How sponsorship tokenization works
Businesses interested in receiving sponsorship funding will use Sponsy to issue their own custom crypto tokens — custom Signature Tokens. In order for Signature Tokens to have consistent and concrete value, they will be backed by our SPONS tokens in a certain proportion. It means that it’s impossible to purchase any custom Signature Token without prior purchasing of SPONS tokens and converting them to target Signature Tokens. Sponsees are free to issues as many custom tokens as it may be deemed financially necessary and can burn redundant tokens or issue additional portion of them any time. However, there may be specific settings associated with a sponsorship offering that would prohibit sponsees from collecting more money that it was originally intended. These Signature Tokens will further be sold to sponsors for opportunities to promote their brands during the sponsored event. Thus, by emitting own sponsorship tokens, businesses-sponsees create many intersecting virtual sponsorship economics.
After issuing Signature Tokens, sponsees shall list as many sponsorship assets they have as possible, and assign a finite price denominated in Signature Tokens to each of them. Each sponsorship asset will have a detailed description, location, attention score and other properties stipulated to draw sponsors’ attention. Sponsorship Offering begins! Then, sponsees can specify the way they’d like this offering to be carried out — whether it should raise prearranged hard cap and terminate automatically, or it should run indefinitely, or it should run in a form of auction.
Step by step sponsorship deals description
- Let’s assume there is a Blockchain & Co blockchain exhibition that is willing to attract sponsorship financing. After having examined its financial needs and checked the price of SPONS tokens, sponsee will issue a certain number of custom tokens with a ticker of BLK- SPONS, backed by SPONS. BLK-SPONS are Signature Tokens. Signature Tokens can be distinguished from other tokens by -SPONS postfix.
- Sponsee lists his sponsorship assets. Since it’s an exhibition, each stand, banner, coffee break table, leaflet can be tokenized. Each newly tokenized asset will be assigned a BLK-SPONS denominated price. It’s essential for sponsee to list many various sponsorship assets, as they could bring more sponsors on board.
- As soon as BLK-SPONS tokens become available for purchasing on Sponsy platform, they can be bought by sponsors.
- Each sponsee receives an appointed manager-arbitrator. He/she will be selected randomly among a geographically distributed range of sponsored experts. The manager will personally be controlling the sponsorship deals flow and can be asked any question pertaining to Sponsy platform capabilities, as well as disputes resolution.
- Sponsors are browsing sponsorship opportunities, focusing on their own preferences (which could be location-based or event-specific), and eventually do discover something that suits them well. They study the details of sponsorship assets they’ve chosen. Thanks to information regarding sponsorship assets being stored in a distributed ledger, it is verified and guaranteed. Sponsors can find other sponsors’ reviews about each sponsorship asset and make a final decision. If the value received by sponsors in exchange for their money is perceived to be good enough, sponsors will buy signature BLK-SPONS tokens, thus starting the sponsorship process.
By acquiring sponsorship assets in Sponsy, sponsees get an opportunity to flexibly regulate the amount of money released to sponsees. Depending on the progress and/or efficiency that sponsee delivers, sponsor may wish to allocate bigger or smaller chunks of total funding.
Locking SPONS tokens up in escrow not only renders deals transparent, but also improves SPONS tokens economy.