1. Improper Payment Rate - By State
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BeneChain
Quantifying waste, fraud, and error in the US government Unemployment Insurance System
Unemployment Insurance (UI) has the fifth highest rate of improper payments among all government departments
Improper Payment Rate - By State
In 2015:
$3.5B in improper payments || 10.7% of UI Benefits
Causes of improper payments include:
Payments to claimant continue after individuals have returned to work
Failure or claimant to register for reemployment services
Failure of employers to timely or correctly report on worker separation
Inaccurate calculation of benefits based on wages earned prior to unemployment
Source:

2. Benechain significantly reduces administrative overhead, cycle time, and improper payments
Federal Unemployment Benefit Fund
Administered by States 1
ER Report
ER Report
EE Report
EE Report 4 2
Automated
Employee Hired at Co. 2, Benefits stop
Employee Terminated Co. 1
Time Delay
3 to 6 Weeks
EE Report
Fees 3
Benefits Start, Job Search

3. The first implementation of Benechain will focus on one state
The first implementation of Benechain will focus on one state. If successful, expansion will follow
Full State Adoption Under Federal solution
In Future: “Fed Coin” could be used to administer payments
Multi-State Unemployment Insurance (UI) Ethereum Solution
Full blockchain solution; distributed ledger network for all states
Each user represents a node on the private UI blockchain
Single State POC (NC)
Hybrid database/blockchain solution
3 Key Parties: Employers, Claimants, US Dept. Labor
Validate process and cooperation among parties

4. Business Model & Monetization
Cyclical Revenue Model
Opportunity for Immediate Monetization
Implementation Contract: Charge pilot state - NC (and successive partner states) a platform development, implementation, and training fee commensurate with comparable IT system implementations
Transaction Fees: Extract minimal transaction fee from state (<$1) every time a new record (claim, new job offer, etc.) is written to the chain by an employer - in this model, states could receive direct reimbursement from companies, or pay fees with admin $ saved by program
Ongoing Services: Receive revenue from ongoing maintenance of state systems, training/consulting on Benechain updates, and eventual move to 100% blockchain solution
Implementation Contract
Transaction Fees
Ongoing Services
Revenue Component
Est. Contribution (per state)
Implementation
$200 – 300k
Transaction Fees
$150k* (annually)
Ongoing Services
$20 – 50k (annually)
*Assumes base fee of $.50 per transaction, 200,000 initial claims filed per year (recent NC avg.), 50% of term. employees assuming new roles within year

5. Next Steps & Future Applications
Next Steps (next 1-2 Years)
Secure contract with state of North Carolina to build hybrid blockchain/database system & continue to refine platform technology and capabilities
Onboard North Carolina platform and train state employees to use system and communicate new requirements to companies employing people in the state
Begin writing and storing employment and unemployment records using Benechain
Begin formalized contractual process with additional state employment agencies in the South East A B C D
2017
2018
2019
Additional Application Opportunities (at least 3-5 years away)
Fed Coin Currency: Champion implementation of proposed currency to interact with Benechain applications
Food Stamps: Provide better method of managing and distributing nutritional benefits through blockchain
Social Security: Expand blockchain solutions to additional benefit programs at the national level like SS