Lunyr

AdecentralizedworldknowledgebaseonEthereum
drivenbyeconomicincentives

LunyrInc.
ArnoldPhamandAndrewTran
WhitePaper
Version2.5.0
July2017

Thisdocumentisforinformationalpurposesonlyanddoesnot
constituteanofferorsolicitationtosellsharesorsecuritiesin
LunyrInc.oranyrelatedorassociatedcompany.Anysuchofferor
solicitationwouldonlybemadebyaconfidentialoffering
memorandumandinaccordancewithapplicable
securitiesandotherlaws.PleasereadtheimportantRiskDisclosuresat
theendofthisWhitePaper.LunyrmaymakechangestothisWhitePaper.
PleasevisitLunyr.comforthemostrecentversion.

TableofContents

TheTeam

Abstract

Market

Vision
LunyrAPI
ArtificialIntelligence
VirtualReality
AugmentedReality

Problem
Centralization
Censorship
Inaccuracy

Solution
Decentralization
TokenIncentiveSystem
MandatoryPeerReview

PlatformDesign
PeerReview
AppTokens
DisputeandResolution
LUNPool
Advertising

Roadmap
Milestones

Crowdsale
CrowdsaleSummary
InitialLUNSupplyDistribution
CrowdsaleTokenContractGuidelines

SecurityAudit

FundingUsageBreakdown

DISCLAIMER

TheTeam
TheLunyrteamconsistsofserialentrepreneurs,technicalleaders,andsuccessful
advisors.Eachcoreteammemberhascofoundedatleastonestartup.Alltogether,the
teampossessesthecapabilitiestonotonlybuildtheproject,butalsocreateandgrowa
viablebusiness.TheleadershipteamactivelycontributestotheEthereumcommunity
andorganizesthesecondlargestEthereummeetupinSiliconValley.

ArnoldPham|Cofounder&CEO

ArnoldcofoundedLeandigestInc.,aSilicon
Valleybasedtechstartup,asCEO.H estarted
programminginC++attheageofeight,andlateron,
wasanevangelistofBitTorrentandBitcoin.Asan
Ethereumactivist,heorganizesEthereumDevelopers
Community,thesecondlargestEthereummeetupin
SiliconValley,wherehealsoteachesdecentralized
applicationdevelopment.HegraduatedfromUniversity
ofCalifornia,LosAngelesandUniversityof
Pennsylvania.

AndrewTran|Cofounder&COO

AndrewcofoundedLeandigestInc.asCOO.Priorto
that,hehadbuiltaninsurancebusinesswithover
$10MMinsales.Beforeentrepreneurship,A ndrew
workedasaProjectManager,andlater,Account
ExecutiveatOraclewhereheclosedthelargestever
hardwaredealfortheirsmallmediumbusinessdivision.
HeholdsaB.S.inComputerSciencefromUniversityof
California,LosAngelesandanMBAfromUniversityof
California,Davis.

ChristopherSmith|Cofounder&CTO

ChristopherwastheCofounder&CTOofBitMesh,a
decentralizedplatformthatenablesuserstosharetheir
internetconnections.Hehasdevelopedalgorithmsfor
InternetofThingsandDeepLearningapplications.
Christopherpossessesoversevenyearsofexperience
asasoftwareengineer.HewasaPhDcandidatein
ComputerScienceatUniversityofCalifornia,Santa
CruzandholdsanM.S.andB.S.inMathematicsand
ComputerScience.

Dr.GregColvin|TechnicalAdvisor

Dr.ColvinworksontheEthereumVirtualMachine
(EVM)forEthereumDEV.Hisworkincludespushing
theboundariesofEVMperformanceandevolvingthe
EVMarchitectureandEthereumspecification.Greghas
haddecadesoftechnicalexperienceinventing
algorithms,designingsystems,andprogramming
applicationsandservers.Hisexperienceincludes
buildingandleadingworldclassteams.

AlexLeverington|TechnicalAdvisor

AlexhasbeeninvolvedwithEthereumasacore
developersincetheverybeginning.Heworkedat
ETHDEV,wherehearchitectedandprogrammed
devp2p,Ethereum'sunderlyingP2Pprotocollayer.Alex
hasalsomadekeycontributionsinEthereum
encryptionandsecurity,primarilytouchingthevarious
communicationsprotocols.Heremainsactiveinthe
protocolsteeringgroup.

GrantFondo|LegalCounsel

AsapartneratGoodwinProcterLLP,Grantspecializes
indigitalcurrency,blockchaintechnology,and
securitieslitigation.Heisanexperiencedfederal
prosecutorandaformerAssistantU.S.Attorneyinthe
NorthernDistrictofCalifornia.GrantistheCoChairof
GoodwinsDigitalCurrency+BlockchainTechnology
Practice,andsitsontheboardoftheDigitalCurrency
andLedgerDefenseCoalitionasafoundingmember.

Abstract
Lunyr(pronouncedlunar)isanEthereumbaseddecentralizedcrowdsourced
encyclopediawhichrewardsuserswithapptokensforpeerreviewingandcontributing
information.Weaimtobethestartingpointoftheinternetforfindingreliable,accurate
information.OurlongtermvisionistodevelopaknowledgebaseAPIthatdevelopers
canusetocreatenextgenerationdecentralizedapplicationsinArtificialIntelligence,
VirtualReality,AugmentedReality,andmore.

Market
AstrategiccomponentoftheLunyrplatformisitsadvertisingsystem,whichallowsfor
thepurchaseofadvertisingontheplatformusingLunyrtokens(LUN).Although
theLunyrplatformisuniqueinitsdesign,decentralization,andvision,itcanbe
comparedtoWikipedia.

WikipediatodayranksasthesixthmostvisitedsiteintheworldaccordingtoAlexa
rankings1.Itattracts470millionuniquevisitorswhoviewover19billionpagesper
2
month .EstimatingtheamountofadvertisingrevenueWikipediacouldgenerateif
itallowedadvertisingonitspagesprovidescluestothepotentialdemandfor
LUN:

In2006,JasonCalcanis,thecofounderofWeblogs,Inc,whichwasacquiredby
AOL,publishedanarticleaboutWikipediaestimatinganannualadvertising
3
revenuepotentialof$ 100MM .

1
AlexaisanAmazon.comcompanythatprovidescommercialwebtrafficdataandanalytics.
2
Band,Jonathan,andGerafi,Jonathan.2013. WikipediasEconomicValue.Rochester,NY:SocialScienceResearchNetwork.
3
Calcanis,Jason."Wikipedialeaves$100Monthetable( or"PLEASEJimbo,r econsidermediaphilanthropycouldchangethe
world!")."Calacanis.com.28Oct.2006.

In2008,B
usinessInsider.comperformedananalysisofWikipediaandarrivedat
4
ana 350MM .
nnualadvertisingrevenuepotentialof$

In2011,VincentJuhelpublishedathesisaboutWikipediaforHECParis,and
5
nnualadvertisingrevenuepotentialof$1.6billiondollars .
arrivedatana

Vision
Wewillinitiallyfocusonfinetuningthesystemtoimproveaccuracy,increasecontent,
andgrowreadership.Oncetheknowledgebasematures,wewillattractawider
audiencebyencouragingcontributionsofnearrealtimedataonworldeventsand
translationsinmultiplelanguages.Ultimately,Lunyrintendstoestablishitsbrand
globallyasareliable,accuratedecentralizedknowledgebase.

Takingitastepfurther,wewillgrowtheecosystembydevelopinganAPIthatwillattract
developers.ThisLunyrAPIwillallowdeveloperstousetheknowledgebaseasa
backboneforcreatingnextgenerationdecentralizedapplicationsinArtificial
Intelligence,VirtualReality,AugmentedReality,andmore.

LunyrAPI
TheLunyrAPIholdspromiseforsignificantlychangingexistingbusinessmodelsand
creatingnewones.TheEthereumblockchaincurrentlyhasnoknowledgeofthereal
world,yetmostusefulapplicationsrequirerealworldinformation.ThroughtheLunyr
API,decentralizedapplicationswillbeabletotapintotheknowledgebaseandgrab
accuratedataonrealworldeventsandinformation.Thisleadstoimmediatebenefitsfor

4
http://www.businessinsider.com/companies/wikipedia
5
VincentJuhel,ValorisationdubenevolatsurWikipedia( 2011)( mastersthesis,HECParis).

ArtificialIntelligence,VirtualRealityandAugmentedRealityapplications.

ArtificialIntelligence
ArtificialIntelligenceprojectssimilartoSiriorAmazonEchoareenhancedwiththe
LunyrAPI.Whenusersaskfactbasedquestions,thedecentralizedapplicationcandig
throughtheLunyrknowledgebaseandprovideuserswithreliable,accurateanswers.

VirtualReality
TheLunyrAPIwillenhancetheintimateandvisceralexperienceofinteractivevirtual
worlds.Imagineputtingonavirtualrealityheadsetthatletsyouexperiencewalkingon
thesurfaceofMars.Asyouwalkalongthecold,reddustedground,informationabout
keylandmarksandgiantduststormsappear.Allofthisinformationisdrawnfromthe
knowledgebase.

AugmentedReality
TheLunyrAPIcanbethefoundationforlearningbasedapplicationsinAugmented
Reality.Imagineyouareatthebeachonasunnydayandyouseebeautifulflowersby
theseashore.Youwanttoknowwhattheyaresoyouputonaugmentedrealityglasses,
whichwillidentifytheflowers,tapintotheknowledgebase,andgiveyouallthe
informationyouneedtosatisfyyourcuriosity.

Problem
Currentcrowdsourcedknowledgebasesfaceproblemswithcentralization,censorship,
andinaccuracy.

Centralization
Centralizedsystemsrepresentsinglepointsoffailurecontrolledbycentralauthorities.
Individualsrelyingonthesesystemsmusttrustthatauthoritieswillnotabusetheir
powertoforwardselfservingagendas.Yet,resistingthetemptationtoabusepoweris
difficultinpracticeforeventhemostrespectedauthorities.In2012,Wikipedia
deliberatelyshutdownfor24hourstoprotestagainstinternetpiracylaws,preventing
individualsworldwidefromaccessinganyinformation6.

Censorship
Centralizedsystemsarevulnerabletocensorship.Governmentsrulingthrough
oppressionexertcontrolovercitizensbyprohibitingaccesstofreeknowledge.Syria
ranksamongthegovernmentswhereinternetcensorshipispervasive.Syriablocks

6
Lee,Edward.DayW ikipediaWentDark."BostonReview.18Jan.2013.
7


websitesforpoliticalreasonsandarreststhosewhoaccessthem7.Previously,Syria
blockedtheArabicWikipediafromallInternetServiceProvidersinthecountry,
prohibitingevenuniversitystudentsfromaccessingWikipedia8.

Inaccuracy
OnWikipedia,manyarticlescanbeeditedbyanyonewithaninternetconnection.
Therefore,userscaneasilyfalsifyinformation.Althoughpopulararticleswith
inaccuraciesarelikelytobequicklycorrected,lesspopulararticlescangouncorrected
formonths.Forexample,JohnSeigenthaler,aformerassistanttoU.S.SenatorRobert
Kennedy,wasfalselyimplicatedintheassassinationsoftheKennedybrothersonhis
Wikipediabiographyforoverfourmonths9.

Solution
Lunyrsinnovativeplatformsolvestheproblemsofcentralization,censorship,and
inaccuracyseenincurrentknowledgebases.

Decentralization
TheLunyrplatformisbuiltontopofEthereumandisthereforedecentralized,
censorshipresistant,andautonomous.Nosinglepointoffailureexists.Nocentral
authorityormiddlemanownsorcancorrupttheinformation.Therulesinwhichpeople
interactwiththeknowledgebaseandwithoneanotheraremutuallyagreeduponand
enforcedthroughsmartcontracts,whicharepubliclyverifiableontheblockchain.

TokenIncentiveSystem
Ethereumenablesthecreationofapptokens,whichcanbeusedinanincentivesystem
toreplaceintermediaries.InLunyrssystem,tokensplayakeyroleinproviding
economicincentivessothattherationalbehaviorofindividualsresultsincommongood.
UnlikeinWikipediawherevolunteersmustdonatetheirtimetocontributeandvalidate
information,inLunyrsplatform,contributorsarerewardedfortheirworkandare
incentivizedtocontinueincreasingthevalueoftheecosystem.

MandatoryPeerReview
DrivebyvandalismandcorruptionareeliminatedintheLunyrplatform.Allcontent
submissionsgothroughamandatorypeerreviewprocessandarenotcommittedtothe
knowledgebaseuntilvalidatedforreliabilityandaccuracy.Apowerfulincentivesystem
enabledbyapptokensensuresthatpeerreviewersactinthebestinterestofthe
7
https://freedomhouse.org/report/freedomnet/2015/syria
8
ArabicW ikipediaDisappearsFromTheInternetinSyria,Menassat,19May2008.
9
Seigenthaler,John."AfalseW ikipedia'biography'".USAToday.29Nov.2005.
8


ecosystem.

PlatformDesign
Lunyrsinnovativeplatformdesignalignseachindividualsrationaleconomicbehavior
withbenefittingthewholeecosystem.

PeerReview
Thecontributorsworkflowbeginswithaddingoreditinginformationintheknowledge
baseinhopesofreceivingrewards.Eachcontributorssubmissioncostsgas,so
floodingthesystemwithjunkhasitseconomiclimits,justasinEthereum.A
ll
submissionsgothroughamandatorypeerreviewprocessandarenotcommitted
totheknowledgebaseunlessapproved.Everysubmissionrequiressourcesfor
reviewerstovalidatethesubmissionsreliabilityandaccuracy.Hence,spam,fake,or
maliciouscontentwillbefilteredout.

Everyuserwhosubmitsacontributionisalsorequiredtopeerreviewother
9


submissions.WeuseMachineLearningtomatchpeerreviewerswithtopicswithwhich
theywilllikelybefamiliar.Submissionsarenotcommittedunlesstheypassthe
judgmentofmultiplepeerreviewers.

Itiscrucialthatpeerreviewersarealsocontributorstoensurethatonlyindividualswho
areeconomicallyalignedwiththewellbeingoftheecosystemareabletopeerreview
submissions.Badactorswhotrytoattackthesystemwillbefightingagainstlegionsof
goodactorsdrivenbyapowerfulincentivesystem.

AppTokens
Oncethesubmissionpassespeerreview,thecontributorisrewardedContribution
(CBN)andHonor(HNR)tokens.NeitherCBNnorHNRcanbetransferredtoother
individuals,whichensuresthatonlyuserswhohavecommittedtothewellbeingofthe
ecosystemholdCBNandHNR.

CBNareusedtocalculatehowmanyLUNanindividualwillberewardedforthecurrent
rewardperiod.CBNareautomaticallyconsumedafterLUNrewardsaredistributedfor
thetwoweekrewardperiod.LUNareusedtopurchaseadvertisingontheplatform.

HNRisusedtoproposeandvoteonissuesintheDisputeandResolutionsystem.Itis
consumeduponuse.

DisputeandResolution
Thedisputeandresolutionsystemexiststosolveanycontentandqualityissuesthat
slippedthroughthepeerreviewsystem.Issuessuchasmaliciouscontent,vandalism,
andcontentreorganizationaredealtwithhere.ProposalsandvotescostHNR.Itis
importantthatHNRisonlyheldbyuserswhohavecommittedtotheecosystemtoalign
theirproposalandvotingbehaviorwithincreasingthevalueoftheecosystem.

LUNPool
LUNrewardscomefromapoolofLUNthataccumulatesandisdistributedto
contributorsattheendofeverytwoweekrewardperiod.ThenumberofLUNthatan
individualcontributorisrewardedisbasedonthepercentoftotalCBNtheyholdbythe
endofeachtwoweekperiod.Smartcontractsensurethatthedistributionwillbe
handledwithtransparencyandfairness.

TheLUNPoolcomesfromtwosources:
NewLUNthatarecreatedanddistributedperiodicallyattwoweekintervals
LUNthatareusedtopurchaseadvertising

ThesupplyofLUNgrowsatanannualrateof3%oftheinitialtokensupply.Thisgrowth

10


willnotstartuntiltheBetareleaseontheMainnet.TheseadditionalLUNprovidefuelfor
theecosystemtogrowinthebeginning.Atthesametime,theeffectiveinflation
decreasesovertimetowardszero,alsoknownasdisinflation.

Lunyrreceives15%oftheLUNpooleachtwoweekperiod.Thisallocationaligns
Lunyrsincentivewithgrowingtheecosystem.SinceLunyrsprimarysourceofvalueis
inLUN,Lunyrswellbeingistiedtothewellbeingoftheecosystem.Therefore,the
rationalbehaviorofLunyristocontinuallyupgradeandimprovetheecosystemsothatit
growsinvalueforallparticipants.

OutsidetheLUNpool,LunyrmayselladditionalLUNtopurchasersinthefuture.Itmay
dosothroughexchanges,theblockchainorinotherways.

LunyrmaymakechangestothesizeoftheLUNpool,LUNdistributionandother
relatedmattersthatitbelieves,initsreasonablejudgment,arebeneficialtotheLUN
platformgrowthanddevelopment,oritconsidersreasonableunderthecircumstances.
KeepinmindthatanycorruptbehaviorwouldbeirrationalforLunyrtodo.Lunyrwillbe
holdingontoLUNandanydecisionsthatdilutethevalueofLUNanddevaluethe
knowledgebasewouldbeharmfultoLunyr.

Advertising
LUNareusedtoplaceadvertisementsontheplatform.Theadsaretextbasedsuchas
thoseseeninQuora.WeuseMachineLearningtomakeadscontentaware.Adsare
notcommittedtotheplatformuntiltheypassthroughthemandatorypeerreview
system.

AdsareacrucialcomponentoftheLunyrecosystem.Theycreateapowerfuldemand
forLUNfromthosewithfinancialresources.Adsprovidetheeconomicforcethatdrives
networkeffectsasmorecontributorsandreadersjointheecosystem.

Roadmap
Lunyriscommittedtocompletingeachmilestoneontheroadmap.Inadditionto
remainingopenandtransparentoncommunicationchannels,weintendtoalsoprovide
progressupdates.

Wewillmakethefollowingmaterialsavailable:
Developmentnewsletters
Blogpostsofresearchanddevelopment

11


Milestones

12


Milestone CoreFeatures(25kETH) AdditionalFeatures(250kETH)

Stardust Contentsubmissioneditor
(Invitationonly Basicpeerreviewsystemfor
Alpha) contentandads

Celestial Basicadvertisingsystem WYSIWYGeditor

(Alphareleaseon
Testnet)

Interstellar Basicdisputeandresolution Commentsandtaggingforediting

(Betareleaseon system anddisputes
Testnet) Advertisingauctionsystem

Supernova CBN,HNR,LUNdashboard
(Betareleaseon
Mainnet)

Nebula Algorithmimprovementfor Contentawarepeermatching

(PeerReview peerreview Multilanguagesupport
SystemUpgrade)

Cosmic Improvedproposalandvoting Disputeandresolutionmanager

(Disputeand processes UI
ResolutionSystem
Upgrade)

Starlight Algorithmimprovementfor Contentawareads

(Advertising advertising AdvertisingcampaignmanagerUI
SystemUpgrade)

Galaxy LunyrAPI Contentmetadata

(LunyrAPI) Wordandeditfrequencies
ScrapingAPI
Datasetsubmissions
Structureddata
Disputedataset
Modelserving
Continuousonlinemachine
learning

Crowdsale
TheinitialdistributionofLUNwillbedeterminedthroughaCrowdsale.LUNmaybe
purchasedduringtheCrowdsalepursuanttoaPresalePurchaseAgreementatan
expecteddistributionof44LUNperEther.LUNarepurchasedbysendingEthertothe
13


Crowdsaletokencontractaccordingtoourinstructions.

TheCrowdsalewillaimtobeginMarch29,2017at16:00UTCandcontinueforfour
weeks,oruntilthemaximumnumberofLUNarepurchased.Theactualstartandend
timewilldependonEthereumblocknumbers,whichwillbeannouncedontheLunyr
communitychannels.IftheCrowdsalefailstoresultinaminimumnumberofLUN,then
EthersenttopurchaseLUNwillbereturned.

TheCrowdsaletokencontractaddresstowhichEtherwillbesenttopurchaseLUN
accordingtoourinstructionsandstartandendblocknumberswillbeannouncedonthe
followingchannels:

Website:lunyr.com
Github:github.com/lunyr
Subreddit:reddit.com/r/lunyr
Slack:lunyrcommunity.slack.com
Twitter:twitter.com/LunyrInc
Blog:medium.com/lunyr

CrowdsaleSummary

Startblock: 3,440,760

Endblock: 3,613,560

Crowdsaleperiod: March29April27

LUNpurchasedperEther: 44LUNperEther

MinimumEther: 25,000ETH

MinimumnumberofCrowdsaleLUN: 1,100,000LUN

MaximumEther(cap): 250,000ETH

MaximumnumberofCrowdsaleLUN: 11,000,000LUN

14


InitialLUNSupplyDistribution

TheoverallinitialdistributionofLUNwillbeasfollows:
78%forCrowdsalepurchasers.
15%forLunyrfounders,employees,andadvisorsdistributedtoatimelocked
vaultthatprohibitsLUNtransfersfor180days.
5%formarketingandpromotiondistributedtotheLunyrmultisigwallet.
2%forBugBountydistributedtotheLunyrmultisigwallet.

CrowdsaleTokenContractGuidelines
BeforetheCrowdsale:

AnyEthersenttothetokencontractwillberejected.

DuringtheCrowdsale:

AnyEthersenttothetokencontractaccordingtoourinstructionswillresultinan
allocationofLUNtothepurchaseratadistributionof44LUNperEther.
LUNcannotbetransferredduringtheCrowdsaleperiod.

15


AftertheCrowdsale:

UsersmaytransferLUNtoanotheraddress.
Thecrowdsaletokencontractcreatesadditionaltokenstoarriveatthetoken
supplydistribution.
TheLunyrTokencontractisnowfinalized,however,upgradedreleasesofthe
tokencontractaddingcorefeaturesandimprovementsaretobeexpected.

SecurityAudit
Lunyriscommittedtoensuringthesecurityofitsplatform.Witheachproductreleaseon
theMainnet,Lunyrcommitstoperformingasecurityauditwithbothinternaland
externalreviewers.Additionally,therewillbeaBugBountyprogramthatrewards
developersforfindingsecurityandotherrelatedissues.

FundingUsageBreakdown

16


DISCLAIMER

NOTANOFFERTOSOLICITSECURITIESANDRISKSASSOCIATEDWITHLUN
ANDTHELUNYRAPPLICATION

LastUpdatedMarch7,2017

Thisdocumentisforinformationalpurposesonlyanddoesnotconstitutean
offerorsolicitationtosellsharesorsecuritiesinLunyrInc.oranyrelatedor
associatedcompany.Anysuchofferorsolicitationwouldonlybemadebya
confidentialofferingmemorandumandinaccordancewithapplicablesecurities
andotherlaws.Noneoftheinformationoranalysespresentedareintendedto
formthebasisforanyinvestmentdecision,andnospecificrecommendationsare
intended.Accordingly,thisdocumentdoesnotconstituteinvestmentadviceor
counselorsolicitationforinvestmentinanysecurity.Thisdocumentdoesnot
constituteorformpartof,andshouldnotbeconstruedas,anyofferforsaleor
subscriptionof,oranyinvitationtooffertobuyorsubscribefor,anysecurities,
norshoulditoranypartofitformthebasisof,orbereliedoninanyconnection
with,anycontractorcommitmentwhatsoever.Lunyrexpresslydisclaimsanyand
allresponsibilityforanydirectorconsequentiallossordamageofanykind
whatsoeverarisingdirectlyorindirectlyfrom:(i)relianceonanyinformation
containedinthisdocument,(ii)anyerror,omissionorinaccuracyinanysuch
informationor(iii)anyactionresultingtherefrom.

TheLunyrtoken,orLUN,isacryptographictokenusedbytheLunyrapplication.

LUNisnotacryptocurrency.
Atthetimeofthiswriting,(i)withtheexceptionofbeingusedtoplaceadsontheLunyr
platform,LUNcannotbeexchangedforgoodsorservices,(ii)LUNhasnoknownuses
outsidetheLunyrapplication,and(iii)LUNcannotbetradedonanyknownexchanges.

LUNisnotaninvestment.
ThereisnoguaranteeindeedthereisnoreasontobelievethattheLUNyou
purchasewillincreaseinvalue.Itmayandprobablywillatsomepointdecreasein
value.ThosewhodonotactuallyusetheirLUNhonestlyandfairlymaylosetheirright
touseLUNandmaylosetheirLUNtothosethatdouseLUNhonestlyandfairly.

17


LUNisnotevidenceofownershiporrighttocontrol.
ControllingLUNdoesnotgrantitscontrollerownershiporequityinLunyr,ortheLunyr
application.LUNdoesnotgrantanyrighttoparticipateinthecontrol,directionor
decisionmakingofLunyrortheLunyrapplication.

RISKDISCLOSURES

1)RiskofLosingAccesstoLUNDuetoLossofCredentials
ThepurchasersLUNmaybeassociatedwithaLunyraccountuntiltheyaredistributed
tothepurchaser.TheLunyraccountcanonlybeaccessedwithlogincredentials
selectedbythepurchaser.ThelossofthesecredentialswillresultinthelossofLUN.
Bestpracticesdictatethatpurchaserssafelystorecredentialsinoneormorebackup
locationsgeographicallyseparatedfromtheworkinglocation.

2)RisksAssociatedwiththeEthereumProtocol
LUNandtheLunyrapplicationarebasedontheEthereumprotocol.Assuch,any
malfunction,unintendedfunction,unexpectedfunctioningoforattackontheEthereum
protocolmaycausetheLunyrapplicationorLUNtomalfunctionorfunctioninan
unexpectedorunintendedmanner.Ether,thenativeunitofaccountoftheEthereum
protocolmayitselflosevalueinwayssimilartoLUN,andalsootherways.More
informationabouttheEthereumprotocolisavailableathttp://www.ethereum.org.

3)RisksAssociatedwithPurchaserCredentials
Anythirdpartythatgainsaccesstoorlearnsofthepurchaserslogincredentialsor
privatekeysmaybeabletodisposeofthepurchasersLUN.Tominimizethisrisk,the
purchasershouldguardagainstunauthorizedaccesstotheirelectronicdevices.

4)RiskofUnfavorableRegulatoryActioninOneorMoreJurisdictions
Blockchaintechnologieshavebeenthesubjectofscrutinybyvariousregulatorybodies
aroundtheworld.ThefunctioningoftheLunyrapplicationandLUNcouldbeimpacted
byoneormoreregulatoryinquiriesoractions,includingthelicensingoforrestrictions
ontheuse,sale,orpossessionofdigitaltokenslikeLUN,whichcouldimpede,limitor
endthedevelopmentoftheLunyrapplication.

5)RiskofAlternative,UnofficialLunyrApplication
FollowingtheCrowdsaleandthedevelopmentoftheinitialversionoftheLUNplatform,
itispossiblethatalternativeapplicationscouldbeestablished,whichusethesame
opensourcecodeandprotocolunderlyingtheLunyrapplication.TheofficialLunyr
applicationmaycompetewiththesealternative,unofficialLUNbasedapplications,
18


whichcouldpotentiallynegativelyimpacttheLunyrapplicationandLUN,includingits
value.

6)RiskofInsufficientInterestintheLunyrApplicationorDistributedApplications
ItispossiblethattheLunyrapplicationwillnotbeusedbyalargenumberof
businesses,individuals,andotherorganizationsandthattherewillbelimitedpublic
interestinthecreationanddevelopmentofdistributedapplications.Suchalackof
interestcouldnegativelyimpactLUNandtheLunyrapplication.

7)RiskthattheLunyrApplication,AsDeveloped,WillNotMeettheExpectations
ofLunyrorthePurchaser
TheLunyrapplicationispresentlyunderdevelopmentandmayundergosignificant
changesbeforerelease.Anyexpectationsorassumptionsregardingtheformand
functionalityoftheLunyrapplicationorLUN(includingparticipantbehavior)heldby
Lunyrorthepurchasermaynotbemetuponrelease,foranynumberofreasons
includingmistakenassumptionsoranalysis,achangeinthedesignandimplementation
plansandexecutionoftheLunyrapplication.

8)RiskofTheftandHacking
Hackersorothergroupsororganizationsorcountriesmayattempttointerferewiththe
LunyrapplicationortheavailabilityofLUNinanynumberofways,includingservice
attacks,Sybilattacks,spoofing,smurfing,malwareattacks,orconsensusbased
attacks.

9)RiskofSecurityWeaknessesintheLUNApplicationCoreInfrastructure
Software
TheLunyrapplicationconsistsofopensourcesoftwarethatisbasedonotheropen
sourcesoftware.ThereisariskthattheLunyrteam,orotherthirdpartiesmay
intentionallyorunintentionallyintroduceweaknessesorbugsintothecore
infrastructuralelementsoftheLunyrapplicationinterferingwiththeuseoforcausing
thelossofLUN.

10)RiskofWeaknessesorExploitableBreakthroughsintheFieldof
Cryptography
Advancesincryptography,ortechnicaladvancessuchasthedevelopmentofquantum
computers,couldpresentriskstocryptocurrenciesandtheLunyrplatform,whichcould
resultinthetheftorlossofLUN.

11)RiskofLUNMiningAttacks

19


Aswithotherdecentralizedcryptographictokensandcryptocurrencies,theblockchain
usedfortheLunyrapplicationissusceptibletominingattacks,includingdoublespend
attacks,majorityminingpowerattacks,selfishminingattacks,andracecondition
attacks.AnysuccessfulattackspresentarisktotheLunyrapplication,LUN,and
expectedproperexecutionandsequencingofEthereumcontractcomputations.Despite
theeffortsoftheLunyrteam,theriskofknownornovelminingattacksexists.

12)RiskofLackofAdoptionorUseoftheLunyrApplication
WhileLUNshouldnotbeviewedasaninvestment,itmayhavevalueovertime.That
valuemaybelimitediftheLunyrapplicationlacksuseandadoption.Ifthisbecomesthe
case,theremaybefewornomarketsfollowingthelaunchoftheplatform,potentially
havinganadverseimpactonLUN.

13)RiskofanIlliquidMarketforLUN
ThereverywellmayneverbeasecondarymarketforLUN.Therearecurrentlyno
exchangesuponwhichLUNwouldtrade.Ifeverexchangesdodevelop,theywilllikely
berelativelynewandsubjecttopoorlyunderstoodregulatoryoversight.Theymay
thereforebemoreexposedtofraudandfailurethanestablished,regulatedexchanges
forotherproductsandhaveanegativeimpactonLUN.

14)RiskofUninsuredLosses
Unlikebankaccountsoraccountsatsomeotherfinancialinstitutions,fundsheldusing
theLunyrapplicationorEthereumnetworkaregenerallyuninsured.Intheeventofany
loss,thereisnopublicinsurer,suchastheFDIC,orprivateinsurer,toofferrecourseto
thepurchaser.

15)RiskofDissolutionoftheLunyrProject
Itispossiblethat,duetoanynumberofreasons,includinganunfavorablefluctuationin
thevalueofEther,developmentissueswiththeLunyrapplication,thefailureof
businessrelationships,orcompetingintellectualpropertyclaims,theLunyrprojectmay
nolongerbeviableasabusinessorotherwiseandmaydissolveorfailtolaunch.

16)RiskofMalfunctionintheLunyrApplication
ItispossiblethattheLunyrapplicationmalfunctionsinanunfavorableway,including
onethatresultsinthelossofLUN.

17)UnanticipatedRisks
Cryptographictokensareanewanduntestedtechnology.Inadditiontotherisks
discussedinthisWhitePaper,therearerisksthattheLunyrteamcannotanticipate.

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Furtherrisksmaymaterializeasunanticipatedcombinationsorvariationsofthe
discussedrisksortheemergenceofnewrisks.

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