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Each film sale is a token generated event. Each film issues DreamCoin ERC 20 ‘royalty’ tokens equivalent to the amount they want to invest in the film up to a maximum number of the film’s budget. Once the film is completed, investors receive the right to claim the frames they are entitled to based on the % of coins they own.

 
 
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a. Dream Frame Token ERC 721

- Unique tokens that represent each frame in the film.

- These are claimed by investors, according to the % of ERC 20 tokens (see below) they purchased. They can only be claimed once the final cut of the film is signed off by the film’s Producer.

 
 
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b. Dream Royalty ERC 20 (with royalty rights)

- Investors purchase Dream Royalty ERC 20 Tokens (valued at US$1 each) equivalent to the amount they want to invest in the film. The % of coins they own gives the a pro rata royalty stake in the film and the right to claim the same % of ERC 721 Dream Frames. 

- 90 days after the sale is complete, investors can begin trading these coins privately. 

- After 12 months, investors can trade these coins publicly inside the Dream Frames game.

 
 
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c. Dream Crowd sale ERC 20 (without royalty rights)

- Both accredited and non accredited investors receive a DreamCoin ‘crowdsale’ token equivalent to the % frames they purchased. 

- When the final cut of the film is received, holders use these coins to claim their frames. In the process these coins are burned.

 
 
 
 
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A Film Derivatives Token Making Films Liquid

The DreamCoin model makes films liquid by allowing owners of DreamCoin (DZZZ) tokens to trade the future value of their royalties in films with other accredited investors on the open market. This  creates a secondary ‘film derivatives’ market that will revolutionise the entire film industry - only possible via the blockchain driven market that DreamCoin creates.

 
 
 
Tokenizing

By allowing film Producers to pre-sell the frames in a film, the film is broken into a unit common to all films and made liquid - a process called ‘tokenizing’. This allows  film ‘frame’ to be traded before the film is made and transferring rights. For accredited investors and non-US investors, DreamCoin gives the owner of a frame the rights to a pro rata royalty in the film’s proceeds. DreamCoin owners collect royalties from a ‘DreamCoin’ pool, specific to each film. This ‘pool’ is created by the Producer when revenues are received. Royalties are then distributed to an investors DreamCoin wallet in accordance with the specific film’s coins they own.

 
Frames - Units
 

DreamCoin uses a unit of measurement that is common to all films - frames - to create an economic model for funding films that everyone can understand. By tokenizing each frame, a business model is created that allows each individual frame to become a collectible that can increase in value of time and can be traded.

 
 
 
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Frames can have a specific and different value depending on a number of factors, including, but not limited to,whether or not the frames contains an actor, the status of the actor at that time (i.e. their fame status ), and whether the frame is of a fight scene, a sex scene, the final scene or from the opening scene. As such, individual frames in a film can have various value to an owner. Without any royalties, frames can have other rights that can also be of value. By giving frames a pro rata royalty value and allowing them to be liquid (i.e. traded) Dream Frames creates a potent investment vehicle for films that also solves a huge problem in film financing.

Fames in a Film
 

Traditional films were shot at 24 frames per second, while digital films are shot at 25 or 30 frames per second.

Dream Coin uses  digital @ 25 frames per second as a basis for calculations
Example: 90-minute film = 135,000 collectible frames for sale

The average feature film is 90 minutes long. This equates to 5,400 seconds and @ 25 fps = 135,000 frames.

 
 
 
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Producers must submit a film budget, that includes all marketing and production costs, to the film’s smart contact. They must then select a price per frame based on the amount of money they need to raise.

In the example above, if the total cost of producing a 90 minute film is US$2.7m, then the price per frame (135,000 frames) is US$20. 

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Royalties Distributed
 

Producers must put all revenues back into the smart contact. This allows them to provide a blockchain tracked and transparent audit trail of money received and distributions to coin holders. Coin holders then draw from a pool of coins according to their share of the royalties.

 
 
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DreamCoin takes a 5% fee on all money raised and royalties received. This must be factored into budgets and royalties by Producers.

Budget Management
 

Film funds received are held in escrow (in both cash and ETH) until the film reaches its minimum funding target. On achieving this, all funds are released and any new funds are sent directly to the Film Producers (bank account & ETH address).

The rules are as follows:

  • Dream Coin accepts US$ and Ethereum

  • Producers must submit a minimum cap and maximum budget providing two options for making the film.

  • US$ and& Eth areis held in escrow until minimum funding target is reached.

  • Once the minimum is achieved, the money is released to the Producers of the film and& DZZZ Royalty Tokens  (ERC 20) are sent to token owners frame buyers.

  • If the minimum is not reached by the time the sale period ends, the money is returned to investors.

  • While funds are held in escrow, there is the potential upside and downside risk if  the price of Ethereum or the US$ moves. DreamCoin is not liable for any exchange fluctuations. As with any film, the onus of exchange rate risk management falls on the film’s Producers

 
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