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Good morning and happy ETH merge to all those who celebrate!
Two weeks ago, we brought you the announcement of the Vabble DAO, called Vab DAO. A film financing and governance platform that lives on the Vabble ecosystem — supporting film creation, production, and distribution.
Alongside our excitement for this announcement we wanted to provide a case study on how the DAO functions and how to finance a major cinematic production.
Our team was wondering, what would The Godfather look like if it was funded by Vab DAO?
Well, let’s break it down and take a look:
The Godfather (Financial History)
Production Budget: $6,120,000
Box Office profits: $250,000,000
The Initial DAO Process
The process begins by joining Vab DAO. This is done by staking $VAB token to gain entry and governance rights on the platform. For director Francis Ford Coppola, once he joins the DAO he will put together his pitch deck/production materials in a proposal to submit for community review. Obviously, he is looking for an offer he can’t refuse and wants to move from the DAO’s Governance (voting) stage to the Film Financing stage.
There are two ways to do this:
- Present his pitch to Vab DAO for voting. The community will determine if his material is something the DAO would like to finance. This is a great opportunity to gain feedback from DAO members/investors/film experts.
or
- Bypass the DAO governance vote and go straight to financing opportunities.
The DAO charges $100 for review or $200 to bypass in USDT, USDC, or ETH to support the ecosystem and prevent botting. These funds are converted to $VAB tokens by uniswap router and added to the DAO rewards pool to support token stakers.
After seeing the options, Mr. Coppola decides to not bypass and asks for review by the DAO community.
He makes his pitch to the DAO as such:
- Total budget: $6,120,000 sought to be raised through VAB Financing.
- 10% of all profits from the film will be shared with investors.
- Film will be released on Vabble SVOD auditor and Bingeable as second auditor.
- All investors will receive an exclusive NFT which grants premier access to film showcases and the opportunity to co-watch with Mr. Coppola himself.
- A draft film script and production details.
After a period of review, the DAO loves Mr. Coppola’s proposal and votes by majority to move his film to the Vabble Financing portal for investments.
Vabble Financing
This platform is home to all the investors and stakers on the $VAB protocol and where artists can fund their projects. Investors review production pitches and recommendations from Vab DAO on which films are a unique investment opportunity.
Let’s take a look at one of these investors, Adam.
- Adam has 10,000,000 $VAB tokens that he is staking on the network and receives monthly rewards for his active participation in the Vab DAO.
- He remembers Mr. Coppola’s proposal and commits 5,000 USDT to the production.
- After his investment, he immediately receives his NFT which grants him access to the “The Godfather” community Mr. Coppola is building.
- His wallet is also added to the reward pool to share in the profits post-production. With his $5,000 investment (of $6,120,000 total) Adam received 0.083% of the pool. Remembering investors receive 10% of total profits from the film as outlined in Mr. Coppola’s announcement, Adam is hoping he can 1–2x his return on investment — but at the very least, gain exclusive access to the film and NFT community.
After a successful fundraising round, Mr. Coppola receives 98% of all finances ($6M) while 2% ($120k) is sent back to the DAO to reward stakers in the pool. (If it is 120K in stablecoins, this stable is converted to $VAB token via the uniswap router)
Production, Release and Investment Returns
Mr. Coppola is delighted with his use of the Vabble platform and begins producing the film. He provides regular updates and behind-the-scenes content to his NFT holders and investors over the months of production and opens up a private token-gated channel in the Vabble discord to grow his community.
Once the film is ready, he uses the Vabble SVOD and Bingegable site to provide token gated access to all NFT holders, and 2 randomly selected holders with the opportunity to co-watch the reveal live with him.
The film is made public and is an instant success. On its first day, it generates $300K in rewards, the next day $1M and it keeps growing. 1 year later the film has generated $250M in revenue.
10% of the $250M worth of rewards are now in a pool for all investors to claim. Adam claims $20,750 in rewards in addition to his initial exclusive NFT.
Mr. Coppola is beyond proud of his cinematic masterpiece. Throughout the entire process he retained his IP rights, creative freedom, and developed a super fan community for his work. He will most likely be back to finance The Godfather II with a much larger budget and the Vab DAO is sure to support him in his next endeavors.
The next generation of Coppolas will be born due to the flexible investment opportunities Vab DAO presents — completely reshaping the future of the film industry.
Want to keep the conversation going?
Follow us on Twitter and join our film-loving community on Discord. We have tons of resources for those interested in Web3 and specifically Web3 film.
Twitter: https://twitter.com/VabbleApp
Discord: https://discord.gg/mZ2J8eVZ8j
