SpankChain ❤

Presented by Spanktoshi Nakabooty

6/9/2017
SpankChain ❤ Agenda
● Intro
● What is SpankChain?
● Disruption
● Monetization
● Token Model
● Token Issuance
● Funding
● Use of Funds
● Timeline
● Endgame
● Team
● Outro
SpankChain ❤ Intro

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

drugs → porn → video games → everything else

we are here
SpankChain ❤ What is SpankChain?

SpankChain is a live adult camming platform

● No credit cards
● No email addresses
● Anonymous
● Cryptographic escrow
● Micropayments
 SpankChain ❤ Disruption

The adult cam industry is ripe for disruption

● $1B revenue earned by camsites

● Camsites take 40-60% cut of model earnings

● SpankChain drives costs of running a camsite down significantly

● The core SpankChain platform is open and free to use
● We take 0% cut of model earnings
● We monetize services and applications

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

 SpankChain ❤ Monetization

SpankChain Language Specific Interest Based Camsites Camsite Partnerships Devices Specific (e.g.
applications Camsites (e.g. fetish, couples, (e.g. suicide girls, desktop, mobile, web)
(optional fees) (e.g. English, Russian, gay/straight, bdsm) playboy)
Romanian)

SpankChain Open Model Micropayment Advertising Promoted Search / Stable Age

services (fees) Source Name Hubs Network Models Indexing Coins Verification
Skins System API

Model Registry User Registry P2P Direct Micropayments

SpankChain (using state channels)
core (no fees)
SpankChain ❤ Token Model

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

● Generator Token (SpankCoin - SCO) + Usage Token (BootyCoin - BCO)

● Holding SpankCoin mints BootyCoin

● We charge for all our services in BootyCoin

● 1 BootyCoin is worth $1 of service on our platform

SpankChain ❤ Token Issuance

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

● Target raise - $10M

● Maximum valuation - $100M
● Minimum valuation - $20M
● Auction duration - 3 months
● Auction start date - September 2017
SpankChain ❤ Funding

We are currently raising $500K through SAFT

● SAFT - Safe Agreement for Future Tokens

● Discount - 50% (e.g. $100K now = $200K worth of SpankCoin)
● Timelock - 1 year
● Minimum buy-in - $50K
● Accredited investors only
SpankChain ❤ Use of Funds

The $500K raised will go to token launch preparations

● $250K - Development
● $150K - Marketing / PR
● $99K - Legal
● $1K - Paid Camsite Research
SpankChain ❤ Roadmap

We will prepare for the token launch over the summer

June July August

1. PoC complete 1. MVP complete 1. Functional camsite

2. Whitepaper complete 2. Camsite partnership 2. First transactions
3. Startup partnership 3. Marketing partnership 3. Security audit complete
4. $500K raised 4. Incorporate in tax haven 4. Ready for token launch
SpankChain ❤ Endgame

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

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

SpankChain

The most efficient combination of greed and lust

Thank you.
SpankChain ❤ Appendix

● Inspiration
● Competition
● Model Registration
● User Acquisition
● Payments
● Website
● Token Model
● Risks
● Conclusion
 SpankChain ❤ Inspiration
Jimmy Wales funded Wikipedia with porn

“Bomis became successful after it

focused on X-rated and erotic Captain Jimmy Wales!
media.”

“The website included a segment

devoted to erotic images, "Bomis
Babes"”

“Bomis originally planned to make

Wikipedia profitable, providing
staffing and hardware for its initial
structure; Wikipedia would not have
survived without this early
support.”
Don’t believe me? It’s on Wikipedia: https://en.wikipedia.org/wiki/Bomis
SpankChain ❤ Competition

● Industry Overview
● Case Studies
○ LiveJasmin
○ Bongacams
○ Myfreecam
Camsite Alexa (G / US) Uniques (US) Visits (US) BTC Website Cut Affiliate Network

LiveJasmin.com 47 / 27 12M 23M GoCoin 40-70% AWE

Bongacams.com 84 / 149 7M 9M BitPay 50% Bonga Cash

Chaturbate.com 147 / 109 7M 33M BitPay 50-60% Chaturbate

Myfreecams.com 629 / 367 3M 16M x 50-60% N/A

Cam4.com 874 / 1,192 2M 4M x 50-60% N/A

Pornhublive.com 1,425 / 300 11M 17M x 65% Streamate

Xhamsterlive.com 1,563 / 1,933 2M 5M x 65% Streamate

Imlive.com 7,556 / 7,627 600K 2M x 70% PussyCash

Camster.com 8,702 / 1,413 3M 4M x 50% Free Cam Dollars

Streamate.com 11,375 / 3,747 300K 4M x 65% Streamate

Cams.com 12,479 / 5,477 700K 3M BitPay 40-70% Medley

SpankChain ❤ Home Page LiveJasmin
SpankChain ❤ Registration LiveJasmin
SpankChain ❤ Live Cam LiveJasmin
SpankChain ❤ Start Private Show LiveJasmin
SpankChain ❤ Buying Credits LiveJasmin
SpankChain ❤ Payment Options LiveJasmin
SpankChain ❤ Bitcoin LiveJasmin
SpankChain ❤ Gift Cards LiveJasmin
SpankChain ❤ LiveJasmin

● Requires username / email / password

● Focused on private 1-1 shows
● 1 credit ~ $1
● Private shows cost $2-5 / min
● Can pay with credit card, BTC / LTC, or gift cards
● Using gift cards costs a 30% premium
● BTC / LTC treated same as $
SpankChain ❤ Home Page Bongacams
SpankChain ❤ Registration Bongacams
SpankChain ❤ Live Cam Bongacams
SpankChain ❤ Start Group Chat Bongacams
SpankChain ❤ Start Private Show Bongacams
SpankChain ❤ Buying Tokens Bongacams
SpankChain ❤ Bitcoin Bongacams
SpankChain ❤ Bongacams

● Requires username / email / password

● Focused on public tipping shows
● Tip models to trigger certain actions (vibratoy, squirting)
● 10 Tokens = $11-14 (bulk savings)
● Can request private shows or group shows
● Can pay with credit card, paypal, ACH, or BTC
SpankChain ❤ Home Page MyFreeCams
SpankChain ❤ Registration MyFreeCams
SpankChain ❤ Live Cam MyFreeCams
SpankChain ❤ Buying Tokens MyFreeCams
SpankChain ❤ MyFreeCams

● Requires username / email / password

● Focused on public tipping shows
● Tip models to trigger certain actions (vibratoy, squirting)
● 10 tokens = $1
● Can request private shows or group shows
● Can only pay with credit card
SpankChain ❤ Industry Review

● All require username / email / password

● Two dominant revenue models: public tipping + private/group shows
● Each camsite has its own tokens
● Can pay with credit card and sometimes BTC
● Most take around 50%

● This is representative of the current camsite paradigm

SpankChain ❤ Camsite Operations

What are the primary functions of a camsite?

1. Register models
2. Acquire users
3. Facilitate payments
4. Host a website
SpankChain ❤ Model Registration

What are the steps involved in model registration?

● Creating a profile (username, age, gender, picture, features, interests)

● Age verification (provide gov issued ID with real name)
● Setup payment method (paypal, bank account)

● Case Studies
○ LiveJasmin
○ Bongacams
SpankChain ❤ Personal Data LiveJasmin
SpankChain ❤ Documents LiveJasmin
SpankChain ❤ ID Types LiveJasmin
SpankChain ❤ Upload Documents LiveJasmin
SpankChain ❤ Account Type LiveJasmin
SpankChain ❤ Model Category LiveJasmin
SpankChain ❤ Model Features LiveJasmin
SpankChain ❤ Model Dashboard LiveJasmin
SpankChain ❤ Payout Options LiveJasmin
SpankChain ❤ Firstchoice Pay LiveJasmin
SpankChain ❤ ePayService LiveJasmin
SpankChain ❤ Firstchoice Pay Settings LiveJasmin
SpankChain ❤ Firstchoice Pay Sign Up LiveJasmin
SpankChain ❤ Personal Data Bongacams
SpankChain ❤ Personal Data Bongacams
SpankChain ❤ Profile Photo Bongacams
SpankChain ❤ Gov ID Bongacams
SpankChain ❤ Face + Gov ID Bongacams
SpankChain ❤ Terms of Service Bongacams
SpankChain ❤ Payment Setup Bongacams
SpankChain ❤ Payment Methods Bongacams
SpankChain ❤ Model Dashboard Bongacams
SpankChain ❤ Model Registration

The existing model registration paradigm has problems

● Identity fracture - each camsite has its own identity system

● Intrusive payments systems - need billing address, bank accounts
● Security risks - camsites getting hacked can reveal sensitive information
● Camsite lock-in - difficult for models to move between camsites
SpankChain ❤ Universal Model Registry

A model identity system that transcends individual camsites

● Models create profiles on the Universal Model Registry smart contract

○ ethereum address for receiving payments
○ IPFS hash of public profile information
○ Can share private data (IDs) through selective disclosure

● Models can update or remove profiles at any time

● Models can trivially move between camsites

SpankChain ❤ Selective Disclosure

Privately sharing sovereign data

● The model’s private data is encrypted and stored in IPFS

● The model wants to share it with a new website or partner
1. The model downloads their encrypted private data from IPFS
2. They decrypt it with their private key to get the raw data
3. They encrypt the raw data with the public key of the target
4. The upload it back to IPFS
5. They send the IPFS hash of the encrypted data to the target
6. The target downloads it, decrypts it with their private key, and reads it
● This entire process will be seamless for the user - zero required interaction
SpankChain ❤ Camsite Operations

What are the primary functions of a camsite?

1. Register models
2. Acquire users
3. Facilitate payments
4. Host a website
SpankChain ❤ User Acquisition

Camsites have several strategies for acquiring users

● Buying advertisements
● Affiliate programs
● White label camsites
SpankChain ❤ Pornhub Popup Ad Buying Ads
SpankChain ❤ Buying Ads

Further research needed on ad buying

● How much do camsites spend on advertisements?

● What ad buying strategies are most effective?
● Do camsites buy ads on other websites besides porn sites?
SpankChain ❤ Affiliate Programs

Affiliate programs are revenue shares for user signups

● No need to manage your own models

● Post links to the camsite and drive traffic
● Or operate your own white label camsite
● Earn 35-45% of revenue spent by users you sign up
● Use specific links and cookies to track sign ups

● Case Studies
○ Cambuilder by Streamate
○ Adult Webmaster Empire (AWE)
SpankChain ❤ Streamate Affiliates
SpankChain ❤ LiveJasmin - AWE Affiliates
SpankChain ❤ LiveJasmin - AWE White Label
SpankChain ❤ LiveJasmin - AWE White Label
White labels can customize their sites

● Cater to a specific niche (e.g. gay, fetish)

● Different UI / Colors / Themes
● Different ranking systems
● Different advertising

LivePrivates is a whitelabel of LiveJasmin

● All the same models

● Different domain name
● Different marketing
● Revenue share for webmaster
SpankChain ❤ SpankChain Affiliates

Decentralization provides advantages for user acquisition

● With decentralized model identity, anyone can build a camsite

● They can choose their own revenue model (ads, $/mo subs, fee %)
● They only pay us for our services — in our usage token (BootyCoin)
● They can buy our generator token (SpankCoin) to mint the BootyCoin they use
● SpankCoin holders are incentivized to help us grow the network
SpankChain ❤ Target Users

Our first users will come from the crypto community

● Care deeply about privacy and security

● Wish to remain anonymous
● No email addresses or credit cards
● Our product and marketing will reflect this
● We will scale up as crypto adoption scales up
SpankChain ❤ Camsite Operations

What are the primary functions of a camsite?

1. Register models
2. Acquire users
3. Facilitate payments
4. Host a website
SpankChain ❤ Camsite Payments

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

● Users buy tokens/credits through the camsite

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

SpankChain separates payment layer from UI layer

● Payments are done through state channels

● Models can decide what cryptocurrencies they accept
● Can use ether at spot-price just as easily as stablecoins
● Users can use their crypto on any camsites, not just ours
● Gifts of crypto can be made with no intermediary
SpankChain ❤ State Channels

State channels can be used in a few different configurations

1. Direct P2P state channels

2. Micropayment hubs
3. Networked state channel hubs
SpankChain ❤ Direct P2P State Channels

The most simple state channel setup

1. Users open a new channel directly with each model they want to pay
2. Opening a channel requires a deposit
3. Must wait a block for the open channel TX to be mined
4. Once the channel is open, the user can send any # of payments instantly for 0 gas
5. When the user wants to move on, they close the channel
6. Closing the channel also takes one block
7. By closing the channel, the user reclaims any unspent funds
8. These funds can then be used as a deposit in a different channel
SpankChain ❤ Direct P2P State Channels

UI considerations of direct P2P state channels

● Users have to open/close channels in order to switch between models

● Waiting 15s block times for channels to open/close is annoying
● No intermediaries or fees
SpankChain ❤ Micropayment Hubs

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

1. Users and models open channels with the hub

2. Users can pay any model the hub is connected to instantly for 0 gas
3. Users can switch between models entirely offchain
4. Users only need to close channels when they want to exit
5. It is impossible for the hub to steal funds in channels
6. We will charge a small fee for providing this service
SpankChain ❤ Networked Hubs

A network of hubs can connect all users and all models

1. Hubs open state channels with each other

2. Users on Hub A can now access models on Hub B (and vica versa)
3. Hubs negotiate “peering agreements” similar to ISPs
4. UI is exactly the same as using a single hub
SpankChain ❤ Development Path

Our development path will follow “centralized bootstrapping”

● Decentralization is an optimization
● Premature optimization is the root of all evil
● Decentralization is the goal not the path
● The shortest path to decentralization is often through centralization

● P2P Channels -> Single Hub -> Networked Hubs

SpankChain ❤ Development Path
Phase 0 - Nothing

Users Models
SpankChain ❤ Development Path
Phase 1 - P2P Channels

Users Models
SpankChain ❤ Development Path
Phase 2 - Single Hub

Users Models
SpankChain ❤ Development Path
Phase 3 - Networked Hubs

Shared access

Users Hubs Models

SpankChain ❤ Camsite Operations

What are the primary functions of a camsite?

1. Register models
2. Acquire users
3. Facilitate payments
4. Host a website
SpankChain ❤ Website Hosting

What are the functional components of a camsite?

● Profile management
● Social networking
● Video conferencing
● Model discovery
● Analytics
SpankChain ❤ Profile Management - Models

A simple interface over the Universal Model Registry

● Update profile information

○ Update data in IPFS and point contract to new hash
● Change Ethereum address
● Withdraw funds
● Delete profile
SpankChain ❤ Profile Management - Users

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

● Update profile information

○ Update data in IPFS and point contract to new hash
● Change Ethereum address
● Add funds
● Delete profile
SpankChain ❤ Social Networking

Camsites are social networks

● In-site mail
● Favorite models
● Model walls / whiteboards
● Live chat
SpankChain ❤ In-site Mail Social Networking
SpankChain ❤ Favorite Models Social Networking
SpankChain ❤ LiveJasmin - Walls Social Networking
SpankChain ❤ MFC - Whiteboard Social Networking
SpankChain ❤ MFC - Chat Social Networking
SpankChain ❤ Social Networking

SpankChain puts you in control of your social data

● Social data (messages, favorites, wall, etc…) stored on IPFS

● Can trivially migrate social profile between camsites
● Social network is UI agnostic
SpankChain ❤ Video Conferencing

The medium is the message

● All camsites support one-many HD broadcasting

● Frequent connections and disconnections
● Global video distribution
● White label camsites have shared video and chat across sites
SpankChain ❤ Video Conferencing

SpankChain will use cutting edge video broadcasting technology

● Currently evaluating nile.js, peer5, and livepeer

● Shared video and chat across multiple camsites through standard APIs
● Will follow same development path as state channels (for the same reasons)
○ P2P WebRTC -> Single Hub -> Networked Hubs
SpankChain ❤ Model Discovery

Camsites offer many features to aid discovery

● Curated front page

● Personalized recommendations
● Categories
● Search / Indexing

● SpankChain will index model metadata found on Ethereum and IPFS

● We will offer paid APIs for recommendations / categories / search / etc…
SpankChain ❤ Analytics

Information is power

● Models want to track best tippers and loyal fans

● Camsites want to A/B test
● Users want to see their history
● We will provide a dashboard UI and analytics API
SpankChain ❤ Camsite Extension

We are developing our own browser extension

● Similar to MetaMask, but extended for state channels

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

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

● SpankChain is sort of like a small government (eventually a DAO)

● SpankCoin is sort of like a decentralized central bank
● Owning SpankCoin allows you to participate in the BootyCoin minting process
● The minting process is regulated by a smart contract
● The goal is to generate enough BootyCoin to cover normal usage patterns
● We will collaborate with Gnosis on matters of fiscal and monetary policy
SpankChain ❤ Token Model

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

● SCO holders can lock down their tokens to generate BCO

● App devs must buy BCO to pay for SpankChain services
● Those generating BCO can sell to app developers who need to pay their fees
● SpankChain will earn revenue by selling BCO
SpankChain ❤ Token Model

SpankCoin aligns incentives between SpankChain devs and app devs

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

SpankCoin can help align incentives with our models

● Models deserve to earn ownership in the platform as they participate

● We will reserve some SpankCoin specifically for rewarding our models
○ Currently thinking 10% of total tokens, at 2% per year over 5 years
● The distribution will be discretionary out of necessity
● Smart contract distribution based on transactions or time spent is exploitable
● We will initially target high-end models with established followings
SpankChain ❤ Token Model

This is a repeat slide with auction parameters

● Target raise - $10M

● Maximum valuation - $100M
● Minimum valuation - $20M
● Auction duration - 3 months
● Auction start date - September 2017
SpankChain ❤ Token Model

There are two potential outcomes for the reverse dutch auction

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

● We fail to raise the target amount before the end of the auction
SpankChain ❤ Token Model

We raise the target amount before the end of the auction

● We successfully raise $10M

● Valuation for all investors is the valuation that the last tokens were purchased
● If the final valuation is $100M, we sell 10% of the tokens
● If the final valuation is $75M, we sell 13% of the tokens
● If the final valuation is $20M, we sell 50% of the tokens
SpankChain ❤ Token Model

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

● We raise less than $10M

● Valuation for all investors is $20M
● If the amount raised is $9.5M, we sell 47.5% of the tokens
● If the amount raised is $5M, we sell 25% of the tokens
● If the amount raised is $1M, we sell 5% of the tokens
● If the amount raised is $0, we sell 0% of the tokens
SpankChain ❤ Important Information

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

● Our spending outpacing the consumer adoption of cryptocurrency

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

Please join us in our mission

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

Thank you!
SpankChain
The End ❤ The End