SpankChain

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Presented by Spanktoshi Nakabooty

6/9/2017

SpankChain

Agenda

• Intro
• What is SpankChain?
• Disruption
• Monetization
• Token Model
• Token Issuance
• Funding
• Use of Funds
• Timeline
• Endgame
• Team
• Outro

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SpankChain

Intro

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Thesis: consumer adoption of blockchain tech will be similar to the internet

drugs → porn → video games → everything else

we are here

SpankChain

What is SpankChain?

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SpankChain is a live adult camming platform

• No credit cards
• No email addresses
• Anonymous
• Cryptographic escrow
• Micropayments

SpankChain

Disruption

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The adult cam industry is ripe for disruption

• $1B revenue earned by camsites
• Camsites take 40-60% cut of model earnings�
• SpankChain drives costs of running a camsite down significantly
• The core SpankChain platform is open and free to use
• We take 0% cut of model earnings
• We monetize services and applications

Source: Intimacy on the Web, With a Crowd - NYT 2015

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SpankChain

Monetization

Model Registry

User Registry

P2P Direct Micropayments (using state channels)

Model Name System

Language Specific Camsites

(e.g. English, Russian, Romanian)

SpankChain core (no fees)

SpankChain services (fees)

SpankChain applications

(optional fees)

Micropayment

Hubs

Advertising Network

Promoted Models

Search / Indexing API

Stable Coins

Age Verification

Interest Based Camsites

(e.g. fetish, couples, gay/straight, bdsm)

Camsite Partnerships

(e.g. suicide girls, playboy)

Devices Specific (e.g. desktop, mobile, web)

Open Source Skins

SpankChain

Token Model

�SpankChain will have a two tier token model (like Gnosis)�

• Generator Token (SpankCoin - SCO) + Usage Token (BootyCoin - BCO)�
• Holding SpankCoin mints BootyCoin�
• We charge for all our services in BootyCoin�
• 1 BootyCoin is worth $1 of service on our platform

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SpankChain

Token Issuance

�We will launch SpankCoin (SCO) through a reverse dutch auction (like Gnosis)�

• Target raise - $10M
• Maximum valuation - $100M
• Minimum valuation - $20M
• Auction duration - 3 months
• Auction start date - September 2017

SpankChain

Funding

�We are currently raising $500K through SAFT�

• SAFT - Safe Agreement for Future Tokens
• Discount - 50% (e.g. $100K now = $200K worth of SpankCoin)
• Timelock - 1 year
• Minimum buy-in - $50K
• Accredited investors only

SpankChain

Use of Funds

�The $500K raised will go to token launch preparations�

• $250K - Development
• $150K - Marketing / PR
• $99K - Legal
• $1K - Paid Camsite Research

SpankChain

Roadmap

July

• MVP complete
• Camsite partnership
• Marketing partnership
• Incorporate in tax haven

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June

• PoC complete
• Whitepaper complete
• Startup partnership
• $500K raised

August

• Functional camsite
• First transactions
• Security audit complete
• Ready for token launch

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�We will prepare for the token launch over the summer �

SpankChain

Endgame

�We will take over the adult cam industry over the next 5 years�

• Industry size - $200M (we will disrupt and shrink the industry 5x from $1B)
• Platform dominance - 100% (all camsites will use our open platform)
• Market dominance - 50% (our apps and services will capture half the market)
• Revenue - $100M (from our apps and services)

SpankChain

Outro

�SpankChain

The most efficient combination of greed and lust

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Thank you.

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SpankChain

Appendix

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• Inspiration
• Competition
• Model Registration
• User Acquisition
• Payments
• Website
• Token Model
• Risks
• Conclusion

SpankChain

Inspiration

Jimmy Wales funded Wikipedia with porn

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Don’t believe me? It’s on Wikipedia: https://en.wikipedia.org/wiki/Bomis

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“Bomis became successful after it focused on X-rated and erotic media.”

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“The website included a segment devoted to erotic images, "Bomis Babes"”

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“Bomis originally planned to make Wikipedia profitable, providing staffing and hardware for its initial structure; Wikipedia would not have survived without this early support.”

Captain Jimmy Wales!

SpankChain

Competition

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• Industry Overview
• Case Studies
• LiveJasmin
• Bongacams
• Myfreecam

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SpankChain

LiveJasmin

Home Page

SpankChain

LiveJasmin

Registration

SpankChain

LiveJasmin

Live Cam

SpankChain

LiveJasmin

Start Private Show

SpankChain

LiveJasmin

Buying Credits

SpankChain

LiveJasmin

Payment Options

SpankChain

LiveJasmin

Bitcoin

SpankChain

LiveJasmin

Gift Cards

SpankChain

LiveJasmin

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• Requires username / email / password
• Focused on private 1-1 shows
• 1 credit ~ $1
• Private shows cost $2-5 / min
• Can pay with credit card, BTC / LTC, or gift cards
• Using gift cards costs a 30% premium
• BTC / LTC treated same as $�

SpankChain

Bongacams

Home Page

SpankChain

Bongacams

Registration

SpankChain

Bongacams

Live Cam

SpankChain

Bongacams

Start Group Chat

SpankChain

Bongacams

Start Private Show

SpankChain

Bongacams

Buying Tokens

SpankChain

Bongacams

Bitcoin

SpankChain

Bongacams

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• Requires username / email / password
• Focused on public tipping shows
• Tip models to trigger certain actions (vibratoy, squirting)
• 10 Tokens = $11-14 (bulk savings)
• Can request private shows or group shows
• Can pay with credit card, paypal, ACH, or BTC�

SpankChain

MyFreeCams

Home Page

SpankChain

MyFreeCams

Registration

SpankChain

MyFreeCams

Live Cam

SpankChain

MyFreeCams

Buying Tokens

SpankChain

MyFreeCams

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• Requires username / email / password
• Focused on public tipping shows
• Tip models to trigger certain actions (vibratoy, squirting)
• 10 tokens = $1
• Can request private shows or group shows
• Can only pay with credit card�

SpankChain

Industry Review

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• All require username / email / password
• Two dominant revenue models: public tipping + private/group shows
• Each camsite has its own tokens
• Can pay with credit card and sometimes BTC
• Most take around 50%�
• This is representative of the current camsite paradigm�

SpankChain

Camsite Operations

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What are the primary functions of a camsite?�

• Register models
• Acquire users
• Facilitate payments
• Host a website

SpankChain

Model Registration

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What are the steps involved in model registration?

• Creating a profile (username, age, gender, picture, features, interests)
• Age verification (provide gov issued ID with real name)
• Setup payment method (paypal, bank account)�
• Case Studies
• LiveJasmin
• Bongacams

SpankChain

LiveJasmin

Personal Data

SpankChain

LiveJasmin

Documents

SpankChain

LiveJasmin

ID Types

SpankChain

LiveJasmin

Upload Documents

SpankChain

LiveJasmin

Account Type

SpankChain

LiveJasmin

Model Category

SpankChain

LiveJasmin

Model Features

SpankChain

LiveJasmin

Model Dashboard

SpankChain

LiveJasmin

Payout Options

SpankChain

LiveJasmin

Firstchoice Pay

SpankChain

LiveJasmin

ePayService

SpankChain

LiveJasmin

Firstchoice Pay Settings

SpankChain

LiveJasmin

Firstchoice Pay Sign Up

SpankChain

Bongacams

Personal Data

SpankChain

Bongacams

Personal Data

SpankChain

Bongacams

Profile Photo

SpankChain

Bongacams

Gov ID

SpankChain

Bongacams

Face + Gov ID

SpankChain

Bongacams

Terms of Service

SpankChain

Bongacams

Payment Setup

SpankChain

Bongacams

Payment Methods

SpankChain

Bongacams

Model Dashboard

SpankChain

Model Registration

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The existing model registration paradigm has problems�

• Identity fracture - each camsite has its own identity system
• Intrusive payments systems - need billing address, bank accounts
• Security risks - camsites getting hacked can reveal sensitive information
• Camsite lock-in - difficult for models to move between camsites

SpankChain

Universal Model Registry

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A model identity system that transcends individual camsites

• Models create profiles on the Universal Model Registry smart contract
• ethereum address for receiving payments
• IPFS hash of public profile information
• Can share private data (IDs) through selective disclosure�
• Models can update or remove profiles at any time�
• Models can trivially move between camsites

SpankChain

Selective Disclosure

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Privately sharing sovereign data

• The model’s private data is encrypted and stored in IPFS
• The model wants to share it with a new website or partner
• The model downloads their encrypted private data from IPFS
• They decrypt it with their private key to get the raw data
• They encrypt the raw data with the public key of the target
• The upload it back to IPFS
• They send the IPFS hash of the encrypted data to the target
• The target downloads it, decrypts it with their private key, and reads it
• This entire process will be seamless for the user - zero required interaction

SpankChain

Camsite Operations

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What are the primary functions of a camsite?�

• Register models
• Acquire users
• Facilitate payments
• Host a website

SpankChain

User Acquisition

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Camsites have several strategies for acquiring users �

• Buying advertisements
• Affiliate programs
• White label camsites

SpankChain

Buying Ads

Pornhub Popup Ad

SpankChain

Buying Ads

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Further research needed on ad buying �

• How much do camsites spend on advertisements?
• What ad buying strategies are most effective?
• Do camsites buy ads on other websites besides porn sites?

SpankChain

Affiliate Programs

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Affiliate programs are revenue shares for user signups

• No need to manage your own models
• Post links to the camsite and drive traffic
• Or operate your own white label camsite
• Earn 35-45% of revenue spent by users you sign up
• Use specific links and cookies to track sign ups�
• Case Studies
• Cambuilder by Streamate
• Adult Webmaster Empire (AWE)

SpankChain

Affiliates

Streamate

SpankChain

Affiliates

LiveJasmin - AWE

SpankChain

White Label

LiveJasmin - AWE

SpankChain

White Label

LiveJasmin - AWE

LivePrivates is a whitelabel of LiveJasmin

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• All the same models
• Different domain name
• Different marketing
• Revenue share for webmaster

White labels can customize their sites

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• Cater to a specific niche (e.g. gay, fetish)
• Different UI / Colors / Themes
• Different ranking systems
• Different advertising

SpankChain

SpankChain Affiliates

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Decentralization provides advantages for user acquisition�

• With decentralized model identity, anyone can build a camsite
• They can choose their own revenue model (ads, $/mo subs, fee %)
• They only pay us for our services — in our usage token (BootyCoin)
• They can buy our generator token (SpankCoin) to mint the BootyCoin they use
• SpankCoin holders are incentivized to help us grow the network

SpankChain

Target Users

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Our first users will come from the crypto community�

• Care deeply about privacy and security
• Wish to remain anonymous
• No email addresses or credit cards
• Our product and marketing will reflect this
• We will scale up as crypto adoption scales up

SpankChain

Camsite Operations

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What are the primary functions of a camsite?�

• Register models
• Acquire users
• Facilitate payments
• Host a website

SpankChain

Camsite Payments

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Camsites typically use a proprietary “token” or “credit” system�

• Users buy tokens/credits through the camsite
• Can pay with credit card and sometimes BTC
• Bulk purchases give better rates
• Users tip models with tokens/credits or use them to pay for private/group shows
• Models redeem their tokens for $ with the camsite
• Camsite tokens are site specific and not interoperable

SpankChain

SpankChain Payments

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SpankChain separates payment layer from UI layer�

• Payments are done through state channels
• Models can decide what cryptocurrencies they accept
• Can use ether at spot-price just as easily as stablecoins
• Users can use their crypto on any camsites, not just ours
• Gifts of crypto can be made with no intermediary

SpankChain

State Channels

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State channels can be used in a few different configurations�

• Direct P2P state channels
• Micropayment hubs
• Networked state channel hubs

SpankChain

Direct P2P State Channels

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The most simple state channel setup

• Users open a new channel directly with each model they want to pay
• Opening a channel requires a deposit
• Must wait a block for the open channel TX to be mined
• Once the channel is open, the user can send any # of payments instantly for 0 gas
• When the user wants to move on, they close the channel
• Closing the channel also takes one block
• By closing the channel, the user reclaims any unspent funds
• These funds can then be used as a deposit in a different channel

SpankChain

Direct P2P State Channels

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UI considerations of direct P2P state channels�

• Users have to open/close channels in order to switch between models
• Waiting 15s block times for channels to open/close is annoying
• No intermediaries or fees

SpankChain

Micropayment Hubs

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Hubs offer safe, fast, convenient payments between users and models �

• Users and models open channels with the hub
• Users can pay any model the hub is connected to instantly for 0 gas
• Users can switch between models entirely offchain
• Users only need to close channels when they want to exit
• It is impossible for the hub to steal funds in channels
• We will charge a small fee for providing this service

SpankChain

Networked Hubs

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A network of hubs can connect all users and all models �

• Hubs open state channels with each other
• Users on Hub A can now access models on Hub B (and vica versa)
• Hubs negotiate “peering agreements” similar to ISPs
• UI is exactly the same as using a single hub

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SpankChain

Development Path

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Our development path will follow “centralized bootstrapping”�

• Decentralization is an optimization
• Premature optimization is the root of all evil
• Decentralization is the goal not the path
• The shortest path to decentralization is often through centralization�
• P2P Channels -> Single Hub -> Networked Hubs

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SpankChain

Development Path

Users

Models

Phase 0 - Nothing

SpankChain

Development Path

Phase 1 - P2P Channels

Users

Models

SpankChain

Development Path

Users

Models

Phase 2 - Single Hub

SpankChain

Development Path

Users

Models

Hubs

Shared access

Phase 3 - Networked Hubs

SpankChain

Camsite Operations

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What are the primary functions of a camsite?�

• Register models
• Acquire users
• Facilitate payments
• Host a website

SpankChain

Website Hosting

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What are the functional components of a camsite? �

• Profile management
• Social networking
• Video conferencing
• Model discovery
• Analytics

SpankChain

Profile Management - Models

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A simple interface over the Universal Model Registry �

• Update profile information
• Update data in IPFS and point contract to new hash
• Change Ethereum address
• Withdraw funds
• Delete profile

SpankChain

Profile Management - Users

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A simple interface over the User Registry (similar to Model Registry) �

• Update profile information
• Update data in IPFS and point contract to new hash
• Change Ethereum address
• Add funds
• Delete profile

SpankChain

Social Networking

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Camsites are social networks�

• In-site mail
• Favorite models
• Model walls / whiteboards
• Live chat

SpankChain

Social Networking

In-site Mail

SpankChain

Social Networking

Favorite Models

SpankChain

Social Networking

LiveJasmin - Walls

SpankChain

Social Networking

MFC - Whiteboard

SpankChain

Social Networking

MFC - Chat

SpankChain

Social Networking

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SpankChain puts you in control of your social data �

• Social data (messages, favorites, wall, etc…) stored on IPFS
• Can trivially migrate social profile between camsites
• Social network is UI agnostic

SpankChain

Video Conferencing

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The medium is the message�

• All camsites support one-many HD broadcasting
• Frequent connections and disconnections
• Global video distribution
• White label camsites have shared video and chat across sites

SpankChain

Video Conferencing

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SpankChain will use cutting edge video broadcasting technology�

• Currently evaluating nile.js, peer5, and livepeer
• Shared video and chat across multiple camsites through standard APIs
• Will follow same development path as state channels (for the same reasons)
• P2P WebRTC -> Single Hub -> Networked Hubs

SpankChain

Model Discovery

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Camsites offer many features to aid discovery �

• Curated front page
• Personalized recommendations
• Categories
• Search / Indexing�
• SpankChain will index model metadata found on Ethereum and IPFS
• We will offer paid APIs for recommendations / categories / search / etc…

SpankChain

Analytics

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Information is power�

• Models want to track best tippers and loyal fans
• Camsites want to A/B test
• Users want to see their history
• We will provide a dashboard UI and analytics API

SpankChain

Camsite Extension

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We are developing our own browser extension�

• Similar to MetaMask, but extended for state channels
• Will provide anchor for user/model identity across camsites
• Stores user private keys encrypted in browser localStorage
• Enables “sessions” of auto-signing state channel updates
• UI for displaying balances across channels, closing all channels, etc…
• Will inform development of MetaMask’s state channels capability

SpankChain

Token Model

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SpankCoin is modelled after GNO — one of the most sophisticated tokens�

• SpankChain is sort of like a small government (eventually a DAO)
• SpankCoin is sort of like a decentralized central bank
• Owning SpankCoin allows you to participate in the BootyCoin minting process
• The minting process is regulated by a smart contract
• The goal is to generate enough BootyCoin to cover normal usage patterns
• We will collaborate with Gnosis on matters of fiscal and monetary policy

SpankChain

Token Model

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How will SpankCoin (SCO) and BootyCoin (BCO) be used in practice?�

• SCO holders can lock down their tokens to generate BCO
• App devs must buy BCO to pay for SpankChain services
• Those generating BCO can sell to app developers who need to pay their fees
• SpankChain will earn revenue by selling BCO

SpankChain

Token Model

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SpankCoin aligns incentives between SpankChain devs and app devs�

• App devs who choose to buy SCO can generate BCO to pay their fees
• They can then also benefit from the growth of the SpankChain platform
• SpankChain will also drive platform development using SCO bounties
• Currently thinking 10% of total tokens, at 2% per year over 5 years
• We will forecast all SCO sales and bounties, and limit total SCO market injection

SpankChain

Token Model

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SpankCoin can help align incentives with our models�

• Models deserve to earn ownership in the platform as they participate
• We will reserve some SpankCoin specifically for rewarding our models
• Currently thinking 10% of total tokens, at 2% per year over 5 years
• The distribution will be discretionary out of necessity
• Smart contract distribution based on transactions or time spent is exploitable
• We will initially target high-end models with established followings

SpankChain

Token Model

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This is a repeat slide with auction parameters�

• Target raise - $10M
• Maximum valuation - $100M
• Minimum valuation - $20M
• Auction duration - 3 months
• Auction start date - September 2017

SpankChain

Token Model

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There are two potential outcomes for the reverse dutch auction�

• We raise the target amount before the end of the auction
• We fail to raise the target amount before the end of the auction

SpankChain

Token Model

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We raise the target amount before the end of the auction�

• We successfully raise $10M
• Valuation for all investors is the valuation that the last tokens were purchased
• If the final valuation is $100M, we sell 10% of the tokens
• If the final valuation is $75M, we sell 13% of the tokens
• If the final valuation is $20M, we sell 50% of the tokens

SpankChain

Token Model

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We fail to raise the target amount before the end of the auction�

• We raise less than $10M
• Valuation for all investors is $20M
• If the amount raised is $9.5M, we sell 47.5% of the tokens
• If the amount raised is $5M, we sell 25% of the tokens
• If the amount raised is $1M, we sell 5% of the tokens
• If the amount raised is $0, we sell 0% of the tokens

SpankChain

Important Information

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SpankCoin (SCO) tokens are functional utility tokens within the SpankChain platform. SCO tokens are not securities. SCO tokens are non-refundable. SCO tokens are not for speculative investment. No promises of future performance or value are or will be made with respect to SCO, including no promise of inherent value, no promise of continuing payments, and no guarantee that SCO will hold any particular value. SCO tokens are not participation in the Company and SCO tokens hold no rights in said company. SCO tokens are sold as a functional good and all proceeds received by Company may be spent freely by Company absent any conditions. SCO tokens are intended for experts in dealing with cryptographic tokens and blockchain-based software systems.

SpankChain

Risks

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• Our spending outpacing the consumer adoption of cryptocurrency
• Legal risk (underage models, currency exchange, securities)
• Pornhub / MyFreeCams / LiveJasmin / Streamate launch tokens
• We fail to deliver on the technology
• The Ethereum platform fails
• Our smart contract is drained of funds
• We are personally hacked and lose funds
• The price of ether drops significantly
• We fail to nurture a community of users and models

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SpankChain

Conclusion

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�Please join us in our mission�

• To create a respectful, secure, and inclusive platform for the adult cam community
• To pave the way for mainstream consumer adoption of blockchain technology
• To bring self-sovereign identity to some of those that need it the most
• To ensure that Ethereum always has the most beautiful adult models

Thank you!

SpankChain

The End

The End