Executive Summary

Whilst this is an international project, we have provided this translation to allow ease of access for our Mongolian users. SURGE’s supporting project, Baruun Mongol Energy’s power plant (“SURGE Power Plant”), is located in Mongolia and will generate electricity for Mongolian users. Therefore we have chosen to launch this project in Mongolia and seek active participation from the Mongolian crypto and non-crypto community.

Project Description

SURGE is a decentralised electricity trading platform built using blockchain technology. The electricity traded is to be generated from the Baruun Mongol Energy’s 60 MW coal fired powerplant located in Bukhmurun Soum of Uvs Province, 1,016 km from Ulaanbaatar, in the north western region of Mongolia. (see below for more information on the SURGE Powerplant)

To facilitate the trade of electricity within the SURGE P2P Electricity Trading Platform, we have developed WATT, our native token. SURGE aims to provide a stable source of electricity to support regional, commercial, and industrial growth.

Electricity is a valuable commodity just like Gold, Silver, or any other economic factors of production and fundamentally touches every aspect of our lives; electricity is used for powering our homes, workplace, etc.

The electricity produced, and the token layer placed on top, will allow for the formation of a transparent, equally accessible electricity market (A blockchain based Peer to Peer Electricity Trading Platform).

WATT Token Economy

SURGE was launched to enhance the infrastructure for electric power generation and decentralize the electricity trading market, enabling easier and wider-ranging access to electric power through the tokenization of electricity. The value of WATT is secured by physical electricity that is generated from the power plant and its utility enables the conversion of a digital token to physical electricity and vice versa. SURGE runs a two-token system in order to safeguard the conversion of electricity production to valuable economic output that supports regional, commercial, and industrial growth.

WATT Token

WATT token is a utility token linked to electricity and represents the physical electric power to be produced from all of SURGE's power sources, starting with the SURGE Power Plant. This token will be listed on digital asset exchanges, both centralized and decentralized, championing financial inclusion and exhibiting a wide array of DeFi-centric features, including P2P payments, staking, and cross-chain bridging, to name a few.

The total supply of WATT tokens is determined by the power generation capacity of the SURGE Power Plant, which is 60MW. Each WATT token represents 1/10 of a watt of electricity so in sum, 600,000,000 WATT tokens will be issued at the token generation event.

Stablecoin: wUSD

An algorithmic stablecoin, W-USD, is issued to transact for physical electricity produced from the power plant through the WATT Marketplace (see: “4.3 WATT Marketplace”). W-USD tracks the price of 1 US Dollar (USD), remaining constant at 1 and eliminating volatility so as to provide a convenient means of transacting electricity without losing purchasing power that one may incur if a volatile digital asset were used instead.

The process of minting W-USD requires the over-collateralization of WATT in relation to W-USD at a collateralization ratio (C-ratio) of 6 to 1. WATT and W-USD exhibit a symbiotic relationship where WATT enables the minting of W-USD, while W-USD safeguards the value of the WATT, as expressed through the C-ratio, which fluctuates overtime due to the volatility of WATT.

If the C-ratio rises above 600%, users can either mint more W-USD or simply withdraw the proportionate amount of WATT. Conversely, if the C-ratio drops below 600%, a “Liquidation” event is triggered and the user is given a 3 day grace period to either burn W-USD proportionate to the decrease of the C-ratio or add more WATT as collateral to adjust the C-ratio to its original state of 600%. If the user’s C-ratio is still below the target C-Ratio of 600% even after the 3 day grace period, their collateralized WATT is subject to liquidation.

W-USD will be introduced upon the completion of the SURGE Power Plant and the technical buildout of the WATT Marketplace. The precise date of launch will be announced through the SURGE Telegram community channels.

WATT Token Allocation

Allocation

Amount (WATT)

% of Total Supply

Issuance

Pre Sale

120,000,000

20%

Initial circulating supply

Public Sale

150,000,000

25%

Initial circulating supply

Marketing

90,000,000

15%

Operations

90,000,000

15%

Team

24,000,000

15% initial release upon exchange listing. Remaining vested and released per month over 12 months

Founders

30,000,000

15% initial release upon exchange listing. Remaining vested and released per month over 12 months

Advisors

24,000,000

15% initial release upon exchange listing. Remaining vested and released per month over 12 months

Partners

72,000,000

12%

15% initial release upon exchange listing. Remaining vested and released per month over 12 months

Total Supply

600,000,000

100%

WATT Marketplace

The common practice for buying electric power is traditionally done through a utility company that serves as a central, single source of electric power distribution for a specific region, charging fees for the transmission of electric power that is generated through a power plant. Under this model for trading electricity, there is one producer who sells power to many consumers or buyers.

WATT Marketplace is a blockchain based Peer-to-Peer (P2P) Electricity Trading Platform established as an instrument of financial inclusion, focused on the trading of electricity. The marketplace will facilitate trading of electricity produced from the Mongolia government guaranteed SURGE Power Plant, and the token layer placed on top, will allow for the formation of a transparent, equally accessible electricity market. Starting with the SURGE Power Plant, all approved producers of electric power will be able to sell their electricity through the WATT marketplace. The participants of the WATT Marketplace constitute “Prosumers” and “Consumers”. Prosumers are both producers and consumers (buyer and seller) of electric power, whilst Consumers are simply buyers.

The marketplace facilitates the trade (purchase and sale) of electricity directly between producers and consumers, peer-to-peer (P2P) and without the need for an intermediary. P2P electricity trading enables energy generators, both large scale power plants and local energy producers, to sell their electricity at the price in which the consumers are willing to pay. By distributing the source of electric power and growing adoption of renewable means of independent power generation, such as solar and wind, energy consumers are not reliant on a single energy producer. It also keeps the region resilient to power outages in emergencies, and it can improve the energy access in some cases W-USD (see: “4.2.1 Stablecoin: W-USD) is used to transact electricity and the rate of exchange is determined solely by market supply and demand.

The marketplace utilizes existing power grids to distribute electricity and WATT becomes the means to verify ownership and facilitate the trading of electricity. Starting with the greater Mongolia region and later, extending to the global electricity market, the electricity-token connection will be established for all electric power generated from the consortium of SURGE energy producers in the form of WATT token.

Before the power plant can list electric power for sale on the WATT Marketplace, we first require the completion of the construction of the SURGE Power Plant and then power generation. As such, the launch of the Marketplace will be closely aligned with the power plant construction’s completion. The SURGE team will disseminate any and all pertinent information pertaining to the precise launch date of the WATT Marketplace through the SURGE Telegram community channels.

Key Project Selling Points

Real Value

SURGE is backed by real commodity of proven value- electricity. It is also supported by a real tangible project located in Mongolia- SURGE Power Plant.

It is not a project that has produced an empty token.

Real Utility

WATT can be used to purchase and sell electricity. It therefore has a real marketplace where the tokens can be used. It can be used to buy and sell something that affects everyone- electricity. The utility of WATT is therefore unmatched.

Government Partnership (Global and Local)

Government of the Republic of Korea:

Ministry of Trade Industry and Energy (MOTIE) as owner/operator of the Khtoghor Shanaga Coal- SURGE's coal supply.

Government of Mongolia:

The revenues of the powerplant are guaranteed for 30 years, (POWER PURCHASE AGREEMENT) through the Western Region Energy Security policy of the central government.

Government of the People’s Republic of China:

Debt Finance Provider: SinoSure EPC Group: Beijing Shougang (BSIET)

As the project supports all central and local government objectives for energy security, this is a rare cryptocurrency and blockchain project that is receiving government support. Additional partnerships with power plants are also being discussed to remedy energy infrastructure challenges prevalent in legacy systems all across the world.

International Listings

Even before the Public sale SURGE has received confirmation for listing from 2 CMC Top 50 exchanges. Users in Mongolia will have alternative trading venues, liquidity and international exposure within weeks of the Public Sale in Mongolia.

International Marketing

The SURGE team has an extensive track record in international markets. Whether in traditional or social media, market communications and influencer networks, the SURGE team is unmatched.