DECENTRALIZED DIGITAL ARTS STUDIO

A BLOCKCHAIN ENABLED BUSINESS MODEL

Source of Revenue:

Revenue for proposed Digital Arts Studio will be generated from peer to peer sales, legacy distribution system sales, advertising revenue, or other appropriate means which become available with evolving technology.

Blockchain Consensus Method:

Platform will use hybrid Proof of Resource (Hard Drive Space), Proof of Stake (Platform Stakeholder Coins), and Proof of Resource (Bandwidth & processing power) driven consensus methods.

Proof of Resource #1 – Large quantities of data storage will be necessary to store network data. A continuous supply of object files, scenery files, and character files will be developed and stored on chain. Less frequently added but much larger finished production files will also be stored and distributed on chain. To incentivize the productive community to dedicate hard drive space to the security of the blockchain, miners using this method of contribution would earn 5% of sales.

POR #1 will hold the most critical community data and should be restricted to participants previously accepted as workers inside the community. This Mining GUI and portal would be available through the blockchain account panel.

Proof of Stake – Time, effort, and perseverance is necessary to bring this decentralized and publicly available resource to the artistic community. For a set amount of time before the community begins generating a significant profit, participants will earn tokens representing rights to 5% of platform sales. Tokens will require deposit and can provide Masternode type services to the community as added utility.

POS tokens may be ERC 20/223 or other common token protocol, freely tradeable through peer to peer decentralized exchanges or centralized exchanges that provide service to the community. POS tokens will need to be held in Masternode Accounts on the blockchain to receive Income. Any holder proving ownership of POS tokens will be allowed an account with staking ability through the community dashboard panel.

Proof of Resource #2 – Large quantities of bandwidth will be necessary to process video to viewers. Large amounts of processing requirements will be needed for accounting and distributing earnings to creators and stake holders once the network is mature and operating at full capacity. The nature of the business will also require large amounts of graphics card power to render videos. Community participants providing bandwidth and processing power to the blockchain and associated smart contacts will earn 5% of sales.

POR #2 will require the largest pool of decentralized and distributed resources once the network is older and has been widely adopted. This mining option will be available to anyone with an account on the blockchain, including those purchasing content through the blockchains smart contracts, those viewing freely available content on chain, and those commenting on the communities artistic works.

In all three cases, sales may be calculated on weekly or monthly time periods and network miners would earn proportional amounts of community sales as their contribution to the network over that same period of time. This would encourage widespread involvement, even among viewers who could earn currency while consuming content if their computing resources were significant enough.

Artist Incentive:

Files donated to and accepted by the productive community would be digitally stamped with ownership rights upon submittal and the creator(s) would be guaranteed proportional earnings from any production their data was used in. Arbitrary community driven standards for acceptance of new files would be determined by way of vote, council, or other appropriate means.

Workers contributing directly to a Project would earn specialized project tokens for each contribution they made, whose value was determined or negotiated prior to certain phases of projects development. This allows workers to maintain earnings rights for the entirety of a productions life or sale those same income generating tokens on the open market to interested purchasers.

A Project's internal positions and pay schedules would be determined by the project's creators and made to be as flexible as possible. Project positions, tasks, and directions would be specific to each project and the people developing it. Market rates for the best artists, directors, editors, etc would be very influential in determining a projects eventual payouts. Project tokens would need to be deposited on chain to receive weekly or monthly income.

Included in Project's contributors could be an investors class. Projects could decide to allow investor funding by dedicating a portion of it's 80% stake of Project sales to a preset amount of investor tokens. This would allow for larger and more ambitious project to be attempted on the platform without deferring income for workers at the cost of a smaller share of future profits.

Project contributors would earn 80% of total sales. Miners collectively earn 15% of total sales, and the Marketing Department would receive 5% of total sales.

Marketing:

5% platform sales would be distributed towards a marketing team tasked with promoting the content and platform to the artistic communities and public. Marketing tasks and oversight would be performed by those eligible for POR #1 or POS mining.

Individual Projects would also have the ability to provide additional marketing efforts for their content if desired.

Content Distribution:

Many currently available revenue streams for digital content could be used as points of sale. From amazon and netflix to youtube red, there are a plethora of ways for content to be monetized. Advertising revenue would be available at the discretion of project creators. Additionally, a built in and peer to peer streaming gateway could be created with resources provided by POR #1/#2 miners. All legacy or Peer to Peer sales would be collected and distributed via smart contracts.

Alternative income sources such as Steemit and Theta blockchains are available (or soon will be) for the productive community and participation between the various media oriented blockchains offer many unique opportunities that should be diligently pursued during the start up and growth phases of the community.

Example Projects:

Scenario A:
Three high school friends start their senior year in a computer graphics class. They agree to cooperatively use the time and exercises in school to develop a set of characters and scenery objects to be used for a short graphic novel some of their classmates in an English class have previously developed. An additional three friends decide to join and provide music and vocals for the story.

One of the students submits their collective work to the platform for review and they are able to create their own project once it's been accepted and they're allowed access to the platform as workers. The nine students decide to split any future profits from the work equally and they create 900 project tokens to split among themselves. Once finished, the animated novel is submitted to the main chain of the platform and it's now available for sale on the peer to peer channel built into the blockchain and community. They additionally choose to publish their work on youtube's premium content service and they initiate a smart contract to distribute all funds received through their youtube channel per their equal shares.

Several yeas in the future, two of the original contributors decide to continue developing the original graphic novel length animation into a longer mini-series. Consensus among the original 9 shareholders is reached and the nine original project tokens are assigned 1/50th share of the new production based on their original work. The remaining 49/50th are distributed to the new group of workers advancing the project.

Production of the mini-series results in a popular series that earns $1,000/month average revenue through the platform, which translates to just under $0.27/Project Token per year revenue.

Scenario B:
Hot Shot producer has an impressive resume of many popular and profitable animated films over a lengthy career. He leverages his past success to gather a talented group of professionals to his Project by partially funding the work up front. For each task to be completed the workers involved will earn a set percentage of his initial seed fund at the time of completion and the producer will receive a larger percentage of Project Ownership tokens in return for his capital investment.

The people working on the movie gain some up front income to compensate them for their work in real time while also gathering ownership tokens for long term earnings. All parties involved have every incentive to cooperate and make a successful project as their future income is dependent on the success of the whole.

During the production phase of the project a total of 250,000 Project Tokens are created, 50% being distributed to the Producer and his personal staff and 50% are distributed to the other project members. The first year after release the production becomes a major hit and earns $6,000,000. Each Project Token earns $24/year and trade on the open market for over $200/share as investors and speculators seek rights to future returns and possible interest in sequels or derivative works.

Several years after the first release, a line of toys and an animated series are developed. Since copyright and trademark documentation is automatically processed on-chain and in real time, the original 250,000 Project Tokens negotiate rights to 1/30th of the earnings from the toy sales and 1/15th of the earnings from the cartoon series based off of their original contributions.