Dear Community:

CPChain is a public chain for the ecological collaboration of the Internet of Things. From a technical point of view, we designed the main-side chain collaboration architecture for CPChain. The main chain is a public chain, which provides basic transaction consensus and trusted identity services; the side chain is consortium chain for difference industry application, which provides data sharing and distributed business services for the Internet of Things business system. From a business perspective, CPChain must bring business value to the IoT entity industry, including reducing operating costs and improving collaboration efficiency. The basic anchor point of the underlying public chain value comes from the industry application value, and its network ecological effect will boost the scale development of the public chain.

Based on the overall status of the blockchain industry development, CPChain has formulated a strategic plan to focus on the development of consortium chain technology and explore industry applications on the basis of completing the development of public chain infrastructure. Limited by the regulatory policies of the Chinese government and the immature industry application of the blockchain technology, there is currently no very large-scale industry application and clear business model, which directly transmits the value of industry application to the participants of the public chain ecology. This has also become an important issue for discussion in community. In response to this contradiction, the CPChain project team firmly believes in the commercial value of the blockchain and actively explores large-scale industry applications and business models, and hopes that community participants can actively participate in and support our exploration of industry applications. To this end, the CPChain Foundation decided to issue an industry application ecological participation and revenue sharing initiative after extensive and in-depth discussions.

1. The CPChain Foundation propose the following revenue sharing initiative for the community, which means that the foundation will distribute part of the commercial income as dividends to CPChain investors in the future. The specific plan is as follows:

A. When there is commercial income and the total annual income reaches or exceeds 5 million US dollars, the CPChain Foundation (hereinafter as "CPChain") will take 35% of the net profit and distribute it to the community as dividends.

B. The income of commercial projects will be distributed according to annual accounting. The foundation will calculate the specific amount at the end of the year and announce it to the community on December 31, and distribute it before January 20 of the following year. Whether to pay dividends depends on whether the annual business income reaches 5 million US dollars; when the total annual business income is less than 5 million US dollars, no dividends will be made, and it will be rolled into the next year's accounting and dividends until it reaches or exceeds 5 million US dollars.

C. The specific distribution plan and distribution form are temporarily not listed. When the total income of CPChain commercial projects reaches or exceeds 3 million US dollars, we will determine the specific distribution plan through community voting, and distribute to community investors according to the established plan when the total income reaches or exceeds 5 million US dollars. CPChain will, as always, regularly announce the development of commercial projects and the income status of commercial projects.

D. In the actual business process, it will be difficult to make a profit in the short term or the profit growth rate will be very slow. Therefore, the dividend of commercial income is calculated from the natural year when the total income of the official commercial project reaches or exceeds 5 million US dollars, and the validity period is 10 years of CPChain's normal operation.

2. This announcement is applicable to all CPChain community investors, and does not specifically target any specific individual or institution.

We are very grateful to the community participants for their suggestions and discussions for the revenue sharing initiative. The CPChain Foundation thanks the community for its long-term, consistent support and company. The road ahead is still long, so please move forward firmly with us.

CPChain Foundation

August 15, 2020