AucWays-XAW: The mechanism makes the difference!

Value Creation and Profit

Two terms that many people equate, although they mean something different:

Profit – in short, revenue minus costs, is a figure usually calculated over a year in business administration, which typically forms the basis for determining a company's success and distributing dividends to shareholders. Even small changes in general conditions can lead to profits being minimized or turning into losses.

In the realm of cryptocurrencies, profit is always a gain resulting from the difference between the selling price and the purchase price of the tokens (exception: stablecoins). This also applies to AucWays-XAW.

Value creation – in short, total output minus intermediate consumption – sounds similar, but is something entirely different. Value creation occurs over the long term; it requires transforming something existing into something of higher value. Profits can result from this, but it is not mandatory, and especially not the case with non-profit organizations, where value creation leads to further value creation.

Cryptocurrencies typically have no value creation, as there is no transformation of something existing into something of higher value. They are not based on any real value and therefore have 0 real value.

The exception is AucWays-XAW

Each AucWays-XAW token reflects the value of half an AucWays Social Living gAG share, to which the token is inextricably linked.

This is precisely what makes AucWays-XAW so unique: AucWays Social Living gAG is a non-profit company whose purpose is the construction, maintenance, and rental of social housing. The company is not geared towards making a profit, but rather towards achieving its corporate purpose to the maximum extent, meaning that the value created through housing construction is in turn used to achieve a higher level of value creation, over and over again. At the same time, interest-free government loans and subsidies significantly increase the level of value creation. The company's assets grow, first slowly, then increasingly quickly.

With the value of the assets, the value of the token also increases, as it is inextricably linked to the company's shares.

To accelerate precisely this increase in value, regulations have been established in the "whitepaper" under numbers 8) and 9) that lead to an interaction between the stock market price of AucWays-XAW and the intrinsic value of AucWays-XAW.

We call this mechanism the:

"You cannot lose!" – Mechanism

The intrinsic value of the token is not dependent on the stock market price; it increases daily through rental payments, loan repayments, and inflation.

In summary:

1. Even if the stock market price falls, it does not change the real value of the token, which continues to rise.
2. Since the intrinsic value of the token is constantly increasing, the number of tokens is strictly limited, and the issuance of further tokens is strictly coupled with future project activities of AucWays Social Living gAG, there is a high probability that the stock market value of the token will partially anticipate the future development of the token and rise significantly above its intrinsic value.
3. This is where the mechanisms anchored in the "whitepaper" come into play during the next token issuance (issuance is planned approximately every 3 to 4 years):
   
   a) Regardless of the stock market price, the following calculation fundamentally and always applies to each token issuance for determining the quantity of tokens to be issued:
   Planned investment sum x necessary equity in % x 2
   
   b) All proceeds from the sale of tokens, minus a flat fee of 10% plus statutory VAT (this is always calculated to cover costs from one issuance to the next, i.e., 3–4 years) and any marketing costs, also 10% plus VAT (these are only planned for the initial issuance), flow into the company's capital.
   
   c) The company uses the incoming funds as equity for the construction of social housing.

The consequences of these regulations

1. A low stock market price does not affect the intrinsic value of AucWays-XAW, as this is calculated from the tangible assets in the real world.
2. A high stock market price, however, does affect the intrinsic value of AucWays-XAW, as it leads to significantly higher revenues during the next issuance.

An example

1. First issuance before stock market launch

Planned investment 40 million, necessary equity 10 million.
20 million tokens sold, total issuance 25 million tokens (incl. social…)
Token sales revenue €20 million
Of which, after costs and marketing, available as capital: €15 million

Equity ratio 25%
Interest rate 0%
Subsidy on loans – upon completion of building 20%
After 20 years 10%, each of the loan amount

Built for 60 million. Value after completion minus loans and 1 installment loan subsidy (9 million) is 24 million.

The intrinsic value of the token on the day of completion is 24 million euros divided by 25 million issued tokens, thus approx. €0.96

2. Issuance after approx. 3 years

Stock market price of AucWays-XAW risen to €4
Planned investment 40 million, necessary equity 10 million.
20 million tokens sold, total issuance 25 million tokens (incl. social…)
Token sales revenue €80 million
Of which, after costs, available as capital: €70.4 million

Built for 280 million. Value after completion minus loans and 1 installment loan subsidy (42 million) is 112.4 million.

The value of existing properties from Phase 1 has since risen from 24 to 27 million euros due to amortization and inflation.

The intrinsic value of all issued tokens is €112.4 million plus €27 million, totaling €139.4 million divided by the total issued token amount of 50 million tokens, now €2.79.

What does the example show?

Due to the regulations anchored in the "whitepaper," there is a positive interaction between the stock market price and the intrinsic value of AucWays-XAW.

An increased stock market price leads to a significantly increased intrinsic value of the token at each subsequent issuance.

This increased intrinsic value of the token will then, with high probability, again lead to a significantly rising stock market price, which in turn will lead to a higher intrinsic value of the token at the next issuance.

Of course, at this point, no further serious price forecast can be made.

However, the following statement can be made:

AucWays-XAW offers a truly unique opportunity to do good, support social work, and multiply your invested capital many times over.