Festo White Paper
Disclaimer: The white paper is into a perpetual evolution states, at Festo (www.festolive.com) we try to do thing differently then shipping another boring PDF. The white paper itself is a generalization of Festo mission and road map, we are not just talking the talk we moonwalk too.
Festo is a universal celebration platform, best described as a maximum viable ecosystem “MVE” (25–27 divisions) with all service for celebration at the end user finger tip. At Festo we do believe that we could add value per connection, we are not a social media network, we are a social value network, we don’t do politic.
Festo is value first project, our value is creating richness and our core value is about sharing the pursuit of happiness.
The only thing human share in common is the urge to celebrate whatever accomplishment we archive personally or collectively. In spite of our differences in religion, culture, skin color, sexual orientation or socioeconomic status.
The urge to chill out and reunite with friend family or with a big crowd in a stadium to cheer for the next round of whatever life hardship as to throw on our road is an very special temporal event of happiness to share.
Celebration came from the root of practicing spiritual incantation from religious festival, the origin of festival go as far back to times of Ancient Egyptian Pharaoh Rameses III as he celebrated his victory over the Libya. The most important religious festivals such as Christmas, Rosh Hashanah, Diwali, and Eid al-Adha serve to mark out the year.
Toward the year we saw the appearance (emergence) of many different kind of festival, music festival, movie festival, comedy festival, foodies festival and the list keep going and growing. In the last 100 years we saw social festivity evolution with the birth of the cabaret era from Paris with Vaudeville, the American southern juke joint, the speakeasy during the American prohibition 1920–1933 era, and to the thematic nightclub as we know them today. Last 10 years we saw the evolution of mass music festival gathering +100k people to a single venue which offer more entertaining opportunity for social gathering event spending festive dollar.
Festo is about celebrating this world, our culture, our memories, our people, our friends, our families, all the connection of this world that’s we could extrapolate to a moment of joy.
Festo is more then that, Festo celebrates unity vs inequalities, difference vs formalism, beauties vs dogma, generosity vs scarcity, we will think and do it differently as a collective. To do so Festo will need the revival spirit of all the great ambassadors that was there influenced the festive moment such as Josephine Baker, Aretha Franklin, Anthony Jourdain, Prince, Texas Guinean, Michael Jackson,Frank Sinatra, etc..
0.1.1 The pursuit of happiness
For the first time in human history we have the computational capability to provide meta data flow reflexive with stakeholders bias (thanks to blockchain and distributed ledger solution) and the rise of artificial intelligence from ice age period. From this current state of affair we are progressing toward the internet of value and we do Festo for celebrating this new value era.
0.1.2 Industry problem
No universal platform exist as of yet, we have only current niche player monolithic application that work in silo, meaning that end user have to surf on x different application to fulfill their needs wasting a precious amount of time. When you face silo is quite difficult to leverage AI to enhance user experience to the next level.
Other problems are linked to social media network economic model that provide a one way function for money distribution with the absence of incentivization mechanism. In regards to Facebook, end users are treated as a by product which is pretty bad, we saw the level of respect they have for their users with the Cambridge analytica scandal.
Security is an area of concern too, many industry providers rely on cash deposit that could be subject to theft from inside and outside the organization. Many stakeholder don’t respect the privacy of user nor data ownership_$, btw where is your data.
For the end user we propose a dedicated ecosystem for *having a good time* that show all feature that make them feel *insanely great* by creating, organizing, sharing, socializing and participating to great event and having all service at their finger tip.
On the social side, by building incentivization model that can create richness for all stakeholders. As for the technology we use a multi-blockchain architecture with interledger gateway to communicate ledger states via SOA. Building a ecosystem will evoke the need for interoperability between chain and business logic which is distributed inside a DevOps microservices architecture. Hence will ensure safety and reliability across the network with good level of scalability.
0.2 Festo Mission
About Festo our value is creating richness and our core value is sharing the pursuit of happiness, we could describe the fundamental with this trifecta; i)festo is a universal celebration platform, ii)Festo is a maximum viable ecosystem, iii)Festo is a social value network.
Universal celebration platform; we are entering the internet of value era, to celebrate this technological and social milestone we provide a platform with all service for celebration at the finger tip of the end user.
Maximum viable ecosystem ”MVE”;we partner with our end users for value added proposition that provide set of viable solution (25–27 divisions). by reducing the pain point for customer that need to navigate through countless different application. The end goal is to create virtuous circle through feedback loop that will improve the monetization and incentivization mechanism. In turn, will create richness for all stakeholders within the ecosystem.
Social value network; what matter is the special moment that end user exchange valuable energy flow quadratic to the emotion space set in motion with user intrinsic value .
Festo is about Value,Value,Value, we share equity, we share revenue and share opportunity.
This paper will give a short description about each division and the overview key market players for each division . The focus is more on the big picture with a road map and pointer for the ecosystem development direction. The number of division/hub is rather subjective, the true objective is to give all the functionality for having a good time at the end user finger tip.
This application is mostly about finding private parties nearby with curated guest lists, as for point of reference we have current application like Yotme, PartyWith and the defunct party app pioneer KickOn and WiGo, honorable mention to Funnster their API was slick. Usually this application have two type of audience, the one that don’t like to go to public event and the other group that want to do something on a budget.
Event posting application are not new, we have a list of event planner software that manages ticket sale and attendees on their platform, the most popular are Eventbrite, Meetup, Facebook, and Yplan. To be fair none of them focus on celebration,we see them as generalist with different feature that complete (complement) each other. We could set up a good event this way, use Eventbrite for ticket sale, Meetup to create specific group and Facebook to reach a audience. Festo goal is to have it all inside the same place to maximize ROI for stakeholders. Festo focus on five category type of event (music,art,movie,comedy, special). Special event could be prom, office party, wedding etc… usually special event are mostly private were the guest list is already curated by the host.
This application is geared toward nightclub and bar, feature being provided for host are club and bar business listing, business promotion on social media, guestlist management system and VIP table reservation with bottle service.
For guests, we have GPS localization tracking with club capacity display with partygoers open chat box plus payment feature for attendees and point of sale service for all venue. Those applications are (enhanced)newer then event planning we don’t have a clear winner yet inside this niche market. Nightclubs and bars represent a 30 billion dollars industry inside the United States and a approximates 100 billion worldwide, those number are at the top of the bracket. Tablelist is one of the pioneer,other players are Nigthspree,Surv, Bottlestonight and Bottleup,total revenue in United States for those bottle service application are around 20 millions from 2017 Owler number.
We design a separate application for poker, the reason for that is quite simple,we want to give poker player the best user experience possible. As of today there is no popular poker application to find poker game nearby. We do have poker tournament management software on the market. Facebook is the most used medium for organizing poker game but you need to find a local group to opt in.
Online poker represent a $2 billion usd market worldwide, if we take PokerStars public figure. Festo don’t have any plans to develop online poker game yet, but that could a target in the near future if we hit the royal straight flush on the river.
Sporting events are by far the biggest universal celebration worldwide after holidays,consumer spendings for sport event like the Super Bowl, which is the biggest consumer spendings over the weekend event amounted to 14.1B (usd) in 2017 just for the United States.
Other major event are Olympic game, Championship Football League,Soccer World Cup, Boxing/UFC event and major team sport playoff series like for (hockey,basketball and baseball). Sport bars popularity started rising in the late 1980 with venue that offer food menu with big screen tv and bets on sport lottery. Ironically technological evolution in household appliance put a drag on sport bars revenue, nowadays the consumer could bet on sport via mobile application and can follow is favorite team over tv,computer and mobile phone.
About Festo Sport, first we have to put sport bar on the platform with same available feature then Nightclub, with capacity listing and bar spot reservation feature. Additional feature for finding sport fans in the neighbourhood to organize a sport trip. See local sport fan hosting event at their home, as example the organizer could use a projector with big screen in his backyard with beer and BBQ that could be a fun night that every sport fan would love.
Other features included are peer to peer tickets reseller platform for sporting events, the competition in this category are StubHub and Ticketmaster, our goal is to seat just between big ticket reseller platform and Facebook, our intention is to provide best user experience and not be a platform for scalpers on steroid.
Sports betting is said to be a massive industry but we have to speakeasy about it because apparently only 3 percent of the $400B industry is being bet legally in the US market alone. Some pundit estimated the sport betting industry being worth more than a trillion dollar worldwide despite being illegal almost globally, except for few exceptions like Las Vegas. Fantasy sport is an area that did growth nicely the last 3 years with the growth in the number of broadband and mobile connections. Now being a $7B industry by IBISWorld number, see industry demographic by FSTA, major players such as DraftKing and Fanduel are racking up $3B usd in entry fees in 2015.
Lately Facebook did launch messenger-kids which have nice features for kids safety on social network. Obviously our goal is to provide a controlled/parental environment for kids to share celebration moment with their family and friends. Our platform has to offer everything parents need to organize great celebration by connecting, planning, organizing and sharing valuable moments.
The travel industry is huge for celebration. Simply put, the platform will not be universal without travel application because most of the time we love to travel to celebrate special event.The travel application will work in two ways, the first one by end user search query with reviewed service, the second one by the conciergerie service.
The modern travel agency first appeared in the second half of the 19th century with its root in 1758 as establishment of Cox and Kings Ltd.In the year 1970, Cox and Kings the longest established travel company centered its focus on its business of travel and tourism. source wikipedia As for today the online travel agency are growing at a fast clip with a +10 percent CAGR for the last five years.
The industry is a duopoly with Priceline and Expedia controlling a huge chunk of the market trough their subsidiaries divisions.The Online Travel Bookings Market is expected to attain a market size of 1,143.6 billion dollars by 2023, growing at a CAGR of 10.8 percent during the forecast period.
Food play a special part into any celebration, market leader are Opentable for table reservation and Yelp for review. For sure with the magic of blockchain festo will be able to improve end user satisfaction by a few star by improving review system, delivering multiple service like PoS, social chat, delivery and extra service for HR system to help stakeholders improve productivity. It will include an incentivized mechanism that is fair and square for all stakeholders.
Users could create profile or connect existing social media profile to save time, all profiles are subject to KYC rule. We have three categorization of profile (kids,teen,adult), obviously kids and teens does not have access to the same functionality as adults. There is no publicity access on kids profile and publicity are controlled on teen profile with respect to states law and local jurisdiction. Lately we see new interested project for identity management system like hyperledger Indi that provide libraries for hybrid blockchain identity system strengthen the safety of the system with a decentralisation twist versus centralised 2FA solution.
Festobook is the new facebook “pour faire la fete”, the distinction with facebook is the curation of the news feed. Festo feed is festif with no undesired pollution that spam feed like on Facebook,Twitter, etc. . . having bad news on your feed is definitely a mood breaker. Festo as common feature like messaging, picture,video, live feed, and additional feature to improve privacy like group private chat that destroy message, picture, video after selected elapsed time
0.2.10 Search Engine
When we talk about search engine UI is quite important, having it clean and neat come at the top of the list, Google clean UI was a edge over competition to grab 80 percent of search engine market share. User preference is a must for establishing primary channel, specially for having stateful object reflexive with user states bias . Search query functionality could be encapsulate in two states, private and public, for the rest is about indexing, data mining and referrals for added plug in.
We see great innovation lately with new peer 2 peer marketplace like OpenBazaar, for sure when we talk about marketplace we think about Amazon, Shopify, Facebook etc. . . Festo primary advantage over other marketplace solution is the focus on what the end user need at the exact moment, marketplace are reflexive with user states bias, our marketplace algorithm as to link primary seller channel with proximity optimization Rx*(k-NN) to be effective.
We have new web ads working group like IAB that intent to leverage blockchain technology for improving web advertising experience for industry stakeholders. 4 Ways Blockchain Will Transform Digital Marketing And Advertising, summed up nicely what Festo could deliver for the audience. Festo edge over other web advertiser’s is the optimization by user selection parameter reflexive with user states bias self-reference to the marketplace and search engine basically is a three in one trifecta that no other platform can match.
eMarketer estimates the two companies will capture a combined 56.8 percent of US digital ad investment in 2018, down from 58.5 percent last year. These figures have been adjusted downward, as smaller players such as Amazon and Snapchat are experiencing faster-than-expected growth.Importantly, Google and Facebook’s share of new digital ad dollars is declining as well. This year, they will garner nearly 48 percent of new expenditures. By comparison, that figure was nearly 73 percent in 2016.The research firm blamed this anticipated decline in a year when digital ad spending in the country is expected to grow nearly 19 percents to 107 billion dollars on rising competition from smaller rivals such as Amazon.com and Snap Inc.
Conciergerie application is a must for servicing host and guest, we have new multiple application for connecting end-user with a service provider, set personal recommendation and agenda all in one place. ”You could have an app that allows your customers to find the availability of a specific room, book it, book the flight, arrange a car to pick them up, automatically notify the driver when they have landed and then guide them to their room,” he explains.
”Once they’re in the hotel, they can order room service — all from their handset.” Jackson says it’s even possible to send guests their room key via his company’s concierge platform, by generating a uniue QR code that they can simply flash in front of a small scanner outside their door.
Our goal with Festo is to go back to the root of hotel conciergerie, the hotel concierge was the reference for tipping travellers about best restaurant, hottest spot for nightlife, local culture, all being done with a personal touch. This personal touch could not be done with AI, the only way that could happen is by connecting real concierge with a reputation management system at the service of the end user
The gig economy is going full steam, contributing to a 800 billion dollar business in United States, for future growth the key is widespread use of technology that empowers this ecosystem. That is what Festo is all about. What we want from a good gig platform is to enhance ability, reliability, variability and quality with a slick UI that connects gig provider with consumer, into a friction less manner. Lately we see platform that bet on curation by providing only the top gig provider recommendation in their specialised field.
As more workers go freelance, the competition for higher-level access is bound to intensify, including within the most democratic-seeming marketplaces. Even those that are open to all comers, like Hired and Upwork, have their own invite-only options where employers can debut job openings to a select few.
About Festo, features provided on the gig platform are personalized profile and a matched up engine with user preference selection. In addition there is a plus management service for payment with user feedback tool for reputation management system .
Job seeker as countless number of job search website all featured something different, some are generalist other are niche. We come a long way from Craiglist to LinkedIn as technical evolution took off, here a nice list of The Top 50 Best Job Search Sites You Need to Know About. With the giger’s profile we could automatically match up job offer with job seeker with premium service package and we have the concierge service acting as a web crawler for user augmented recommendation with the use of machine learning algorithm.
When it come to payments the first name that come into my mind is Tandem Computers,Inc with their NonStop system that was a landmark in 1976. Lately we see a great deal of innovation into the payment industry with the rise DLTs startup like Ripple for remittance service and peer 2 peer social money transfer like Venmo,Veem and Circle pay. Payments became a crowded place with many niche application like Payment Rail for cross border freelancing money transfer.
A new report published by Allied Market Research, titled, ”Mobile Payments Market by Mode of Transaction (SMS, WAP and NFC), Types of Mobile Payment (Mobile Wallets/Bank Cards and Mobile Money), and Application (Entertainment, Energy and Utilities, healthcare, Retail, Hospitality and Transportation, and Others): Global Opportunity Analysis and Industry Forecast, 2014–2022” projects that the global mobile payments market is estimated to reach usd 3,388 billion by 2022, growing at a CAGR of 33.4 percent from 2016–2022. Asia-Pacific is expected to witness the highest growth during the forecast period. Mobile payments through short message services (SMS) mode dominate the market, whereas near field communication (NFC) would witness growth in its market share in coming years and is anticipated to grow at a robust rate.
About Festo, at first our culture is a copycat of Tandem Computer, customer first is the sole and only matter. Payment service is a wide area, we have simple application like peer 2 peer transaction, payment service at local marchand with banking aggregating service if customer as insufficient fund into is Festo wallet, payroll service for business and payment service for B2B. Obviously all payment system are based on mobile, is yet to see if is profitable to launch a payment card. Business wise transaction fee apply over each transaction, the amount of fee and net margin is dependant of the payment rail used, usually is +1 percent fee over other fee.
Universal wallet still a new concept, from what I know we have never seen a wallet solution that shows you all your income source (payday), your investments, and your bills in one place. Providing cold storage is a must to improve data security and hardware wallet could be a avenue too. All features would not likely to be implemented from day one but this is what the customer wants and it is our job to provide the best customer services.
Is a peer 2 peer ticket reseller marketplace, usually service fee are split between seller and buyer 50/50. Through conciergerie service we could add up service (lead booster) to help buyer and seller connecting together faster, we could add up the auction button for additional service fee for compensated the added complexity for managing the deal. Our conciergerie app could be used as a ticket web crawler for finding desired tickets for buyers, free of charge.
Blogs are complementary to any business line, user engagement is a key metric that we want to enforce.By having a full ecosystem dedicated to “faire la fete” we could keep the blogging section clean and neat as possible like Medium .Still the success of blogging reside inside the focus of the subject. If we monetize blog with ads we should give a inventory access for blogger to post what they like with proper compensation mechanism based on user engagement.
After some reflection we are better off creating a specific division for charity to simplify the money flow distribution for tax receipt. We do believe into the free will of participant to support charitable cause or not, is a feature that we support but that have to be friction less for end users.
Crowdfunding is a must, from Kick Starter to the “ICO” issuance coin offering era with a staggering 6.3 billions usd has been raised in the first quarter of the current fiscal year. Crowdfunding is a crowded space with many different type and regulation flavor, one sure thing the democratization access to crowdfunding will be better than today in the near future. Blockchain technology is a natural fit for crowdfunding with distributed ledger that records all transactions.
0.2.23 Reputation Management System
Reputation system are ubiquitous, for rating customer review, for rating transaction activity, for the online advertisement market or for host and guest review,(RS) are everywhere.
The (RS) engine is one of the most important asset that anchor trust inside the ecosystem, for this reason it’s was logical to create a mission specific division for standardization. General standard,user identification through (NNAS) node naming annotation system for node localisation and reputation scores with a digital badge that is related with user account identification.
Incentivization mechanism reflexive with the set of parameter pre-determined by the master client for market participant reputation score. Specific standard, set of parameter curated by industry stakeholders for the tokenization of industry policies standard for information safety system for quality control for review policies.
Insurance is quite important,(RS) is far from being enough to mitigate the risk, Airbnb hosting insurance policy could be view as a starting point, but more as to be done, the Fyre Festival tell a horrendous story of what could go wrong and why insurance protection is needed. Festo is open to partnership with established players, it will be important to follow new regulation with insurtech sand box.
A media stream can be streamed either “live” or “on demand”. Live streams are generally provided by a means called “true streaming”. True streaming sends the information straight to the computer or device without saving the file to a hard disk. On-demand streaming is provided by a means called progressive streaming or progressive download. Progressive streaming saves the file to a hard disk and then is played from that location. On-demand streams are often saved to hard disks and servers for extended amounts of time; while the live streams are only available at one time only (e.g., during the football game).
The Horowitz Research State of Pay TV, OTT and SVOD 2017 report said that 70 percent of those viewing content did so through a streaming service, and that 40 percent of TV viewing was done this way, twice the number from five years earlier. Millennials, the report said, streamed 60 percent of content.
Video-on-Demand : (worldwide). statista
- Revenue in the Video-on-Demand segment amounts to US$27,263m in 2018.
- Revenue is expected to show an annual growth rate (CAGR 2018–2022) of 4.8%, resulting in a market volume of US$32,838m by 2022.
- The market’s largest segment is Video Streaming (SVoD) with a market volume of US$19,572m in 2018.
- User penetration is 10.6% in 2018 and is expected to hit 12.9% by 2022.
- The average revenue per user (ARPU) currently amounts to US$15.67.
Is no doubt that Netflix became a household name, but that report 10 Charts That Will Change Your Perspective Of NetFlix’s Massive Success In The Cloud will be a eye opener.
Live Stream is one of the most booming sector on the web, is no secret that Zuck want to go big on video to capture more advertiser revenue on the long run from Instagram story. Facebook vs Snapchat: which is the better channel for your brand? is a must read!
In 2016, it was already a more than $30 billion industry and it’s just getting started.
It’s projected to more than double in growth by 2021 to become a more than $70 billion industry.
Live streaming is on the rise, and it continues to grow every single day.
Streaming at Festo will be huge is no doubt about that, the only way new player could compete in that sector is by changing the game and that exactly what Festo will do with new business model for incentivization and monetization. Is kinda important to not neglect one area of streaming, Festo will be about SVoD, LVS, plus a music streaming service.
The good old time, the arcade was so much fun back’n days, is crazy to think that arcade got the first position for entertainment spending in 1980–1984 way ahead of other medium. I was too young to catch the first wave but just old enough to catch the second wave of the 90s, my favorite game back then was Tekken, StreetFigther 2, Virtua Tennis, Space Jam, NFL Blitz, etc… They have so much more into my catalog that I just don’t remember their name.
If we look at the history of video game we have a pattern of video game console development cycle that go from arcade to home console until the PS2 release. At Festo we do believe that arcade game will see a revival with VR head set that will ignite the fourth generation of arcade game.
We forecast that 2.3 billion gamers across the globe will spend $137.9 billion on games in 2018. This represents an increase of +13.3% from the year before, or $16.2 billion. Digital game revenues will take 91% of the global market with $125.3 billions considering that global games market revenues were $70.6 billion in 2012, this puts the 10-year CAGR for the market (2012–2021) at +11.0%. Maintaining a double-digit growth rate for 10 years is truly remarkable; it would be an accomplishment for a single company, let alone an industry that has been around for multiple decades.
At Festo we think the key to be successful in video gaming reside in the lesson from the past, the rise and fall of Sega is full of good key insight, see video below What RUINED Sega ?-The of an Empire to understand better. I would admit I’m a Sega fan their game was so much fun back’n days, is kinda sad and cool at the same time to watch this documentary that would revive good memories for most of us.
Key bullet point:
- Respect local culture; each market is different, what is popular in Japan would not necessarily be successful in America.
- Cooperation is better then competition; going on your own is a costly endeavor in the video gaming industry.
- Developer, developer, developer; is your life blood, you cannot afford to neglect your developer community.
- Don’t ship junk; never ship a game that you would not enjoy yourself, is just totally disrespectful for your video game players.
To quote the most craziest moment from Steve Ballmer about developers that say it all, traction with developers is super important. Last 10 years we witness the rise of open source software and social code repository like Github for CVC. In the last 5 years we start to see more bounty exchange for developers with specific task. We have new platform like Colony that could fill the gap in the field and remove some friction into the incentivization mechanism, but they are still in development. ICOs for bounty exchange seem like a good idea if we buyback tokens with capped percentage of revenue on a periodic table, but is yet to see if this is the best approach.
0.3 Festo Playground
Obviously when you build a ecosystem your playground is humongous, at the same time you need to respect other ecosystem. Festo is about ”having a good time” on a macro level festo is a social application for celebration (social value network),inside a perfect world end user will go on Festo when they are in a good mood (www.festolive.com).
This is about the moment of happiness for the end user therefore if the end user is in a bad mood they will go on other social media application. Festo believes that at the micro level each industry deserves its own ecosystem to maximize value for all stakeholders.
At Festo we do believe more into cooperation then competition, as long other parties want to create richness and share the pursuit of happiness, we are all in!
0.3.1 Market Size
The celebration industry is one of the biggest spending engine on this planet, is a bit difficult to put a clear estimation, I personally expect festif dollars spending number to be at around 5 trillions usd worldwide which is quite conservative number considering the world GDP is at 76 trillions usd. We can throw USA festif spending dollars in the air to give us a better picture of the actual market size.
The total expected holiday sales this year are actually expected to exceed 1 trillion dollars for the USA, Halloween 2017 number stood at 9.1 billions usd, proom 4 billions usd, Super Bowl 15.1 billions usd.
The Online Travel Market is estimated to garner $1,091 billion by 2022, registering a CAGR of 11.1% during the forecast period 2016–2022. Online travel providers aim to ease travel planning and bookings for travelers. The online travel market is driven by quick and convenient flight and hotel bookings, rise in customers’ trust in online payment, and ability to compare various available travel options.
The global wedding market (2015) is now a 300 billions usd industry. 55 billion of that is the US wedding market, according to an IBISWorld report, and includes over 500,000 businesses, putting 750,000 people to work.
The primary target for Festo is the millennial which account for 75 millions persons in the US with a estimated festif dollars spending of 500 billions dollars, followed by the Gen Z with 69 millions persons, we expect digital native to be a powerful catalyst for Festo.
We could break down revenue channel into 6 different way for all our service. Fees on the “MVE” are priced into mid/higher end vs market competition for most service.
Transaction fees on payment service: (FestoPay),e.g.Paypal charge the seller in the U.S. a fee of 3.7 percent of the transaction amount plus 0.30 USD and is free of charge for buyer.
Convenience fees:Those fee en globe a wide list of service, that could be the fee to attend private party,event,cover at night club etc..Basically we have the fee for premiere service plus additional accommodation fee.
Service fees on exchange:As a golden rule fees are priced at 10 percent with 50/50 cut between buyer and seller, for market comparison Stubhub charge a 10 percent fee for ticket buyer and 15 percent fee for ticket re seller. Other fee could apply on the seller like for the use of auction mechanism.
Membership fees:Many service charge monthly fee inside Festo, membership fee could be for marketplace,gig,job,point of sale and conciergerie.
Ads placement: Offer competitive market rate bidding process for ads publication on the platform like for Facebook ads solution that provide ads auction and target group with budget convenience.
Lead booster fees:For conciergerie premium membership lead booster feature are already included. As for the service is quite similar to Tinder lead booster offering.
Time is the valuable asset, the key metric for Festo is the intrinsic value per user, is not about download number even if we all love big download numbers or big revenues numbers, what matter is the good time end user have on Festo.
0.4 Festo Governance
Open source management always pose problem as project growth, we have benevolent dictator like Linus Torvald that oversight Linux and massive business like Google, Facebook, Goldman Sach that run massive code base openly inside their respective organization with GitFlow. Building a distributed collaborative system present is own set of challenge when we mix decentralization because the referee paradox complexly the decision making process,see the DCS Thorem, co authored by Greg Slepack and Anya Petrova.
The prevailing bias inside the internet of value on technical standpoint is decentralization to beat down the single point of failure. On social standpoint the prevailing bias is ”create richness, share the road of pursuit of happiness”
Decisions making process binary as to be reflexive with the common bias of all stakeholders, it take time to train data set for sharing a common bias. The best example is road behavior, our common bias is to drive safely and be responsible, still to drive safely we have a learning curve that start with a shared vision and common interpretation of road rules to be responsible and drive safe.
But decentralization is not a panacea, and it does have potential disadvantages. Decentralization may not always be efficient, especially for standardized, routine, network-based services. It can result in the loss of economies of scale and control over scarce financial resources by the central government. Weak administrative or technical capacity at local levels may result in services being delivered less efficiently and effectively in some areas of the country. Administrative responsibilities may be transferred to local levels without adequate financial resources and make equitable distribution or provision of services more difficult. Decentralization can sometimes make coordination of national policies more complex and may allow functions to be captured by local elites. Also, distrust between public and private sectors may undermine cooperation at the local level.
Rome was not built in one day therefore it is really difficult to nearly impossible to build an ecosystem from scratch without states transitional periods. The focus should be on the mission content with emphasis on individual freedom to participate into the ecosystem evolution of Festo. The transition period will be a long journey, from lead provider composed of the festocore and festies to the dealing desk that will be governed by a council, still at Festo we do believe into building on best management practice form days one.
Management: Holacracy seems to be the best fit for building ecosystems, by distributing power bottom up our chance of succeeding would benefit from law of large numbers. Inside holacracy we have super-circle,sub circle and role, what is important is to break silo by cross looping circle with one another to spread information across all stakeholders.
Software methodology development: At Festo we will employ a mix of DevOps + Grows for software development methodologies because is the perfect fit for delivering large scale application into production environment. When every step is a transaction with monetary value is obvious that security as to be one of the top priority but at the same time we need to scale deliveries and put technical debt in check.
0.4.2 Consortium As A Evolutive Agents
Every step or milestone start by putting a structure for managing the workflow for the consortium states evolution. If we summarize the states transition structure with milestone we have 4 phases,i) Lead provider, ii) Agent-based, iii) Hub & spoke, iv) Distributed collaborative system (DACs+DAOs= DCSs).
Phase One (Lead Provider): At the LP stage we have essentially two types of roles at Festo:
i) Festocore: The core team members working full-time on Festo
Festocore specs: Festocore describes core team members who:
- Have true passion for Festo mission
- Are compensated at an hourly rate calculated based on market salary rates
- Will receive preferred share to be vested at IPO/TPO (2years)
- Create and validate missions for Festies
- Evoluate over the long term to be part of the dealing desk, as Festo becomes a (DCSs).
ii) Festies: Volunteers working on missions/projects in exchange of payday based contract and Festo share
Festies specs: Festies describes non-core members who:
- Work as mission-based contributors taking on projects as are necessary
- Onboard by applying to a mission, leave when the mission ends
- Are onboarded via application to any missions posted by Festocore
- Receive compensation based on market rates for each mission type
Specific task for LP transition period:
- Create missions
- Share missions
- Setup the sponsorship model for next phase
- Setup productive tool set with scoring reputation system
- Setup eventSeedContract ESC*
- Setup Master Contract
Phase Two (Agent Based): At the AB stage, festocore became managing provider working in coordination with sponsors that act as contractor. Festocore act as a contractor too, what is important is to create those win win situation for all stakeholders, with 25 divisions we have plenty of room for task based mission.
Some specific task for agent-based transition period:
- Scout sponsors
- Oversee ESC*
- Set parameter for managing agent and sponsors
- Set development milestone
- Build the ecosystem base layer
How could be a sponsor: Any enterprise or individual that share Festo value and be willing to pay to play.
At Festo sponsor as to share common value to be accepted, create richness and share the pursuit of happiness is encoded into our DNA.
key takeaway: Sponsorship fee go to $10k per years to $10m usd per year depending of the size and scope of the sponsor, those fee are pay on a monthly basis. Festocore and festies have the responsibility to vote on term and condition for sponsors, plus set up PoV parameter for sponsor reward via equity token.
Phase Three (Hub & Spoke): At the hub & spoke phase we professionalize Festo with a board of director and a general counsel to lead the march toward a full-fledged maximum viable ecosystem. Mission task-based contract would evolve to some specific working group with some specific goal.
Specific task for hub & spoke transition period:
- Set the ecosystem for production
- Set timeline for establishing the dealing desk
- Set the board of director
- Build relationship with regulator
- Settle equity distribution to consortium member Festocore and Festies
- Settle equity distribution for sponsors
- Set up the general council
- Set IPO/TPO date
key takeaway: During the transition process we expect festies and sponsor to take a bigger role and become part of the festocore, seat on board of director and take an active part inside the general counsel.
0.4.3 The General Council
To keep a good cohesion among the stakeholders at the management level festo establish three distinct council,(operational,legal,technical), with specific task function for their role.
Operational Council Role: Define the functional blueprint to distribute a cohesive work flow for participant trough vote distribution on set of parameters and guideline:
Tasks: Share Festo mission — Set parameter for monetization — Set parameter for equity distribution — Common description of the stakeholders journey — Identify the main issues and inefficiencies — Describe the main functions and performances expected from the platform — Describe the data and events to be managed by smart contracts — Oversee the ecosystem development -Oversee the sponsorship member contribution — Oversee the implementation of network rule and stakeholders guideline — Oversee the standardization process for tokenization — Oversee a reflexive relationship with the bias of festo raison d’être between all stakeholders.
Technical Council Role: Define the functional blueprint for computational capability inside a open source environment with actor model.
Tasks: Define the overall architecture of the platform — Define modealization (data structure, consensus, network rule,governance) — Define node architecture — Design smart contracts with DSL and SDK — Define user management mechanism — Design security management tool — Design plug-in and API for managing integration with participants systems or third-parties — Define and document API — Build disaster recovery plan — Build SLAs.
Legal Council Role: Open a direct communication channel with regulator and local jurisdiction to ensure compliance with the authorities where Festo operate.
0.4.4 Distributed Collaborative System
Distributed collaborative system is the summation of the conjecture ”Five types of distributive norm defined by Forsyth” toward decentralization and distribution, plain simple is DACs+DAOs=DCSs. [CODE]
The workflow for DCSs is quite simple to implement i) create the mission, ii) share the mission, iii) develop the mission, iv) produce the mission, v) celebrate the mission, at each step we set incentive parameter to reward stakeholders.
Decentralized Autonomous Corporation (DACs)
What differ from traditional business is the equity distribution at the edge of the network, is quite simple to imagine the impact this will have for the gig economy.
Decentralized; any participant could joint the DACs and run node or service on the network and receive block reward or equity for comptutional business logic or services provided inside work unit.
Autonomous: participant enjoy total “freedom” to bring work contribution as developer, contractor, manager, leader, designer, participation is borderless.
Corporation: Dealing Desk provide the leadership via central limit theorem, is the spinal cord of the network.Decentralization is not disorganization we still have legal obligation and other issue to deal with that why at Festo we have a general council and board of directors.…
Dealing Desk: Separation of concern could be useful especially with holacracy management, that means creating circle with purpose specific challenge. . The (DD) is like the spinal cord that respond to every body action potential and provide actionable event at the edge of the network. The (DD) function are quite similar to the bitcoin core except for archiving consensus at the management and protocol level.
Distributed Autonomous Organization (DAOs)
DAOs represent more the back end, being a ecosystem we have multiple service provider that distribute the work flow functionality.
Distributed: Miner Specialist and Market Maker distribute computational transaction and message transaction toward the mesh network that communicate between ledger.
Autonomous: Business logic are self executed smart contract with set of validator, and we use deep learning technique (deep belief network) for call F(x) block propagation with a reputation management system.
Organization: Many different organization could reside inside the DAOs, as a example we could have Ripple for payment,Corda for digital asset distribution, Burrow for smart contract, Kadena for base layer, EEA etc…
0.4.5 Share Class Structure
Festo will have a multi-class share structure similar to Google share class structure after the company become Alphabet Inc.If we want a certain amount of cohesion and avoid gridlock, special class of share with +/- voting power is the solution.
Founders Sergey Brin and Larry Page found themselves owning less than majority ownership of the company’s stock, but wished to maintain control over major business decisions. The company created three share classes of the company’s stock as a result. Class-A shares are held by regular investors and carry one vote per share. Class-B shares, held primarily by Brin and Page, have 10 votes per share. Class-C shares are typically held by employees and have no voting rights. The structure gives most voting control to the founders, although similar setups have proven unpopular with average shareholders in the past.
Class-A shares: Are distributed to festocore member, those share as a 7/1 voting power.
Class-B shares: Are distributed to market participant with one share for one vote.
Class-C shares: Are distributed to the dealing desk member with 2/1 voting power, sponsor that are part of the consortium transition period receive Class-C shares for their contribution same for festies.
Share class structure are voted one years before the next master contract rollover.
Is yet to see if Festo will implement a poison pill strategy to resist a hostile takeover bid. At this stage is hard to speculate on such scenario but that could be a possibility in the near future. If such a scenario materializes Festo will need to protect the best interest of all shareholders with emphasize on regular shareholder.Is truly important to not repeat mistake or just open the door for bad behavior like we witness in the class action law suit over fraudulent action by Juno board versus their own taxi driver.
Festo do favor a shadow pill for defense again hostile takeover bid, shadow pill are like surprise party, the special guest doesn’t know is going into a surprise party until the big days. The shadow pill will be hard coded inside master contract with the approval of the board.
0.5 Incentivization “Mo Money Mo Problems”
Creating richness for all stakeholders is an art, we used to see the world as a zero-sum game for such a long time then we forget that the world as we know it is just about abstraction. True being told, we have now the technology to push the economy forward, but the real progress is a slow process, we expect some challenges ahead with regulation and bad “hacktors’’, jalousie and envie is part of the game.
0.5.1 The New Paradigm
Blockchain deliver new incentivization mechanism for rewarding computation robustness and transparency between actor with distributed ledger technology. Smart contract initiate the business logic for reward distribution for stakeholders. The ICO market disrupt the IPO model as we know it and democratize seed stage investing for non accredited investor. The endgame is velocity of money,those new technological innovation will accelerate economic growth for the next decade by collaborating, participating, sharing and creating new business flow.
Token are not a new concept but tokenization of asset on a blockchain is the new game in town.We have many different of type of token, we have commodity token like for Bitcoin, uitility token like for ethereum and token on top layer like for ERC20 for Ethereum. Token on Festo that have material effect are distributed in three different flavor, equity token, utility token and revenue token;
Equity token; that’s represent share class ownership by festo shareholders with voting power and proxy.
Utility token; that’s represent actionable capability for computation distribution across the network.Usually on festo core client utility token are buying back inside a predictive cap table t+30 vs revenue cap selected by a predefined set of parameter determined by Festo stakeholders. At Festo we do believe that having a free floating utility token is unreflexive with the bias of all stakeholders, no festocoin will ever be traded on a public cryptocurrency exchange.
Revenue token; that’s represent revenue and fee been distributed across stakeholders for work unit.
”Modealization” the term is coined by the author, the new paradigm implies new lexicon for a better definition for the business logic web evolution toward the internet of value, modealization is the winding path to discover the intrinsic value for Festo stakeholders.
- *Mo* model, is a reference to the data structure, consensus and governance.
- *Deal*,is the incentivization mechanism for consensus participation by stakeholders.
- *Ization*, is a reference to the globalization of digital transaction.
0.5.4 Intra-Modealization vs Extra-Modealization
Autonomous agents aggregator as two states for business logic distribution and retribution.
Intra-Modealization; which is the self reference business logic reflexive with is consensus, on public blockchain is hard coded inside the base layer. Usually we will see block reward computational function with service summation, Consensus as a Service, the term is coined by Tim Swanson.
Extra-Modealization; is the business logic that refer to states channel that interact with oracles, block reward function could be interchanged between intra/extra modealization depending of the stakeholders architectures of choice. Inside business extra-modealization logic we will see mostly, identification, reputation, monetization and equity distribution.
About festo modealization; been a ”MVE” the complexity is a bit greater, on festo we have a multi-chain architecture, the festo core client is by the facto a middleware.
Festo intra-modealization is a reference to festo core business logic for block reward, equity distribution and other proxy
Festo extra-modealization is a reference to other third parties that plug in consensus into festo core to provide business logic service.
0.5.5 Incentivization Mechanism
Reflexive process for incentivization as to go with contextual evolution of universal interaction between technologist, regulator and stakeholders.
The business logic fundamental should be clear, predictable and reliable on any circumstance to anchor trust between all stakeholders.
Common view of the big picture is subjective, the objective is to give a clear overview of the global state with proof of importance and proof of value for the partial state to have a reflexive binary relation.
Inside this white paper we will only show the global and partial state for equity distribution to stakeholders.
0.5.6 Global State
The global state is expressed by the view of the master contract that show the equity distribution to stakeholder for a 4 years period cycle.Half way the duration of the master contract the public hearing period start for one year with PoI propostion by Festo stakeholders,at the third year festo stakeholders vote on value added proposition for roll out next master contract business logic cycle.
Proof of Importance (PoI); refer to what matter for Festo stakeholders to enable a comprehensive work flow with a common global view that should be share with all stakeholders.
- Board election for the upcoming master contract cycle
- Share class structure with proxy
- Number of shares issued per share class
- Share weighted_% per division
0.5.7 Partial State
The partial state is expressed by the evaluation of the slave contract that show the set of parameter (proof of activity) for equity distribution to stakeholders during the master contract business logic cycle.
Proof of Value; is a reference to the energy flow deployed per work unit by participant to capture the space set in motion reflexive with Festo mission statement.
Set of parameter Rx* with stakeholders consensus, those parameter are voted by the board and a special comity to prevent potentials collusion among stakeholders.
- Revenue generated per work unit
- Number of participant per work unit
- Work unit network rule Rx*_weighted_%
0.6 Festo Consensus
Distributed ledger technology is 80 percent social and 20 percent technical, using social science to build protocol for distributed collaborative system make a lot sense. Proof of Reflexiveness “PoRx*” weight inductively all consensus protocol, what is important is to have all stakeholders sharing the same bias with a global shared point of view. We can formulate physic science vs social science with S.T.E.M to simplify the UX design with the back end requirement.
0.6.1 Proof of Work
Into the real economy worker provide time and effort for wage incentivization, that is distributed dynamically via “bonus” or statistically via “constant payday” on a defined time period,“PoW” is local.
In bitcoin proof of work provide incentivization for miners to secure the network through computational difficulty effort adjustment to find the next block. Basically bitcoin use PoW as a consensus for providing a decentralised peer to peer cash exchange service.
Proof of Work = Proof of Processing + Proof of Space + Proof of Bandwidth + Proof of Activity
0.6.2 Proof of Stake
Inside a real economy when we receive a payday we pay taxes and contribution to insurance, pension, syndicate etc. . . to have a form of global aliveness coverage. Into the big scheme of things into the corporate world your stake defines your voting weight, “PoS” is global.
Inside cryptoland, proof of stake protocol like Bitshare use DPOS consensus to provide a decentralised exchange, remark Bitshare use delegate to rule is proof of stake consensus with a voting process to validate block.
Proof of Stake Angular Velocity= Proof of CoinAge + Proof of Stake + Proof of Burn + Proof of Velocity.
0.6.3 Proof of Trust
Inside the real economy trust is maintained by a set of constraint rule with dedicated organization that enforce those rule. Government sells IOUs (debt obligation) to distribute the risk across all stakeholders with the possibility to buy protection through credit default swaps,“PoT” is universal.
Trust function for validating data set is more effective with distributed ledger technology for global finance like Ripple that provide a “Global Settlement Network” in real time with the use of “PBFT” Pratical Byzantine Fault Tolerance, with “UNL” Unique Node List (know actors) and ILP. For public blockchain the set of constraint to validate network rule would always represented a big issue for scalability and data policy is another area of concern.
Proof of Trust = Proof of Identity + Proof of Proximity + Proof of Authentication + Proof of Randomness + Proof of Replication + Proof of Distribution + Proof of Ownership + Proof of Anonymity + Network Rule.
Consensus are like a good meal, is the combination of flavor that give the good taste.
0.7 Festo Architecture
Architecture about the internet of value are a bit more complicated than conventional SaaS business because of decentralization and distribution nature of the consensus. Basically we have three diaspora, consensus, technology and governance with actor model that oversee the referee paradox.
One really important point is the separation of concern, conventional wisdom was a blockchain is de facto a distributed ledger because public blockchain like bitcoin was architect this way to serve is peer to peer cash exchange function.To be effective with current hardware, specially inside enterprise environment is better separate the thinking function from the manipulative function or tx batch load will be stuck in queue affecting scalability.
0.7.1 The Big Picture
On the technical side is quite clear that we would build a microservice architecture on a hybrid blockchain model for improving scalability and respect end user privacy.
By 2020, the concept of “public” versus “private” blockchain networks will be relegated to a historical footnote. We will not pit public networks against private networks. Instead there will be public transactions and private transactions, confidential contracts and open contracts, and they will coordinate their scope across bilateral, multilateral and public environments depending on the needs of users, just as messages today pass between private and public environments using common Internet protocols.
Festo will rely on a multi chain architecture to distribute is business logic, that mean we have multi bockchain with SDK and DSL with multi DLTs functions with ILP to connect ledger with smart gateway via virtual machine.
Blockchain: In object oriented programming is encapsulation of computational state chained together via linked list. Blockchain definition diverge quite a bit from stakeholder because of it contextual evolution to the point that even law maker push for a blockchain definition at the congress. In reality only one concept is important and is to have the genesis block that links reflexively subsequent states together, the chain modularization have to be reflexive with the service provided.
Blockchain is a reflexive database, by the fact student don’t learn much about social science inside computer science curriculum could explain the know unknown.
Distributed Ledger: States machine replication “SMR” is the term often utilized to describe distributed ledger function. DLTs are distributed fault-tolerant system that is replicated and duplicated in sync that is broadcasted to an authorized party via consensus tx message system tag/flag.
Gateway: Are web socket configured by the dealing desk with port connector (CTP) Consensus Transfert Protocol secured with digital signature tag and CA that connect states object through an oracle.
Virtual Machine: Provide OS emulation for running business logic reflexive with user states function for work unit execution.
0.7.2 Birthday Cake
Inside Festo architecture, we have four layers that represents the core component of the distributed ledger stack. Each distributed ledger as is core function rooted vertically.
- Base Layer: Is the states machines replication layer “SMR” inside a fault tolerant environment PFTs, basically it need to be extensible and modular with build-in reflexion for the scaffolding.
- Business Logic Layer: Could be refer as the *Book* for distributing application encoded on the base layer via chain code aka smart contract.
- Token Layer:Token standardization logic being encoded in smart contract and distributed on light client for work unit production.
- Settlement Layer: Distributed clearing system, need to be modular with client need and show interoperability between ledger for transaction finality.
Gossip, Interledger, ABCI and similar protocol could be view as the icing on the cake.
0.8 Festo Road Map
Festo ecosystem will be built by the community for the community as a collaborative evolutive agent that create richness for all stakeholders. Like described inside the governance section, Festo will be decentralized overtime by hitting a scalabilty target and archiving key milestone to overcome the DSC theorem.
FestoLead: Festocore and Festies, first years of operation
- Build the website
- Set mission task board
- Set collaborative best productive tool kit (messaging, road mapping, git, etc…)
- Create Open Collective account
- Set master contract (MC*) cap table with score Rx*_weight
- Take care of legal matter
Pre Seed (ESC*) eventSmartcontract: Festocore and Festies, first years of operation.
- Set ESC* parameter
- Set Webflow plug-in for event web page customization
- Set proof of curation for event planner aka ambassador
- Set business relationship with custodian and regulator
FestoAgent: Festocore, Festies and sponsors, first year of operation
- Set the sponsorship contract parameter
- Set sponsors cap table with score Rx*_weight
- Share admin mission task board with sponsors
Seed (ESC*) eventSmartcontract: Festocore, Festies and sponsors, second years of operation.
- Set ESC* parameter
- Set Webflow plug-in for event web page customization
- Set proof of curation for event planner aka ambassador
- Set business relationship with custodian and regulator
FestoHub&Spoke: Festocore, Festies and sponsors, second years of operation.
- Set working group to build the ecosystem
- Elaborate actor model (dealing desk, market maker, miner specialist)
- Set the general counsel
- Vote on board election
- Elaborate incentivization mechanism for festo core client
FestoDCSs: Board of director, general council, Festocore, Festies , second years of operation.
- Set actor model (dealing desk, market maker, miner specialist)
- Settle equity distribution for consortium member
- Set incentivization mechanism for festo core client
IPO/TPO: Board of director, general council, Festocore, Festies , second years of operation.
- Set equity public sale
- Set business relationship with custodian and regulator
- Set business relationship with securities exchange
MC* hearing: Board of director, general council, Festocore, Festies , second years of operation.
- Round table start for proof of importance voting process for next MC* rollover
Work Unit: Board of director, general council, Festocore, Festies , third years of operation.
- Equity airdropped to Festo work unit participant on a quarterly basis
- Set business relationship with custodians and regulators
- Set business relationship with securities exchange
- Set business relationship with auditors
MC* vote: Board of director, general counsel, Festocore, Festies , third years of operation.
- The voting process for proof of importance finalization for next MC* rollover
Work Unit: Board of director, general council, Festocore, Festies , fourth years of operation.
- Equity airdropped to Festo work unit participant on a quarterly basis based on score Rx*_weight_%
- Set business relationship with custodians and regulators
- Set business relationship with securities exchange
- Set business relationship with auditors
Festo roadmap is subjective to regulation evolution framework inside major key localization where Festo will operate. Last regulation development is somewhat encouraging, few rules as to be revamped like (701 act) to be effective inside the IoV paradigm. At Festo, we believe that working hand to hand with regulator is the best approach via sandbox or new framework that could be put in place to be beneficial to all parties involved.
About legislation and regulatory environment, at Festo we do not believe code is law, but that law is a bunch of code, we also believe that law should not be made into spaghetti.
0.8.1 Equity Distribution
Like described inside the incentivization section, Festo uses master contract with 4 years duration for equity distribution. After 2 year round table starts for the next master contract rollover that will be voted by Festo shareholder during the third years with proof of importance.
Festo Lead (29%): Festocore receive 2/3 (share class A) and Festies recieve 1/3 (share class C) for their Rx*_weighted_% contribution. Share been distributed to FestoLead via special equity vehicle (SEV) as a vesting period of 2 years.
Sponsor (23%): For their Rx*_weighted_% contribution subject to amount been invested and work unit production. Share been distributed to sponsor via special equity vehicle (SEV) as a vesting period of 2 years
Pre Seed ESC* (5%): For eventSmartcontract that will set the target at $1 000 000 usd raised total via multiple equity fund raising event, those event are physical event where attendee as to scan their QR code to receive their equity (share class B) via Festo ticketing system. Share been distributed to event attendee via special equity vehicle (SEV) as a vesting period of 1 years.
Seed ESC* (10%): For eventSmartcontract that will set the target at $10 000 000 usd raised total via multiple equity fund raising event, those event are physical event where attendee as to scan their QR code to receive their equity (share class B) via Festo ticketing system. Share been distributed to event attendee via special equity vehicle (SEV) as a vesting period of 1 years.
Ambassador (8%): Recieve a 50/50 deal for organizing and promoting event which mean if the eventSmartcontract as 100 000 shares at play the team of ambassador would receive 50 000 shares (share class B). Share been distributed to ambassador via special equity vehicle (SEV) as a vesting period of 1 years.
At the end of the pre seed + seed round Festo will have 500k share left over for the community plus additional share been retained for no show, those share will be airdropped to all ambassador wallet address at the end of the ESC* round.
Investor IPO/TPO (5%): 50 000 000 shares (share class B) will be sold on public securities exchange.
Work Unit (20%): When the consortium will evolve to a distributed collaborative system (DCSs) equity distribution (share class B) will be airdropped inside pre determinated account selection on a quarterly basis for work unit production with proof of value too incentive the proof of activity for Festo stakholders.
The PoI cap table is just for example to illustrate how we airdrop equity to Festo stakeholders. If we take FestoEvent (PoI_25%) airdrop that mean 6250000 (share class B) will be airdrop to FestoEvent participant for their proof of activity every quarter.
How work unit equity distribution work ?
Participant do receive a score based on their proof of activity for work unit contribution via proof of value parameter set by Festo board. The equity distribution occur via a lotteries that pool all contributor together, our goal is to have a wealth distribution Gini coefficient below 0.25 for Festo stakeholders.
As for example let say Eva is a event planner, Eva organised a event during the quarter at play for Halloween with 125 attendee with 30$ per ticket plus fee charges 3.3% + $0.49 (per ticket), is the only event that Eva did during quarter.
During the quarter Festo as 1000 event (work unit) producing PoA = (5000 (+)) with 500 client wallet connected. Highest score per client wallet is (75 (+)) lowest score (2 (+)), average score per client wallet is (10 (+))
Proof of Importance (PoI_25%): 6250000 shares (class B) will be airdropped during the quarter.
Proof of Value: Festo board put a five percentile valuation grid for PoV (+), low (++), mid low (+++), mid (++++), mid high, (+++++) high.
Revenue (PoV); $5 – $50 (+), $51–$250 (++),$251–$500, (+++), $501–$1000 (++++) , +$1001 (+++++).
Participation (PoV); 5–10 (+), 11- 100(++), 101– 500 (+++), 501- 1000 (++++), +1001 (+++++).
Activity (PoV); for simplicity we will discard meta data activity for lead, referral, share, like etc… and only focus on revenue and participation.
Proof of Activity (PoA): Eva PoA for revenue generate $149 = (++) and for participation PoA 125 attendee = (+++)
Proof of Randomness (PoR): For meta data contribution fairness we pool all work unit participant and set a lottery to distribute the equity via full lot size round robin 6250000/100= 62500 rounds . Each (+) is equal to a work unit cnonce linked to client wallet address that provide opportunity to win equity for stakeholders.
Proof of Distribution (PoD): Eva Score = 0.1%, average score per participant = 0.2%, highest score 1.5% , lowest score 0.04%, having a spread of 1.46% between high/low is quite reasonable. Maybe the top PoR add a level of uncertainty that could prove to be more fair for all stakeholders.
What matter is to bring the Gini coefficient ratio below 0.25, consensus are contextual, we expect a constant evolution for PoV parameter.
The real progress is a slow process, our bias is to create richness and share the pursuit of happiness, what matter is to keep high level of reflexivity toward our bias. We don’t do a risk section for one simple reason, the biggest risk for Festo is the statu quo, other risk factor are just trivial risk.
About the Author
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