Ali Zhiqi Automobile will issue 300 million "raw stones," backed by a 4.9% equity return

This article was published on Block 01, author: Sui Qilin, reviewed by: Jiang Zhaosheng, typeset by: Wen Xin.

On March 17, 2021, IM Motors, co-created by SAIC Group, Zhangjiang Hi-Tech, and Alibaba, first revealed to the public the core operational link of its globally innovative Customer Share Option Plan (CSOP).

IM Motors will issue 300 million "raw stones"

In the CSOP user rights platform, IM Motors has pledged 4.9% of the equity returns from its 10 billion founding round investment as an endorsement, issuing 300 million "raw stones" that reflect the asset returns and dividends corresponding to that portion of equity. This will utilize a series of cutting-edge technologies, including blockchain, to reward users in the form of data rights, recognizing their contributions and value.

In the future, at specific times in the company's development, IM Motors will return the equity returns to users based on the number of raw stones they hold, according to agreed rules and methods. After obtaining raw stones, users can not only use them for product hardware and software iterations but also share in the dividends from the company's appreciation.

The CSOP user rights platform operates on a non-profit model, with the expected number of raw stones issued each year, the algorithms and probabilities for obtaining raw stones, regularly announced to the public; the results of raw stone acquisition will also be recorded on the blockchain to ensure fairness and credibility.

There are two concepts in CSOP: raw stones and crystals. The official press release states: "Crystals" refer to points, which users can earn by participating in interactive tasks on the app, co-creation activities organized by the company, or by activating specific features; "raw stones" correspond to data rights, where car-buying users can draw raw stones by using a certain number of crystals or by generating data from vehicle usage. The opportunity for users to obtain raw stones is directly related to the value of their data; the earlier and more frequently a vehicle is used, the greater the chances and quantity of raw stones obtained.

How to view IM Motors' CSOP?

The CSOP user rights platform sounds very much like the situation in our daily lives where we collect points in supermarkets for rewards. However, there is a significant difference: in supermarket point redemption, customers only receive prizes, while in CSOP, users can also receive equity returns. Perhaps we can understand this as a profit-generating points mechanism.

According to an interview with Liu Tao, co-CEO of IM Motors, the company's recognition of user value is explained as follows: under the new transportation model, users no longer play the role of consumers of products and services from car manufacturers, but rather act as contributors who drive the updates and iterations of technology, products, and services. "Users help the company, and the company also gives back to users; he gives me data, and I give him value, and this cycle will flow very smoothly," Liu summarized. "This will recreate a paradigm of owning a product and brand: I own this car, I also own this brand, and I have become a part of the company's development."

EarlETF (an investment public account) commented on CSOP: the design of this mechanism is reminiscent of Bitcoin's "mining" mechanism, with huge "earning" potential for early car owners, but its significance far exceeds that of Bitcoin. On one hand, "raw stones" are not digital currency; they are closer to "digital stocks," and their value is not intrinsic but corresponds to the underlying corporate value. On the other hand, the raw stone system has significant innovations in making "smart cars easier to drive." IM Motors has taken a step further in user experience with CSOP, transforming its relationship with car owners into a partnership mechanism through "raw stones," where car owners invest data capital and reap the dividend rights behind the raw stones.

Renowned financial writer Wu Xiaobo believes that IM Motors uses company equity as a value pool, leveraging blockchain technology to quantify and accumulate every piece of data contributed by users—driving data, map data, interaction data, etc.—which ultimately presents as assets in the users' "data accounts." IM Motors will be the world's first "smart mobile tool" capable of generating data and thus obtaining benefits, with its users embodying three attributes: consumption, participation in production, and benefit.

However, due to the draft of the "People's Bank of China Law (Revised Draft for Comments)" issued by the central bank on October 23, 2020, which proposed a series of prohibitions to prevent virtual currency risks, it is clearly stated that no unit or individual may create or sell token vouchers and digital tokens to replace the renminbi in circulation in the market. Therefore, the raw stones and crystals launched by IM Motors are somewhat similar to STO (Security Token Offer), where tokens/points are linked to equity returns. It remains to be seen whether IM Motors' innovation complies with regulatory requirements and whether it can develop smoothly; perhaps more detailed operational rules for the CSOP user rights platform will be officially announced during the 2021 Shanghai Auto Show in April this year, providing some answers.