The Green Energy and Renewable Energy Markets are ready for disruption. The Green Energy and Renewable Energy Markets are ready for disruption. Like many disruptions that happened before in various economy sectors (Netflix, UBER,), a multitude of technical and market factors have converged and created the perfect environment for this to happen. In our case those factors are the current international energy markets outlook, advancements in blockchain technology such as smart contracts and staking, and utilization of proven, industrial size scalable, Green Energy Storage solutions using Gravity Storage. But more on this later. On a daily basis the news headlines include reports and stories dedicated to environmentalism, the strive to achieve Net Zero, Green Energy projects and similar buzz words which are now part of the modern vocabulary and daily life. The race to spare our planet from environmental disaster is ON and is picking up pace like never before. The ongoing crisis has been foreseen some years ago by Think Tank Organizations and Energy commissions, but it started to manifest more acute in 2022. Another notable development in late 2022 (and caused by the same current international situation), is that solar panels manufacturing output is way up and the costs of the raw materials (mainly silicone) used in the manufacturing process, is going down (already more than 30% since last October) while the energy price will continue to go up in the foreseeable future. A quote from a December 2021 press release with the title “Renewable electricity growth is accelerating faster than ever worldwide, supporting the emergence of the new global energy economy” of the International Energy Agency (IEA) states: “Renewable are the backbone of any energy transition to achieve net zero. As the world increasingly shifts away from carbon emitting fossil fuels, understanding the current role renewable play in the decarbonization of multiple sectors is key to ensuring a smooth pathway to net zero”. The world economy is in desperate need for more green energy and green energy storage capacity. There is a tremendous demand for solutions that can scale and satisfy the ever increasing energy consumption. KWE Network intends to become a major player in the process and disrupt the Green Energy production markets. As you will read in this document, our concept is combining the most efficient green energy production and energy storage processes with the power of the blockchain technology. Our disruption model will allow the "opening" of green energy markets to worldwide participation via blockchain based smart contracts and the staking process. When was the last time your local power generation company (the one you are paying your electricity bill to), has shared their profits with you? Probably that never happened and it will never happen under the current Status Quo. The setup of this companies usually involves the government and selected groups of stakeholders (some might act as "energy brokers" or "energy retailers" in order to simulate a "market". Our use case is based on the current global conditions and trends affecting both, the Green Energy production and Blockchain ( Cryptocurrencies ). The fund raising process will help achieve monetary self sufficiency needed to kick start the green energy and gravity storage facilities and established the new paradigm in the industry. Before we go into details, we would like to outline a very important fact that guided us. While planning the platform and the KWE token, great efforts were made to take out the speculative aspect (we all know what happened lately because of that) and come up with a reality based income model that will not induce a crash later down the road. We actually estimate the opposite will happen and the token will gain steady value. Feel free to participate in any of the funding rounds and become a part of the Next Big Disruption.

The Bitcoin era has massively changed the way we look at money. Cryptocurrencies are now considered the future of money and hundreds of blockchain based platforms and ecosystems are proposed every year to the crypto currency investors. However form hundreds of startups only a very few make it to the top and establish themselves as successful companies and even fewer change the paradigm. Why? Because the majority of the new crypto currency projects are based on financial speculation mostly, such as NFT, NFT markets, DAO , swaps, farming, yield, and staking. In fact, expert crypto investor Mark Cuban, has recently warned that the next bear market will be caused by the myriad of assets with no real world application whatsoever. What do we mean by real world application? Let's consider Helium, a global wireless decentralized network that uses wireless devices to build the “internet of things” or the IOT. The network will facilitate communication between devices in your home, car, factories, stores etc. (IOT devices are devices that can monitor and transmit temperature, humidity, wind, pressure data or other devices that can take readings from home appliances, vehicles, industrial machinery etc.) This project is amongst a very few that use its crypto currency ( Helium HNT token) to reward the wireless device owners that connect to the Helium network with HNT tokens ( note-the rewards have significantly decreased recently). This type of projects have more credibility for typical investors, and face less scrutiny from the financial authorities that are mostly concerned with the Speculative aspect. In the same time a global project such as this can potentially offer long-term income stability and residual financial returns if the network gets adopted. Another crypto project working towards disrupting the traditional energy market is Power Ledger however their focus is on, and we quote, “developing software for clients and partners tat allows consumers and producers to track, trace and trade every kilowatt of energy” and less on Green Energy Production.

So what would be the recipe for a successful crypto currency startup if we were to build one today in the current market conditions?

There are few aspects relevant to our case, that we need to consider first:

1. As stated above the majority of new crypto projects are speculative so that will be a NO NO to begin with.

2. The global push to alternative Green Energy production to replace fossil fuel, is well on the way.

3. Recent collapse of cryptos such as Luna/UST and more recent Celsius ( an ERC20 token based on insane yield generation ) and very very recent the FTX collapse, have shaken the trust in cryptos and caused a significant Bitcoin price drop and the current bear market.

4. The need for crypto projects anchored in the real world, that combines the power of crypto with technologies and processes that will in turn generate stable income and financial stability for the investors.

5) Recent events on the worlds stage point to further deterioration of the financial markets thus making governments greedier for its people money and in the forseeable future fuel taxes and in general taxes will rise at a more accelerated pace.

6. Many investors are seeking a safe heaven for their money and are ready to invest in sound projects that can produce a good financial return and help them weather the current global financial storm.

7. Entering the market with a viable “Green” power generating and storage solution is highly beneficial at this moment in time. It is also safe to assume that the energy prices will go higher as we are transitioning from the fossil fuel to the green energy use.

KWE Ecosystem and KWE the “Electrified Token” In a nutshell:

The KWE Network is combining the power of the blockchain technology with green energy producing facilities in a unique concept that is meant to facilitate the disruption in the energy markets.The blockchain will help with decentralization and transparent financial transactions. Our main goal is to democratize the access to the green energy production economy and allow world wide participation via blockchain and staking on the platform. KWE Network is made of two basic "components", the Blockchain infrastructure and the green energy producing part of it. Both components will be further described in the chapters below. KWE Network will start on an ERC20 token and pass the financing rounds on Ethereum platform, and later on (Q3-Q4 2023) we will migrate on KWE Substrate Network mainnet where the smart contracts, staking capabilities and development options will be fully activated (the testnet is up and running and under development currently).

Our real world projects will be scalable Green Power generating project(s) financed through the platform. The “KWE” token stands for Krypto Wealth Economy but also stands for Kilo Watts Energy having a dual meaning and role. In the future we envision wealth generation through financial instruments such as investments, fixed interests deposits, loans etc. The KWE token will be the back bone of the staking process and currency for the smart contracts execution (gas fees).

Gravity Storage technology for mechanical energy storage systems.

Mother Nature has blessed all of us with many gifts but one of them has a big constant pull on everything on our planet – the Gravitational force. The earliest examples of human ingenuity involved the used of weights to leverage power and move large objects. Like the SUN light, the Gravitational force is omnipresent and free. So why not use them to produce green renewable energy?

Our concept ticks all the boxes, check marks and requirements when it comes to a modern, green, viable and unique solution that can integrate the use of crypto currency. Based on Earth's Gravity and solar power energy to arm the gravity storage system (wind turbines can be used as well day and night)this concept is highly efficient. The energy stored by gravity storage system (which acts as a battery in the sense that is "storing" the energy used to lift the system weights) can be released when required, by allowing the lifted weights to come down and spin the electricity generators to produce electricity. By producing electricity and selling it at peak consumption hours, revenue is being generated and shared with the stakers accordingly, based on the smart contract that governs the operation.

In itself the project is very simple and inexpensive (when compared to other means of producing electricity like gas, coal, atomic or hydro). There are few companies that have gravity storage systems under development and notably, Energy Vault, a company in Switzerland ( Energy Vault reported $42.9 million in the first quarter of 2022), is listed on Nasdaq (however Energy Vault is not implementing any crypto assisted disruption model ). These companies existence are reinforcing the feasability of this type of systems and are basically real world proof of concept. And why not? The gravity storage based system is the cheapest and greenest method to produce electricity and it shows great promise due to its simplicity, ease of implementation and project lifespan (calculated to be around 50 to 60 years).

Important Note - using cryptocurrency and embedding blockchain technology into the process, is the only way to cause and speed up the disruption, the democratization of the process and attract funding. This in turn will accelerate the implementation and deployment of Green Energy production facilities. The current energy market players do not like competition and they would rather maintain the existing “Status Quo”. The electrical grid system was, from its inception was designed to generate profit for the same main players and only recently they somewhat changed their views because of the environmental shift that is taking place. In our case, let’s keep in mind that our system can co-generate geothermal heating and cooling at every gravity storage (in-ground) installation. If the launch stage is properly executed we can become a dominant player in this market.

Patenting - because the system is taking advantage of the laws of nature, and is considered a natural phenomena, it is not patentable. The gravitational force is a natural phenomenon that is described by the general theory of relativity. As it is a fundamental law of nature and cannot be owned or controlled by any individual or entity, it is not eligible for patent protection. Similar to Open-source software, it is free for anyone to use, modify, and distribute without the risk of patent infringements. Our primary use case involves a perpendicular bored cylindrical cavity (think of it like an elevator shaft) where weights will be used to "arm" the mechanical battery. The weights (similar to an elevator) will be travel up and down in the shaft ( in our case the cylindrical shaft) suspended on steel cables that are connected to electrical motors (for lifting) and electrical generators (for electricity production when the weights are "falling"). For each in ground mechanical battery location , it is possible to use a geothermal power production system (at greater depths) in addition to the geothermic heating and cooling system which we already mentioned. This can increase the power plant production output and potentially provide this energy in the spaces where heating and cooling is needed be it residential or commercial. For the sake of simplicity, on this White Paper we will focus on the Gravity Storage (mechanical batteries) systems only.

Concept picture below – Gravity Energy Storage integrated system .

Picture below – Gravity Storage System - Basic function

Additional uses that can be implemented in parallel with the primary use of (in ground) Gravity Storage System.

Picture below - typical use of a Geothermal heating and cooling system

Picture below – Geothermal power producing plant concept (note - can be used at greater depths use only)

We will illustrate here, as an example, the shortest possible ( 24 hours ) KWE staking cycle at one green energy producing facility :

During the day, the solar panel fields (note - can be complemented by wind or other types of renewable energy sources where applicable) will produce energy. The produced energy allocated for retail will be sold and produce capital. The profit be split and allocated through the staking smart contract using KWE token as the currency. Therefore, each token amount staked will translate into the equivalent energy, that will arm the gravity mechanical battery for that location. The energy staking will conclude when the arming process is complete and the system weights are up ready to produce energy for the peak hours (using gravity pull).During the peak hours the gravity mechanical battery will produce electrical energy by letting the system weights come down in "free fall", spinning the generators and as a result electricity will be produced and sold at a higher peak price. Once the 24 hours cycle completes, the generated profit will be split accordingly based on the smart contract that governs the staking process.

The Off peak – On-peak price difference can be quite significant. The screenshot image below, taken from Ontario Energy Board in Canada, clearly shows a difference of $ 8.8 cents between Off-peak and On-peak price.

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The KWE token will be listed on the main exchanges at first and in Q4 2023 on our own exchange as well. After the financing campaign, for the rest of 2023 and until the first the first energy production unit goes online the staking reward is set to be 20% in order to incentivize the token holders to stake their tokens and not sell. The size of our project, the novelty it brings to the market, the unique way we decided to finance and operate it and the positive environmental impact it will produce will pave the way to a global disruption paradigm. As we all know by now, governments around the world are committed to the green environmental agenda and our project is right on that alley, our business proposition will be very hard to be ignored or refused.

A study done by Imperial College London Consultants in 2018 for Heindl Energy is stating that “Gravity Power will be the most economic bulk storage. With a scalable energy storage capacity and a high efficiency of over 80% will make it a unrivalled cost wise technology to shape renewables into a 24/7 source of power”. Forward to 2022 and markets are still experiencing the a lack of adequate green energy storage, so much so that the green energy producing facilities (solar or wind) are being curtailed and replaced by the traditional ones. As an example, in Great Britain, in 2021, the cost of curtailing wind power generation (and using gas fired plants instead) was 507 millions GBP. In a similar case in California ,in 2020, the utility-scale solar energy production was curtailed enough to power 140000 homes for a year. We think those figures speak for themselves about the green energy storage problem. And there is exactly where Gravity Storage tech fits perfectly.

The picture below shows the LCOS (Levelised Cost Of Storage) for Gravity Storage and compares the values to other four most commonly deployed storage technologies for bulk electricity storage. The assumptions made were – LCOS in US$/MWh for investigated bulk storage technologies of 5 GWh system size, 8 hours discharge duration, 330 full equivalent charge cycles per year, electricity price of 20 US$/MWh and 8% discount rate.

The superiority of gravity storage technologies is based on their low specific capital cost, which is significant at discharge duration of 8 hours (In our specific case it will be the night time cycle illustrated earlier). In addition, these technologies benefit from long operational lifetime (40-60 years) and high discharge capability (100%). LCOS for Gravity Storage is another 25% cheaper than for pumped hydro or compressed air due to its lower power cost.

Let's not forget that the study was done in 2018, and it quotes electricity price of $20 per MWh!!! Today’s price are way more expensive. As a comparison figure, in the province of Ontario (Canada), on August 6th, 2022, the market price peaked at a whopping $156.67 CAD per MWh as seen below (Note - price fluctuates during the 24 hours cycle).

The total investment costs will vary from $120 USD/Kwh for a 10 GWh installation to $380 USD for the smallest 1 GWh installation size calculated to be profitable. In either case the operational cost is under 1% per year of Capex. As stated before this type of project can run for up to 60 years and produce a return on investment greater than 10%. Another important fact to consider is that there are multiple ways to implement a gravity storage solution. From inclined planes to vertical towers above surface to inground shafts, the technology is versatile and scalable and adaptable to any local geographical conditions. Regardless of the method used, the technology is suited for large scale operations and is become more and more the focus of the specialists attention with a huge jump in popularity beginning 2021.

Let's outline the Main Advantages:
Great profitability and low operational cost
Suitable for any terrain. Easy to integrate in existing high voltage grids
Small land footprint per Kilowatt
Non pollutant – requires minimum raw materials
Long service time. High efficiency
Adjustable discharge time and On peak Off peak usage
Gravity storage is the greenest way to produce and store electricity

Notes:
1. KWE Network will commission a new study for each of the jurisdictions wherea project will be started.
2. Even if the development costs are more expensive since 2018 , the energy costs prices rose even faster. The global electricity consumption and the price per KWh will continue to rise.
3. Final electricity retail prices for any future facilities will be adjusted based on potential subsidies from local governments and preferential rates agreed in the long term contracts.

For precise smart contracts execution and world wide interaction, the platform will use its own dedicated blockchain built on Substrate infrastructure. The main components are the web wallet with a browser extension, a blockchain explorer, smart contract deployment interface, validator’s node deployment capability, telemetry website, development tools and a separate cryptocurrency exchange where KWE token will be listed and traded (as previously mentioned KWE token will be listed on at least 5 major exchanges and 2 DEX immediately after the public-sale – the tentative date at this moment is Q3 , 2023 )
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The infrastructure and ecosystem goals are to provide a friendly user environment where all the necessary operations or transactions can be done in a “One stop shop” setup.

While most of our infrastructure has successfully passed the initial testing, the fullblown capacity will be ready for the mainnet deployment in Q4 2023.

At the deployment date the staking process will be active as we mentioned, and the rewards will be set to 20% until the mainnet and operations will go online. As an intermediate step, the staking process and other metrics necessary for scaling up, will be tested on a pilot project (location and the time of deployment to be announced) before going live. In the meantime we will accept applications for validator node operators that will support the network. Please follow our social media for more details as they become available.

Substrate makes building blockchain far easier, faster, cheaper and safer thanever before. As an open source framework, developers gain free access to a widecode base developed and used by industry leading teams, building some of the biggest, most reliable networks in existence. Also Substrate is a Proof Of Stake (PoS) blockchain that provides a fast, hybrid consensus mechanism, and most important of its characteristics, it consumes a fraction of a fraction of the astronomical amounts of power Bitcoin’s PoW (Proof of work) consensus algorithm requires (currently surpassing the power consumption of Argentina – 140.61 Terra Watts Hour and with a carbon footprint similar to the country of Oman at 78.42 metric Tonnes of CO2!!!).

The simple and intuitive webwallet interface allows users to create new accounts, send and receive KWE tokens, create new accounts (addresses), visualize blocks creation just to name a few. Complete documentation and tutorials are available in the Documentation section . Our developers team are working on more evolved versions that will be released quarterly.

As briefly mentioned before, another important component, that will come later into play, is the the cryptocurrency exchange. The KWE token will be listed and traded on our own exchange as well, after it will be listed on at least 5 top tier exchanges and 2 Dex immediately after the launch.

KWE initial token supply is 377,700,000.00 KWE and will be distributed as per below schedule:

9% of the total supply ,33,993,000 KWE tokens will be sold during the seed round (Q1-Q2 2023) at the price of $0.033 USD for each token.

8% of the total supply, 30,216,000 KWE tokens will be sold during the private sale round(Q2 2023) at the price of $0.066 USD for each token.

7% of the total supply, 26,439,000 KWE tokens will be sold during the public sale round (Q2 2023) at the price of $0.099.



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To be announced soon

The KWE Network Concept is the most feasible model for developing long term, sustainable green energy producing projects. Because of its blockchain integration, millions of users from around the world will be able to participate in this process causing a disruption in the Green Energy market. We are on an aggressive timeline and our team is working hard to liaise with government entities and private sector representatives to speedup the development and funding. Priorities will be given to jurisdictions where the use of cryptocurrency is legal or allowed by the respective governments.