Dear Friends of Aerum, Crypto investors and enthusiasts!

I am happy to present you this bi-weekly report. First two weeks of February 2019 were busy. We have continuously advanced our technology and you may already know been able to show a stable performance of over 800 transaction per second in realistic conditions. Now, we have been also working for last several months on building a new transaction gateway to ensure capabilities of our Delegates to route vast amounts of transactions safely and in orderly manner to the Aerum blockchain. With the AerumGate software nearing its beta release, initial tests are giving a promising indication of a capacity to reach transaction throughput of over 1000 transaction per second! We expect to run a test broadcasted live on YouTube within a few week. Enthusiasts will be able to connect to the network using our open-source tools and see the performance metrics on their own. Don’t trust us – test us!

On business development frontier, we have established a timeline with Dezos GmbH, a Swiss-based personal property tokenization, security and insurance project, to start building their decentralized mobile application in close collaboration with Aerum and using our wallet technology! Welcome aboard, Dezos!

We are going to release a new web-based tool to track your airdropped and bounty-based XRM allocation next week! It will be available at https://mytokens.aerum.com – follow our news updates!

We are also introducing a big change in our tokenomics! Since we have decided to reduce hard caps of our token sale, while maintaining a previously chosen token price in USD/ETH, there is a significant amount of tokens, initially allocated to a Token Sale, that will be left unsold. We have decided against either burning unsold tokens or distributing it to all token holders. Instead we will build a Stake Reward facility and all token holders, who staked our governance model will get staking rewards not in Aero, a gas coin of Aerum, but in XRM tokens! We envision, that XRM staking reward should be a best way to bootstrap the network and encourage active participation in our governance! With XRM staking reserve to last approximately 3 years we believe it will be enough to have Aero gaining enough value to slowly replace XRM reward with Aero reward, coming from combined block minting reward and transaction fees.

We have also reviewed our network governance model and realised the need to create a way for community to be more engaged in maintaining network security, robustness and execute functions of watchdogs and redundancy providers. To make it happen, we are adding a new role of a Masternode, or a Community Delegate! This role will require a much smaller security deposit in XRM tokens, will give limited voting rights, participation in staking reward and ability to execute a role of a stand-in Composer, a Validator that will be enacted if there is not enough approved Delegates to fulfill the Consensus. Thus will allow Masternodes to be able to generate block rewards in Aero, a native Aerum gas coin. Besides that, Masternodes will receive staking rewards in XRM! Tokenholders will be able to stake Masternodes just like they can stake Delegates and also receive XRM rewards!

These changes are being reflected in our Whitepaper and Litepaper and should be released very soon! We expect to have a new staking model functional and available to use shortly after the end of the Token Sale!

There is a lot more action going behind the curtain, such as talks with several large potential FinTech partners with a view to build a payment gateway and stable tokens right into Aerum platform. We will keep you updated on the progress!

This is all for this report. Stay tuned, subscribe to our reports by registering your email at https://tokensale.aerum.com and subscribe to our YouTube channel at https://www.youtube.com/c/AerumTechnology

Get more information by visiting our website at https://aerum.com/ or various social media channels and groups you can find there.

Thank you for reading and have a great day!

Yours truly, Alex Randarevic, Aerum CEO