Dear valued customer,

Here is a very important update on our new pricing structure effective from August 1st 2019. We wanted to communicate this to you and other existing customers in advance before making them fully public.

We know that you have all been very price sensitive when it comes to the machine purchase price and operational cost. We are aware that one of the many reasons why you chose GB was no ongoing costs. But after careful and long consideration we decided that we have to change the way we price our services and introduce a monthly invoice based system. We understand this is not something you expected and we recommend you to offload this new operational expense onto your customers by increasing exchange fee on your ATMs.

It is important to understand that we are not pocketing the introduced fees but these will be used to be able to keep supporting our clients and keep continue innovating. We introduce two fees. Support fee and server license fee. The support fees are intended to pay the salaries of our support staff. Fees generated by the server license will go directly to software development and software maintenance salaries.

I hope you understand the change. It is not something that we intended in the past but we see it as a must if we want to stay competitive in the future and keep supporting our clients. Let us explain the reasoning behind these changes and what will change in the paragraphs below.






MARKET CHANGES


Due to stronger bank and state regulations, it is becoming next to impossible to open a new bank account for new bitcoin ATM operators or even a start new ATM operator company resulting in increased market entry barrier. In fact, we see also a consolidation of existing ATM operators where larger operators purchase the ATMs from smaller operators. This results in a lower number of new customers reaching GENERAL BYTES to purchase machines. The current situation is that our income highly depends on existing customers.

The market has changed, we have to change too. Up until now, we have been able to finance the services we have been providing to you, and our other customers free of charge (out of our own pockets) but it is no longer possible to finance this from the number of machines sold. More specifically, this concerns the development of new server software features and providing clients with technical support to keep their ATMs 24/7 online. Maintenance of multiple blockchain network software support is a challenge and especially when blockchain network upgrades happen almost every month on different chains. Think of ATMs as trains and the ATM server (CAS) as railroads, it was GENERAL BYTES who paid for maintaining the railroads and bridges so far.

Although probably unpopular, we strongly feel that we are making the right long-term decision as it is our responsibility to make sure that GB is able to keep providing innovative new features to its customers in the future. Our main competitor is charging a 1% fee of the entire volume and we ask for a fraction of that. This is something we have to do as we can't take the risk that GB will be uncompetitive. As the founder and CEO of GENERAL BYTES, it is my responsibility to all of our customers to make the required decisions and take the necessary steps so that GB will be able to take care of customer’s machines, systems and software. We just can't let the bridges fall apart and allow the railroads to break due to rust eating them. We plan to beat the ATM competition by reinvesting into innovation by introducing new features but we need you to care and help. It is your responsibility too.






SUPPORT PRICING CHANGES


1.	We will no longer provide unlimited support free of charge. Clients will only have access to frequent and the newest server and terminal software versions if their service fees and server license fees invoices are all paid.
2.	The service fee is set at 10 USD/month/machine. Only machines that concluded any transaction within the given month will be taken into account. If you are using our cloud service the price is 5 USD/month/machine. The reasoning behind this price difference is that it is far easier to diagnose and resolve problems on the cloud-hosted accounts than the self-hosted servers and therefore those fees should be lower.





SERVER LICENCING CHANGES


We will introduce a tiered pricing structure for the CAS Server license. We don't know what your ATM turnover volumes are but we tried to tier the pricing so that it will provide an easy way to start for newcomers, a decent fixed fee solution for small operators and charge bigger operators when they are matured enough to pay a volume fee.

Cloud license: 0-500 machines.
•	If the customer is using the GB cloud service the license fee is 0.5% of conducted transactions. This has not changed and remains the same.
Starter license: 0-5 machines.
•	Intended for self-hosted servers.
•	Can handle 0-5 ATM machines.
•	The first license is for 1 USD. Second and additional server licences are 99 USD/server. This is a one-off license fee.
•	10 USD/monthly payment.
•	This license is intended for companies that are small businesses or need a server license for their developers.
Standard license: 5-99 machines.
•	Intended for self-hosted servers.
•	Can handle 5-99 machines
•	25 USD/machine/month payment. Only machines that concluded any transaction given month will be taken into account.
Server Enterprise subscription: 99-500 machines.
•	Intended for self-hosted servers.
•	Can handle 99-500 machines.
•	0.25% of volume/month/machine. Only transactions that finished correctly (without error) in that given month will be taken into account.
•	The ability to have a dedicated software developer at GB extending ATM functionality when your monthly payment reaches 30 000 USD/month.
•	Direct access via chatroom with the GB development team.
We understand that 0.25% of your volume is not an expense that your monthly budget is ready for yet and therefore we suggest offloading this expense into your ATM exchange rate.

Invoices will be generated automatically on our cloud at the end of every month (1st invoice to arrive on August 1st). Invoices will be payable in BTC.

Please let us know of any concerns you have regarding these changes via the email address that was specifically created for this occasion and where our CEO, Karel Kyovsky is ready to listen and to answer at [email protected].