Applied DNA Sciences Inc (APDN)

[tagmonster]

EXECUTIVE SUMMARY
The TOKES Platform is a digital currency project developed specifically for the cannabis
industry. As an asset built on the Waves blockchain, Tokes (ticker: $TKS) serves as a means for
businesses to conduct transactions (both consumer and business to business, B2B) within the
climate of tenuous federal legality and state compliance scrutiny. Given the increasing
legalization of both recreational and medical marijuana at state levels, coupled with the
economic restrictions upon dispensaries imposed by existing federal laws, Tokes serves as a
means of financial mobility and freedom for marijuana businesses forced to transact in fiat.
Tokes is actively developing products integrating the token into critical systems for cannabis
production, sale, and support. This includes, but is not limited to; payment processing
gateways, enterprise resource planning systems for supply chain management, industry
communication and personnel vetting, marketing, automated consumer feedback and
incentives, mobile gaming, etc.
This whitepaper is a living document, and will be periodically revised as new partnerships, use
cases, and technologies are integrated into the Tokes platform.
©2017 Tokes Platform, White Paper v. 2.1
4
WHY WE EXIST

PROBLEM
Due to federal prohibition against cannabis, businesses within the industry must operate
primarily in cash. These cash transactions occur at the point of sale, for business to business
transactions (e.g., dispensary to cultivator), and for employee payroll. Until conventional
banking allows cannabis businesses to utilize their services, this cash only ecosystem has an
added liability of potential loss, and increased accounting difficulty in a compliance heavy
market.
Further, state compliance and legislation regarding tagging, tracking, testing, transport, and
security of cannabis products varies state to state. Operators within the industry must contract
multiple entities to ensure full compliance, increasing overhead costs. In the process, cannabis
businesses are utilizing multiple, non-integrated legacy systems to meet compliance standards.
SOLUTION
The Tokes and Theracann ERP system provides a digital transfer of value between businesses
and a vertically integrated system that allows for tracking, tagging, and accounting from seed to
smoke on the blockchain, replacing legacy systems as a turnkey solution for the cannabis
industry.
©2017 Tokes Platform, White Paper v. 2.1
5


The Tokes Platform™ is a cryptocurrency based development project serving multiple functions
within the cannabis industry. Transacting on the Waves Platform, Tokes (ticker: $TKS) serve as
a means for cannabis businesses to make financial transactions without bearing the liability of
facilitating payments entirely in cash. Given the increasing legalization of both recreational and
medical marijuana at state levels, coupled with the economic restrictions upon dispensaries
imposed by existing federal laws, Tokes provides financial mobility and freedom for marijuana
businesses whose cash reserves are presently “unbankable” under current federal laws. In
order to provide this freedom to the industry, the Tokes Platform is developing software
solutions within all points of the supply chain to facilitate both business to business
transactions, consumer to business transactions, and an array of tertiary use cases within the
space. Ultimately, the goal is to construct a closed loop system, wherein Tokes are transacted
between cannabis businesses, eliminating security liabilities (e.g., robbery of cash reserves,
employee theft), facilitating state compliance (e.g., book keeping for taxation, security, lab
testing, inventory tracking, etc.), while reducing costs to the industry by replacing traditional
legacy systems with a modular seed-to-sale, Tokes integrated system. The details of which are
outlined below, with our current efforts focusing on three core fronts; 1) the Tokes
transactional protocol, 2) a merchant payment gateway, and 3) the enterprise resource
planning (ERP) solution.
©2017 Tokes Platform, White Paper v. 2.1
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TRANSACTIONAL PROTOCOL
The Tokes transactional protocol is a payment layer built on blockchain technology enabling
users and businesses to transfer money electronically in the cannabis industry. Running on
the Waves blockchain, Tokes are a robust cryptocurrency with fast transaction times (less than
1 minute) and a secure immutable digital ledger. Currently, cannabis dispensary customers
must purchase products entirely in cash due to federal prohibition of cannabis banking. The
Tokes transactional protocol provides a means for dispensaries to accept digital payment via
mobile app transactions (currently the Waves Wallet available on iOS and Android), and not
bear the liability of conducting business entirely in cash. Further, Tokes transactions are
cheap, costing less than 1 cent per transaction regardless of the total sale value.
©2017 Tokes Platform, White Paper v. 2.1
7
A larger aim of the platform is to provide a business to business solutions for the cannabis
industry. Not only are current cannabis customers required to pay in cash, but businesses
must also transact entirely in cash within their supply chain. Whether a dispensary is paying
the cultivator for a new batch of cannabis flower, or having large batches of raw cannabis
material processed into concentrate at a lab, or even conducting weekly payroll to employees;
all of these payments are being transacted in cash. This presents a huge liability of potential
theft and fraud, while adding additional headaches to accounting and financial compliance in
an industry with strict legislative requirements. By providing both a digital ledger and a means
to make payments digitally, the Tokes Platform eases many of the financial headaches of doing
business in the cannabis space. Presently users can acquire Tokes from cryptocurrency
exchanges (e.g., Bittrex, Waves’ DEX), however one of our aims is to eliminate the headaches of
acquiring Tokes for novice users. Some proposed solutions we are developing include: direct
mobile application purchases (via exchange partnerships) and Tokes specific cryptocurrency
ATMs located within dispensaries (replacing conventional cash ATMs).
Conducting business entirely in cash is a challenge in a regulation heavy industry that requires
accurate bookkeeping for tax purposes. While the public conception of cryptocurrencies is
that they are used for black market transactions and illicit business, the reality is quite
different. Utilizing Tokes for consumer and business transactions keeps a permanent ledger of
financial transactions on the blockchain (Tokes transactions can be viewed on the Waves Block
Explorer: https://wavesexplorer.com/. This facilitates transparent accounting for taxation
purposes. Further, as the transactional functionality of the platform develops, features like
automatic tax remittances can be built directly into the ERP software.