Erotix(A new platform that will revolutionalize adult entartainment)

1. Introduction

As technology progresses, shaping our world, the value of digital content continues to
increase. Digital content is essential for online platforms to become successful as the content
helps these platforms reach higher positions in search engines, gaining quality backlinks and
generally seeing more user activity, among other things. This, in turn, leads to more visitors
and thus more earnings from advertisements shown on these platforms.
The amount of money involved with these advertisements is staggering. In Q2 of 2017
alone, Google earned $22.67 billion dollars in advertisement revenue. 1 Part of this revenue can
be attributed to advertisements shown on Google products but the vast majority of this
revenue comes from advertisements shown on websites and applications by third-party
publishers. It is incredibly profitable for digital platforms to get user-generated content so that
they can get a share of the advertisement revenues.
This might seem a little unfair. The shareholders of these websites take all the revenue
while the users get nothing, even though it is often the users that generate all the valuable
content. So why not give back to those users? This is exactly what the creators of Steem
envisioned. Steem is a blog platform running on their own same named cryptocurrency, where the users of the blog are rewarded with a payment of said cryptocurrency.

Giving back to the users is not only a fair thing to do, it is also an incentive for users to
create even better quality content. This is exactly what Reddit hypothesized back in 2014. They
imagined that Reddit would be improved if everyone who contributed to their site by posting
stories, adding comments or voting were rewarded with a fair share in Reddit, Inc. 3
We believe that these same principles should be met for the adult entertainment industry.
During the past decade we have seen a rise of free adult entertainment websites, often denoted
as tube sites since they use a layout and user interaction similar to that of YouTube. These
tube websites are free websites that offer a mix of amateur content and professional content
(used to market membership websites). One thing that all of these sites have in common is
that they earn a lot of money on advertisements while uploaders earn almost nothing. This is
why we came up with the Erotix platform.
Similar to the Steem platform, we are a digital platform that allows users to share their own
content, whether it be written stories, photos, videos or live streaming. As a reward for
uploading their content, users will earn their share of our own cryptocurrency; the Erotix Token.
Users can use the Erotix Token to buy premium rights and merchandise or they can trade it on
exchanges for other cryptocurrency such as Bitcoin or fiat currency like the USD.

1. Erotix Token
   In this chapter, we will describe how we modelled our cryptocurrency, how we plan to
   distribute it, offer details about the ICO and finally, give a short overview of what we will do with
   the raised funds.
   Cryptocurrency
   While modelling our platform, we came up with two different design ideas for how to
   implement the cryptocurrency. The first idea was to create a proof-of-work (PoW) coin based
   on Litecoin. The second idea was to set up an Ethereum smart contract and work with
   Ethereum tokens.
   The main advantage of setting up our own coin, based on Litecoin, is the fact that it would
   allow us to constantly mint new coins. The amount of newly minted coins would gradually
   decrease over time to prevent value-loss (this is also known as halving4
   ). Whenever a new
   block is discovered, 50% of the mining reward would go to the miner while the other 50% would
   go to the Erotix fund.
   The upside to using this model is the fact that you don’t have immediate access to all the
   coins but slowly release them into the blockchain. However, there is also a big disadvantage to
   using a PoW cryptocurrency: the possibility of 51% attacks. A 51% attack is a situation where a
   4 What is the ‘Halving’? A Primer to Bitcoin’s Big Mining Change, Jacob Donnelly, June 12,
   2016, https://www.coindesk.com/making-sense-bitcoins-halving/
   mining group controls at least 51% of the mining power. This allows them to manipulate
   transactions which in turn enables them to ‘double spend’ coins. 5
   The only way to prevent a possible 51% attack is to maintain a strong and distributed
   network of miners. We would need a strong mining capacity from the beginning to prevent
   early stage attacks. However, we can not guarantee this mining capacity due to a lack of
   resources. It was decided that this would not be a secure, viable design to base our Erotix
   Platform on and we continued brainstorming other options. This is when we concluded an
   ERC20 Ethereum token would suit the needs of the platform best.
   Ethereum is a cryptocurrency enviroment that allows us to create a token smart
   contract. 6 This smart contract contains all the details about our token, such as how and when
   it will be distributed. The downside to this is that the Erotix payout fund is already at full
   capacity when we release the Erotix token. Therefore, we shall provide an in-depth monitoring
   application for the fund. This monitoring application will show the Ethereum wallet used to
   hold the fund and will contain extensive reports of our Erotix token payouts so every
   transaction can be transparently audited and verified.
   5 One Bitcoin group now controls 51% of total mining power, threatening entire currency’s
   safety, Joel Hruska, June 16, 2014, https://www.extremetech.com/extreme/184427-onebitcoin-group-now-controls-51-of-total-mining-power-threatening-entire-currencys-safety
   6 What is An Ethereum Token: The Ultimate Beginner’s Guide,
   https://blockgeeks.com/guides/ethereum-token/
   Distribution
   We will mint a total of 67,320,000 Erotix Tokens (ERX). Of these tokens, 44,000,000 ERX
   are reserved for investors and will be sold during the ICO. Another 22,000,000 ERX are
   reserved for the Erotix fund. This fund will mostly be used to reward our users for their content
   creation. However, a small part of the fund will be used to finance a bounty campaign to
   directly benefit the Erotix Platform. Users can earn ERX for promoting Erotix in various ways.
   More information about the bounty campaign will be released on our social media accounts
   and website.
   The final 1,320,000 ERX are reserved for the founders/co-founders of Erotix and will go
   into a smart contract that will be locked down and completely unaccessible for one year. Only
   after the year has passed will they be released.
   In the event that not all 44,000,000 ERX are sold during the ICO, the remaining ERX will be
   burned. As a result, the amount of tokens for the Erotix fund and the founders fund will also be
   reduced. We will maintain a ratio of 1 ERX released to investors = 0.5 ERX to the Erotix fund
   and 0.03 ERX to the founders fund. This is to retain value for the investor.
   Example scenario: only 22,000,000 ERX are sold to investors during the ICO. The Erotix
   fund will then consist of 11,000,000 ERX and the founders fund 660,000 ERX. All remaining
   tokens are then burned, removing them from the blockchain forever while also reducing the
   total coin supply.

ICO
In order to get the funding needed to fully develop our platform, we will host an ICO. The
ICO will start on February 1st, 2018 and will run for 4 weeks. ERX will be distributed in four
rounds; one round per week with 10,000,000 tokens being available for purchase per round.
ERX will have a predetermined price based on Ethereum with the first round being offered at
5000 ERX/ETH. In other words, for each 1 Ethereum invested you will receive 5000 Erotix
Tokens (ERX).
As the rounds progress the price will increase and the amount of ERX received will be
less. The second round will offer 4500 ERX/ETH, the third round 4000 ERX/ETH and finally, the
fourth and last round will give investors 3500 ERX/ETH. Please refer to the chart below for an
overview.