operate regionally.

Transforming agricultural financing

The vast majority of more than 10 million farms in the European Union own less than 50 hectares of arable land, leaving them underserved by traditional financial institutions. Therefore, HeavyFinance is transforming agricultural financing into an online marketplace to help small and medium farmers grow.

Furthermore, agricultural loans on HeavyFinance provide retail and institutional investors with opportunities to diversify their portfolio with investments in loans backed by heavy equipment and arable land.

About the company

HeavyFinance was founded by four experienced experts in finance, technology and heavy equipment. CEO and co-founder Laimonas Noreika is a fintech entrepreneur and one of the leading alternative finance experts in the CEE region, who founded a direct lending peer-to-peer platform FinBee in 2015. His expertise in financial technologies is well complimented by deep knowledge in heavy equipment coming from Rytis Darginavičius, who founded three successful companies in this field naming the most well-known Nova rent. Two other co-founders are finance expert and licensed financial broker Andrius Liukaitis, and former technology journalist Darius Verseckas.

In October the company raised 200.000 Eur investment from international startup accelerator Startup Wise Guys and a business angel to expand to new markets.

HeavyFinance is a regulated crowdfunding platform. Moreover, the operations of the company will soon be subject to pan-European rules due to Regulation (EU) 2020/1503 and Directive (EU) 2020/1504, adopted by the European Parliament in October 2020.