www.tresaro.com

Distributed Peer-to-Peer
Marketplace Provides Support
for Charity and Crowdfunding
Georgi Georgiev

Matt Wilkinson, Ph.D.

Javor Ninov

DRAFT V0.12.2

https://www.linkedin.com/company/tresaro/

tresaro@tresaro.com

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Table of Contents
Abstract
I. Introduction
II. Problem identification
III. Tresaro - the decentralized marketplace forcharity donations and crowdfunding with optional
arbitration system
1. Goals
2. Functional structure; economic and fairplay incentivization
3. Architecture		3.1. TRE SWARM Servicing Protocol (TRE-SWARM)
		

3.2. TRE Smart Contract Set (TRE-SCS)

4. Order and transaction flow
5. Content delivery
6. Rating system
7. Optional Arbitration System (OAS)
8. Carriers
9. KYC

IV. The TRE token - planning, distribution
and economy
1. World Marketplaces and Charity - quick figures
2. The Tresaro TRE token economy outline
3. TRE token allocation, distribution and sale
4. Preliminary Roadmap

Acknowledgment
REFERENCES

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Abstract
Marketplaces exist to remove risk from peer-to-peer trades and enforce penalties on
any actors that misbehave. They also play an important role as rating agencies - enablingcustomers and sellers to rate those they have transacted with and provide a level ofreassurance to others considering a trade with either party. The idea of a fully distributed,
peer-to-peer marketplace arises naturally with the advent of the completely decentralized
blockchain public ledgers.
There are many implementations of digital marketplaces using various blockchain
technologies, utilizing different sets of protocols, added value services and incentives.
Naturally, these platforms are concerned with user-to-user (seller-to-buyer, buyer-to-seller,
arbitrage-to-buyer & seller) interactions within the context of trading - exchanging goods orservices for indirect financial incentives (coins or tokens) 1) 2) 3). While this is expected forany kind of marketplace or exchange, none of these services promote funding worthwhilecauses as a central purpose. Being moral and helpful is not the primary driving force behindmost economic interactions, but there are ways for this impetus to be incentivized by purely
financial means.
Herein, we introduce a distributed, trustless peer-to-peer marketplace with charity andcrowdfunding support and an optional arbitration component, where the service is shifted
towards verified charity organizations and other crowdfunding initiatives, while the value isexpressed in ERC-20 4) compatible tokens (TRE). While anything could be traded on sucha platform, we emphasize the evaluation and trading of unneeded, second-hand goods(from now referred to as clutter) for supporting (fully, partially or symbolically) a charity ora crowdfunding initiative. To put it simply, Tresaro provides an easy way of exchanging yourclutter with others willing to buy your items for TRE tokens. Whatsmore, both sides are able
to help a cause (or causes) during the transaction by donating items and/or tokens.

I. Introduction
Online marketplaces are the future of retail and are growing rapidly, disrupting both brickand mortar shops and exchanges as well as small niche ecommerce sites. While someconventional marketplaces do support charitable giving, this is not the focus of most
corporations - whose raison d’etre is to provide a return on shareholder’s investment byfacilitating conventional trade.
While there will always be a need for new goods, many of us are victims of consumerism- accumulating clutter that can act as a millstone around one’s neck rather than provide thebenefit the items were designed to. One in ten Americans rent storage lockers despite thefact that the average home in the US has nearly tripled in size over the past 50 years. In GreatBritain, the average 10 year old owns over 200 toys and games but uses no more than 12 ofthem. Examples like this are easy to find, and someone’s clutter is usually someone else’s
treasure.
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Most of us would like to think of ourselves as a generous, and happily donate unused
items to charity. But there is no guarantee that dropping off unwanted items at charity shops
will see the items donated provide their maximum benefit - and sometimes we’d like a shareof the proceeds too.
The advent of modern blockchain technologies, opens up possibility to help solve theclutter problem and maximise the benefit a donation or sale would provide by tapping into thepower of decentralized economy dynamics. An example of such dynamics is the proposed
Tresaro platform - a distributed, trustless marketplace with charity and crowdfunding support
as well as an optional arbitration component.

Let’s consider the following case:- Bob has clutter - an old iPad. He’s willing to sell it and donate the tokens to an orphanage
charity;- Talisha is having a pair of kid’s clothes she can’t use anymore and is willing to sell for
tokens. She also wants to donate these tokens to a cancer research foundation.
The Tresaro market model gives the following options to the participating peers (Bob,
Talisha, the orphanage and the cancer research foundation):- Sell the clutter to somebody willing to buy it and keep the tokens as a future financial
prospect;- Sell the clutter to somebody willing to buy it and (fully or partially) donate the tokens
from the trade to a charity or crowdfunding of choice. In our case, Bob will donate
his tokens to the orphanage, while Talisha will donate hers to the cancer researchfoundation.

Bob

TalishaSell Item

Sell Item

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While these options seem trivial, their dynamics raises the following set of possibilities:- Charities synergy and cooperation. Usually charities are competing for a single poolof resources (donations) 5). The Tresaro market implicitly turns this competition into
cooperation. For example, if the orphanage needs Talisha’s kid clothes, it could use thetokens, donated by Bob’s tablet trade to pay Talisha and receive the clothes;- Clutter envisioned as added value in a predominantly consumer society 6). This is thepsychological breakpoint where every participant in the trade is having some kind ofinherent incentive;- The inherent clutter value in TRE tokens as trading and donation instrument insteadof a direct value asset. Thus token market value is not just related to the trading levels,
but also to the extent of charity and crowdfunding support;- Charity auction support. If the clutter item is designated solely for charity orcrowdfunding, it could be auctioned either at the highest proposed price or for the
cumulative price range of all the participants willing to fund the charity, no matter
whether they receive an item or not. In the former case, the item is received by the party
proposing the highest price;- Rating system, based on trading feedback (successful and failed transactions),
arbitration polls success rate (whenever requested) and donation statistics (quantity,
repeatability, spread or narrow charity spectrums).
Any trade could have an undesired outcome for at least one of the participating
peers. Usually this is the buyer, the side receiving a traded good or item. Thus anotherdesirable property of the Tresaro marketplace is the Optional Arbitration Systems(OAS), based on polls and incentivized by commission from the disputing sides. Any
marketplace peer who doesn’t participate in the deal of interest, and who is having atleast 16 successful consecutive trades and rating above 32 points, could apply for an
arbitrator. The arbitration system is thus community-based, while employing different
incentivization mechanism for promoting arbitration application and fair judgment.
Tresaro’s arbitration mechanisms are described in details in the following sections.

II. Problem identification
Tresaro’s decentralized marketplace will solve a set of pressing, real-world problems thatare inherent within the centralized nature of marketplaces, charities, and crowdfunding
campaigns in the current landscape. Carefully identifying these problems has informed thevery core and structure of our distributed marketplace solution. Tresaro SWOT analysis isaddressing two major groups of issues - business (ideological) and operational (technical).
Tresaro business agenda specifies the following list of pressing problems:- Centralized marketplaces are not even optionally trustless. No peer-to-peer trading ispossible. Arbitration is not optional as well;5Whitepaper- Clutter marketplaces are scarce. Decentralized clutter marketplaces do not exist;- Clutter is usually discarded as any kind of valuation in any context 6) ;- Charities are competing the same pool of resources (donations) 5) ;- Some (major) part of charity and crowdfunding donations is spent on solving logistic orside problems - mediation fees, administrative expenses, OpEx, international transfers,
induced fraud and many others 7) .
Combining clutter, marketplace, charities and crowdfunding conceptual economies in adecentralized ecosystem with an optional arbitration layer is a challenging technical andoperational task as well. Operational pressing problems include:- Decentralized economy - generic, cheap, real-time decentralized key-value (KV) storage.
- Planned to store user, transaction and market-related metadata. Desirably operating offchain to fulfil the ‘real-time’ and ‘being cheap per transaction’ requirements;- Decentralized economy - off-chain node incentivization system and distributed economy
base;- Decentralized economy - community-driven arbitration process; challenges - ‘lynch mob’and ‘syndicate’ prevention;- Decentralized economy - arbitration incentivization system;- Decentralized economy - user and arbitration ratings;- Distributed marketplace - decentralized network build process - The Startup Core;- Distributed shipping - a network of localized carriers;- Distributed shipping - incentivization;- Distributed Arbitration - poll system and incentives;- Distributed Auction - procedures and contracts.

III. Tresaro - the decentralized marketplace
for charity donations and crowdfunding
with optional arbitration system
1. Goals
Tresaro’s decentralized marketplace model targets a well defined agenda of goals,
based on the set of pressing problems described in the previous section. This includes
addressing both the business and technical challenges. Our SWOT analysis outlines thefollowing list of goals:- Completely decentralized, incentive-controlled economy for all functional peers. Thatis - anybody, obeying the fairplay and providing or requiring service, could be any kindof functional peer. Obviously, operationally-critical peers would require mandatory KYC
identification (licensing);- Serving charity and crowdfunding specific-operations - token donations, needed items
delivery, auctions;- Decentralized marketplace - optional trustless peer-to-peer trades. Optional peer6

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to-peer carriers for physical goods shipping. Optional dispute resolution with implicit
arbitration protocol;- Turning charities competition into synergy. A charity could spend some of its token
donations to buy anything it needs from within the same marketplace, thus supporting
another charity;- Creating an incentive to trade clutter, instead of throwing it away. Adding a share-likevalue to clutter in the form of tokens;- Adding a moral value to clutter by supporting different charities and crowdfundings;- Giving additional platform to the charities and crowdfunding initiatives;- Using the public ledger technology for transparent trading and fraud prevention.

2. Functional structure; economic and fairplay incentivization
The Tresaro model resolves (and requires) the following list of functional network participants:
SELLER - Peer wishing to exchange goods (including clutter) for tokens or wishing todirectly donate goods for a cause. SELLER could donate (fully or partially) tokens from a saleto a cause;
BUYER - Peer wishing to possess particular goods (including clutter) in exchange for agreed
token value. The same peer may donate arbitrary amount of tokens to a cause on top of thereceived goods’ cost;
CROWDFUNDING - Peer looking to raise funds for a personal or undisclosed cause. If thepeer has passed KYC it becomes a licensed crowdfunding;
CHARITY - Peer looking to raise funds for a particular charitable organization;
ARBITER - Peer servicing the arbitrage polls as a voter. Arbitrage polls are Tresaro’s
mechanism for mediating disputes between peers. To register as ARBITER, a peer must haveat least 16 successful consecutive trades and rating above 32 points and to pass the KYC
identification process;
CARRIER - Peer servicing the shipping of the physical goods. Any locally-licensed carriers
or entities with rating above 100 points, that have also passed KYC, could apply for CARRIER
function;
SERVER - Peer servicing distributed KV storage for Tresaro functional metadata - transactional,
user-related, marketplace-related, etc.
KYC is required;
KYC NODE - Peer servicing knowyour-client (KYC) identification.

A physical peer could possess
the characteristics and purposeof several (or all) functional
participants. For example,
a peer could sell goods, buy
clutter, be a charity and arbitrateat the same time, effectively
being SELLER, BUYER, CROWD
FUNDING and ARBITER.
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Simply having these types of network participants (peers) implicitly solve logistic
marketplace problems is not enough for a functional decentralized economy. That is, every
peer needs to have one or (ideally) several economic incentives to participate. Adding
complexity to the situation is the fact that some incentives require reaching certain ‘criticalmass’ node quantity to function as expected. The following comparative table clarifies the
incentivizations of any of the peer types, while norming the incentives by the ‘critical mass’
criterion (underscored):Functional Peer

Incentives

SELLER- selling goods and clutter;- donating to a cause;- good transactional rating.

BUYER- buying goods and clutter;- donating to a cause;- good transactional rating.

CROWDFUNDING- receiving funding and needed items;- having a platform for the cause;- good charitable rating.

CHARITY- receiving funding and needed items;- having a platform for the cause;- good charitable rating.

ARBITER- receiving a commission;- receiving bonus if participating in majority vote;- good arbitration rating.

CARRIER- receiving funds for the service;- having a platform;- donating to a cause;- good carrier rating.

SERVER- receiving commission from SELLERs and BUYERs;- receiving commission or service from other SERVER nodes for relaying and storing data;- donating to a cause;- good server rating.

KYCNODE- receiving funds for the service;- good KYC rating.

Table I Functional Peers, their incentives and ratings

There is an implicit incentive that corresponds to any peer type - the rating. Ratings
stimulate fair play between peers. Lower rated peers have a lesser chance of remaining as
active in their related functional performance on the marketplace. Various types of ratings
are achieved by function-dependent, automatic or user feedback.

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Licensing

CHARITY

Licensing (REQUIRED)

Licensing

LicensingKYC NODE

FundingSERVERCROWD
FUNDING

Delivery

Licensing (REQUIRED)

Funding

Funding

Arbitrage

ARBITER

BUYER

Trade
Auctions
Transaction
Disputes

Shiping

SELLERCARRIER
Implicit RATING:

Delivery
Licensing

Another
SERVER

Treasro SWARM Network

SWARM
Courtroom(Smart Contract Set)

SWARM
Swap, Swear & Swindle(Smart Contract Set)

Build Auction(Smart Contract Set)

Transactional Rating
Arbitration Rating
Charitable Rating
Server Rating
Carrier Rating
KYC Rating

Marketplace
Trading, Dealing
Shipping, Dealing(Smart Contract Set)

BLOCKCHAIN

Fig. 1 Decentralized Tresaro Marketplace - Functional diagram

To incentivize the peer identification, KYC-processed peers are considered licensed.
The licensed status imposes higher limits on the performed functional constraints. For
example, a SELLER with a higher trading rating has a better chance of populating her items on
the network than SELLERs with lower rating. Or an ARBITER with lower arbitration rating hasless chance to be selected to participate in an arbitration poll than an ARBITER with higher
arbitration rating.
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3. Architecture
Naturally, any decentralized network emerges from a startup core. These are theself-incentivized nodes, which service the network until the critical mass of users and otherfunctional (servicing) nodes is achieved. Tresaro’s decentralized marketplace starts with acore test network of functional peers of the following types - KYC NODE, SERVER, ARBITER
and CARRIER, thus insuring the reach of critical mass and the ultimate goal - completely
distributed, incentive-controlled economy for all functional peers. SERVER and KYC NODE
qualifications will be on hold until moving to semi-production testnet.
To address most of its decentralized economy-induced challenges, Tresaro is utilizing
a private SWARM 8) 9) network, which inherently operates with the Ethereum blockchain(although it could be deployed on any smart contract-enabled blockchain). Building over
SWARM network inherently solves most of the decentralized economy business and technicalproblems - specifically, having generic, cheap, real-time decentralized KV storage with anapplicable incentivization system. It also adds enough flexibility to the project structure toease the case of migration to a new blockchain technology, if needed.
Insuring the required distributed key-value storage and its economy allows further
infrastructural development, which is not bound to the blockchain scaling problems - priceand speed. This is done by creation of a protocol for serving the functional peers - theTRE Protocol. The TRE Protocol is defined by two layers - SWARM servicing protocol andblockchain smart contract set.

3.1. TRE SWARM Servicing Protocol (TRE-SWARM)

This protocol governs the storage, accessing, interactions and processing of thefunctional nodes metadata. A list of resolved metadata structures and their related functional
nodes follows:(ALL NODES) - Transaction metadata;(ALL NODES) - Functional Rating metadata;(BUYER, SELLER) - Order metadata;(SELLER) - Item List metadata;(CARRIER) - Shipping and Delivery metadata;(ARBITER) - Arbitration metadata;(CHARITY, CROWDFUNDING) - Funding metadata;(CHARITY, CROWDFUNDING) - Presentation metadata;(SERVER) - Marketplace content metadata;(SERVER) - Functional peers metadata;(KYC NODE) - Licensing metadata;
All functional metadata exchange is planned through WebSocket 11) layer; optional
REST
protocol will function for the testnet. Metadata processing and interactions aregoverned by functional nodes’ application-specific components, whose source code would
be accessible alongside API documentation in the upcoming PoC series.
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3.2. TRE Smart Contract Set (TRE-SCS)The TRE Smart Contract Protocol Suite is based on SWARM Swap, Swear & Swindle 9)
and it’s derived Courtroom protocol 10), alongside Solidity Blind Auction 13) 14) and Standard
Marketplace 15) 16) contracts. All smart contracts require operational escrow, except the ones
serving some inherently direct fees, like Arbitration and Auction fees.

4. Order and transaction flow
Order flow in a marketplace is a complex process, which often requires third-party
settlement and human interaction. The process is being complicated even more, considering
the specifics of the SWARM network distributed economy. To insure stable and well organizedorder and transaction flows, Tresaro follows well-established structural practices in the world’s
biggest e-markets and payment processors, such as Amazon 19), EBay 20) and PayPal 21).
An Order is being defined by its type and current state. Order types are based on thenature of the traded goods. A Transaction is the financial aspect of and Order, that’s why
Transaction state machine is completely covered by the Order state machine. Tresaro plans
to support the following Order types:
ITEM - Physical goods, requiring shipping and other human interactions;
ASSET - Digital goods, allowing immediate property transfer;
SERVICE - Physical service, requiring human performance, paid at once;
SERVER - Digital service, paid at once;
SUBSCRIPTION - SERVICE, requiring recurrent payments;
SUPPORT - SERVER, requiring recurrent payments;
BROADCAST - SWARM internal, used for allocation of bandwidth and storage.
Order state describes the current Order condition:
PENDING - Initial Order state;
UNSHIPPED (Physical goods and services only) - Awaiting shipping;
SHIPPED (Physical goods and services only) - Shipped to a CARRIER;
DELIVERED - Service or good has been delivered;
DISPUTED - Disputed and requires arbitrage;
ARBITRAGE - Under arbitration process;
SUCCESS - Completed.
A following list of states is being considered for inclusion in the Order state machine:
REVOKED - Canceled by the BUYER;CANCELED - Canceled by the SELLER;
FAILED - Failed for third-party reasons.
Tresaro’s major Order Use Cases are described in detail in the following diagrams.

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SERVER

BUYER

SELLER

ARBITERCARRIERCHARITY &CROWD FUNDING

KYC NODE

ORDER
Item & Rating
Lookup

RequestItem List
Item List

Order Item

Smart Contracts
Transaction
PENDING

Escrow
SERVER Commision
OPTIONAL:
Arbitration Commision
Carrier Commission
Over-Donation

Order Request

SHIPPIG AND
DELIVERY
Request Shipping

OPTIONAL:
Arbitration Commision
Carrier Commission

Smart Contracts
Carrier & Rating
LookupTransaction
PENDING
Shipping Order
Carrier Commision
Escrow
Smart Contracts

Item Taking & Adult

Item Adult
Data Storage

Transaction
SHIPPED

Item Shipped
Item Delivery

Item
Delivered

Item Delivered

Transaction
DELIVEREDORDER FINISH(SUCCESS)
Feedback
Timeout
Transaction
SUCCESSIF <Shipping>
Order FINISHED

Smart Contracts

Carrier Commission
Escrow unlocked

Escrow unlocked

IF <Donations>
Donations unlocked

Fig. 2 Normal Order Flow

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BUYER

SERVERSELLER

ARBITERCARRIERCHARITY &CROWD FUNDING

KYC NODEORDERDISPUTED
1. Feedback Available
2. Arbitration Available

Order DISPUTED
Order DISPUTEDTransaction
DISPUTEDORDERDISPUTEDSELLER CONFESSEDOR FEEDBACK TIMEOUTCONFESSION OR
Feedback Timeout

1. Item stays at BUYER
2. No harmful RATINGIF <Shipping>
Order FINISHED

Carrier Commission
Escrow unlocked

Escrow unlocked

IF <BUYER Over-donation>

Smart Contracts
Donations unlockedORDER
DISPUTEDSELLER REQUESTARBITRATION

ARBITRATION
Request

ARBITRATION
Poli Request

Arbiters & Rating
LookupTransaction
ARBITRAGE

ARBITRATION
Request

ARBITRATIONPOLLS

Arbitration
Vote Result

Arbitration
Service Incentives
Arbiters’ Commission
unlockSmart Contracts
Negative Rating
for BUYERSYES

SELLERSWINS

Negative Rating
for SELLERSNOORDER FINISHED(SUCCESS)ORDER DISPUTED - SELLER CONFESSEDOR FEEDBACK TIMEOUT

Fig. 3 Disputed Order Flows13

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SERVER

BUYER

SELLER

ARBITERCARRIERCHARITY &CROWD FUNDING

KYC NODEARBITRATION
POLL-SINGLE
NODE
Arbitration
Poll Request

POLL
Qualification
PASSED

Voting Results
Data Storage

Negative Rating
Discarded from
VOTE<< VOTED >>VOTE in thegiven time frame<< TIMED OUT >><< IF VOTED >>IF <MAJORITY Vote>
Arbitration Commission & Bonus: + 2 Rating
IF <MAJORITY Vote>
Arbitration Commission: + 1 Rating

Smart Contracts

IF <Donation>
Donations unlocked

KYC
LICENSINGSELLER NODESAMPLEKYC /LICENSE Request
KYC
Commission Escrow

Smart Contracts
KYC
Data Storage

KYC Task

KYC Node &Raiting Lookup

KYC
Result Storage

Perform
KYC

KYC /LICENSE Response

KYC Task Performed
KYC Commission
Escrow unlocked

Smart Contracts

SELLER
TRADE LISTPOPULATION
Populate Item List
SERVER Commission
Smart Contracts
PROPOSEDARBITRATION PROCESSKYCResult Storage

Item List
POPULATED

Arbitration Commission
Arbitration
ProcessFig. 4 Arbitration Polls, KYC Licensing, Listing Items

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5. Content delivery
The generic content is served through HTTP+TLS (HTTPS) 17) endpoints (SWARM node
Web Servers), while most of the data is being exchanged through WebSocket (WS) layer for
bandwidth optimization reasons. SWARM BZZ 18) protocol is being utilized for serving Web
3.0 content (User Interface [UI] and User Experience [UX]).

6. Rating system
Tresaro’s rating system is based on the active properties of the marketplace participants(functional peers). Any functional peer is being represented by its specific rating (described inTable I), thus allowing assessment of peer’s current service quality.
Ratings are being assigned automatically (direct assessment by an automaton) or manually(user feedback). The following set of additive rules by rating type is being proposed:
Transactional (BUYER and SELLER) [Semi-Automated]+1 on successful Order+1 on winning a Dispute+1 on positive licensed user feedback
0 on revoked/cancelled Order-1 on losing a Dispute-1 on negative licensed user feedback
Charitable (CHARITY and CROWDFUNDING) [Semi-Automated]+1 on successful Order with charity fee < 75% of the Order value+2 on successful Order with charity fee 75% of the Order value-1 on negative licensed user feedback+1 additional rating upon being licensed CHARITY or CROWDFUNDING
Arbitration (ARBITER) [Automated]+1 on voting+1 additional rating upon being part of the MAJORITY vote
-1 on vote timeout
Carrier (CARRIER) [Semi-Automated]+1 on receiving an ITEM for shipping+1 on ITEM delivery+1 on winning a Dispute+1 on positive licensed user feedback
0 on revoked/cancelled Order-1 on losing a Dispute-1 on negative licensed user feedback
Server (SERVER) [Automated]+1 on providing specific chunk of data upon request+1 on storing specific chunk of data for given time
+1 for being available for a day-2 for being offline for more than 1/6 of a day (4 hours). Accounted per day-10 on pretending to store a specific chunk of data for given time, but not doing it. Thisrating is assigned per request
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Whitepaper- 1000 after a successful number of cheque waivers led to exceeding specific overdraft(if any)- 1000000 AND NETWORK DISCONNECTION on consecutive overdraft excesses to
10 or more different SERVER nodes- 1000000 Node is being disconnected from the network. It’s security stake is being
shared between the remaining nodes
KYC (KYC NODE) [Semi-Automated]+10 for licensing+1 on positive licensed user feedback-1 on negative licensed user feedback

7. Optional Arbitration System (OAS)
Tresaro’s OAS is based on a core of special purpose functional peers, called ARBITERs.
Any ARBITER is a licensed node, who declares it’s availability for service time and is awarded
and penalized upon successfully fulfilling or not its duties. ARBITER who misses the votetime frame or refuses to vote when being chosen for the voting polls is being penalized withrating subtraction. Smaller or negative ratings result in rare chances of vote participation orcompletely being disconnected from the network.
ACTIVE ARBITERs are the ARBITER nodes, responding positively when asked if willing to voteat any particular moment. Such a nodes are chosen semi-randomly (semi, because choosingwith priority from the nearest local vicinity), which prevents organized votings, such as lynch
mobs and syndicates.
Every arbitration poll is being funded by a smart contract-insured security deposit, issued
by the BUYER upon requesting an Order. The funds are being split as 2/3 are given for the
MAJORITY vote to split and 1/3 to the MINORITY vote.
Arbitration Poll Qualifications Method
Choose random N + N (N is an odd number) ACTIVE ARBITER nodes in the directkademlia vicinity (least kademlia routing distance) of the SERVER node performing the
Arbitration Poll. Let weight be an arbitrary number between 0.1 and 10, associated withthe rating and individually chosen by the SERVER node performing the polls. Let’s sort theresulting 2 * N nodes, by utilizing the Priority function:(1) PRIORITY node = rating A R B I T E R * weight ÷ distance
The Priority function is used to resolve a list of desirably sorted ARBITER nodes. If weight < 1,
the distance term will proportionally take over, while otherwise the rating A R B I T E R term will be
more relevant. Higher distances are more tolerated with higher weight values.
An ACTIVE ARBITER is considered ARBITER node, who is available at the voting
period. ARBITER nodes explicitly fix their expected availability hours and days. Unavailability
or bypassing a vote causes rating penalty and no commission for the faulty node.
The value of N is obeying N ~ Ј Escrow A R B I T E R ; N ≥ 7, that is - N is dependant on the
total Arbitration Commission, issued by the BUYER and/or SELLER nodes.

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Any ARBITER node group of K nodes with the same rating is then divided into two
subgroups G1; G2 of L (G1 , G2) = K ÷ 2 ARBITER nodes. If L mod 2 = 0 (e.g. L is not a whole
number), then L ( GA ) = (K + 1) ÷ 2; L ( GB ) = (K - 1) ÷ 2, where IP => A = 1; B = 2 and IN => A
= 2; B = 1, IP and IN being the events of previous and next calculation of K. IP always precedes
and follows IN and vice-versa (e.g. calculations of K follow this order of events - IP; IN; IP; IN;
IP...). All node subgroups G1 form a Primary Voting Group, consisting of L1 = Ј L (G1) ARBITER
nodes, the same being applied for all node subgroups G2, forming a Backup Voting Group,
consisting of L2 = Ј L (G2) ARBITER nodes. If L1 mod 2 = 0 (meaning L2 mod 2 = 0 as well),then the bigger group transfers the node with lowest PRIORITY node to the smaller group.
Primary Voting Group are the nodes allowed to vote, while the ones from the Backup Voting
Group are used for backup - in case of Primary Voting node failure of vote bypassing. The
replacement procedure is based on the same or similar PRIORITY node value of the switchingnodes, that is - whichever of the following is holding TRUE first:
PRIORITY nodeSOURCE = PRIORITY nodeREPLACED;PRIORITY nodeSOURCE > PRIORITY nodeREPLACED;PRIORITY nodeSOURCE < PRIORITY node REPLACED.

Arbitration Poll Voting Algorithm

2

5

6

7

VOTING POLLS

Arbitration Commission
Arbitration Bonus
Arbitration Rating +28

MINORITY
VOTE

F

Arbitration Commission
Arbitration Rating +1

N

ARBITERSCMAJORITYVOTE

4SERVER

WIN
CONDITION

3

ARBITERS

1

Fig. 5 Arbitration Poll - Voting

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8. Carriers
Shipping of the physical goods is one of the most important aspects of the marketplaceecosystem. That’s why for becoming a CARRIER node, one needs to apply as such to the
KYC NODE. Applying for CARRIER requires presenting a set of documents to the KYC NODE,
certifying the candidate as a legitimate carrier in a given region. Application should include
guarantees for having a 24/7 interconnected SWARM CARRIER node server infrastructure,
as well as particular region coverages and shipping rates.
Once CARRIER node is being approved, it is required to stake particular amount of security
deposit tokens (proportional to the median of its shipping rates) to start servicing. All theservice log is produced by communication with the SWARM network in form of Order statechange requests. Delivery payments are provided after having an Order in SUCCESS state.

9. KYCKYC Nodes are the authorities, who license (or refuse to license) requesting functional
peers. If a peer doesn’t pass the licensing which is mandatory for performing a function,
it is being restricted to apply for the same license for a period of 1 month. KYC Nodes are
expected to converge a lot of economic authority and to be completely credible and liable
entities. That’s why they are required to deposit the equivalent of 100,000 EUR in TRE tokens
as a security stake. Another mandatory requirement is continual service guarantees, that’s it- KYC Nodes are expected to be online most of the time. If the licensing service is unavailable
for a specific KYC Node for more than 4 hours per day for more than 3 consecutive days, asanction of 10% of the stake is applied. Funds from this sanction are being equally shared
between the rest of the KYC Nodes in the SWARM network.
Personal and (particularly) Business/Service identification in general is a time consuming
process, which also requires manual labor, access to expensive assets and insuring certain
guarantees. Having a licensed KYC partner like SBS gives the Tresaro project a critical startup
core of guaranteed KYC Nodes, which will cover the initially expected service usage peaks.

IV. The TRE token - planning, distribution
and economy
1. World Marketplaces and Charity - quick figures
Amazon’s revenue for 2017 is estimated on $177.866 billion, selling 562.3 million ofvarious products in its Amazon.com marketplace 22). It has also shipped 2 billion third-party
seller’s items in 2016 22).At the same time, charities in the UK have raised £9.1 billion for
2016/2017, 10% of which (£910 million) were spent on fundraising costs 23). According toForbes, similar amounts were raised for charitable gifts in the United States just for 2017 around $10.2 billion 24).
These figures imply that an intersection between a marketplace and charitable fundraising,18

Whitepaperand gluing, genuine idea, such as clutter-based donations in a distributed marketplace,
would generate substantial operational revenue - even in local markets, such as the United
Kingdom. It has also the potential of a million-grade user base and helping billions worldwide
by promoting charities and crowdfunding.

2. The Tresaro TRE token economy outline
The Tresaro distributed economy is mainly driven by the incentivisation mechanisms,
described in detail in section III.2 Functional structure; economic and fairplay incentivization.
To ensure functioning economy, Tresaro defines a utility token TRE, with the following
properties:
ERC-20 compatible;
Fungible and transferable;
Fixed supply / Non-inflationary;
Fractionally divisible.
As Tresaro is inherently a blockchain-agnostic solution, the ERC-20 compatibility is
only in the context of the initially used Ethereum blockchain. The TRE token is purposed toensure the following economic functions:Clutter valuation*;
Decentralized economy incentives* - security stakes, deposits, commissions, overdrafts;
Deal* instrument in the trades between BUYER and SELLER nodes;
Fundraising* organisations synergy instrument (as a shared-asset value);
Fundraising* donations valuation (as a shared-asset value);
Future Tresaro phases will consider the utilization of different backbone blockchains,
supporting smart contract functionality similar to that provided by Ethereum, such as NEO25)
and Zilliqa 26). This development vector would ensure further growth, generalisation andglobalisation of the Tresaro marketplace solution.
The TRE token security stake escrows, service and end user rewards ensure a marketplaceecosystem, dominated by fairplay and marked with constant growth.

3. TRE token allocation, distribution and sale
Token allocation and distribution terms follow:
ERC-20 token: TRE
Issued tokens quantity: 500 million (500,000,000 TRE)
10% (25,000,000 TRE) reserved for incentivisation, rewards and exchanges
25% (100,000,000 TRE) reserved for the Founders, locked for 1 year.
65% (325,000,000 TRE) allocated for presale and public sale
Sale Accept: ETH, BTC, BCH, NEO
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TRE Token nominal price: 0.0001 ETH
Sales Soft Cap: 5000 ETH
Sales Hard Cap: 25000 ETH
Unsold TRE tokens (after the public sale): Burned

65%
Sale

10%
Reserve / exchanges

25%
Founders

Fig. 6 TRE token distribution* TRE is utility token, thus ‘deal’, ‘valuation’, ‘value’, ‘fund’ and ‘incentive’ are used in a barter
context here.
20

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4. Preliminary Roadmap
Q4 2017 - Tresaro Project InitiatedQ1 2018 - Fixed targets; PoC development started
Q2 2018 - Fundraising started
Q1 2019 - POC development finishedQ1 2019 - Deployment of the Tresaro marketplace Alpha
Q2 2019 - Consensus Event @NYC
Q4 2019 - Deployment of Tresaro marketplace

Acknowledgment
The Tresaro Team would like to thank to the following groups, corporations, foundations
and persons for their indirect help and a lot of revelations, stemming from their publications,articles and source code:
Order and Transaction State Machine

SWARM Service Network and Smart Contract Set

EtherSphere

Auction and Marketplace Smart Contracts

Solidity
Doug Petkanics
21

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REFERENCES

01. OpenBazaar - peer-to-peer marketplace
02. Listia - centralized marketplace for freestuff
03. NameBazaar - marketplace for ENS nameexchange
04. ERC-20 Token Standard
05. The Guardian - ‘Change or die’: aidcharities told to stop competing for funds orface …
06. DEEP DIVE: Decluttering: Anatomy Of A
Consumer Trend And How Retailers Can Win
07. Fundraising: How much does it really costcharities?
08. Ethersphere SWARM - distributed storage
platform and content distribution service
09. Swap, Swear and Swindle - Incentive
system for SWARM
10. Swap, Swear and Swindle Suite Courtroom
11. RFC6455 - The Websocket Protocol
12. Fielding, Roy Thomas (2000). “Chapter
5: Representational State Transfer (REST)”.
Architectural Styles and the Design of
Network-based Software Architectures (Ph.D.).
University of California, Irvine

14. GitHub - Doug Petkanics’ Auctionhouse
Project
15. GitHub - Ethereum Dapp Bin
16. GitHub - SafeMarket P2P Trade System
17. RFC2818 - HTTP over TLS
18. SWARM Basics - BZZ Subprotocol
19. Amazon Seller Central - Manage Orders
20. EBay DevZone - Managing Sales andOrders
21. PayPal Manager Help - Transaction
Status Details
22. Strategic Management Insight - Amazon
SWOT Analysis for 2018
23. Charity Financials - Fundraising: Howmuch does it really cost charities?
24. Forbes - The 10 Largest Charitable
Donations Of 2017
25. NEO - An Open Network For Smart
Economy26. Zilliqa - Next-Gen High Throughput
Blockchain Platform

13. Solidity by example - Blind Auction

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