The world's first fragrance NFT sales platform
White Paper ver 1.0
Clarification of the original text and the purpose of this document:
The original text of this document is in English, and the Japanese translated version is translated by an external volunteer translation team as reference material. In case of any discrepancies in meaning between the English version and the Japanese translated version, please prioritize the English version.
Purpose of this document:
The purpose of this document is to provide information, and the accuracy and completeness of its content are not guaranteed. This document is not intended to be interpreted as the sale or purchase of securities, investment solicitation, or investment advice in any jurisdiction. It has not been approved or reviewed by regulatory authorities and does not imply compliance with applicable laws and regulations. Those considering participating in or donating to the SMELL MARKET project are strongly encouraged to fully understand the content of this document and seek professional advice.
What is Smell Market?
SMELL MARKET is the world's first platform specifically designed to issue, manage, and circulate digital scent and fragrance items.
It is believed that memories that stimulate our sense of smell evoke stronger emotional responses than other senses, which is why scent-based marketing tactics are used worldwide. Various hardware manufacturers are deploying IoT and AI-equipped devices to control scents, but a standardized scent data format has yet to be realized.
SMELL MARKET digitizes fragrances into a globally recognized data format, selling them as NFTs that can prove ownership. Companies and individuals who purchase these fragrance NFTs can use a dedicated diffuser to reproduce the same scent at any time. In the future, SMELL MARKET aims to become a scent data sales platform in partnership with scent device manufacturers.
To protect the rights of fragrance copyright holders, which were previously unprotected, SMELL MARKET introduces blockchain and non-fungible tokens (NFTs). This ensures the protection of copyrights for creators and buyers, establishing a fragrance-version of JASRAC*.
SMELL MARKET's platform is developed on its own blockchain, incorporating WEB3.0 technology NFT market and decentralized autonomous organization (DAO). It issues the cryptocurrency SML and establishes a foundation for NFT and cryptocurrency usage. Users can buy and resell fragrance NFTs in the marketplace, and purchased NFTs can be played back with a diffuser.
SML holders can participate in the SMELL MARKET community, where they are granted the authority to collect and register scent data and approve blockchain transactions. Community participants engage on the platform and are paid SML as rewards. When registered scent data is purchased, purchase fees and copyright fees are paid. SMELL MARKET realizes a world of "Smell To Earn," where users can earn rewards by utilizing scents.
*JASRAC is the Japanese Society for Rights of Authors, Composers, and Publishers. It manages copyright and royalty collection for music in Japan. JASRAC licenses music usage, collects fees, and distributes royalties to composers, lyricists, and publishers. It monitors music usage and collaborates internationally to protect rights. JASRAC supports the music industry through education, legal assistance, and advocacy. It plays a crucial role in ensuring fair compensation for music creators and adapting to technological advancements.
1. Challenges We Address
Universalization issues in the fragrance industry
The fragrance industry has experienced significant growth throughout history. Countless scents have been created, leading to the introduction of various perfumes and image fragrances in the market. In the fragrance industry, it is common to combine numerous ingredients to create a single product. Consequently, each product lacks universal appeal and is typically tailored to specific orders.
In this business style, it is difficult to develop and leverage a single software solution that allows all users to enjoy the same experience in the digital world. Our proposal involves approaching the fragrance industry with a reverse-thinking mindset: limit the number of ingredients used to create scents and build a business around the maximum number of fragrances that can be created from those ingredients.
Though this approach does limit the number of potential fragrances, it enables mass production and cost reduction by digitizing scents. Furthermore, it allows for flexibility in adapting to the metaverse era.
This new way of thinking will bring new possibilities to the fragrance industry, allowing it to ride the waves of digitalization and the metaverse. We hope that the fragrance industry will continue to prosper with this new style based on limited ingredients.
Traditional diffuser industry challenges
According to feedback from people who enjoy using diffusers, 80% of users commonly face the following four challenges:
Once an aroma oil is purchased, it must be used up before trying another scent.
In reality, users want to enjoy different scents based on their mood.
While users know that mixing multiple oils can change a scent, they find the process of creating their blends too tedious.
Aroma oils are expensive.
Our platform, Smell Market, addresses these issues. Smell Market promotes the digital transformation of the fragrance industry and becomes the first NFT platform for scents. Users can download digitized scent recipe data on their smartphones and synthesize the scents using a dedicated diffuser. This service eliminates the need to visit a store to purchase scents, much like how smartphones have made music downloads more convenient.
Business scale challenges
As mentioned earlier, the fragrance industry has grown tremendously, with diverse ingredients used to create a wide array of scents. However, this business style has its challenges when trying to develop a universal software solution for all users.
Our approach to this issue involves limiting the number of fragrance ingredients and using the maximum number of scents that can be created from those ingredients to expand the business. By doing so, we can mass-produce scents and reduce costs, while also providing flexibility for the metaverse era.
Challenges with the traditional perfumer business model
Perfumers are experts in creating scents, and the fragrance industry has developed to the point where almost any scent can be recreated using a variety of ingredients.
The traditional perfumer business model involves creating custom scents based on clients' needs and delivering the final product. Image fragrances are created for various locations, such as hotel lobbies, bank entrances, and restrooms.
However, there are challenges with this approach. Since perfumers create custom scents for each client, they cannot reuse the same scent for multiple clients. Each new client requires a new blend, resulting in excess inventory. Additionally, perfumers must regularly visit clients to replenish scents.
Our solution is the development of a scent printer capable of creating thousands of scent combinations. Perfumers only need to deliver the scent printer to clients and send the scent recipe. This eliminates inventory risk, allows for scent updates without client visits, and enables the offering of a wide variety of scents.
2. Smell Market project.
Realization of scent quantification and code management:
In this project, we issue and manage a global standard code for quantifying scents, called Digital Smell Format (.sme). Digital Smell Format contains programs such as "cartridge number," "duration," and "intensity" for spray devices and electronic devices capable of reproducing scents, allowing control of the scent.
Technological innovation with NFTs:
Non-Fungible Tokens (NFTs) are cryptographic assets that can be traded on the blockchain. Digital data is recorded on the tamper-resistant blockchain, treated as a unique existence, and becomes impossible to counterfeit with provable ownership. Trading history and ownership information are also recorded on the blockchain, ensuring data ownership. NFTs give rise to new ways of enjoying and doing business with digital works.
Scent quantification × NFT × Digital devices:
By integrating technology that can reproduce digital scents at the necessary timing with digital devices, we create a new world view. For example, you can control the scent of a room according to your mood with an AI-equipped diffuser, detect enemies or shops in games or the metaverse through smell, or enjoy a world trip with a diffuser-equipped AR/VR glasses. This project is certain to expand into a market much larger than imagined.
SMELL MARKET's market and outlook:
SMELL MARKET will target the digital marketing market and expand its business using scent NFTs. In 2021, global advertising expenditure increased by 17.0% year on year to $682.5 billion, with digital advertising accounting for 29.1% more than the previous year, totaling $355.7 billion, leading the expansion of the advertising industry.
Furthermore, the global scent market in 2020 was around ¥5 trillion, and it is predicted to reach ¥6 trillion by 2025.
The digital advertising and scent markets are both growing year by year, positioning our market in a growth sector. Moreover, the growth of the metaverse field is driving the NFT market, with US investment firm Jefferies predicting that it will reach $35 billion in 2022 and $80 billion by 2025.
The addition of our scent business to these markets is expected to further increase the variety of advertising options.
3. Smell Market Platform
The SMELL MARKET platform consists of NFT registration management, NFT marketplace, and scent playback history management features, incorporating the mechanisms of NFT and DAO, which are elements of WEB3.0.
NFT Registration Management:
Users can register quantified scent data and generate NFTs. A DAO community that allows users who meet certain conditions to participate is established, and new scent registration and NFT registration approval take place. Participants can earn SML as rewards. Furthermore, when the registered scent NFT is bought and sold, users can earn rewards, realizing SMELL To Earn.
There is a feature for buying and selling registered scent NFTs. Fixed price transactions and auction-style transactions are possible, and users can also resell purchased NFTs. There are two types of scent NFTs: common cards and owner cards. Common cards are NFTs granted to members with scent usage rights, while owner cards are NFTs granted to members who register or purchase the ownership of a scent NFT. Owner cards receive dividends in SML based on the sale/resale price. Moreover, it is possible to specify the number of cards issued for each type.
Digital Smell Patent
Manages the number of times a fragrance NFT is played, enabling billing based on play count and issuance of NFTs with limited play count.
SMELL MARKET App
A smartphone app that allows users to access all features of the SMELL MARKET platform and control diffusers and sprayers. It also includes SML payment functionality.
Digital Smell Format Code ".sme"
The Digital Smell Format, or .sme, is a global standard code for quantifying scents. Digital Smell Format is recorded with various parameters for scent-printing devices and electronic equipment, such as the "cartridge number," "duration," "intensity," and "maximum print limit." When these devices receive a Digital Smell Format, they control and print the scent accordingly.
The SMELL MARKET platform is based on the Polygon blockchain. A notable advantage of the Polygon blockchain is its extremely low transaction fees.
Considering deployment in the advertising industry, this project configures an IPFS service that enables storing rich content files such as metadata and image data. The IPFS cluster manages the Pin function for files on each IPFS node.
Enter the new era of the fragrance industry, participate with SML
Smell Token (SML) is a special token to participate in the digital transformation (DX) of the fragrance industry. By holding this token, users can take part in various businesses and games deployed on the innovative Smell Market platform. The Smell Market platform introduces digital technology to the traditional fragrance industry, expanding its potential by enabling the sale of scent data in digital formats.
Exclusive early access to special NFT sales: Experience Smell Market exclusively
On the Smell Market platform, special products can be listed, just like on a regular e-commerce site. These are offered as limited and valuable scent NFTs, such as NFTs of digitized scents with historical value or scents developed exclusively for digital use by famous brands.
These special NFTs are granted presale rights to SML token holders on the Smell Market platform before they are sold to the general public. Take advantage of this opportunity to acquire rare NFTs before anyone else and add them to your collection.
Such early access rights have great value for SML token holders. It means not only building your unique scent collection but also expanding opportunities for discussion and exchange with other collectors and enthusiasts. Additionally, these rare NFTs may appreciate in value in the future, potentially making them a smart investment.
By holding SML tokens on the Smell Market platform, you can gain early access to special scent NFTs and enjoy exclusive experiences. Enhance your collection and enjoy the world of fragrances even more.
Right to create and sell custom scents
The ultimate goal of this platform is to liberalize perfumers and enable more people to create their unique scents. To synthesize scents as a digital perfumer, also known as a Smell Market, you need to hold a certain amount of SML. This ensures that the platform's ecosystem remains healthy and competitive for perfumers.
Infinite creativity in scents with SML
The number of scent creations you can make increases according to the amount of SML you hold. By holding more SML, digital perfumers get the chance to create a more diverse and rich portfolio of scents. This mechanism maintains the platform's quality and promotes fair competition. SML holders can create and sell their scent creations on the platform, generating revenue.
Imagine you're in charge of creating the scents for a live concert of a globally famous artist or band. The venue is filled with your unique fragrance, and the audience enjoys the live performance surrounded by the captivating scent. This fragrance enhances the artist or band's image and leaves a deep impression on their fans.
At the venue, a large screen displays a QR code for purchasing your created scent. The audience can easily scan the QR code with their smartphones and buy your scent on the spot. In this way, thousands of fans attending the live event can get their hands on your original fragrance.
As a result, you'll receive sales beyond your wildest imagination. This revenue is a testament to your talent and effort and will pave the way for further business opportunities. This success will boost your confidence in your career and serve as a driving force for your next challenge. By continuing to grow as a perfumer, you can create new value in the world of scents and pursue infinite possibilities.
Right to participate in fragrance competitions
The Smell Market platform is an innovative service that sells original image fragrances for various celebrities and characters worldwide, allowing everyone to enjoy unique scents. Competitions are held on the platform to determine who gets the right to create these fragrances. Winners are awarded the right to develop the original fragrances. Of course, to participate in these competitions, you need to hold SML tokens.
Our digital scent technology is expected to be widely used in various industries. Scents play a vital role in the entertainment industry, gaming, advertising, office spaces, and hotels. Through the Smell Market platform, scents created by digital perfumers can be adopted in these places, providing a significant opportunity for revenue.
Furthermore, by utilizing this platform, not only professional perfumers but also ordinary people can create their scents and compete in the market. This diversification of the world of scents will create new business opportunities.
The Smell Market platform fosters innovation in the fragrance industry and, by leveraging digital technology to remove traditional constraints, makes the world of scents more accessible. As a result, everyone can enjoy their unique scents or thrive as a perfumer, contributing significantly to the development of the fragrance industry.
Token Name: Smell Token
Issuer: AVALANCH TECH IT SOLUTIONS
Total Supply: 12,000,000,000 tokens
List of Benefits for Holding Smell Tokens
6. Token allocation
Token allocation of final token holders in this project is as follows:
Used for promotion towards the globalization of atodashi and NFT Smell Market services.
Used for operating expenses, development funds, and promoting Smell DX.
Used for rewarding community contributors, staking rewards, and airdrops.
Advisors and Partners: 4%
Used for paying rewards to lawyers and agencies as incentives for business expansion.
Core Team: 16.7%
Used as an incentive for project management members.
Token Vesting Schedule
SML has no large investors for a fair launch, resulting in lower volatility. However, for advisors and partners, 25% of the lock is allowed to be unlocked every six months starting from six months after the exchange listing.
The audit of SML is conducted by CertiK, which verifies the safety and vulnerabilities of the token, among other risks. CertiK audits numerous protocols and blockchains and supports many corporate clients, helping to improve the security of digital assets. CertiK is recommended by global exchanges and is supported by major investors.
Initial Purchase Conditions for Second Token
Holders of a certain number of SML tokens or more (to be announced later)
Company Name: AVALANCH TECH IT SOLUTIONS
Address: Office 1002, 48 Burj Gate, Downtown, Dubai
Business Description: AVALANCH TECH IT SOLUTIONS is a Dubai-based company that undertakes consulting and service platform development for WEB3.0 technologies from around the world.
TSAI | Founder
DK | PR Producer
Yu | COO
Jayapal | Art Director
Martinez | Customer service
Vanessa Pan | Ambassador
No part of this white paper or any facts presented herein should be relied upon as a basis for any contract or investment decision. No one is bound by any contract or legal obligation with respect to the sale of SMELL tokens.
Contracts between the buyer and the seller as the purchaser with respect to the sale of SMELL tokens shall only be governed by the token sale agreement specifying the terms and conditions. Investing in SMELL tokens involves a very high risk, including the risk of losing the entire investment amount.
Only investors with knowledge of acquiring tokens, digital assets, or cryptocurrencies should consider this opportunity. You must carefully consider the risks of purchasing SMELL tokens. This white paper does not guarantee the accuracy, reliability, or completeness of its contents and disclaims any legal liability.
Risks related to the purchase, sale, and use of tokens
This token is not planned or sold as a security or financial instrument. Therefore, the purchase information is not intended to form investment decisions, and we are not responsible for any loss or damage based on errors or inaccuracies in the information.
Risk of access loss due to improper management of this token
If the purchaser loses access information to their digital wallet due to improper management, they may not be able to access this token properly.
This token is based on the Ethereum network, and there is a risk of unforeseen events due to network failures or malfunctions. There is also the possibility of hacking or security attacks.
Token market risk
Although this token is intended for use on the SMELL MARKET platform, there is a risk of illiquidity depending on the situation of the exchanges handling it.
Risk of regulatory measures
The handling of token issuance and sales is not clear in each region, and there is a possibility that the regulatory response to this token may change and become subject to regulation.
The tax characteristics of purchasing this token are unclear, so purchasers must individually verify the requirements for related tax reporting.
Risk of maintaining the SMELL MARKET platform
The SMELL MARKET platform is under development, and there is a possibility of specification changes. Due to development factors, if the platform does not function properly, risks may arise.
Price fluctuation risk
If this token is traded on a cryptocurrency exchange in the future, the price may fluctuate significantly due to market conditions and demand.
The seller or parent company may dissolve due to significant fluctuations in the overall value of cryptocurrencies, a significant decrease in the usefulness of this token, or the failure of business operations.
This token is based on new technology, and there is a possibility that risks that were not initially anticipated may occur.
12. Appendix (supplementary material)
Smell NFT card type
Scent Data: Included
Issuance Limit: 20,000 cards per unit
Scent Playback Count: 50 times
Role: NFT for enjoying scent data
Scent Data: Not included
Issuance Limit: 10,000 cards per unit
Scent Playback Count: None
Role: NFT that holds the right to receive a portion of the sales from COMMON cards
Restriction: Can only be purchased with Smell Tokens
Market making by ATODASHI
Market Making by Atodashi
Atodashi is an investment app that allows users to profit when the price of a pre-selected NFT rises, and cancel without any loss if the price drops.
Atodashi is the world's first mechanism that combines derivative trading and subscription (patent pending). This system allows you to purchase contracts (derivatives) that reflect the value of NFTs or financial instruments, and by paying a regular fee (subscription), you can reduce risk while achieving long-term profits.
With Atodashi, users can reduce the risk of NFT trading by lowering their monthly usage fees.
World's First! Trade only when you make a profit
Investments have equal risk and return. If there is a 20% expected return, there is also a 20% risk of loss. However, with Atodashi, you can trade "Atodashi" only when the NFT position you hold has appreciated in value.
Hold high-value NFTs for just a monthly fee
Usually, purchasing high-value investment products requires costs ranging from hundreds of thousands to millions of dollars. However, with Atodashi, there are no additional fees when holding NFTs worth, for example, $10,000 or $500,000. You can maintain your position for just the monthly fee.
The number of NFTs you can hold increases with the monthly fee you pay
Atodashi offers NFTs sourced from exchanges, allowing users to hold them. You can hold your favorite "scent NFT cards" from hundreds of options, ranging from "apple scent" and "vanilla scent" to potentially big gainers like "tomorrow flower Kirara scent" and "a certain anime scent."
・Simple and easy rules
Hold your favorite NFT.
If the price increases, buy at the held price and secure profits.
If the price drops while holding, cancel for free.
Atodashi uses innovative technology that combines derivative trading and subscription to provide users with a unique investment experience. This system allows you to execute trades only when profits increase and cancel for free when prices drop, minimizing investment risk. Additionally, you can hold various NFTs depending on the monthly fee, allowing investors to choose the NFT that suits them best.