WHITEPAPER

THE WORLD’S FIRST

FULLY-FUNCTIONING MOBILE
OPERATOR POWERED BY
BLOCKCHAIN

Prague, 2018
 CONTENTS
MIRACLE TELE
WHITEPAPER

DISCLAIMER 3
ABSTRACT 5
LANDSCAPE 7
Introduction to mobile industry 8
Mobile industry size and value 9
Blockchain and the mobile industry 11
PROBLEM 13
Traditional mobile operators 14
Non blockchain MVNOs 14
Blockchain competitors 15
Mobile users 16

SOLUTION 19

Essential features 20
TELE token 21
Value added features 23
Business model 24

BUILD AND ROADMAP 28

Telecom platform 29
Blockchain platform 33
Ethereum-based masterplan: Sharding and Plasma 35
Alternative solution: Graphene 38
Roadmap 42

TEAM 43
Core team 43
Advisors 45
TOKEN SALE 47
Token sale overview 48
Pre ICO Token allocation 48

2
 DISCLAIMER MIRACLE TELE
WHITEPAPER

WE STRICTLY RECOMMEND YOU TO CAREFULLY READ THIS SECTION,

AS WELL AS ALL OTHER SECTIONS OF THIS WHITEPAPER, SINCE THEY
FEATURE INFORMATION OF KEY IMPORTANCE. IF YOU FIND YOURSELF
IN DOUBT ABOUT HOW YOU SHOULD ACT, PLEASE SEEK ADVICE FROM
YOUR PERSONAL LEGAL, FINANCIAL, TAX, OR ANY OTHER COUNSELLOR
OR COUNSELLORS.

The primary aim of this Whitepaper is to offer information about Miracle Tele and
its TELE tokens and inform the perspective participants of the project about Miracle
Tele system and its token sale. The information in this document is presented strictly
for information purposes, which means that it may not be fully comprehensive and
shall not entail any contractual ties or liabilities.

As per our Token Sale Agreement as well as other documents of Miracle Tele, including
this Whitepaper, TELE tokens shall not constitute securities in any state or country.
This Whitepaper shall not be considered as an offer, tender, investment proposal or
any other proposal of purchase of securities of any kind in any state or country.

This Whitepaper shall not constitute any kind of advice to either purchase or sell
any tokens that may be issued or distributed during the token generation event
nor shall this Whitepaper, whether partially or fully, be viewed as an invitation or
recommendation as to any contractual or investment choice or decision.

This Whitepaper was not created in consistence with, neither shall it be subject to,
any kind of legal frameworks, laws, or regulations in any state or country.

Some information such as financial estimates or any other assertions that are
presented in this Whitepaper represent forward-looking statements. These forward-
looking statements or any other assertions of such nature may involve certain risks
and unpredictabilities, which may result in certain changes in the planned course of
events or anticipated results and make them differ from the estimates or results that
were stated in such forward-looking statements or assertions.

Hereafter, any and all financial calculations that are presented in this Whitepaper will
be offered strictly for demonstration and information purposes and will be given as
the average values for the respective industry.

TELE tokens are meant for use strictly within the Miracle Tele system and shall not
3 have any value outside of it. Miracle Tele shall not provide any guarantees or ensure
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any profit, income, or gains from Miracle Tele products or services. Therefore, you
shall carefully assess all available information and possible risks before your use of
Miracle Tele products or services.

Miracle Tele shall not bear any responsibility or liability for any potential losses,
damages, or harm. TELE tokens shall not be used for any purposes different than
those presented in this Whitepaper, which may include but shall not be limited to,
any kind of speculative, investment, and any other financial purposes.

Possession of TELE tokens shall not grant any rights in any form to the user, including
but not limited to any rights of ownership, interest, profit, redemption, property
or intellectual property, decision making, or any other rights, such as any rights of
financial or legal nature, in Miracle Tele or its affiliates.

TELE tokens are not being offered or distributed to, neither can they be resold or
otherwise transferred by their holders to the citizens of, whether they are private
or legal persons, and people who own a permanent residence or their seat of
incorporation in the United States of America (including its states and the District of
Columbia), People’s Republic of China, Republic of Korea, Singapore or in the country
or territory where transactions with digital tokens are prohibited or to some extent
restricted by the law.

Miracle Tele reserves the right to make amendments and changes to this Whitepaper
at any and all times without notification. In such case, only the latest version of this
Whitepaper published on miracletele.com website shall be considered valid, whilst
all older versions of this Whitepaper shall be considered invalid both partially and
fully.

This Whitepaper shall not be reproduced, redistributed, or published without including

this Disclaimer section. In case of reproduction, redistribution, or publishing of this
Whitepaper without this Disclaimer section, this Whitepaper and all information
presented herein shall be considered invalid both partially and fully.

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 ABSTRACT MIRACLE TELE
WHITEPAPER

Telecom is considered an industry that provides businesses almost unlimited

prospects for introduction of new technologies and reaching steady long-term
growth.

Historically telecommunication services form a very saturated and monopolistic

market where giant corporations forward their own agenda, neglecting the users’
need for a more innovative and technological approach and offering customers
services the level of quality of which leaves much to be desired.

Currently, most of mobile operators around the world provide their customers only
postpaid plans under a 12 or 24 month contract with strict conditions, which often
include unlimited national calls and traffic, but still do not offer the clients either
cheap international roaming or value added services.

In its research called The Future of Mobile Communications1, GSMA claims that in the
near future the customers will be expecting mobile operators to introduce more and
more new features that have to do with advanced communications tools based on
Rich Communications Services (RCS) and Voice-over-LTE (VoLTE) technologies.

As the technology advances and the world turns more globalized, people don’t look
at their mobile phones as simply at a means of communication anymore.

And they expect mobile operators to follow the same path by making their processes
simpler and more transparent as well as offer additional and more sophisticated
services that often have little to do with telecommunications.

Being pioneers in providing an ultimate solution that will fuse advanced telco features
together with fintech tools, Miracle Tele is to set the new standard in the mobile

5
1
https://www.gsma.com/newsroom/wp-content/uploads/18083_GSMA_Report_for_Shanghai_LR.pdf
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telecommunications industry so that it becomes more competitive and innovative.

Miracle Tele blockchain will serve as a mobile data and airtime marketplace and
connect hundreds of thousands of customers with dozens of local mobile operators
that provide cheaper and high-quality services.

This way the customers will be able to enjoy reduced rates and cutting-edge value
added tools and receive token holder rewards thanks to blockchain technology and
collaborative economy.

Miracle Tele blockchain will be built using either Ethereum based solutions such as
Plasma and Sharding technologies or Graphene protocol. It’ll allow for a massive
improvement in scalability and throughput of transactions and result in almost non-
existent transaction fees, transaction approval times, and energy consumption if
compared to Bitcoin blockchain or standard Ethereum blockchain.

Tokenization of the company’s assets, which are virtual but tangible resources such
as mobile traffic and airtime, will ensure the stable growth of TELE token value and
protect it from the market shocks and volatility.

All of this makes Miracle Tele a comprehensive cross-industry product that provides
its customers an easy and effective means to use sophisticated communication
tools and advanced financial services all in one place, following the global trends for
digitalization and decentralization of the most important aspects of our daily lives.

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LANDSCAPE

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INTRODUCTION TO MOBILE INDUSTRY

In 1973, Martin Cooper, a Motorola executive, made the first analog phone call using
a mobile phone. It took another 18 years before the World’s first 2G GSM Mobile
Network was launched in Finland.

The birth of the MVNO

Six years later, in 1997, a company called Sense Communications approached a mobile
operator in Finland—Sonera Telecom—with the idea of bulk buying their airtime.

The agreement reached between the two companies was the world’s first
Mobile Network Virtual Operator, or simply MVNO, agreement. It allowed Sense
Communications to bulk buy voice minutes from Sonera Telecom and resell this
airtime back to consumers. This was when the first MVN operator was born.

MVNO Types

Mobile virtual network operators are usually divided into four types: skinny, light,
thick, and full.

These four types of MVNOs are defined by what services they control as opposed to
what the mobile operator selling to them controls.

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An MVNO can resell anything it bulk buys from a mobile operator. Airtime for making
it possible for subscribers to make and receive calls, traffic for mobile internet
browsing, downloading, and streaming, and even value-added services used for
entertainment, storage, security, and other purposes.

The overall premise of a MVNO is that because it buys in bulk, this enables it to
compete on price and service quality against traditional larger mobile operators.

MOBILE INDUSTRY SIZE AND VALUE

Room for growth

According to a Hootsuite report Digital in 2017 Global Overview2 there are 4.9 bln
unique mobile users, which is 66% of the world’s population. And since January 2016
mobile connections have grown globally by 5% or 222 million new connections yer
year.

GSMA Mobile Forecast

9 2
https://www.slideshare.net/wearesocialsg/digital-in-2017-global-overview
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MVNO market

As of December 2018, there are 1300 active MVNOs across 79 countries, representing
220 million mobile connections. However, this only represents 2.46% of the total 8.9
billion mobile connections around the world.

Some MVNOs have a presence in multiple countries, either as subsidiaries, joint

ventures, or through brand licensing agreements with local partners.

BLOCKCHAIN AND THE MOBILE INDUSTRY

Traditional telcos moving to blockchain

11 Also, there is a range of projects using traditional fixed line or mobile operators are
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trying to get involved in blockchain industry, too.

Mobile startups emerging from blockchain

There are a number of startups that have built or are building blockchain solutions to
solve various problems in the mobile industry. These startups are aiming to disrupt
business models for end users using the sharing economy or solve legacy routing
issues with new approaches.

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PROBLEM

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TRADITIONAL MOBILE OPERATORS

Long lock-in periods

Currently most of mobile operators only offer their customers one choice of contract
for 12 or 24 months

You’re forced to share your personal data

To be eligible for a postpaid contract, a customer must first go through a series of

identity checks that expose their personal data

High fines for rules that you didn’t know you broke

A postpaid customer has to keep to the strict rules laid out in the contract and non-
fulfillment of any of the terms can lead to their mobile service suddenly being revoked
or, even worse, getting fined as a punishment

You have to pay to leave

If the customer wants to leave the operator due to poor network coverage, bad
customer service, or other reasons, he gets charged a penalty even though the
mobile operator didn’t deliver

Not roaming friendly

Postpaid contracts include unlimited local calls, but still don’t offer cheap international
roaming, making consumers traveling for pleasure or business face high charges

NON BLOCKCHAIN MVNOS

No cashback rewards or loyalty programs

Today MVNOs do not offer their customers cashback rewards in real money and the
rewards are normally top-ups of products you already use such as extra text messages,
extra airtime, or extra data

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No flat rates on calls

Most MVNOs do not offer a simple transparent flat rate on calls regardless of your
current location

Only one number per SIM card

MVNOs do not offer their customers the freedom to attach multiple mobile numbers
to one SIM card

Data charges on your favorite apps

MVNOs charge customers data to use essential messaging apps such as WhatsApp,
Telegram, and Facebook Messenger

BLOCKCHAIN COMPETITORS

As previously described in this whitepaper, there is a number of different players from

the mobile industry entering the blockchain space. However, Miracle Tele has one
direct competitor—BubbleTone—who incorporated blockchain into their services
from scratch.

Bubbletone

A mobile virtual network operator where upon downloading the app you can preset
the networks you want to use in every country for a fixed monthly subscription

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MOBILE USERS

Mobile user problems vary depending on the type of user and this is why Miracle Tele
has identified specific mobile user groups whose problems would best match the
solutions provided by our project.

CRYPTOCURRENCY
COMMUNITY

MARKET SIZE
25 MILLION IN Q1 2018
200 MILLION BY 2024

PROBLEMS
NEED CRYPTOCURRENCY FRIENDLY MOBILE NETWORKS
LIKE DECENTRALIZED SERVICES WITH PROFIT SHARING OR TOKEN REWARDS
NEED TO CONTROL USE OF THEIR PERSONAL DATA
WANT SIM CARDS THAT ENABLE PURCHASES VIA CRYPTO

3
To be released by Q3 2019
16 4
https://medium.com/bubbletone-blockchain-in-telecom/current-status-on-platform-development-q1-2019-5183c31b9cba
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DIGITAL NOMADS
AND REMOTE
WORKERS

MARKET SIZE
99 MILLION IN 2017
1 BILLION BY 2035

PROBLEMS
NEED CHEAP OR FREE ROAMING
NEED CHEAP OR FREE DATA
NEED CHEAP OR FREE MESSAGING
NEED TO CONTROL USE OF THEIR PERSONAL DATA
WANT TO BE REWARDED FOR USAGE OF A MOBILE NETWORK
NEED FLEXIBLE CONTRACTS DUE TO FLUCTUATING EMPLOYMENT
NEED MULTI-LANGUAGE SUPPORT
WANT SIM CARDS THAT CONNECT MULTIPLE SERVICES WITH CRYPTO

CORPORATE
TRAVELLERS

MARKET SIZE
480 MILLION CORPORATE BUSINESS TRIPS IN 2017
1 TRILLION IN REVENUES IN 2017

PROBLEMS
NEED CHEAP ROAMING
NEED MULTI-LANGUAGE SUPPORT
NEED PAYMENT SOLUTIONS THAT ARE TRAVELER-FRIENDLY
NEED MULTIPLE NUMBERS PER SIM CARD FOR BUSINESS AND PERSONAL USE

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Asia Pacific Corporate Traveller Study by Sabre Corporation carried out across 19
countries in 2017 found that 66% of corporate travelers surveyed placed ‘Alternative
forms of payment’ as number three top priority when traveling for business.

EXPAT FOREIGNERS
INSIDE THE EU

MARKET SIZE
31 MILLION IN 2010
ESTIMATED 3% TO 5% YEARLY GROWTH

PROBLEMS
NEED FLAT RATE ROAMING
NEED CHEAP DATA SERVICES
NEED CUSTOMER SUPPORT IN MULTIPLE LANGUAGES
NEED BASIC FINANCIAL SERVICES
NEED TRANSPARENT PRICING

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SOLUTION

Being the only blockchain telecom project

who enters the market with a ready-to-
use product, which is fully functioning
telecom ecosystem available for use in
163 countries with an official license5
from the Czech Telecommunication
Offices, Miracle Tele is ready to
show the world how the future of
telecommunications will look like.

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5
https://miracletele.com/files/CTU_authorization.pdf
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ESSENTIAL FEATURES

Miracle Tele solves user problems by offering a brand-new kind of mobile services
with total freedom and flexibility.

Lack of contracts
You don’t need to sign any contracts with Miracle Tele

Improved privacy
You don’t need to provide any personal data to signup or create an account

Token holder rewards

You can receive biweekly stacking rewards and spend them on anything you want

Transparent flat rate on roaming calls worldwide

You pay a single flat rate of €0.2 per minute anywhere in the world

Free worldwide incoming calls

You only pay when you make a call, not when you receive it

Paying only for what you use

You can forget about getting costly monthly postpaid bills

Topping up via crypto, fiat, and TELE token

You can top-up using BTC, ETH, ETC, LTC, DASH, fiat, and our TELE token

Unlimited numbers per SIM card

You can link multiple virtual numbers to one SIM card

No penalties for leaving

You can leave when you want with no penalties

TELE TOKEN

TELE are ERC20 utility tokens that were issued via Ethereum blockchain that our
project is powered by and serve as the cornerstone of Miracle Tele, letting our
customers to tokenize their assets and receive biweekly token holder rewards.
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It’s a key importance element of our blockchain powered telecom ecosystem that
will become an alternative to outdated mobile loyalty programs that resulted too
inefficient and never managed to live up to the expectations of mobile subscribers.

TELE tokens—that can be either purchased or received as token holder rewards—

can be used payments for Miracle Tele telecom services as well as any other mobile
operator in the world, therefore helping to decrease the cost of airtime and traffic for
our customers even more.

All of this combined with the release of new telecom features and services that will
improve the overall user experience will lead to an increase in the price of TELE tokens
and become the beginning of the next stage in implementation of a self-sustainable
payment system for Miracle Tele based on a proprietary service token for internal
transactions.

TLT, our service token, will become a bridge for seamless internal payments between
our project, the customers, and affiliate mobile carriers for all telecom as well as
value-added tools and services that we’ll provide in the future.

Such payment system will let us create an internal monetary infrastructure that will
protect the token value from any external shocks or depreciation, provide a solid
structure for deploying other more advanced telecom and financial services, and
allow to continue lowering the rates on airtime and traffic for Miracle Tele customers.

COMMUNITY BASED SOLUTION

ERC20 UTILITY TOKEN PURCHASE BOTH VIA

CRYPTO AND FIAT
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€
40% BIWEEKLY TOKEN TRANSACTIONS
HOLDER REWARDS SECURED BY A SMART
VIA STACKING CONTRACT

Stacking is a system — powered by blockchain and similar to Proof of stake — that

was implemented so that all those members of Miracle Tele who have TELE tokens
can get token holder rewards every two weeks. The system is completely automatic
and can be accessed from the dashboard on Miracle Tele website.

The stacking period lasts two weeks, during which the tokens will be put on hold, but
users can take out their TELE at the end of the stacking period without losing neither
their tokens nor rewards.
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The reward calculation formula is based on the growth of our telecom network and
every two weeks we distribute 40% of our net profit between all those users who
have stacked their tokens.

More information about the technical peculiarities of TELE tokens as well as the
tokenomics of Miracle Tele is available for review in the respective sections of this
whitepaper below.

Future plans

Blockchain: proprietary blockchain and wallet

Creation of our own blockchain that will become the foundation of our telecom
ecosystem as well as development of a multiplatform and multicurrency wallet for
TELE tokens

VALUE ADDED FEATURES

WhatsApp/Telegram use without traffic fees

All Miracle Tele customers will be able to enjoy free-of-charge use of WhatsApp/
Telegram messengers on our SIM cards with negative balance by Q3 2019.

Public SMS number service

In August 2018 we launched a public SMS number service6 that is available to everyone,
including to those users who do not own an account with Miracle Tele.

Private SMS number service

In Q4 2018 we are going to release a private SMS number service that will let all
Miracle Tele customers receive and send text messages via their private virtual
number directly from the dashboard or our mobile app.

Incorporated VPN services

23
6
https://miracletele.com/sms/
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In Q1 2020 we will incorporate VPN services into Miracle Tele SIM cards in order to add
another layer of security for protecting the clients’ data.

Multimedia distribution service

We are planning to launch a service for ordering numerous on-demand or

subscription-based multimedia such as TV series, movies, music, and videos via TELE
tokens in our mobile apps.

Cloud storage

Following QX 201X Miracle Tele will launch a cloud storage for its users with reduced
rates first payable in fiat and then in TELE tokens.

Ad rewards

Our placement platform will unite advertisers looking for quality traffic with users
who are interested in receiving quality ads via a Miracle Tele mail server, promotion
programs, pay-per-action offers, etc and get TELE tokens in return.

IoT integration

We are planning to incorporate IoT services into our telecom ecosystem using DApps
infrastructure for IoT automation via assigning certain DApps a http url in the network
and allowing for connectivity with IoT devices for home automation systems and
smart gadgets.

BUSINESS MODEL

Telecom

Opting for a business development model that can be referred to as that of ‘a thick
MVN operator’ provides us substantial benefits in terms of overall cost reduction.

Reduced marketing, staff, and branding expenditure, bulk purchases of traffic

and airtime from our affiliated mobile carriers, and a complete lack of physical
infrastructure and equipment maintenance costs allow us to minimize the operating
24 expenses by a third.
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Apart from provision of telecom services that are relatively cheaper than those of
other MVNOs for travelers and significantly cheaper than roaming services offered
by conventional mobile operators, we can also build a great variety of both telecom
and financial value added services and tools over our hybrid mobile framework.

A business model that combines both low telecom rates with value added features is
a unique phenomenon in the nowadays’ telecommunications industry.

This will play a fundamental part in achieving a rapid and steady growth of our
SIM card user pool which will increase progressively as we will be launching more
and more new decentralized features and getting prepared for the release of our
blockchain in 2020.

In turn, a solid and long-term expansion of our SIM card user pool will lead to a genuine
growth of the company’s profit. All of this gives us more than enough leeway in order
to implement an authentic and fair loyalty program represented by the currently
functioning feature of biweekly token holder rewards, which will lead to reduction of
prices of our telecom services for the end users.

And though token holder rewards become a great benefit for the telecom users who
would like to spend less on mobile services, biweekly rewards also happen to be of a
considerable interest to participants of the global crypto community.

We strongly believe that telecommunications can become a more innovative,

customer-friendly, fair, and dynamic industry that could offer millions of users
worldwide enhanced security, technological progress, growth, and financial inclusion.

Tokenomics

Unlike the majority of ICOs and crypto projects whose tokens are not directly
associated with real-life assets and attached to concepts that have to do mainly with
presumptive digital technologies under development, TELE tokens are distinctive
because they are backed by assets that exist in the real world and can be used by the
customers of the project.

And though the assets that TELE tokens are backed by are not precisely tangible—
airtime, traffic, and value-added telecom tools—they will place a real value to our
25
token and make it go up on a long term basis, at the same time protecting it from
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any external phenomena that may result in depreciation of TELE price.

Apart from it, payments for our telecom services are also available via TELE tokens
that were either purchased during the ICO or received from our biweekly token
rewards feature.

Our unique ICO model is divided into three stages and involves four TELE price
increases that will be associated and timed with the release of new value added
features.

Serving as a deflationary instrument and ensuring that the rewards would remain
on the same level in the long run, it will allow for an uninterrupted growth of our
customer base both when it comes to conventional mobile users and crypto
community participants.

After the end of the ICO, in Q1 2020, we will launch our blockchain that will be released
together with a special service token that will be used for internal payments for
telecom services between the clients, Miracle Tele, and mobile carriers from which
we’re purchasing airtime and traffic.

This will create a self-sufficient internal monetary system powered by our blockchain
using TELE tokens as its financial foundation.

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Yet another thing that supports the above mentioned statements is that apart from
our essential telecom services, TELE will also be backed by various value-added
telecom and financial features that we will be incorporating into our universal
telecom ecosystem throughout and after the ICO.

Creation of a proprietary service token powered by our blockchain will make it

possible to use it for our future capabilities of advertisement rewards, letting us add
yet another layer of stability to TELE value by keeping it on a par with the world’s
most widely-used fiat currencies.

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PLATFORM BUILD
AND ROADMAP

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TELECOM PLATFORM

All functionality of Miracle Tele ecosystem is available via our official website where
customers can sign up and access their member’s area with all available telecom and
crypto features.

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Unlike conventional mobile operators and roaming providers, Miracle Tele does not
require customers to provide their personal data or deal with any paperwork upon
registration. This is why signing up takes just a minute.

User dashboard serves as the key element of Miracle Tele ecosystem where all
functionality of the project is interconnected via APIs, external integration service,
and payment gateways, letting members manage their SIM cards and telecom
features, make deposits and payouts, purchase and stack TELE tokens, and so on.

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The customer can order a SIM card with €10 worldwide shipping via Czech Post
directly in the dashboard.

As soon as the SIM card has arrived at the address specified by the customer, they will
simply need to follow the instructions from the letter and setup the card by placing
it in their phone, activating it via the dashboard, and then choosing ‘miracletelecom’
as their APN.

The customer is free to choose whether to buy a personal virtual number—that has
a one-time purchase cost and a monthly service fee that both start from €1—or
continue using Miracle Tele telecom services without it.

In case if the client decides not to purchase a personal number, they’ll be assigned
a random virtual number from our number pool for every call they make free-of-
charge.

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In order to top up the customer will need to make a deposit and then transfer the
required amount of funds to their SIM card balance.

Deposits and withdrawals are made via the dashboard, too. Miracle Tele members
can make a deposit via BTC, ETH, ETC, BCH, LTC, DASH, cards, and wire, whilst
withdrawals are available via wire or the above-mentioned cryptocurrencies.

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Most of the abovementioned functionality is also available via our mobile apps for
Android and iOS phones.

BLOCKCHAIN PLATFORM

Due to the nature of our core business where we need to render the users with a
global and universal telecommunications solution, Miracle Tele has to cooperate
with numerous third parties. This imposes a special requirement on the technology
framework we require for our operations.

RELIABLE & FAST USER ACCOUNT STATE UPDATE MECHANISM

Necessary for the user balance to be updated instantly after making a payment or
consuming services

PRIVACY AWARE IMMUTABLE LOG OF OPERATIONS

Allowing the user to verify or question any record at any moment without revealing
personal information

ENHANCED CAPACITIES FOR IMPLEMENTING SERVICE LOGIC

Required for deployment of incorporated advanced communication tools, value-

added services, and a proper loyalty program

To deliver this framework a high level of decentralization is required. Blockchain is

the obvious solution, but many current blockchain types are known to have scalability
issues.

Reasoning

All current stable blockchain solutions have an inherent problem of low performance
in terms of the average throughput capacity, resulting in scalability issues for both
the user and transaction numbers.

Just a couple of years ago in 2016 when the global crypto community faced network
scalability issues for the first time ever, such problems were mainly associated with
33 Bitcoin blockchain network.
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It was exactly when Ethereum blockchain—offering improved scalability—became to

be considered as a state-of-the-art alternative to a significantly slower and massively
more expensive Bitcoin blockchain.

However, it had to undergo its first stress test in 2017 with the release of a blockchain
game called CryptoKitties. The world’s first blockchain powered video game turned
out to be so popular that it led to using up to 15% of the blockchain throughput
capacity, clogging and congesting the whole system and pushing the transaction
fees to all-time highs7.

Transaction count estimates

Let’s think about the figures and facts taking into account a number of active SIM
users amounting to 5000 and devise a corresponding formula in order to find out the
maximum required blockchain transaction capacity per day.

For each user there is one record to be placed onto the blockchain once every two
minutes on the average.

Ethereum blockchain currently allows for roughly 15 transactions per second because
of a hard-coded limit on computation per block.

Considering that our growth estimates place the number of active SIM card users at
65,000 by late Q1 2020 when our updated blockchain is planned to be released, we
can apply the same formula in order to find the maximum required throughput for
our blockchain.

34
7
https://www.bbc.com/news/technology-42237162
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And now let’s take our time and perform a kind of overload text imagining that
Miracle Tele SIM card user pool increases up to 1,000,000 people.

And though currently Ethereum blockchain cannot provide us the technical means
to support our planned transaction throughput, Sharding and Plasma technologies
that will be released in the foreseeable future promise to multiply the transaction
capacity of the blockchain by hundreds if not thousands of times.

ETHEREUM-BASED MASTERPLAN: SHARDING AND

PLASMA

Sharding

And though Sharding technology may be something new for the blockchain world,
it’s definitely not a recent news in the world of data management and mining as it
was previously used in a successful way in such tools as Spanner database by Google,
Oracle NoSQL database, IBM Informix, Apache HBase, and so on8.

Sharding is a technology used for building systems that are comprised of and process
large amounts of data.

Under Sharding no single node contains all information about the current state at
any moment. Instead of it, each node is called a shard and it becomes responsible
for storing only a tiny fraction of data but can still access any other fraction of data
within the system by queuing another node on demand.

35
8
https://en.wikipedia.org/wiki/Shard_(database_architecture)#Notable_implementations
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GLOBAL ROOT

SHARD 1 SHARD 2 SHARD 3

SHARD
SUBSTATE

According to Buterin’s statements, sharding will make it possible to multiply the

Ethereum network throughput capacity by 100 times.

Sidechaining

Another approach of increasing the throughput capacity is sidechaining. This

technology is rather specific to blockchain and conceptually it was introduced
together with Lightning Network to allow for exceptionally low fees by processing
Bitcoin transactions off the chain.

However, sidechaining makes yet another step in the same direction as Lightning
Network and enables these off-chain transactions form smaller chains and have
arbitrary complex inner structure.

Plasma

Soon-to-be-released Plasma blockchain features sidechaining as its core functionality

and therefore allows for a greater flexibility and scalability than any other currently
available solution.

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Alice 1 ETH

Plasma
Blockchain
(3rd Tree Depth)

Plasma Plasma Plasma

Blockchain Blockchain Blockchain
(2rd Tree Depth) (2rd Tree Depth) (2rd Tree Depth)

Plasma
Blockchain
(1st Tree Depth)

Root Chain
(e.g. Ethereum)

Source: Plasma whitepaper at https://plasma.io/plasma.pdf

Just like in case of Sharding technology, according to Buterin’s words, introduction

of Plasma technology into Ethereum will let blockchain process 100 times more
transactions than it’s capable of processing now without jeopardizing the fail safety
of the system in any way.

Since work on Sharding and Plasma is currently underway9, let’s try to imagine what
would be the maximum throughput capacity of Ethereum blockchain when the two
37 latter technologies will have been implemented.
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Plasma will feature both Sharding and Sidechaining technologies, resulting in the
performance of transactions per second, which answers all technical needs of Miracle
Tele telecom ecosystem.

When it comes to security, Plasma offers a security mechanism called Plasma exits
that allows users safely exit a child blockchain at any time and move their assets onto
the main net.

Alice 1 ETH

Plasma Block #1 Plasma Block #2 Plasma Block #3 Plasma Block #4

Root Chain (e.g. Ethereum)

Sharding security in Plasma is ensured by a special design decisions Plasma uses so

that a transaction validator with high loyalty can be identified for each shard at any
moment. As the result, the security of the whole system remains on a high level.

ALTERNATIVE SOLUTION: GRAPHENE

Alternatively to Ethereum is the Graphene Blockchain. Graphene Blockchain is an

modular approach, open source, C++ coded Blockchain.

Graphene protocol was developed by BitShares team and released in October 2015,
as part of BitShares 2.0 system. It is currently used by BitShares, Steem, Peerplay,
Muse, Golos, EOS, FollowMyVote, BlockPay, OpenLedger and many more.

The Graphene protocol offers Miracle Tele,relevant to our performance requirements:

38 9
https://medium.com/@prestonvanloon
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1 Production of new blocks in under 3 seconds / 3000 transactions per

second.

2 Transactions without fees, which allows for free transfers of tokens

between nodes.

3 A flexible rewards system that can be configured for any network

participants.

This allows Miracle Tele:

1 To scale up its user base without worry about throughput

2 To maintain low telecom rates and introduce low or free value added
services.

3 To create a payment system for new business models like our Ad rewards
program.

As Graphene is open source it allows us to take advantage to create our own solution
that will answer all our technical needs.

Our modifications to Graphene

Miracle Tele blockchain will use an optimized block partitioning and distribution
system, under which the network nodes will be placed on a grid—built based on the
geographical coordinates—and the records will be stored in nodes closest to where
the event fired.

This way related transactions will be processed and stored on the same or adjacent
node, leading to a high degree of optimization and ensuring a high level of network
redundancy.

Proof-of-potential: the new consensus algorithm

The second modification is the consensus algorithm. Instead of using dPoS (Delegated
Proof-of-Stake) or PoW (Proof-of-Work) consensus algorithm, which is Graphene’s
default, we are going to apply our proprietary algorithm called Proof-of-Potential.

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Proof-of-Potential (PoP) will apply three general maxims and will function in the
following way.

1 The longer the node has been online, the more trustworthy it is.

2 The more blocks the node has generated, the more trustworthy it is.

3 The more operations has been performed on the node, the more
trustworthy it is.

Consensus is reached the same way it’s reached in dPoS algorithm, but instead of
amount of delegated tokens, one should consider the following value.

TLT: proprietary service token

Together with the launch of our blockchain in 2020, we will also release a service token
called TLT—Telecom Liquidity Token—for internal use within our telecom ecosystem.

This service token will be used for internal payments between Miracle Tele and all
affiliated or third-party companies that provide the project with either telecom
services or value-added tools.

The value of TLT will be fixed following negotiations between Miracle Tele and such
affiliates or third-party companies and is to be revised on a quarterly or semiannual
basis.

DAPPs: empowering telecommunications on blockchain

On top of the TLT token infrastructure, a rich DApps framework will be available to
the service providers to implement their business logic. Each DApp will be assigned
its own Universal Resource Locator (URL, i.e. address) inside the network, whilst
interaction with such services will be performed by users acting as full network nodes.

40 The above mentioned DApps framework supports IoT integration, which is planned
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to be released in Q4 2020. The feature will allow IoT devices to be incorporated into
the network, listen to relevant transactions, and react to updates depending on the
data received from devices.

The above mentioned DApps framework supports IoT integration, which is planned
to be released in Q4 2020. The feature will allow IoT devices to be incorporated into
the network, listen to relevant transactions, and react to updates depending on the
data received from devices.

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ROADMAP

2018: DONE

Incorporated in Czech Republic

MNVO license from CTU obtained

Telecom contracts signed

Miracle Tele SIM cards launched

Android & iOS apps launched

8K active SIM card users

Rewards model tested

APN performance upgrade

2019: IN PROGRESS

Topping up with TELE enabled

Release of multiplatform wallet

Free use of Whatsapp/Telegram

Development of new blockchain

Listing on crypto exchanges

Reaching 100K registered users

Reaching 65K active SIM card users

2020

Launch of new blockchain

Launch of VPN services

Integration to IOT systems

Reaching 250K registered users

Reaching 125K active SIM card users

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CORE TEAM

BURCIKS ANDREJS
CEO

After majoring in political science at the University of Latvia, Andrejs decided that his life’s
mission must be to make a difference and resolve complex problems with efficient solutions.

Over the past several years Andrejs worked with various Latvian companies on introducing
blockchain technology in their business processes, but later on he came up with the idea
of creating his own project and making a change in the telecommunications industry and
people’s lives through emerging technology.

ALEKSANDAR DJORDJEVIC
CTO

Senior JavaScript Web/Mobile Front-End Developer | Senior Blockchain Developer | Senior

Smart Contracts Developer | Crypto Enthusiast | Under 30 CTO & Entrepreneur.

Eager and passionate, always starving for some new skills and knowledge. Surrounded with
the Web development tools, Front-End technologies, Mobile apps, Blockchain, dapps, crypto
world.

SAGAR BANSAL
CCO/CMO

Sagar is an IBM certified blockchain professional who holds an MBA in Software Enterprise
Management. He worked in over than five ICOs, successfully helping them to improve their
marketing workflows as well as client attraction and retention performance.

His forte lies in end to end project management including marketing, branding, PR,
fundraising through pools, and community moderation. Being a client centric person, Sagar
always places the clients’ business first without neglecting the needs and priorities of the
projects he is working for.

Apart from the above mentioned crypto projects, Sagar also worked as CMO, Marketing
Associate, and Social Media Business Strategist in such companies as YoYo Holdings, Mogul
Inc, and Ittisa.

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ROMAN GOLOD
HEAD OF DEVELOPMENT

With over 11 years in the telecommunications industry working with such companies as
Ericsson, Alcatel-Lucent, and Cisco, Roman managed to build a massive knowledge base of
how to deploy telco ecosystem and make them work flawlessly. Over the past couple of years
Roman worked on creating several VOIP and MVNO projects from scratch.

VERONICA MÜLLER
OFFICE & EVENT MANAGER

Having been always interested about how things work in a business and what it takes to
administer its heart in the right way, Veronica decided to major in business administration
at EU Business School in Munich and recently did her MBA at University of Economics in
Prague. Over six past years she worked as an office manager at SkyTelecom, Telefónica, and
Microsoft.

MAFALDA PINTO
HEAD OF CUSTOMER SUPPORT

Obtained her university education in Tourism & Event Management as well as in Language
Interpretation, currently speaking five languages as a native. Over fourteen years experience
from Customer Support and tourism/event management projects in several countries. Over
four years background as Supervisor in Telecommunications, Retail, Marketing and Sales.

Recently assigned Head of Support role at Miracle Tele as Leadership, Proactivity and Efficency
have always been key factors in her career development.

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ADVISERS

EVELYN HOFSTETTER
ICO LEGAL ADVISER

www.b-legal.ch

Evelyn has been involved as a lawyer in the field of ICO and blockchain technology for the
past two years. She advised various interesting Blockchain projects in different sectors with
regard to corporate and regulatory matters.

Now Evelyn joins MiracleTele as advisor. She is a Swiss qualified lawyer and a partner of
Badertscher Attorneys-at-law with offices in Zug (Crypto Valley) and Zurich. Evelyn also
lectured at the University of Lucerne about Blockchain and its impact in the near future.)

THOMAS CONTIN
ICO LEGAL ADVISER

Thomas is managing partner at Archilex Consulting SA and at ICOLegalAdvisor.io. He is a

lawyer with over 15 years of experience in the field of IT and Intellectual Property Law. He is
legal advisor for several ICO projects as well as for many companies in the FinTech and crypto
field. Thomas advises clients from local companies to large multinationals.

MICHAEL CONN
ADVISOR

Michael was the co-Founder and CEO of Ether Capital (ETHC:NEO), the first Ethereum
focused publicly traded company, having succesfully led a $45 million private placement
raise. He was also COO of Alternative Investment Management at AllianceBernstein. Michael
has been involved in the blockchain and crypto space since 2016, having founded several
companies and advising a number of others. In addition to his fintech background, Michael
brings a wealth of experience in financial services having served in various senior executive
positions at AllianceBernstein, The TCW Group, Inc. and Société Générale with responsibilities
for portfolio management, strategy, M&A, operations, sales, and marketing. Michael’s diverse
industry experience includes time at the Los Angeles Times/Tribune Company, McMaster-
Carr Supply Company, and the US Embassy in Paris. Michael, who is fluent in French and
conversant in several other languages, holds a Master’s degree in International Finance
and Economics from Brandeis University and an MBA with honors from the University of
Southern California’s Marshall School of Business.

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TOKEN SALE

Miracle Tele s.r.o is legally registered in the

Czech Republic, company registration number
06968287, and has successfully obtained an official
electronic communications license from the Czech
Communication Office. Access it over here.

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TOKEN OVERVIEW
Token ticker: Token type: Total token supply:
TELE ERC20 300,000,000 TELE

Soft cap: Hard cap: Token value:

30,000,000 TELE 150,000,000 TELE Increasing per stage10

Stage 1: Stage 2: Stage 3: After the ICO:

Oct 15 to Jan 14 Jan 15 to Apr 14 Apr 15 to May 15
€0.13 per TELE €0.15 per TELE €0.20 per TELE €0.50 per TELE

TOKEN SALE
Token sale start: Token sale end: Token sale division:
Oct 15 2018 May 15 2019 or when all available Into 3 stages
tokens are sold out

20% TOKEN ALLOCATION

PROMOTION

TOKEN SALE DURATION

50%
TOKEN SALE Ends when all available tokens are sold out

MINIMUM TOKEN PURCHASE

20%
TEAM 10 EUR

MAXIMUM TOKEN SALE PURCHASE

5%
BOUNTY Not limited

5% PAYMENT METHODS
LEGAL
BTC, ETH, wire, bank cards

10
These are fixed values available during Miracle Tele token sale and before the project enters the exchange platforms. After TELE is
traded on exchange houses, its value per token will be free-flowing and will fluctuate according to the free market laws
47