Payment Mechanism:
Satellite companies and private business representatives can pay for their projects in the creative industries at the current exchange rate of the coin, pegged to a fiat international currency (USD or EUR). A client ordering a creative product can pay directly in fiat currency to the satellite company’s account, but this would involve taxes, exchange rate differences, and transaction fees. Paying with the COLD HALO coin bypasses these additional costs, allowing the client to pay only the nominal amount. For example, startup "N" orders branding from a satellite company within the COLD HALO system, and the satellite company estimates the project at $2,000, excluding taxes. Startup "N" can pay through a tax authority and legal entity, adding a 9% tax (an average across European countries), plus currency exchange differences if the order crosses borders (e.g., the client is in France using EUR, while the satellite company is in Argentina using ARS, resulting in a 1-2% conversion fee), plus a 0.2% transaction fee. The final cost would be $2,000 + 9% + 1-2% + 0.2% = $2,141.65.
Alternatively, during the initial negotiation phase, the satellite company prices its services at $2,000 (fiat payment) or $1,800 (payment in COLD HALO coins). It’s more convenient, reliable, cost-effective, and faster for the client to purchase $1,800 worth of COLD HALO coins and transfer them to the satellite company’s wallet in one click. This way, the client saves $341, spends less time on the transaction, and supports the broader project. The coin’s capitalization grows with each subsequent transaction between any satellite company and client within the COLD HALO system, further increasing the coin’s value.

Conditional Growth Model:
At the project’s launch and during the first six months, a nominal amount of $2,000 would equate to 10,000 COLD HALO coins. However, after another year, due to the coin’s growing capitalization and token value, the same $2,000 might be worth only 1,200 COLD HALO coins. In three years, $2,000 could equal just 2 COLD HALO coins.

Legal Aspect:
Since payments are made using the coin rather than through official banking and tax services, the order and product remain in an unregulated economic zone. This could lead to potential misconduct by satellite companies in fulfilling their business obligations. For instance, startup "N" has no legal recourse to protect its rights, as there’s no documented proof of the funds transfer. The order might be completed incorrectly, unprofessionally, or not fulfilled at all due to various circumstances. The global crypto market currently lacks comprehensive economic and legal oversight, which can lead to potential challenges.
To mitigate this risk, the creators of COLD HALO must provide guarantees for clients. COLD HALO will establish a registry of trustworthy and verified satellite companies on its website. This allows any client ordering a creative product to check the list of satellite companies, confirm their contractor’s reliability, and ensure the company has responsibly fulfilled its obligations and is part of the system’s registry. While this doesn’t 100% guarantee the satellite company’s integrity, it indicates that the company has a history of performing its duties correctly and professionally.

Regulatory Framework:
Since neither party in the transaction (buyer or seller of a creative product within the COLD HALO system) has full legal status, these operations fall into a gray economic zone. We caution all participants that such transactions are prohibited in certain countries and may be considered economic and tax crimes. For example, countries like the USA, UK, Canada, Australia, Germany, China, Turkey, and Qatar classify any cryptocurrency transaction, including payments for goods or services, as a taxable event.
However, some countries either do not tax cryptocurrency transactions or have lenient tax laws that allow such operations to avoid declaration under specific conditions. Examples include Portugal, Switzerland, Singapore, the UAE, Malaysia, El Salvador, Malta, and Belarus. Even in these countries, intentional tax evasion (e.g., if you’re required to declare income as a business) may still be considered a legal violation.

Exception for Startups and Small Companies:
Startups and small companies often operate without a legal entity in their early stages (from 6 months to a year). During this period, many initial creative products are acquired outside a legal framework. For instance, a company opening a bakery might develop branding, a logo, and a marketing system before registering a legal entity. In such cases, the startup can engage a satellite company as a private individual, and the satellite company can also act as a private individual (sharing intellectual resources). Nothing prevents the parties from settling the transaction in any cryptocurrency without documenting it with tax or regulatory authorities.

Guarantee Process:
Our in-house and affiliated lawyers are currently developing a system and plan for interaction between satellite companies and clients. The work is being conducted in two directions:

1. Registering the necessary processes and forms to ensure the safety and legal transparency of transactions.
2. Transitioning the system into a full-fledged Web3 economic model, which may allow payments without involving tax or other regulatory authorities (only for companies registered in countries where this is not prohibited by law or where tax and regulatory bodies are lenient toward cryptocurrency payments for creative products).