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Glossary
Introduction
Global gaming and cryptocurrency markets
Global market
ESports market
Live game streaming and VOD market
Markets Play2Live will operate in
Setting the scene
General principles and problem-solving philosophy
Interaction on Play2Live platform
Earning opportunities for platform users
A constructor of eSports content
Advertising on the platform
Level Up Coin - the fuel that powers the platform
Features of Play2Live platform. The first project based on Level Up Chain
The platform crowdfunding system
P2L platform as an escrow service for eSports tournaments organizers
Totalizator for eSports tournaments
Donation system
Contribution to the broadcasts of favorite streamers
Tasks for the streamers
Peer 2 peer CDN
Level Up Chain blockchain
Main participants of Play2Live platform
Design of the LUC token and its application within Play2Live project
15 Sources of revenue generation within the platform
Project Team
Roadmap of Play2Live
Play2Live token sale specifics and Level Up Coin token features
Token sale stages
Summary
Disclaimer
Public sources of information
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GLOSSARY
Betting Wagering on the outcome of a eSports event with a coefficient.
Content
(eSports)
in application to eSports the term ‘content’ stands for stream
broadcasts
Daily Reward
Pool
The part of Play2Live economy which determines the reward
equivalent received by a user for making a contribution or
performing actions within the platform.
DPoS Delegated Proof of Stake. It leverages the power of stakeholder
approval voting to resolve consensus issues in a fair and
democratic way
Donation Voluntary reward from a viewer to a streamer.
eSports A form of competition that is facilitated by electronic systems,
particularly video games, and which forms a major part of the
gaming industry.
Gambling Games in which the winning outcome completely or to a large
extent depends not on the art of playing, but on the randomness.
Level Up Coin Play2Live platform utility tokens which provide a means of
payment for the goods and services available on the platform.
Level Up Chain A decentralized blockchain system for streaming, gaming and
eSports projects.
Revenue
sharing model
A model of sharing part of the revenue with a partner.
Streaming Online media simultaneously recorded and broadcast in real
time to the viewer.
Totalizator A type of betting without a coefficient.
The system of
tasks
A system in which viewers of a stream can assign various tasks
to a streamer and vice versa.
VOD Video on demand
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INTRODUCTION
Video games and eSports markets, representing the largest part of the global gaming
industry, have started to attract the attention not only of their core audience (gamers),
but also of crypto community. The global market for video games has already
surpassed that of the film industry, topping $105 bn in 2017. This should not be
surprising given that the funds required to develop and release a video game is often
on a par with the budget of a Hollywood blockbuster.
At the same time, the tremendous growth of cryptocurrencies and dissemination of
blockchain technology suggests that there are opportunities to unite eSports
entertainment with a blockchain-based solution. This would address a number of
inefficiencies and offer unique advantages over conventional streaming platforms,
whose features have remained virtually unchanged over time.
To date, more than 30 gaming industry projects have been launched that make use of
blockchain technology, which is just a fraction of the vast number of token sales being
launched daily, a figure which now exceeds 300 a month. It is evident that there is a
gap in the market for a project that can unite blockchain with the gaming industry to
create a solution that benefits all parties. Play2Live has the potential to become a
trailblazer in this emerging market and to establish a major presence before other
enterprises emerge in the space.
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PLAY2LIVE
THE FIRST FULL-BLOWN DECENTRALIZED STREAMING PLATFORM FOR
GAMERS AND ESPORTS FANS
Based upon blockchain technology, Play2Live introduces a unique mixture of interactive
features and monetizing tools, currently unavailable on existing streaming platforms. The
further development of Play2Live’s Level Up Chain on the basis of Graphene fork allows to
create the ultimate end-to-end solution for streamers, gamers and eSports fans covering all
their needs, and also providing the key advantages of blockchain technology such as speed,
transparency and availability.
The eSports market is valued at $700M for 2017 and is growing rapidly, with huge
numbers of tournament views stemming from broadcasts by the most popular
streamers. These numbers already exceed those of the world’s most popular sports
events such as NBA and MLB. Traditional sports clubs such as FC Barcelona,
Manchester United and Galatasaray have been swift to recognize the potential of
eSports and have already acquired a number of eSports teams. Twitch.tv and
YouTube Gaming are two of the highest profile streaming platforms to have emerged
dedicated to the eSports and video games markets, with the former sold for $970M to
Amazon less than four years ago.
With extensive experience of the eSports industry and a deep understanding of
blockchain technologies and their potential, we have decided to focus on building a
full-blown ecosystem for gamers. Play2Live streaming platform has been created on
the basis of decentralization principles. One of its unique functions is the ability for
any participant to influence the content generation process within the platform that
allows to personally impact all stages of content generation. In other words, not only
can the spectator watch the stream, but they can also act as a content creators. On
top of that, any participant of the ecosystem has an opportunity to earn rewards. That
approach is the antithesis of that offered by existing streaming platforms, where the
viewer is obligated to spend funds on various activities and where their role in content
creation is constrained or non-existent.
Play2Live token sale is expected to attract the seed user base of the project, which
constitutes the critical mass of users required to get the platform up and running. The
growth of the user base is facilitated by a streaming service featuring video
broadcasts of gaming and eSports content, which is the core function of Play2Live.
Implementation of blockchain technology allows to attract content and service
providers with an access to the user base.
The number of cryptocurrency users in the world is still relatively low (tentatively
100M cryptocurrency wallets), while the monthly audience of Twitch.tv is 100M unique
users. It is conceivable that at least 10% of these users become cryptocurrency
holders. Gamers are regarded as the most tech-savvy segment of PC and mobile
users, and it is plausible to assume that they will find it easy to make the transition
from fiat money to cryptocurrency, as many already have.
A primary concern when creating an ecosystem for gamers using blockchain
technology is setting up an internal economy similar to the way countries issue money
that is pegged to the value created by their residents. Similarly, blockchain systems
issue cryptocurrency, which is pegged to the value of the businesses built around
these systems and the belief of holders in its growth. At Play2Live, our goal is to build
a full-blown ecosystem for all gamers and eSports fans that allowing any third-party
projects and developers to freely integrate with the platform via API.
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GLOBAL GAMING AND CRYPTOCURRENCY
MARKETS
Below are the most up-to-date figures for the markets where Play2Live project is
anticipated to operate in.
GLOBAL MARKET
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ACCORDING TO FORECASTS, THE REVENUE OF THE GAMING INDUSTRY
WILL REACH $115 BILLION BY 2018
AND BY 2020 WILL REACH THE $130 BILLION MARK.
The following excerpts are from a SuperData study:
665M people around the world tune in to sites like Twitch.tv and YouTube for
content about their favorite games. Taking into account the 100M+ monthly active
users of Twitch.tv and the total live broadcast, this audience is substantial. At the
same time, data from the Chinese market are not included in the calculation,
which significantly exceeds other regions in terms of viewership.
eSports is one of the fastest growing tech markets, with only VR technology
market outpacing it.
ESPORTS MARKET
eSports is one of the most dynamically developing segments of the gaming industry.
By 2020, the market is expected to reach $1.5 billion.
LIVE GAME STREAMING AND VOD MARKET
Gaming and eSports have opened new channels of communication for viewers such
as streaming and broadcasting platforms for gamers.
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According to SuperData, live game content and VOD in 2017 will generate $4.6
billion in revenue.
Twitch was acquired by Amazon for $970M and at present is the industry leader.
Gaming and eSports streaming markets have huge growth potential. Interestingly,
Twitch.tv has been a market leader in both gaming and eSports sectors, accounting
for 70% to 80% of the global gaming market share according to various estimates.
An in-depth market review of the gaming and eSports markets can be found in a
separate document (Market Overview) that also contains an overview of the following
markets:
Market for trading of in-game items, betting and gambling
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The global cryptocurrency market
The VR market
MARKETS PLAY2LIVE WILL OPERATE IN
Facilitating diverse features for a global gaming audience, Play2Live operates in all
markets reviewed in the previous section.
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DIVERSIFICATION ALLOWS PLAY2LIVE
TO BECOME A TRAILBLAZER IN VARIOUS MARKET SEGMENTS
FACILITATING OPPORTUNITY-DRIVEN APPROACH.
Therefore, Play2Live operates in the following markets:
1. eSports and gaming,
2. Betting and external items exchange,
3. Live and VOD broadcasting of the game content,
4. VR
Orientation on the various markets provides numerous sources of revenue
generation.
Growth projections for Play2Live platform estimate tentatively 10M unique users per
month by the end of the first year of operations after the product is launched. Each
user registered in the system has a cryptocurrency wallet powered by Level Up Coin
(LUC) token, the fuel that facilitates monetization opportunities for all users, from
streamers to viewers.
Play2Live introduces the brand-new streaming platform for
gamers with several functional modules that provide users
with a completely new level of virtual interaction. Diversified
functionality of Play2Live platform is a significant
advantage for the developing markets it operates in.
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SETTING THE SCENE
The emergence of platforms such as Twitch.tv has opened up a new market of live
broadcasting and given a huge impetus to the development of the eSports industry.
The data on gaming and eSports markets compared to that of traditional sports
markets outlined in the previous sections indicate that in the foreseeable future,
people will watch more eSports broadcasts than traditional sports events.
Despite the substantial growth of eSports, streaming platforms have scarcely
changed in the last five years, with little in the way of innovation to enhance
interaction between users and a streamer.
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PLAY2LIVE PLATFORM PROVIDES A COMPREHENSIVE
SOLUTION FOR STREAMERS AND VIEWERS, ELIMINATING THE
FOLLOWING WEAKNESSES OF EXISTING STREAMING
PLATFORMS:
1. Limited opportunities for users and
streamers to interact and no personalization options.
2. Restriction of users in the ability to earn from their hobbies.
3. Advertising is persistent and usually there is no option to disable it. The users
are frustrated with the advertising and try to avoid it in any possible way.
4. Every user who wishes to stream their game and earn from this action cannot
do it on a regular basis, while they expect to start earning money just after the
registration in the system and wish to have more tools to monetize their
streams better.
USERS OF STREAMING PLATFORMS EXPECT A GREATER LEVEL OF
INTERACTION AND PERSONALIZATION
At the current stage of video game and eSports market development, fueled by the
emergence of platforms such as Twitch.tv, it has become obvious that gamers can
and wish to be more than mere viewers.
The amount of money gamers spend on donations to their favorite streamers equates
to hundreds of millions of dollars per year. The primary motivation for such donations
is to attract the attention of a favorite streamer and to support them.
There is clearly a use case for a platform similar to Twitch.tv that can offer viewers a
new level of interactivity. Play2Live is the full-blown platform of such scale, facilitating
numerous ways of interaction between a streamer and a viewer including a bilateral
system of tasks, enhanced content generation process and many others. Compared
to the simplistic chat communication and donation options provided by the existing
platforms, it is a real step forward in terms of interaction. Play2Live opens possibilities
for monetizing the streamers’ content, which leads to a better quality of entertainment
and interaction for users.
USERS DO NOT WANT TO JUST BE OBSERVERS - THEY WANT TO EARN FROM
THEIR HOBBY
Existing streaming platforms leave a user obligated to spend money on certain
activities within the platform. These platforms also profit from advertising placements,
which are often displayed to the irrelevant audience. In some regions, the use of ads
blocking software is estimated to reach 80%.
Introduction of an opportunity to earn from watching advertising is expected to lower
that percentage as well as increase the loyalty of the users.
USERS WANT TO INDEPENDENTLY SELECT/CREATE CONTENT ON THE
PLATFORM
Passive watching of streams or tournaments is no longer interesting. A good example
is the amount of fees from ticket sales at The International Dota 2 championship,
where 25% of the viewers watched the championship in Spectators Mode via the
game client (Valve total revenue was $100m and EBITDA reached $70m). In other
words, users were the creators of the stream.
There is clearly a case for providing gamers and eSports fans with a tool that enables
them not only to donate, but also to construct the content they wish to see. This next
level of interaction includes the possibility to choose the board of commentators,
decide on the outcome of the match and much more.
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USERS ESCHEW ADVERTISING
The proliferation of ads blocking tools on platforms similar to Twitch.tv is extremely
high. Gamers are frustrated with the advertising and try to avoid it in any way – thus, it
is time for the new solution allowing users to choose the way of watching
advertisement.
CRYPTOCURRENCIES NEED ACCESS TO THE MASS MARKET
Due to the emerging status of of eSports and the light regulatory environment, which
mirrors that of cryptocurrencies, there is an opportunity for gamers and
cryptocurrency holders to establish an interactive entertainment market. Once
Play2Live platform is established, it is expected that an influx of users will serve to
increase the number of cryptocurrency adopters.
STREAMERS WANT TO START EARNING INSTANTLY
Streamers do not have to wait to accrue a certain number of streamed hours and
impressions to start monetizing their actions – they can start earning from their first
stream. Streamers also want to be able to instantly withdraw and spend money they
had earned without filling out application forms and submitting proof of ID.
Obviously, streamers would marvel at the opportunity to monetize their hobby in
diverse ways.
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GENERAL PRINCIPLES AND PROBLEM-SOLVING
PHILOSOPHY
Play2Live team combine years of experience working with such streaming platforms
as Twitch.tv, Azubu.tv, Hitbox.tv, Boom.tv and Youtube Gaming. Play2Live platform
boasts a significantly higher level of interactivity due to the use of blockchain. Our
solution changes the rules of the game in the streaming market, giving the opportunity
to earn not only for a streamer, but also for a viewer.
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PLAY2LIVE PLATFORM INTRODUCES THE FULLBLOWN
ECOSYSTEM FOR ESPORTS AND GAMING
WITH DEEP FOCUS ON CONTENT GENERATION AND
PRACTICAL NEEDS OF THE STREAMERS, WHILE
MOST OF CRYPTO PROJECTS IN ESPORTS AND
GAMING ADDRESS THE SPECIFIC NARROW
SOLUTIONS RESOLVING SOME MOMENTARY
ISSUES OF CURRENT STATE OF ESPORTS MARKET.
THUS, PLAY2LIVE DOES NOT COMPETE WITH MOST
OF EXISTING CRYPTO PROJECTS IN ESPORTS AND
GAMING. ON THE OTHER HAND, PLAY2LIVE IS ABLE
TO ADD NEW PRODUCTS AND PARTNERS INTO THE
ECOSYSTEM, AND OFFER THEM THE ABILITY TO
INTERACT DIRECTLY WITH THE USERS OF LEVEL UP
CHAIN.
The philosophy of Play2Live hinges on the principles of freedom and scaling
interaction between viewers and streamers with the aid of blockchain technology. The
economic model of the platform is one that empowers streamers and users to
determine the type of content, the way it is displayed and, most importantly, its
monetization type.
The main functions of Play2Live platform are the implementation and maintenance of
technical functionality along with other areas of participation. The interaction of
streamers and users is direct and transparent due to the use of blockchain
technology. The DPoS consensus algorithm allows this to be implemented in the
platform, the application of which is elaborated on in the section devoted to the
economic model.
Effectively, all users of the platform incur costs (for example, streamers can purchase
promotion in the ratings on the main page, users pay for premium subscription etc.),
but at the same time everyone can earn LUC including the viewers.
INTERACTION ON PLAY2LIVE PLATFORM
Play2Live team have been able to design and develop a cutting-edge system of
interaction between viewers and streamers thanks to the technology that the
blockchain provides. This includes:
Advanced system of tasks, from viewers to streamers
Betting system carried out while watching eSports tournaments
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By voting on Play2Live platform with LUC tokens, any user can set the price for
performing a specific task for their favorite streamers. Examples include challenging
the streamer to complete the game on the hardest difficulty level, to keep streaming
for five hours or to start a stream on a different game etc. Any other user can support
the tasks with LUC or assign their own task. A streamer can perform all tasks and
receive all tokens or perform some of them and receive less. Likewise, users can bet
on their favorite team with LUC in real time on the streaming platform while watching
tournaments.
The consensus on performing tasks and confirmation of a streamer's actions is
carried out by collective voting during the course of the stream broadcast. Most
actively involved users receive rewards in LUC. This allows for gamification of the
entire platform; the more actively users participate in various activities, the more
tokens they earn.
More information about this and other features can be found in the section devoted to
key features of the platform.
EARNING OPPORTUNITIES FOR PLATFORM USERS
For the first time a streaming platform allows not only streamers to earn, but also
viewers.
In particular, users are able to earn from:
Advertising: For each impression shown a certain number of tokens is
transferred to the user
Voting and other kinds of contribution on the platform: the provision of consensus
on certain actions is encouraged via various rewards
Sharing its internet channel via P2P model allowing the streams to be broadcast
to other users.
Performing tasks set by streamers
Betting and gambling: A user is able to place a bet and win LUC while watching
an eSports tournament on the platform
We are determined to introduce more earning possibilities for viewers in the future.
The streamers are able to earn in 11 ways compared to 5 currently available for them
at the existing streaming platforms.
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It is vital to understand that the goal of Play2Live ecosystem is to create favorable
conditions within the platform for streamers so that they would like to transfer their fan
base from the existing streaming platforms, attracting a seed audience to the
platform.
We plan to achieve this goal not only by implementing a set of new features, which
would provide for increased earning opportunities for a streamer, but also by allowing
them to edit the parameters of the economy (for example, allowing to choose
subscription fees rates or percentage of revenue from advertising gone to viewers). In
other words, we provide an opportunity to freely control numerous economic
parameters that govern interaction between a streamer and a viewer. Thus, the
steamer can fine-tune the parameters of the economy in the most suitable way for
their audience. Play2Live platform acts as a technological backbone that facilitates
their interaction thanks to Blockchain technology aimed to provide transparency and
interactivity.
Revenue streams Play2Liv
e
Twitch Youtube
Gaming
Advertising
Channel Subscriptions
Sale of distinction badges on the
platform –
Donations
Interactive tasks for streamers – –
Crowdfunding for streams – –
Totalizator – –
Betting – –
Exchange for drawing prizes – –
Purchasing of games at partner
services –
Rewards for activity within the
platform – –
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A CONSTRUCTOR OF ESPORTS CONTENT
The International championship mentioned previously is an example of direct
involvement in construction of eSports content by users. The entire prize fund and
costs of hosting of the World Championship for the game Dota 2 were covered by the
purchase of internal virtual tickets, the fees from which amounted to $100 million.
Different stages of collected fees resulted in various bonuses for players who were
incentivized to help raise more money.
Imagine an arbitrary project within Play2Live platform providing an opportunity for
users to vote with LUC tokens for the creation of content (show matches with wellknown
eSports teams, eSports championships, fan shows and fan matches of
eSports stars including the most popular streamers etc). The partners of the platform
such as streamers and tournament operators then implement and endeavor to
accomplish the requests.
Conversely, tournament organizers who wish to create a new tournament format and
broadcast it but lack sufficient funds can place their championship on Play2Live
platform and collect the needed money. Play2Live would essentially serve as an
eSports Kickstarter enabling interested parties to raise funds and broadcast the
resulting action on the platform for the benefit of all contributors.
Users who have voted to implement certain types of content on the platform are able
to decide on key metrics (format and timing, desired commentators and other
parameters) and receive various benefits and perks during the broadcast thanks to
the developed system of gamification. Play2Live provides a unique opportunity for
broadcast organizers, streamers and tournament operators to place content
according to the desires and interests of their target audience, maximizing the
prospects of user engagement and retention.
ADVERTISING ON THE PLATFORM
Decisions regarding the display of advertising and its parameters (frequency,
positioning during the broadcast, duration) are completely left to the discretion of the
streamer.
The streamer may specify video ads with the ability for viewers to skip the content, to
limit the maximum time of the commercial, to position videos at the beginning of the
broadcast or during breaks only and compete for their viewers. At the same time,
viewers understand that by watching the advertising they directly support their favorite
streamer and the platform, which facilitates their entertainment.
Similar to Brave project with its Basic Attention Token, Play2Live hosts a mechanism
for partial sharing of advertising revenue between platform users, which allows each
individual to receive a portion of the revenue from advertising and to watch the most
relevant and useful ads based on their preferences. This obviates the need for adblocking
software, for users have no obligation to watch advertising.
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Moreover, Play2Live can boast an advanced referral system of work with eSports
publishers. They are be able to craft their marketing campaigns fine-tuning them
according to the functionality offered by Play2Live. In turn, streamers are the ones
who will implement these campaigns.
LEVEL UP COIN - THE FUEL THAT POWERS THE PLATFORM
Gamers are a natural audience to adopt and benefit from the advantages that
cryptocurrencies and blockchain technology can offer. These include:
The ability to start earning as a streamer instantly, receiving LUC from the very
first broadcasts. There is no need to pass a certain viewing threshold, fill out multipage
forms to receive money, and endure a lengthy waiting period before funds
are transferred to the streamer’s bank account.
Any coin received for viewing ads, won at the totalizator or purchased in any other
way can be transferred, spent or exchanged for fiat currency or any other
cryptocurrency thanks to a gateway/API, which will allow to make transactions
between the users convenient.
Fast transactions and low fees.
In the future LUC is expected to be used not only within Play2Live ecosystem, but
also in other projects created on the basis of Level Up Chain.
Free conversion of LUC to cryptocurrencies that may be provided by other gaming
services
Users registered in Play2Live system automatically become holders of
cryptocurrency, helping to further grow the crypto community.
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PLAY2LIVE PRODUCT IS UNIQUE IN THE FOLLOWING
ASPECTS:
1. A regular user is able to earn in 5 ways minimum which is a
considerable advantage to conventional streaming platforms that
have no embedded blockchain system.
2. A streamer is able to earn in 11 ways versus 4-5 regular ones
offered by the existing run-of-the-mill solutions.
3. The platform profits from 15 revenue streams compared to 5 that
are available for traditional streaming platforms.
FEATURES OF PLAY2LIVE PLATFORM. THE FIRST
PROJECT BASED ON LEVEL UP CHAIN
Play2Live utilizes a number of technological solutions to implement all of the desired
features. All transactions pertaining to Level Up Coin tokens are to be executed and
confirmed via the Level Up Chain blockchain. In this section, we elaborate on some of
the features of Play2Live platform in greater detail.
The platform is anticipated to ultimately host more than 25 functional modules for
users, 15 of which could generate revenue for users and at the same time provide an
opportunity to spend earned tokens within the platform. We favor the possibility of
adding new functional modules in the development process as we plan to interact with
the community at all stages of the project and to solicit the feedback of both
streamers and viewers.
THE PLATFORM CROWDFUNDING SYSTEM
The general logic of this feature is depicted in the diagram.
A system of voting with LUC for streams is implemented on the platform.
As shown in the diagram, three platform users want to watch the showmatch of the
Fnatic team versus the Astralis team. They participate in a newly-created section in
the voting system where, similar to Dota 2 compendium, they purchase internal
tickets for this championship that provides them with various benefits:
1. Privileged status in the broadcast
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2. Special features in chat
3. An opportunity to claim an increased percentage of revenue from any advertising
placed inside the championship
4. The ability to choose properties of the championship (location, commentators and
others)
5. Additional bonuses within the platform
6. Special digital gifts from the organizers
7. Interactions with participating teams
In the course of voting (via donations) for a particular championship or other content,
users are provided with an opportunity to construct the content according to their
desires. For example, they can dictate the board of commentators, the format of the
meeting and even the locations provided that a sufficient level of funds has been
collected. Partners of Play2Live platform are in charge of the arrangement of these
championships and other types of content.
Funds can be collected for a large number of events simultaneously. This could be
one large annual championship or regular monthly and even weekly championships.
Users can choose the format of events they want to support. The crowdfunding
system caters not only for creating eSports content, but also for the streamers who
lack the required funds to launch a broadcast.
P2L PLATFORM AS AN ESCROW SERVICE FOR ESPORTS
TOURNAMENTS ORGANIZERS
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In eSports, problems often arise with the payment of prize funds in instances where
the organizers arranging a championship delay payment or do not pay any at all.
Play2Live platform solves this problem with the use of blockchain technology.
Moreover, the tournament operator can receive additional funding for their
championship, showmatch or any other streaming event if they launch the project on
Play2Live. However, in cases where they desire additional means of audience
incentivization, the platform will facilitate additional goals to be set according to the
funds raised.
As an example, a tournament operator manages to collect $10,000 for running a
championship but needs additional funding. He sends fiat money through the
gateway/API to the platform and transfers it to the Operations fund. Next, he obtains
an additional 10,000 LUC from the users of the platform. Afterwards, upon reaching a
funding goal, the funds flow to the escrow system of Level Up Chain. Upon ending of
the championship and confirmation (if required) of its results by users, the prize is
distributed to the crypto wallets of users according to their contribution.
TOTALIZATOR FOR ESPORTS TOURNAMENTS
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Play2Live platform broadcasts various eSports content allowing users to bet on the
totalizator directly on the platform in live mode.
1. Users have made bets on either team 1 or team 2.
2. In case of bets on the outcome of the whole match, they must be made prior to
the start of the match. If the match is broadcast in live mode, bets are made in
real time.
3. The platform charges a small commission for each bet made.
4. The result is confirmed by the tournament operator.
5. In our example, team 1 overtook team 2. The tokens were returned to the users
who had bet on team 1 with less platform commission. These users also received
tokens of the users who had bet on team 2 in proportion.
The mechanism for betting is also linked to the time of placement of live bets on
actions during the match (for example which team made the first FirstBlood or
Headshot.)
It is also possible to exchange in-game items for LUC tokens in order to place bets.
This feature enhances the interactivity of the platform when viewing any eSports
match.
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DONATION SYSTEM
Play2Live offers a system of donations, inspired by the model that is used on existing
platforms. Thanks to the deployment of this feature on the Level Up Chain blockchain,
we are able to revamp the traditional donation system. The updated system has:
Transparency for all participants for the purpose of honest fundraising
Streamer is able to order a dump of data on users who previously made donations
and reward them at his discretion.
CONTRIBUTION TO THE BROADCASTS OF FAVORITE
STREAMERS
The platform implements a feature for contributing to the broadcast of a streamer in
real time. For example, users are able to "like" the broadcast of their favorite
streamers, rate it and upvote it in the process, increasing its visibility on the platform.
Coupled with other ways of contributing to broadcasts, it serves to reward users from
the Daily Reward Pool which is built into the platform. Thus, users who actively
contribute to the platform are rewarded in the form of LUC tokens
TASKS FOR THE STREAMERS
It is conceivable that this feature will be warmly welcomed by the users due to
thoroughly-crafted logic of interaction on all layers of the platform as well as
blockchain system with DPoS consensus mechanism.
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1. Several users want to assign various tasks to their favorite streamer at once. In
our example, 3 out of 5 users made their choices for Task 1.
2. The streamer decided to perform only the Task 1, which was voted for by the
majority of the users (65 LUC were allocated). In fact, the user ‘purchases’ some
action from the streamer since the system holds the coins of the user before the
streamer actually finishes this task. Tokens are returned to the users who voted
for tasks 2 and 3 in case streamer did not choose these tasks
3. The streamer completed the task and confirmed its execution. According to the
revenue sharing model, P2L platform received 25 LUC as revenue in the example
and the streamer gained 40 LUC as a reward.
Picture below depicts how the streamers’ performance is confirmed by the users.
In the example below the figures are arbitrary and serve
solely to demonstrate the mechanics of the tasks
assignment. The resulting figures of the stakes of the
revenue sharing model will be fixed with the release of a beta
version of the platform. The stakes for the basic revenue
sources will be fine-tuned according to the interests of the
users. New features Play2Live intends to implement after
consulting with lawyers, collecting user feedback and
running tests will have stakes fine-tuned to cater for the
users of the system.
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1. Upon finishing task 1, the streamer confirms its execution.
2. Users on the stream (those who participated with tokens in the tasks and those
who did not participate and just watched the stream) vote and confirm the action
of the streamer. They receive a reward for their activity from the Daily Reward
Pool of the platform and at the discretion of the streamer can allocate a pool of
rewards from the collected funds, in our example 3.25 LUC.
3. In case 51% or more of the users in the votes pool confirm finishing of the task,
the streamer receives a reward. If the streamer has not completed the task, the
funds are returned to users and the streamer may be subject to penalties.
4. In case users deliberately placed faulty votes, an oracle is invited to settle the
dispute, and if this fact is recognized by the oracle, users of the system will be
penalized.
This example demonstrates how is collective actions of the users contribute to the
interaction during the stream.
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PEER 2 PEER CDN
Deployment of P2P CDN service on the platform contributes to the cost optimization
of Play2Live as existing streaming platforms rely on centralized solutions.
The users of the platform will be rewarded for sharing their internet channel via P2P
network. Blockchain Level Up Chain allows to implement this decision and thus to
lower the expenditures of the project.
Effectively, establishing a decentralized P2P CDN service will allow every user to earn
LUC without the need to perform many actions merely by sharing a part of their
computer resources with others.
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LEVEL UP CHAIN BLOCKCHAIN
Level Up Chain is not a competitor to existing platforms. Rather, it is a decentralized
suite of tools that can be used by these platforms jointly to bring value to the
decentralized economy. Over time, as development of Level Up Chain ramps up, we
expect to launch other gaming and eSports services to attract existing centralized
market players.
We aim to develop a solution that is indistinguishable from that of the existing
platforms in terms of user-friendliness. The project is deployed on the Graphene
platform, third-generation software with cryptographic protection and sustainable
decentralized data registry. Graphene can handle large amounts of data providing
privacy and high speed of confirmation as well signature of transactions.
Use of Up Level Chain provides high security due to:
Decentralized storage
Level Up Chain utilizes a decentralized autonomous
governance model. It forms a blockchain ecosystem for
streaming and gaming projects, with Level Up Coin allowing
for settlements within the system. Play2Live platform is the
first project to launch, contributing to the network’s
development and attracting streamers and viewers. The key
goal is to establish a system that is transparent, userfriendly
and most importantly has value, providing a set of
features for users that is beyond those offered by existing
streaming platforms.
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Immutable data records
Transaction anonymity at three stages (sender, transaction, recipient)
We are building an interaction system based on the delegated proof of stake (DPoS)
consensus algorithm.
Development of the platform, selection of community members, witnesses and
management team of Level Up Chain are determined by the holders of the underlying
asset Level Up Coin, which is a standard for DPoS.
This solution allows streamers and viewers who hold large amounts of LUC to
become witnesses and even members of the community, allowing to directly influence
the performance of the project and future developments. An important advantage of
WITNESSES confirm the transactions and ensure network
security. A randomly selected witness every three seconds
produces one block of data in the blockchain. Finalization
occurs after confirmation of 2/3 of block producers. All
blocks are confirmed by the witnesses and all witnesses
store a full chain of blocks.
MEMBERS of the community propose changes to the key
parameters of the blockchain such as commission, time of
block production and others. Members of the Community
decide on the management team members and witnesses on
behalf of the holders of Level Up Coin.
THE MANAGEMENT TEAM performs operational
management, development and maintenance of Level Up
Chain.
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using such a consensus algorithm is that block producers are not able to control the
network due to the presence of witnesses and the community members.
Thanks to Graphene technology, we expect to reach a speed of transactions in Level
Up Chain exceeding 50,000 TPS, which is hundreds of times faster than the Bitcoin
and Ethereum networks.
MAIN PARTICIPANTS OF PLAY2LIVE PLATFORM
THE PLATFORM serves as a ‘graphical wrapping’ around
blockchain API, easing user interaction with blockchain and
allowing for broadcasting of streams since the decentralized
storage and broadcasting of such a huge amount of heavy
content has proven economically infeasible.
STREAMERS use platforms for broadcasting streams and for
monetization of their and others’ time and attention.
Interaction between viewers and streamers brings integrity
and value to the platform.
VIEWERS consume content, comment and vote for it. Daily
rewards for viewers is dependent on the amount of their LUC
and on the quality of their curation (whether they vote for
popular streams, vote in accordance with the streamer's
actions and perform other actions that require consensus by
a general vote). For example, a user who has more LUC
receives a greater reward at voting on the confirmation of a
streamer’s actions.
Viewers buy a LUC token to spend it in one of 15 ways, and
also to receive more influence on the distribution of the
reward pool and to obtain larger reward during voting and
other activities on the platform.
MODERATORS can also be selected by the voting system or
otherwise in case a disputed situation cannot be resolved by
voting.
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DESIGN OF THE LUC TOKEN AND ITS APPLICATION
WITHIN PLAY2LIVE PROJECT
To better understand the interaction between all participants of the system and their
mutual settlements in Level Up Chain, we will review the economy of the project. We
anticipate that the economy model will be launched after the release of an open
version of the project, in 3Q 2018.
In the example below, the figures are arbitrary and
demonstrate the process of buying premium subscription on
the streamer’s channel. The resulting figures in the revenue
sharing model will be fixed following the release of a beta
version of the platform. The stakes for the basic revenue
sources will be fine-tuned according to the interests of the
users. New features Play2Live intends to implement after
consulting with lawyers, collecting user feedback and
running tests will have stakes catered for the interests of
the users of the system in the first place.
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LEVEL UP COIN TOKEN PROVIDES THE
MEANS OF PAYMENT INSIDE PLAY2LIVE
PLATFORM. WE ARE ESTABLISHING AN
EASY CONVERSION MECHANISM OF
OTHER CRYPTOCURRENCIES OR FIAT
MONEY TO LUC VIA A GATEWAY/API.
Comments regarding the diagram:
1. STEP 1. The user of the platform has $5 (Visa/ MasterCard / PayPal / card of
another fiat payment system) and wants to either pay for a service on the platform
or interact with a streamer or make a contribution of any kind.
2. They send $5 to a gateway/API and immediately receive 100 LUC at the current
weighted average market rate less a small gateway commission. The transaction
takes place instantly due to the use of tokens from the Operations fund, where
there is always a sufcient amount of tokens to enable transactions.
3. STEP 2. The external gateway through the gateway/API in turn may ‘borrowed’
100 LUC from the Operations funds and must return it back in full, or may buy
tokens at open market once and if such tokens will be available for purchase. In
this manner, a possible and reasonably expected increase of tokens’ demand is
maintained within the platform.
4. To maintain technology process for using of the platform, after the tokens are
bought at the open market, if any, a gateway/API returns them to the Operations
funds.
5. STEP 3. After the user receives their 100 LUC, they can spend in any of 15
available ways. Afterwards, LUC start to get distributed in the system.
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6. 80% of the tokens from gross revenue of the platform are eliminated (32 LUC).
Further, 5% of the tokens (2 LUC) are reserved for the Daily Reward Pool and 5%
are reserved to sustain Level Up Chain functioning (2 LUC). 10% of the revenue
in tokens (4 LUC) flows to the Operations Fund, which can be used by the
management team to enhance the platform and to roll out marketing activities. In
total, 100% of Play2Live revenue (40 LUC) is distributed.
7. A streamer receives their amount of tokens – 60 LUC in this example.
8. The stake of LUC received by a streamer, a platform and a viewer (when
applicable) is determined separately in each case dependent on the type of
action.
The platform endeavors to motivate streamers to retain tokens within the platform via
providing the following benefits:
Offering larger rewards due to DPoS.
Deploying spending mechanism within the system to promote their channels and
purchase prizes for contests.
Allocating LUC to systems analogous to the Bancor protocol.
Thus, streamers in the system are interested in user loyalty
and are not interested in violating the rules or deceiving
other participants. Users likewise bring value to the system.
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15 SOURCES OF REVENUE GENERATION WITHIN
THE PLATFORM
Play2Live introduces the following 15 key methods of revenue generation
within the ecosystem utilizing LUC tokens:
1. SUBSCRIPTIONS TO THE STREAMER’S CHANNEL
All users can watch any broadcast for free and with no limitations. But only those who
subscribed to the channel are provided with additional privileges (the list is to be
expanded):
In the event of a large number of viewers on the stream, the Subscribers Only
mode can be enabled so that only those who had purchased a subscription can
chat.
Subscribers can use exclusive emoticons and chat icons as well as other
distinctive elements that are integrated into the platform.
Valuable prizes (mice, keyboards and other peripherals) are distributed in
Subscribers Only mode during tournaments so that only users who had purchased
a subscription can participate. There is also access to other exclusive features
that the channel owner provides for subscribers.
The platform shares this revenue according to the revenue sharing model that has
been agreed with the streamer.
2. DONATIONS
During the stream, users transfer tokens to the streamer to demonstrate support and
also for the streamer to read out special messages from the viewers.
Special software can read out the messages prepared by users and a donations
mechanism can be used to receive exclusive messages or any other rewards from
the steamer as agreed by the parties.
The platform shares this revenue according to the revenue sharing model agreed with
the streamer, with the majority going to the streamer and Play2Live charging a small
commission.
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3. TOTALIZATOR OF ESPORTS EVENTS
During streams of eSports events that are broadcast on the platform, viewers are
allowed to bet with LUC tokens on their favorite team before the start of the match,
being able to compete against opponents of their team.
Bets are made in real time before the start of the event. In this way, users
independently establish a betting coefficient. This model comprises a P2P system of
bets that can be placed on the user’s favorite team where there is no third party such
as a bookmaker involved. The platform charges a commission from every match in
which the bets are placed.
4. ASSIGNING THE STREAMER A TASK
During the stream or prior to its beginning, viewers can assign tasks to the streamer
(for example, to stream for five hours; to stream another game; to pass the game at a
certain level of difficulty; to perform any other game or non-game action), voting with
LUC.
The audience monitor the popularity of the tasks suggested by other users. The
streamers then decide whether they perform one or more tasks and then proceed to
enact them. The platform shares this revenue according to the revenue sharing model
with the streamer.
5. TASKS FROM THE STREAMER TO USERS
Streamers can assign tasks to users, who perform them. The reward is distributed in
the form of LUC tokens and the platform charges a small commission.
6. CREATING CONTENT ON THE PLATFORM
Viewers can vote with tokens to create content which is then broadcast on the
platform. The system presents a multi-level voting system (with LUC tokens), which is
carried out in several stages. Rewards are distributed to users upon reaching different
collection stages.
The platform shares this revenue according to the revenue sharing model with the
tournament operator, which arranges the tournament according to the criteria
suggested by the users, or with a streamer who makes a special show/content
regarding the criteria specified by users at the time of voting.
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7. PROMOTION OF THE BROADCASTS OF A FAVORITE
STREAMER
Viewers can vote with LUC to promote their favorite streamer so that they appear
higher on the main page and in various categories. This revenue goes to Play2Live
platform. However, out of the total volume of tokens purchased from the open market
according to the economic model mechanism, a portion shall be distributed to users
who actively vote with their tokens for promotion of the streamers.
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8. BETTING AND GAMBLING
Betting is an integral part of eSports. Play2Live publishes the coefficients from
different bookmakers (which provide their API for integration into the platform and
agree to accept LUC as a means of payment for these types of bets). Users can
wager on several betting websites simultaneously while watching the stream
broadcast without the need to actually visit these websites. After bets have been
approved by bookmakers via API, users will be redirected to their websites. Bets are
placed in LUC and earnings are formed according to the model of revenue sharing
with bookmakers.
9. PURCHASING OF GAMES AT PARTNER SERVICES
This feature suggests an ability to purchase any games that are streamed on the
platform in real time. The earnings are formed according to the revenue sharing
model with entities that sell games and agree to receive LUC as a means of payment.
10. DUELS BETWEEN PLAYERS
Viewers can watch the stream and then challenge each other in the chat for any
reason. A bet is placed the form of tokens. Affected by other viewers in the chat (a
public call to action), another viewer can respond by accepting the bet. The platform
redirects them to services like Firstblood.io where users play the game face to face.
The earnings are formed according to the model for sharing the proceeds from bets
placed with the partner service.
11. MARKETPLACE WITH PRIZES FROM ADVERTISERS
The platform receives prizes and gifts from advertisers who propose streamers to run
marketing campaigns with certain coverage level. A marketplace is established within
the platform where they can find marketing materials (prizes) to promote their
channel. Play2Live receives prizes from advertisers free of charge. The streamers
distribute prizes provided during their broadcasts. At the same time, streamers are
obliged to provide a certain level of media coverage during their broadcasts to use
prizes for channel promotion.
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12. PREMIUM SUBSCRIPTIONS
Premium subscriptions allow for several enhanced options such as receiving special
gifts from the publishers or gaining access to exclusive broadcasts. Users with
premium subscriptions are also denoted as such on the platform. The platform shares
this revenue according to the revenue sharing model with the streamer.
13. ADVERTISING
Consistent with our philosophy, we have implemented the opportunity to fully enable/
disable advertising as well as other special features at the discretion of the viewer.
The streamers in turn motivate users to enable it.
1. Pre Roll, Mid Roll, Post Roll advertising - the classic model of showing commercials
before, in the middle or at the end of the broadcast. A streamer can place any number
of commercials in their streams.
2. Banners are positioned in various places on the platform, allowing campaigns to
run with classic CPA / CPM models as well as an option for branding the main page.
Play2Live features the referral system of work with publishers that will allow a
streamer to run comprehensive marketing campaigns that will be suggested by the
publishers with a transparent performance tracking system on all stages.
The platform shares this revenue according to the revenue sharing model with the
streamer.
14. SALE OF BADGES OF RANK ON THE PLATFORM
Emoticons, chat badges and other distinctive features for users are available in the
chat during streams. The platform shares this revenue according to the revenue
sharing model with a streamer.
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15. P2P CDN
Due to the deployment of P2P CDN service on the platform, the content is distributed
via the users’ PCs/laptops/gadgets allowing for a reduction in CDN maintenance
costs that the platform accrues. The platform rewards these users in exchange for
their contribution.
Therefore, deployment of a decentralized P2P CDN service allows every user to earn
LUC at ease just by sharing a part of their computer resources with others compared
to complexity of cryptocurrency mining.
The sections above describe 15 sources of revenue generation in detail, providing a
demonstration of use cases for LUC tokens. Play2Live provides a new level of
interactivity, leading to an influx of unique users to the platform, which may result to
the possible demand on the tokens.
We fully understand that some users are not familiar or comfortable with
cryptocurrency, and thus demand the option of paying for services and purchasing
goods with fiat currency.
For the ease of users unfamiliar with cryptocurrencies, we have established gateway/
API for third party providers for purchasing LUC in a few clicks with credit/debit cards,
e-wallets, banks transfers, and other popular fiat payment systems. The users are
able to exchange popular cryptocurrencies for LUC through the gateway/API without
the need to switch to the cryptocurrency exchange.
Consistent with the forecasts on the number of platform users, each new user's
registration on the platform reasonably results to the increase in the platform's
demand by community that may in turn lead to possible increase of demand on the
LUC inside the platform. In turn, Play2Live is obliged to eliminate 80% of P2L gross
revenue, which is conceptualized in the economic model.
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IT IS HARD TO RECALL ANOTHER CRYPTO PROJECT THAT
FEATURES WHOLE 15 WAYS OF TOKEN USAGE. IT IS PLAUSIBLE
THAT ALIGNED WITH THE GROWTH OF SEED USERS ON THE
PLATFORM, THIS WILL PROVIDE A POSSIBLE STIMULUS OF THE
INCREASED DEMAND ON LUC.
MAU (Monthly active users) projections from the public release of Play2Live:
One of the key advantages of Play2Live is the constant influx of organic traffic to the
platform which is often a struggle for B2C-oriented projects within the industry. This is
why we have established a solid interaction scheme between the platform, streamers
and users.
To be able to instantly process and transfer tokens to platform users, a special
Operations funds will be created to provide a stable supply of LUC comprising a fixed
percentage of the total supply of LUC. The tokens allocated to the Operations funds
are stored in the blockchain until the release of the beta version of the platform.
In doing so, we plan to achieve another fundamental goal of the platform: increasing
the total number of cryptocurrency holders in the world through the use of Level Up
Chain. The concept is broadly similar to the logic behind SteemIT, where a
cryptocurrency wallet is created with each registration in the system.
Up to 5% of the LUC gained as platform’s revenue is to be allocated to user rewards,
to be distributed to individuals who:
Rate the content of streamers in various ways: by liking it, suggesting
improvements, posting special comments etc
Vote on the validity of confirmation of the tasks performed by a streamer
Vote for creation of novel/unique content
Vote in other controversial or disputed situations
Make donations to streamers
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Become moderators: when a certain LUC balance is reached, users are granted
the status of a certified chat moderator and are able to moderate communication
and receive remuneration for this with the approval of the channel owner. To
obtain chat moderator status, the total amount of LUC received for task
completion or as a reward during contests is counted. This encourages users to
spend more time on the platform.
This is anticipated to create additional value within the project and will act as an
incentive for token-holders to retain as many of LUC in the ecosystem as possible.
We likewise plan to implement several solutions analogous to the Bancor protocol for
platform users, which will also provide an incentive to retain tokens. Likewise, after
the projects reaches break-even point, the project team can use the funds stored in
the Operation fund at their own discretion to enhance the platform and to roll out
marketing activities.
Following the investment stage and the anticipated rapid growth of the project, the
funds received during the token sale will be spent on the development of the platform
and Level Up Chain Foundation along with other initiatives. With the development of
blockchain technology and greater penetration of cryptocurrency, we foresee that
some costs of the project can be incurred in LUC and reduced thanks to the
development of decentralization technologies. Such technologies include:
Development of decentralized CDN which leads to cutting one of the largest costs
- payments for the delivery of content to the end user.
Further development of the decentralized advertising market.
Reduction of the cost of heavy content storage (VOD records) due to the
emergence of a large number of decentralized cloud services.
Transcoding technologies thanks to improved computer performance.
These and other technologies might contribute to the creation of a high-grade internal
economy to further fuel the project.
After reaching the breakeven point, we anticipate that we will
eliminate 25% of the tokens from the project’s profits. According
to our expectations, breakeven point will be reached at the
beginning of the second year after the public launch of the
project.
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PROJECT TEAM
ALEXEY BURDYKO
CEO & Founder
https://www.linkedin.com/in/alexey-burdyko
Experience in eSports exceeding 7 years, one of the
trailblazers of esports industry in Russia and CIS.
Founder of one of the largest esports holdings in Russia
and CIS - Game Show Media Holding valued by Ernst
and Young at $36,8M. Alexey held 35 esports
tournaments in total including intercontinental esports
showmatches.
Founder of the tournament eSports platform www.gsl.tv
Work experience with major streaming platforms -
Twitch.tv, Hitbox.tv, Azubu.tv, Mail.Ru Group (VK.com,
OK.RU).
DMITRY KOCHNEV
COO
https://www.linkedin.com/in/kochnev
Former Director of eSports at Mail.Ru Group.
In 2013–2015, Managing Director at Rambler.Ru, the
third biggest Russian media portal.
Since 2010, Dmitry acted as COO at GameNet, a social
network for gamers, and COO of Xsolla, a payment
solution for games.
In 2006–2010 Dmitry was VP Business Development at
Astrum Online Entertainment, an online game publisher,
later acquired by Mail.Ru Group.
Dmitry received his M.Sc. degree in Software
Engineering from Saint Petersburg State University.
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INNA MOROZ
CBDO
https://www.linkedin.com/in/innamoroz
Former Head of Co-branding and Licensing Global, Head
of Merchandize Licensing Global in Wargaming.
16 years of successful management experience,
business development and marketing in gaming industry
including promotion, co-branding, deals origination and
licensing. Successful track record in international
publishing including eSports.
Work experience in: Wargaming, Rovio, Playnatic, Buka,
Noviy Disk.
ORHAN ZEYNALLI
Blockchain CTO
https://www.linkedin.com/in/orkhanzeynally-0840a314a
Graphene-evangelist. Solid experience in developing
projects in blockchain industry on Bitshares and
Graphene platforms in USA and Europe. Launched more
than 10 projects.
Launched projects in blockchain industry:
1. Blockchain platform for travelers (mapala.net) - CTO /
co-founder
2. SmartData for Travel Market (Travelchain) - CTO / cofounder
3. Blockchain Advisor of:
Several Blockchain Traded Funds
CryptoBank
Car Marketplace on Blockchain
4. Creating machine-learning project (Aigents) using
blockchain social platforms Steemit & Golos - PM
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PEIDY HUNG
Business Development Director Asia
https://www.facebook.com/peidy.hung
More than 7 years in the gaming and eSports markets in
Asia
Business development director in Asia Game Show, in
charge of the launch and management of more than 100
projects in Asia
Experienced at establishing of cooperations with
Chinese partners such as WCA, Vici Gaming, LGD
Team, BlueTV, Newbee, Team MVP etc.
Leads organization of eSports tournaments, negotiations
with Chinese game publishers and licensing of the
content.
ALEXANDER KUZNETSOV
Lead developer (streaming core)
CTO Rutube.ru – the leading Russian online video
service
Co-founder and CTO Minutta – leading video editing app
in social networks.
CTO Inventos – broadcasting for NTV+ Co-founder and
CTO TvBit - TV-like media streaming experience service
from social news feeds
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MARIA MAVREKH
CMO
https://www.linkedin.com/in/mariamavrekh-865415a0/
Deep expertise in advertising and marketing for more
than 12 years.
Business development and implementation of projects in
the largest video advertising operator in Eastern Europe,
Video International
Focuses exclusively on digital marketing and the
development of high-tech projects in the field of machine
learning and AI in the project team of arb.digiltal
Drafted marketing strategies and implemented digital
activities for major game publishers and eSports online
projects.
DENIS SHEPETOV
Lead Developer
https://www.linkedin.com/in/dshchepetov/
Ex12 years of IT experience. Holds CTO position in
hashwiz.io (https://beta.hashwiz.io) - a mining pool.
Leads the development and technical support
department at MSPControl.org - the product certified by
Microsoft, used by the governments of Dubai and
Argentina to manage their infrastructure.
Manages the development and technical support of
feasy.me – CRM system for sales management. The
current beta version is used by Alibaba group.
Develops applications, sites, drivers and other panels
and platforms, participates in a variety of projects from
the US, Canada, Australia, Europe, South Africa,
Southeast Asia.
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VLADISLAV ARBATOV
Head of data analysis department
More than 10 years in IT as a devoper
He led the development of algorithms for real-time
monitoring of video streaming, recognition of complex
objects and filtering noisy video content on the basis of
neural networks as well as research in the analysis of
visual data of low-Earth orbit satellites and creation of
computer vision systems used in the field of security.
One of the creators of the first search engines in based
on semantic-linguistic analysis and information search in
the company InfoScan
Under his leadership more than 100 digital products have
been created in the fields of web development, mobile
applications for federal authorities and such brands as
Papa John's, Bayer, Beiersdorf and others.
ALEXEY GALIZDRA
Head of SMM and Communications
https://www.linkedin.com/in/galizdra/
Deep expertise in establishing social media channels
from scratch, lead generation and media relations at
prominent ICO projects with a worldwide outreach
(Blackmoon Crypto, WishFinance and others).
Advisor at OSA Hybrid.
More than 4 years of joint experience on marketing and
analytical roles from Big-4 corporations to developing
startups.
Holds B.A. and M.A. in Project Management from HSE.
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ADVISORY BOARD
SERGEY MEDVEDEV
Head of Legal
https://www.facebook.com/profile.php?
id=100011989845927
Attorney-at-law, director of Vilgerts Belarus
CAN YANG
VP of Global Business development in Imba TV, CBO of
Team MVP
https://www.linkedin.com/in/frandia/
Can Yang is a media and entertainment professional
with over 10 years of experience.
Previously - business development director in streaming
platform Azubu.tv, which acquired Hitbox.tv and
launched streaming platform Smashcast upon receiving
private investments of $100m.
Can Yang was responsible for establishing partnerships
with content publishers and general development of the
platform.
Currently holds the position of VP of Global Business
development in Chinese leading eSports media
company Imba TV. Can Yang is largely responsible for
the overseas business development.
Can Yang was as well in charge of business
development for the Korean eSports team Team MVP
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DAVID DRAKE
Managing Partner at LDJ LP Fund Investments
https://www.linkedin.com/in/ldjcapital/
David Drake, through his family office LDJ Capital, has
acted as GP & LP investors with his partners in fund-offunds,
realty funds, venture capital funds & hedge funds.
Mr. Drake's investments currently have 50+ global
directors that maintain relations with institutions & family
offices with $1.5 trillion in assets.
Mr. Drake’s access with 100,000 investors is maintained
through his media asset, The Soho Loft Media Group,
which has produced & sponsored over 1100+ finance
conferences since 2002 like the events with institutional
media leader Thomson Reuters & sponsors from
Nasdaq, NYSE, KKR, & the Carlyle Group.
LDJ Special Situations partners have invested $100
Million in Alibaba & Palantir.
VICTOR MARTYN
CEO and Owner, GosuGamers
https://www.linkedin.com/in/victormartyn/
Victor Martyn was a 1998 World Champion for Starcraft
(the world’s first eSports professional). He lived in Korea
from 1999 – 2002 and was the star player on the first
ever properly sponsored eSports team in the history of
the sport.
Owning GosuGamers.net which is currently the #1
Global eSports Media site he projects he will serve
500,000,000 page views to 20-25M unique eSports
enthusiasts from around the world in 2015.
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GREG LIMON
Founder of Canada Capital Group inc
https://www.linkedin.com/in/greg-limon-835a23b9/
Involved in multiple business directions such as medical,
legal, real estate development, high tech, production,
trading commodities, with partners had done 2
successful IPOs.
Founder of Canada Capital Group inc.
Co-Founder at Planet Partners , in London based
accelerator/incubator consulting company
Advisor for the following ICO projects: RocketICO,
Cannasos, Days.Exchange
STAN MILC
Co-Founder, Planet Partners
https://www.linkedin.com/in/stan-milc-077962105/
Generator of ideas, able to translate dreams into reality.
With my spirit and enthusiasm, I inspire others and help
form professional teams. I'm determined and I never
give up. My strength is the high results. 7 years in
business as a developer and entrepreneur, founder and
investor.
Business partner in international projects : Caviar House
, Canada Capital Group inc .
Co-Founder : Planet Partners - in London based
accelerator/incubator consulting company.
ICO Advisor at RocketICO, Cannasos
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ANTON ARGANOVSKY
President, Agranovsky IT
Ex. Destiny Development
https://www.linkedin.com/in/anton-agranovskyb1183024/
Investor, expert, leader of opinions in the field of
establishment and development of IT companies.
Member of the Board of Directors of Plastic Media, SMX
Communications.
In 2008-2017 founder and president of Destiny
Development - one of the first gaming companies at the
Russian Internet market known for its products, and
localizations.
RICHARD KASTELEIN
Co-Founder, Cryptoassets Design Group
https://www.linkedin.com/in/expathos/
Founder of industry publication Blockchain News,
partner at ICO services collective CryptoAsset Design
Group, director of education company Blockchain
Partners (Oracle Partner) and ICO event organiser at
leading industry event CryptoFinancing.
Richard Kastelein is an award-winning publisher,
innovation executive and entrepreneur.
He sits on the advisory boards of half a dozen
Blockchain startups and has written over 1200 articles
on Blockchain technology and startups at Blockchain
News and has also published pioneering articles on
ICOs in Harvard Business Review and Venturebeat.
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REUBEN GODFREY
Advisor at Playkey
https://www.linkedin.com/in/reubengodfrey-1a18055/
Blockchain Association of Ireland, Business
Development, Atlantic Region
SONM: Supercomputer Organized by Network Mining.
SONM is a decentralized worldwide fog supercomputer
for general purpose computing from site hosting to
scientific calculations. SONM company is an effective
way to solve a worldwide problem - creating a multipurpose
decentralized computational power market.
Advisor: Good as Gold Digital, LAToken, EtherSportz,
HydroMiner, Confideal, Bitindia - Blockchain Exchange &
Wallet, Playkey
PAVEL POGODIN
Lawyer, PhD
Legal support of projects in cryptocurrency industry:
BankEx, EstateChainPlatform, SpaceBit, BlockVerify and
BitLegal.
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SALLY EAVES
Forbes Technology, CTO, Strategic Adviser
Sally combines a depth of experience as a Chief
Technology Officer, Practising Professor of Emergent
Technology, Founder and Global Strategic Advisor,
specialising in the application of disruptive technologies
for business and societal benefit.
A member of the Forbes Technology Council, Sally is an
accomplished author with regular contributions to
leading business, technology and press publications
including Forbes, The Times, CNN and CNBC, academic
outlets and a new book ‘Edge of Disruption’.
EGOR VINOGRADOV
CEO of Safebox
 Professional investor with a finance background.
Founder and CEO of an investment company with a
solid turnover on the Russian bonds market (top-3 in the
country). Handles projects related to underwriting and
bonds emission. Alma mater: Boston University, MSU,
MGIMO.
An experienced cryptocurrency trader managing
portfolios of HNWIs. Founder and general manager of an
masternodes fund
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SJ HWANG
CEO of FoundationX Crypto Fund, Co-Founder &
Partner in FuturePlay Inc.
Dr. Hwang is a serial entrepreneur, investor and inventor.
He is a partner of FuturePlay Inc, a top-tier start-up
accelerator in South Korea and leads blockchain funds.
He co-founded several startups and last one was
acquired by Samsung Electronics.
He has won numerous awards, including the IP
Technology Award, the Creative Invention Award and
the IAM world's leading IP strategists 300. He is also an
angel investor and an advisor to various start-ups.
GEORGY LAGODA
CEO of Sec Consult Services LLC
SEC Consult is the leading company in the field of
information security in Europe and the APAC countries
The company is certified according to ISO 27001 and
CREST. In addition, SEC Consult is a member of
OWASP.
SEC Consult in figures:
400 + projects per year
Great experience in financial and insurance industry,
including banking and insurance included in the TOP 10
of Europe and Asia, as well as the central bank of
Europe, the Moscow stock exchange, etc.
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PLAY2LIVE TOKEN SALE SPECIFICS AND LEVEL UP COIN
TOKEN FEATURES
The table below depicts the anticipated distribution of LUC tokens. A maximum of
1,308,800,000 ERC20-compliant tokens can be created to be distributed in the course
of the token sale after sending the funds to the valid smart-contract address. Tokens
that are not distributed during the token sale will not be created and the additional
emission of LUC tokens will not be initiated. The resulting amount of tokens issued
will be announced upon the end of the token sale. The distribution of token sale
proceedings presented below applies to any amount of collected funds
regardless of its size.
The ERC20-compatible token Level Up Coin will be distributed during the token sale.
Following the release of Level Up Chain, Play2Live anticipates exchanging Level Up
Coin for Level Up Chain tokens at the rate of 1 to 1.
The funds allocated to the Operations funds of the project will be locked in the smartcontract
and thus will not be used until the release of the MVP.
The funds stored in the Operations funds will be locked up for two years since the
beta version public release. The funds of the project team and the founders will be
vested during 2 years. The funds of the project partners will be vested during 3 years.
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Maximum amount of tokens to issuue 1 308 800 000 1 308 800 000
Sold on the open market 818 000 000 62,5 %
Operations funds 145 276 800 11,1 %
Founders and project team 136 115 200 10,4 %
Partners of the project (eSports teams,
tournament organizers and streamers) 102 086 400 7,8 %
Advisory Board 94 233 600 7,2 %
Bounty campaign 13 088 000 1,0 %
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ROADMAP OF PLAY2LIVE
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Currently, the project is at the active development stage and we are planning to launch MVP of
the platform prior to the start of the pre-sale (before December, 5th).
Q4 2016 Setting up project concept, establishing connections with existing market
players.
Q1 2017 Establishing a blockchain model.
Q2 2017 Team and advisory board are formed.
Q3 2017 Initiating the implementation of blockchain features and development of project
architecture and documentation preparation.
Q4 2017 Marketing and PR stage regarding the token sale. MVP launch.
Q1 2018 Planned inception of the development of the streaming core of Play2Live as
well as blockchain Level Up Chain.
Q2 2018 Planned alpha-version launch and World Championship broadcast in CS:GO
broadcast.
Q3 2018 Planned beta-version launch (60% of conceptualized features), attraction of the
seed users.
Q4 2018 Planned implementation of all remaining features (40%), active marketing
promotion and purchase of rights to broadcast top eSports and streaming
content.
Q2 2019 Commencement of the planned active attraction of the users to the platform.
MAU of the Platform reaches 10M users. New markets expansion. Reach of
breakeven point.
Q4 2019 It is anticipated that MAU of the Platform will reach 20M users. Focus on
sustaining internal infrastructure and bringing organic traffic to the platform,
integrating of new services.
TOKEN SALE STAGES
Play2Live plans to divide the token sale into the three stages: closed round available
only to token holders prior to the launch of pre-sale and token sale; pre-sale; and
token sale. Play2Live plans to hold the closed round on 18th October – 25th January
2017. The classical token sale model will be implemented.
Level Up Coin Utility token
Hard Cap $30 million
Base price of the token LUC / USD: 20 LUC for $ 1.
Maximum possible amount of LUC for sale 1 308 800 000
Actual amount of LUC to issue Will be known after the end of the
token sale (unbought tokens will
not be created).
Smart contract address Will be announced later.
Additional emission / mining No
Date and time of the start of Pre-sale, UTC January 25th, 2018, 5:00 PM
End date and time of Pre-sale, UTC February 5th, 2018, 5:00 PM
Token-sale start date and time, UTC February 12th, 2018, 5:00 PM
End date and time of, Token-sale UTC March 14th, 2018, 5:00 PM
Currency accepted BTC, ETH, BCH, LTC, DASH,
USD
Minimum purchase amount 0.1 ETH. Transactions with
smaller amounts will be ignored.
Bonuses during the pre-sale From 26th-31st January 30%
From 1st-6th February 25%
Bonuses during the token sale From 21st-23th February 10%
From 24th-26th February 9%
From 27th-1st March 8%
From 2nd-4th March 7%
From 5th-6th March 6%
From 7th-8th March 5%
From 9th-10th March 4%
From 11th-12th March 3%
From 13 March 2%
From 14 March 1%
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The distribution of proceeds from token sale is depicted on the graph.
The logic underpinning the distribution of token sale proceeds suggests
understanding the business processes of the current market of streaming and its
realities in terms of costs.
A large amount of money is required to receive the broadcasting rights of eSports
content and to negotiate contracts with the top streamers, which is crucial for
bringing organic traffic to the platform. Our goal in the first year after the launch is
to generate a steady inflow of streamers to the platform, who will attract a seed
user base. This is possible at the initial stage solely due to acquiring rights to
broadcast top eSports events, as well as signing exclusive contracts with popular
streamers.
Token sale budget distribution
Purchasing the right to broadcast esports tournaments 20 %
Negotiating exclsuive broadcasting contracts with streamers 15 %
Marketing 10 %
Play2Live platform development 10 %
Blockchain (Level Up Chain) development 3 %
Legal fees 3 %
Personnel expenses and other OPEX 8 %
Administration and project team 10 %
Outsourcing 3 %
CDN and maintanance fees 18 %
* - grows proportionally to the increase of traffic to the Platform
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Marketing will play significant role, including the support we will provide to our first
streamers and tournament organizers who will migrate to the platform.
A significant part of the proceeds will be spent on payment for CDN service
because unlike most decentralized projects, Play2Live broadcasts live video
content in high quality and its streaming costs are significantly higher than that of
an average web service.
The financial roadmap is tied to the development of certain features on the platform
and to the opportunity to purchase the rights to broadcast eSports tournaments and
show matches, as well as opportunities to sign exclusive contracts with the most
famous streamers at the initial stage.
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TARGET: $5M
Initiation of development of Play2Live core backend
functionality and front-end layers as well as
blockchain system. Setting up of a marketing
budget for streamers and tournament operators to
support within the platform.
TARGET: $10M
Development of authentic features of Play2Live -
totalizator, a crowdfuding system for streams, topnotch
system of interaction between the viewers
and the streamers. MVP release and broadcast of
CS:GO World Champtionship with offline final
rounds at the stadium with 15,000 seats capacity.
TARGET: $15M
Integration with all partner services agreed to
cooperate with Play2Live including bookmakers.
Setting up a marketing budget for acquiring rights to
broadcast top eSports events and negotiating
exclusive contracts with the most popular streamers
of the well-establsihed games such as CS: GO,
Dota 2, LOL, Overwatch, PUBGs and others.
TOKEN SALE ROADMAP
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TARGET: $20M
Integration of external projects in Level Up Chain.
Dota 2 tournament is broadcast on the beta version
of the platform. Translation of showmatches
covering the well established games - CS: GO,
Dota 2, LOL, Overwatch
TARGET: $25M
Focus on regional expansion and proceeding with
attracting top content providers: negotiating
exclusive broadcasting contracts with Tier 1
tournament organizers as well as with top-10
eSports teams and their players to broadcast their
content at the platform.
TARGET: $30M
The broadcast of the most popular cybersport
events is launched. We are determined to cover
such events as The International, League of
Legends LCS, Owerwatch World Cup, CS: GO
Major etc. Annual broadcasting of 3 world eSports
tournaments covering the well established games.
SUMMARY
This white paper has elaborated on the bottlenecks persistent in the gaming industry
and described a whole new set of features for users that no gaming platform or
project can currently offer.
Consistent with the philosophy of our project, we are determined to provide users and
streamers with a solution where they can easily create novel content and interact on
the principles and terms instilled within the system. Play2Live platform is a full-blown
participant of the system, though its role shall be narrowed to maintenance and
providing safety. In turn, Level Up Chain is an open source project that allows third
party projects to be launched on its blockchain to make use of its technical
capabilities.
In the sections devoted to the economy of the token and the features of the platform,
we described in detail how users and streamers interact within the ecosystem. If
existing market players were to endeavor to implement the same features in their
platforms they would encounter difficulties due to the following reasons:
The application of blockchain technologies to the existing architecture of any highload
project is a truly complex and expensive solution. Its architects need to
consider a myriad of factors, which will postpone the implementation of such
technology for at least a few years.
Due to the advent of blockchain technology, cryptocurrencies are usually
introduced, representing a complex and long-term political and economic decision
for large corporations to make.
The introduction of cryptocurrency and subsequent change in the company's
business with vague economic effects on reports (P&L, cash flow statement and
balance sheet) will discourage management from making the switch to a
blockchain model and will also deter existing users of the platform.
A number of features such as integration of bookmaker APIs and use of a
totalizator is easier to implement for young projects largely due to the current
underdeveloped legal framework in the field of cryptocurrencies.
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Summing up above points, we are establishing a full-blown
ecosystem advantageous to the existing streaming
platforms, namely in the following dimensions:
1. Play2Live provides an opportunity for a streamer to earn LUC from
the very first stream. Overall, streamers are able to earn in 11
ways.
2. We allow for the viewers to earn from their hobby minimum in 5
ways, which is currently not available in existing streaming
platforms.
3. These facts contribute to the growth of the platform due to 15
sources of revenue generation. To recap, conventional streaming
platforms can boast only 5 of such sources. Effectively, this serves
as an exemplary proof of the possible demand on the tokens which
can be used in 15 ways on the platform. It has been available due to
the deployment of top-notch blockchain system.
4. Streamers are able to determine numerous aspects of interaction
with viewers directly without the involvement of any third-party.
5. One of the unique selling points of the projects is an ability for a
user to fully disable advertising at no cost. The users are be able
to enable it in case they desire to support their favorite streamer
at the same time being able to earn from it.
6. A unique content generation system allows to directly engage
users in its creation.
7. Owing to the ability for the streamers and viewers to interact
directly on the basis of blockchain system, we are able to
implement many features such as an interactive system of tasks
for a streamer and others.
8. A possible demand in the open market on LUC tokens should
favorably affect the whole project economy.
9. Level Up Chain blockchain is established to encompass an
unlimited number of eSports and gaming projects as well as to
support Play2Live performance, which is likely to contribute to the
overall growth of the active userbase of all projects.
10.The project is initiated by an expertized team from gaming and
eSports industries with experience of key project representatives
exceeding 10 years each.
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DISCLAIMER
This token sale whitepaper and the documents attached thereto or associated
wherewith contain forward-looking statements within the meaning of Section 27A of
the Securities Act and Section 21E of the Exchange Act, which are subject to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements, including, without limitation, statements regarding
anticipated use of proceeds from the token sale, are based on current expectations,
estimates and projections about our industry, Company management’s beliefs, and
assumptions made by Company management. Words such as “anticipates,”
“expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such
words and similar expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and assumptions that are difficult to predict;
therefore, actual results may differ materially from those expressed or forecasted in
any forward-looking statements due to a variety of factors, including, without
limitation, our ability to meet the minimum token sale amount, if any, unanticipated
costs and expenses related to the token sale, changes in Company’s financial
condition or business strategy that impact the use of proceeds from the token sale,
and other factors. The risks and uncertainties include those noted in “Risk Factors”
document provided in connection with the token sale (available on token sale
website). Undue reliance should not be placed on the forward-looking statements in
this whitepaper or any associated materials, which are based on information available
to Company on the date hereof. Company undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future events or
otherwise, except to the extent that Company is required to do so by law.
To the extent the tokens sold in connection with this token Sale may be securities
under U.S. Securities Act of 1933, these tokens are offered only outside of the United
States to non-U.S. persons, pursuant to the provisions of Regulation S of the U.S.
Securities Act of 1933, as amended. These tokens will not be registered under the
Securities Act, and may not be offered or sold in the United States absent registration
or under an applicable exemption from the registration requirements and the
purchasers should not assume they will be able to resell their tokens. Neither the
Securities and Exchange Commission nor any state regulator has passed upon the
merits of or given its approval to the tokens, the terms of the token Sale, or the
accuracy or completeness of any associated materials. Buying tokens involves risks,
and purchasers should be able to bear the loss of their entire purchase. All
purchasers should make their own determination of whether or not to make any
purchase, based on their own independent evaluation and analysis.
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PUBLIC SOURCES OF INFORMATION
1. https://newzoo.com/insights/trend-reports/global-esports-market-report-2017-light/
2. https://superdata-research.myshopify.com/products/year-in-review
3. http://tnl.media/esportsnews/2017/3/8/time-to-kill-the-esports-beats-sportsviewers-stat
4. https://bitinfocharts.com
5. https://superdata-research.myshopify.com/products/year-in-review
6. https://en.wikipedia.org/wiki/Twitch.tv
7. https://www.idc.com/getdoc.jsp?containerId=prUS42959717
8. https://techcrunch.com/2017/01/24/streamer-numbers-and-incomes-are-risinghealthily-according-to-data-from-popular-tool/
9. https://blog.streamlabs.com/livestreaming-q117-twitch-vs-youtube-avg-spend-ltvand-tip-volumes-8263c6a9f99e
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Certain Risk Factors Relating to Purchase, Sale, and Use of Tokens
IMPORTANT NOTE:.THE COMPANY EXPRESSLY DISCLAIMS ANY AND ALL
RESPONSIBILITY FOR ANY DIRECT OR CONSEQUENTIAL LOSS OR DAMAGE
OF ANY KIND WHATSOEVER ARISING DIRECTLY OR INDIRECTLY FROM: (I)
RELIANCE ON ANY INFORMATION CONTAINED IN THIS EXHIBIT D, (II) ANY
ERROR, OMISSION OR INACCURACY IN ANY SUCH INFORMATION OR (III) ANY
ACTION RESULTING FROM SUCH INFORMATION.
By purchasing, owning, and using Tokens, you expressly acknowledge and
assume the following risks:
1. General Suitability of Token Purchase
The purchase of tokens from the Company is only suitable for financially
sophisticated persons who are capable of evaluating the merits and risks of such a
purchase, or other persons who have been professionally advised with regard to
token purchase, and who have sufficient financial resources to be able to bear any
losses that may arise therefrom (which may be equal to the whole amount spent in
connection with the token purchase). Such a purchase should not be seen as an
investment or a financial asset.
2. Risk of Losing Access to Tokens Due to Loss of Private Key(s), Custodial
Error or Purchaser Error
A private key, or a combination of private keys, is necessary to control and dispose
of Tokens stored in your digital wallet or vault. Accordingly, loss of requisite private
key(s) associated with your digital wallet or vault storing Tokens will result in loss of
such Tokens. Moreover, any third party that gains access to such private key(s),
including by gaining access to login credentials of a hosted wallet service you use,
may be able to misappropriate your Tokens. Any errors or malfunctions caused by or
otherwise related to the digital wallet or vault you choose to receive and store
Tokens, including your own failure to properly maintain or use such digital wallet or
vault, may also result in the loss of you Tokens. Additionally, your failure to follow
precisely the procedures set forth for buying and receiving Tokens, including, for
instance, if you provide the wrong address for the Purchaser Address, or provides an
address that is not ERC-20 compatible, may result in the loss of your Tokens.
3. Risks Associated with the Ethereum Protocol
Because Tokens and the Platform are based on the Ethereum protocol, any
malfunction, breakdown or abandonment of the Ethereum protocol may have a
material adverse effect on the Platform or Tokens. Moreover, advances in
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cryptography, or technical advances such as the development of quantum
computing, could present risks to the Tokens and the Platform, including the utility of
the Tokens for obtaining Services, by rendering ineffective the cryptographic
consensus mechanism that underpins the Ethereum protocol.
4. Risk of Mining Attacks
As with other decentralized cryptographic tokens based on the Ethereum protocol,
the Tokens are susceptible to attacks by miners in the course of validating Token
transactions on the Ethereum blockchain, including, but not limited, to double-spend
attacks, majority mining power attacks, and selfish-mining attacks. Any successful
attacks present a risk to the Platform and the Tokens, including, but not limited to,
accurate execution and recording of transactions involving Tokens.
5. Risk of Hacking and Security Weaknesses
Hackers or other malicious groups or organizations may attempt to interfere with the
Platform or the Tokens in a variety of ways, including, but not limited to, malware
attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing
and spoofing. Furthermore, because the Platform is based on open-source software,
there is a risk that a third party or a member of the Company team may intentionally
or unintentionally introduce weaknesses into the core infrastructure of the Platform,
which could negatively affect the Platform and the Tokens, including the utility of the
Tokens for obtaining Services. Hackers or other malicious groups of organizations
may also attempt to get access to private keys or other access credentials in the
Wallet or any other wallet, vault, or other storage mechanism used to receive and
hold Tokens. As the result, the Tokens may be lost forever.
6. Risks Associated with Markets for Tokens
The Tokens are intended to be used solely within the Platform, and Company will not
support or otherwise facilitate any secondary trading or external valuation of Tokens.
This restricts the contemplated avenues for using Tokens to the provision or receipt
of Services, and could therefore create illiquidity risk with respect to the Tokens you
own. Even if secondary trading of Tokens is facilitated by third party exchanges, such
exchanges may be relatively new and subject to little or no regulatory oversight,
making them more susceptible to fraud or manipulation. Furthermore, to the extent
that third-parties do ascribe an external exchange value to Tokens (e.g., as
denominated in a digital or fiat currency), such value may be extremely volatile and
diminish to zero.
7. Risk of Uninsured Losses
Unlike bank accounts or accounts at some other financial institutions, Tokens are
uninsured unless you specifically obtain private insurance to insure them. Thus, in
the event of loss or loss of utility value, there is no public insurer, such as the Federal
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Deposit Insurance Corporation, or private insurance arranged by Company, to offer
recourse to you.
8. Risks Associated with Uncertain Regulations and Enforcement Actions
The regulatory status of the Tokens and distributed ledger technology is unclear or
unsettled in many jurisdictions. It is difficult to predict how or whether regulatory
agencies may apply existing regulation with respect to such technology and its
applications, including the Platform and the Tokens. It is likewise difficult to predict
how or whether legislatures or regulatory agencies may implement changes to law
and regulation affecting distributed ledger technology and its applications, including
the Platform and the Tokens. Regulatory actions could negatively impact the
Platform and the Tokens in various ways, including, for purposes of illustration only,
through a determination that the purchase, sale and delivery of the Tokens
constitutes unlawful activity or that the Tokens are a regulated instrument that require
registration or licensing of those instruments or some or all of the parties involved in
the purchase, sale and delivery thereof. Company may cease operations in a
jurisdiction in the event that regulatory actions, or changes to law or regulation, make
it illegal to operate in such jurisdiction, or commercially undesirable to obtain the
necessary regulatory approval(s) to operate in such jurisdiction.
9. Risks Arising from Taxation
The tax characterization of Tokens is uncertain. You must seek your own tax advice
in connection with purchasing Tokens, which may result in adverse tax
consequences to you, including withholding taxes, income taxes and tax reporting
requirements. In addition, the proceeds of the Token sale (which include any
moneys that purchaser has paid for the Tokens) may be taxable to the Company,
which may adversely affect financial resources available to the Company,
Company’s business and the Company's ability to achieve its business objectives.
10. Risk of Competing Platforms
It is possible that alternative Platforms could be established that utilize the same
open source code and protocol underlying the Platform and attempt to facilitate
services that are materially similar to the Services. The Platform may compete with
these alternatives, which could negatively impact the Platform and Tokens, including
the utility of the Tokens for obtaining Services.
11. Risk of Insufficient Interest in the Platform or Distributed Applications
It is possible that the Platform will not be used by a large number of individuals,
companies and other entities or that there will be limited public interest in the
creation and development of distributed Platforms (such as the Platform) more
generally. Such a lack of use or interest could negatively impact the development of
the Platform and therefore the potential utility of the Tokens, including the utility of
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the Tokens for obtaining Services.
12. Risks Associated with the Development and Maintenance of the Platform
The Platform is still under development and may undergo significant changes over
time. Although Company intends for the Tokens and Platform to function as
described in Exhibit C, and intends to take commercially reasonable steps toward
those ends, Company may have to make changes to the specifications of the Tokens
or Platform for any number of legitimate reasons. Moreover, Company has no control
over how other participants will use the Platform, what products or services will be
offered through the Platform by third parties, or how third-party products and
services will utilize Tokens (if at all). This could create the risk that the Tokens or
Platform, as further developed and maintained, may not meet your expectations at
the time of purchase. Furthermore, despite Company’s good faith efforts to develop
and participate in the Platform, it is still possible that the Platform will experience
malfunctions or otherwise fail to be adequately developed or maintained, which may
negatively impact the Platform and Tokens, and the potential utility of the Tokens,
including the utility of the Tokens for obtaining Services.
13. Risk of an Unfavorable Fluctuation of ETH, BTC or Other Coin Value
If the value of ETH, BTC or other coins fluctuates unfavorably during or after the
Token sale, the Company team may not be able to fund development, or may not be
able to develop or maintain the Platform in the manner that it intended. In addition to
the usual market forces, there are several potential events which could exacerbate
the risk of unfavorable fluctuation in the value of ETH, BTC or other coins, including
another DAO-like attack on the Ethereum network, or significant security incidents or
market irregularities at one or more of the major cryptocurrency exchanges.
14. Risk of Dissolution of the Company or Platform
It is possible that, due to any number of reasons, including, but not limited to, an
unfavorable fluctuation in the value of ETH, BTC or ICOCOIN (or other cryptographic
and fiat currencies), decrease in the Tokens’ utility (including their utility for obtaining
Services), the failure of commercial relationships, or intellectual property ownership
challenges, the Platform may no longer be viable to operate or the Company may
dissolve.
15. Risks Arising from Lack of Governance Rights
Because Tokens confer no governance rights of any kind with respect to the Platform
or the Company, all decisions involving the Company’s products or services within
the Platform or the Company itself will be made by the Company at its sole
discretion, including, but not limited to, decisions to discontinue its products or
services in the Platform, to create and sell more Tokens for use in the Platform, or to
sell or liquidate the Company. These decisions could adversely affect the Platform
and the utility of any Tokens you own, including their utility for obtaining Services.
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16. Regulatory Risks
The Company, and by extension the Platform, is subject to a variety of federal, state
and international laws and regulations, including those with respect to privacy and
data protection, consumer protection, data security, and others. These laws and
regulations, and the interpretation or application of these laws and regulations, could
change. In addition, new laws or regulations affecting the Platform could be enacted,
which could impact the utility of the Tokens in the Platform. Additionally, the Platform
participants are subject to industry specific laws and regulations or licensing
requirements. If any of these parties fails to comply with any of these licensing
requirements or other applicable laws or regulations, or if such laws and regulations
or licensing requirements become more stringent or are otherwise expanded, it could
adversely impact the Platform and the Tokens, including the Tokens’ utility for
obtaining Services.
Also, changes in laws or regulations governing the Company's operations may
adversely affect its business. Any change in the Company's tax status, or in taxation
legislation in the United States or elsewhere, could affect the value of its financial
holdings, its business and the Company's ability to achieve its business objective.
Prospective purchasers are urged to consult their tax advisers with respect to their
particular tax situations and the tax effects of the purchase of Tokens from the
Company.
17. Operational Risks
The Company is a young company and the growth of the team and its capabilities
may take longer than expected to result in the intended usefulness for the Tokens.
The Tokens are just one product in a highly competitive market, and broad adoption
by other users and developments by technology partners may take longer than
expected. The usefulness of the Tokens depends on the extent of widespread
adoption of the offered technology by the marketplace.
18. Risk of Lack of Adoption
The success of the Platform, Services, and Tokens is dependent in large part to the
adoption of the Platform, Services, and underlying technology by users. It is possible
that users do not adopt or use the Platform. Such lack of use or interest could
negatively impact the development of the Platform and therefore the potential utility
of the Tokens, including the utility of the Tokens for obtaining Services.
19. Technology Risks
The Tokens are intended to represent a new capability on emerging technology that
is not fully proven in use. As the technology matures, new capabilities may
dramatically alter the usefulness of the Tokens or the ability to use or sell them. The
functionality of the Tokens is complex, will require enhancements and product
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support over time, and full functionality may take longer than expected. The full
functionality of the Tokens is not yet complete and no assurance can be provided of
such completion.
20. Unanticipated Risks
Cryptographic tokens such as the Tokens are a new and untested technology. In
addition to the risks included in this Exhibit D there are other risks associated with
your purchase, possession, and use of the Tokens, including unanticipated risks.
Such risks may further materialize as unanticipated variations or combinations of the
risks discussed in this Exhibit D.
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21. Forward Looking Statements
The Company’s Token sale whitepaper and the documents attached thereto or
associated wherewith contain forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act, which are
subject to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements, including, without limitation, statements
regarding anticipated use of proceeds from the Token sale, are based on current
expectations, estimates and projections about our industry, Company management’s
beliefs, and assumptions made by Company management. Words such as
“anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and
variations of such words and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and assumptions that are
difficult to predict; therefore, actual results may differ materially from those
expressed or forecasted in any forward-looking statements due to a variety of
factors, including, without limitation, our ability to meet the minimum Token sale
amount, if any, unanticipated costs and expenses related to the Token sale, changes
in Company’s financial condition or business strategy that impact the use of
proceeds from the Token sale, and other factors. The risks and uncertainties include
those noted in “Risk Factors” above. Undue reliance should not be placed on the
forward-looking statements in this whitepaper or any associated materials, which are
based on information available to us on the date hereof. We undertake no
obligation to update any forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent that we are required to
do so by law.
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