Thread by @theKimansta

Equity-Backed Collaboration in NFTs

1) Every story you tell exists in a world that contains it. Every art piece you make exists in a story.

2) When you invent a story - through writing or through art - you've also invented the world it takes place in. The storyworld.

3) Never give up your storyworld.

Do you understand?

Under zero circumstances should you, or your collective creator group, ever give control over that intellectual property franchise to any company, distributor, or middle layer.

Ever again. No more.

Let yourself out.

Do not misconstrue my description of the NFT use-case I created and brought into Web3 in March of 2021 as legal or financial advice.

I'm simply describing a use-case for NFTs that, when executed correctly, prevents the creator from creating securities in their property.

4) In web3 - once you've created an intellectual property, you can describe it. Once you can describe it, you can write a Deed to it, and mint that Deed to the blockchain.

5) Write a Deed to the story you're looking to tell. Write a separate Deed to the storyworld it's in.

6) The story you're looking to tell is now "an asset you're looking to distribute to an audience." At @LMOPro, we call this the "Distributed Asset."

7) The ownership and creative control over world that contains this story is "the Storyworld Asset." It's not up for negotiation.

8) In your Deed to your Distributed Asset, you're going to fractionalize your ownership to create a pool of equal parts of equity percentage.

Sustainability in these pool sizes across projects is important for consumer adoption.

9) You're going to mint an equal pool of non-fungible tokens in at least three different artistically-unique pieces with editions.

10) In your Deed to the Distributed Asset, you'll assign a part of equity to each instance of each token ID you've created in your pool.

11) You'll keep 35% as the original creator, or share 35% between a group of creators / partner platform (this accomodates DAO management of IP).

12) Your primary partner platform wrapping the liability of the endeavor keeps 35%.

These are fixed positions, anchored by NFTs.

13) This means that neither you, or any creator/platform receiving that 70% may sell any individual tokens. Each party must move their entire hold at once, or not at all.

Set those conditions in the Deed of Assignment.

14) You're going to distribute 20% of the tokens you've created to represent and anchor the equity assignments in your intellectual property to each and every hired collaborator on the work. From interns to directors / executives, and everyone in between.

15) You're going to make 10% of these tokens available to the public, and there will be at least two versions.

You'll explicitly define what it means to collect such a piece in your Deed of Assignment in a way that maintains compliance with the Howey Test.

via @PaulKimWrites

16) Token-holders can do all sorts of things for your Distributed Asset. Focus groups, merchandising, light or heavy involvement in the story in all sorts of interesting and dynamic ways.

The future is wide-open with specifically-designed audience interactions.

17) If they don't directly collaborate on the work within the interactions you designed, don't pay them at all. The equity assignment is ceremonial without direct participation.

If they do collaborate, you can sustainably design pay systems around equity percentage

The best chip you have in any asset is ownership.

You can limit the financial reward benefits of the ownership to those who collaborate with the property directly,

The value of the collectible is tied to the merit of the art.

This thread was full of Company Ownership Tokens.

The first collection to carry equity assignment to an LLC in the United States within full compliance of the law.

Grab a bundle.

Top Brass Graduate Package #001 — Management Jump-Start

0.28 Eth
opensea.io/bundles/top-br…

Designing Equity-Backed Collaboration for a Limited Liability Company in Sacramento, California took some work, but it's not as complicated as you'd think.

I can establish my LLC with up to 99 partners in a private endeavor with a "Deed of Partnership.

I began this process as the 100% owner of Let Me Out Productions, and I will finish this process as the 23.6% majority owner of Let Me Out Productions.

In order to welcome partners and audience members alike into this Professional Resource Collective, I've fractionalized my 100%

Instead of the Deed purely stating percentage of ownership assigned to partners, I've decided to track and conditionally anchor these ownership percentages to non-fungible token IDs.

I require named partners to maintain the amount of tokens they're transferred.

84% of the ownership of the company has been assigned to named partners, including myself.

Damn. I have 16% left over.

80,000 pieces of equity in my (our) platform.

Well, I want to share it will a community, but I don't want to create securities. What do I do?

In my Deed of Partnership to Let Me Out Productions, I've declared that the 16% unassigned to a named partner in my Deed forms a Trust.

That trust is governed and managed by a separate entity called The Top Brass DAO.

Follow @TopBrassDAO while you're here!

Reflective of my 500,000 parts of ownership, I'm creating 500,000 Company Ownership Tokens. Each token ID on the Ethereum blockchain has been assigned 0.0002% ownership over LMO in the Deed of Partnership.

The token itself is just art, and worth as much as the market says.

^ That one is super funny to me. On certain screens, it just looks like a red box.

The token ID the art is registered to the blockchain with is assigned ownership in the Deed of Partnership.

No individual is named.

The collective 16% assigned to token IDs not transferred to the 20 partners named forms a Trust.

The Trust is governed by The @TopBrassDAO.

Members of The Top Brass DAO holding tokens with the IDs assigned ownership in the Deed of Partnership have expanded rights in the DAO.

Token holders can expand those rights by collecting more than one token and reaching the Collection Benchmark Achievements in The @TopBrassDAO.

Most achievements are accessible through the Intellectual Properties we produce as a collective, as well.

So the first perk of these Company Ownership Tokens is the equity assignment in the Deed, which you can print out and highlight when you want, and identify as a part-owner or part of "The Top Brass" of Let Me Out Productions.

Come on now! Look at you, The Top Brass!

The @TopBrassDAO uses the equity percentage to measure commitment to the success of the collective, and expands rights and access to collaboration with @LMOPro once holders reach specific benchmarks, which can be seen here:

(open image in new tab, expand)

The second perk of these Company Ownership Tokens is that these token-holders are the only creators we're ever taking pitches from.

They aren't required to pitch us anything, or work with us at all, for that matter. Optional.

My job is to make that attractive.

For that, I need support, and I'm very grateful for the 67 collectors we now have in our offerings.

The third perk is that these token-holders get to work with a Creative Producer of @LetMeOutProductions to develop their project on this structure from napkin to production-ready.

From their, the token-holder may choose to pitch to @LMOPro, knowing our terms:

- 100% franchise remains with token-holder, period.
- 35% of the Distributed Asset remains with token-holder, and they can negotiate additional partners / assign Creative Control with that hold.

- 35% of the Distributed Asset belongs to @LMOPro, and full liability, administration, and will respect Creative Control decisions of the token-holder with an obligation to the quality of the result.
- 20% will be distributed to your cast/crew/writers/staff/musicians/artists.

10% will be available to your audience to collect.

You can adjust this part of the pool to fit your ideas.

Our basic model has been demonstrated w/ @LMO_PressPass. You can be part of the Executive Producer collective in Season One!

Collect a token for the right to sell memes!

Season One of Press Pass is a fictional retelling of my lived career experiences covering the worst professional basketball team of all time for a decade.

I love the fans of this team, and I want to give them something to celebrate from our shared time in the doldrums.

We're gonna take a look at a bunch of fictional sports media personalities covering the "Sacramento Majesty" of the "Basketball Syndicate of America."

The Sac Majesty & every other team in the Syndicate, will be run by token-holders in a show-support asset called The BSofA DAO.

The Los Angeles Wet Fountains.
The Utah Slam Poets.
The Manhattan Pantaloons.
The Bay Area Traffic.
The Washington Government.
The Chicago Redliners.
The Miami Crypto.
The Malibu Yachts of Los Angeles.
The Carolina Storm Hogs.
The Boston Potatoes.
The Denver Treasure.

The Portland Freebirds.
The Dallas Rodeo.
The Nashville Whiskers.
The Wisconsin Mad Moose. (reppin Madison)
The New Orleans Trombones.

Who Dat Dat Say Dey Gon' Beat Dem 'Bones?

The Phoenix Cacti.
The Cleveland Dutch.
The Houston Beyonders.
The Bronx Scream. 💀🤣
The Philadelphia Salt Oats, also known as the Salty Jawns.

The Nova Scotia Frosties, owned (we call them Presidents) by the @trailerparkboys and @LilTunechi.

Go sleep on a mattress. Not us.

The Austin Whiplash.
The Atlanta Caucasians.
The St. Paul Yoopers. (Google Yooper, and say "Google Yooper" out loud)
The Detroit Berries. (Father of Motown)
The Iowa Happy Syrup. 💀🤣

The 2012 BSofA Championship winners, as decided by our community...

The Jacksonville Sawgrass.

The Azuki project -seemed- to have attempted to use this historical model. They generated $70m+ in value.

Zaga didn't buy a token or work with us, and missed on our trade secret of wrapping the IP in a Deed.

I've generated $3k.

March, 2021 genesis, not entitled. Time is near.

So what appears to have happened there is a ownership involved with passive financial reward, which will ring all four bells on the Howey Test.

Any collection offering any passive financial reward, meaning cryptocurrency, for holding their tokens may be in the cross-hairs.

When you wrap your Intellectual Property / platform in a Deed, you're able to adjust the rights assigned to the token-holders - but you should not modify or pull the ownership percentage assigned without a predefined reason why.

The Deed should be on-chain, with a change-log.

The Deed allows your token-holders to know exactly how they are interacting with the platform or property.

No more cartoon roadmaps.

Thoroughly-spelled out interactions between project or platform and their token-holders.

Each token is a unique piece of art with a unique name, organized in our Company Ownership Collection.

The idea is to get inspired to tell a story from the art and title combination.

Then form a franchise around that idea, and get the process started.

I've made a huge variety of pieces so far to accommodate the wide variety of tastes I've seen in web3 in our Company Ownership Collection.

I hope you benefited from this thread, and I hope you collect at least one token.

You graduate in the @TopBrassDAO with seven!

On the intellectual property level, you fractionalize your ownership in your Deed of Assignment, and mint a token pool that can handle the scale of your ambitions.

You'll have to create at least three different artistically-unique pieces for this token pool.

Honestly, the entire strategy is laid out in the LMO Structure for Tokenomics.

The first Equity-Backed Collaboration model in the history of web3 and non-fungible tokens.

letmeout.productions/lmo-structure/

I artistically "token-gated" the paper by building a literal "gate" of tokens that scroll when you read it from the website link.

Cute.

Collect one! Collect seven!

Want a bundle? Tell me!

In the immediate, we're keeping the lights on against a year and a half of obscurity.

I created this ""LMO Structure Abacus" in a spreadsheet.

Plug your numbers in, follow the guidelines, and see how the LMO Structure can unlock your highest potential as a storyteller.

docs.google.com/spreadsheets/d…

Collecting a Company Ownership Token means that one of our Creative Producers will sit down with you at a rate of two meetings each month, capped at three hours, to help you turn your idea into a scalable web3 intellectual property.

I used to live in Brooklyn (Bensonhurst).

Once your property has:

1) your franchise deed established

2) your distributed asset deed established w/ fractions

3) a budget number that produces highest quality of audience experience

3) tokenomics plan thoroughly designed (three-version model is the basic application)...

You're ready to pitch.

Now, at this stage, you don't need us.

You can create your tokens, strike out on your own, form community around the Deed and interactions you've designed with our help.

No hard feelings at all.

Our Creative Board process may be too centralized for some

If you do decide to pitch, and your property is on-boarded, you're agreeing to:

1) Have @LMOPro handle all primary production responsibilities, and any other executive partnership not built into the audience-exclusive collectibles would be negotiated from your holdings.

2) The exact token pool and reflective equity splits as defined in the LMO Structure, with the ability to create versions for specific departments in your production, if you so choose. We advise keeping the same version for everyone - us, you, everyone - for political purposes.

3) Make 10% of your Distributed Asset we're producing to the audience, with the prospect of the token art completing the financing for the production past our installed launchpad into your project.

#98 • Cavern Tales

You know you want this franchise. Go collect the token!

4) Our assistance in organizing your production to meet Union standards, provided our platform can always extend up to 50% of the opportunities to those without Union membership, with the goal of bringing newcomers enough experience to qualify for membership.

5) Our assistance in ensuring your Tokenomics system does not violate the Howey Test in any way by facilitating all rights management and collaboration reward systems through our @TopBrassDAO, should you choose to enact that option.

#102 • Riverview.

The apartments I lived in my senior year of college. Went to Santa Cruz just to get the pic for this token.

0.102 Eth.
opensea.io/assets/ethereu…

6) Enjoy and make use of our full production capabilities as a platform, including all resources, departments, and properties. In some cases, we'll facilitate building or acquiring property in order to meet the highest quality of audience experience your story can produce.

7) To always pay your hired collaborators at or above Union-agreed upon standards, if applicable, for the scale of the property, throughout the production chart. People first. People second. People third.

That's how you save time. The only way you save time.

8) Not throw a fit in the event the Creative Board does not on-board your property. 🤣

You have the full right to take it elsewhere, and every other platform with a Company Ownership Token has the right to watch these symposiums and bid for your project if we turn it down.

I have to go through this process, too, in order to produce with Let Me Out Productions. My ideas have to be approved by the Creative Board, and my own vote is delegated to a vote shared by The @TopBrassDAO.

The @TopBrassDAO shares one immutable seat on the board.

The @TopBrassDAO shares a total of two seats on our Creative Board right now.

One of those seats can be filled by any individual, platform, or DAO that collects a minimum of 20,000 of these Company Ownership Tokens.

4% ownership, in total.

We're releasing these Company Ownership Tokens on a curve I invented for the Platform side of the LMO Structure.

"Chronological Growth Curve," which is something I feel almost every project promising interactions with their token-holders should adopt to some degree.

Token #1 - "The One You Want Most" sold for 0.001 Ethereum back in June of 2021.

It was minted to OpenSea on March 24th, 2021, cementing our model to the chain as a HUGE potential maker of history.

Chronological Growth Curve lists the token across from the order of release.

Some of our first 100 tokens are listed this way, but around 80 have early-adopter lists in some format.

Token #101 is 0.101 Eth.
Token #102 is 0.102 Eth.
Token #103 is 0.103 Eth.

Token #186 will be 0.186 Eth.

Token #80,000 will be 80 eth.

We are not listing 80,000 tokens at once. We're demonstrating a sound, legally compliant tokenomics system for the web3 community to both track and support.

The Chronological Growth Curve ensures a limited amount of tokens are available from the platform, and releases more as collectors join.

We don't want these to ever be seen as a facility for investment. We want dedicated storytellers and their platforms joining us.

So for this active demonstration - which allows us to grow our community, build our platform to it's highest potential as a collective (literally), and scale appropriately against growth - we'll have 100-200 tokens available to the community, with the right to freeze release.

Right now, we have 35 unique collectors in the pioneer position we've been in for a year and a half.

There's 185 tokens released to date, and around 135 available. So we can release up to 65 more, today, but if tokens don't get collected...

... we can't release any more until new collectors join the community.

200 available from @LMOPro, listed at an ETH value directly across from their release chronology.

Token-holders may make their own art for a future token for every token they hold.

If a token-holder makes art for a future token, they can decide to make that token available to a marginalized individual instead of listing it on the marketplace.

I reserve that right for my own creations, of which all of these in this thread are.

Opportunity Uplifted.

That said, I'm trying to pay last month's bills and August's bills, let alone launch phase one of production for Season One of @LMO_PressPass.

$180k, clean.

Co-Producer credit access is 10,000 tokens in the Season.

Co-Producer execution is paid through net profit share.

10,000 editions of the same meme to launch the world's first NFT-powered sitcom.

The 1st joke is in the financing?
WHAT A STORYTELLER! WHAT IMMERSION!

There's an angel degen reading this. Do it. Don't look back. Change the world. That's what will happen.
opensea.io/assets/ethereu…

What if it was @ryder_ripps and @Pauly0x and @NotLarvaLabs?

91 Eth jump-in is yet another legendary thing they'll write about in web3, helping what "appears" to be a troll show... but is actually going to be the highest quality sports media sitcom humanity could fathom.

The video in the token is the encapsulation of the underwhelming experience of a person going from idealism of outcomes in a career to the actual outcome of that career, with the production quality reflecting the character's life position and impressions of the team they covered.

Version One is just the meme.

Version Two is the meme with actual moments from the #Lensface series, troll influencer content I made on the sidelines of pro basketball for five years in order celebrate & capture my experiences covering a terrible pro team. With love, of course.

Nobody really watched this series, which made it even funnier to me.

The whole thing is a true work of art. The clip is done in a style that homages this 5-year series.

It's also something the character will eventually do in the show. Immersive.

If we find collectors interested in gathering the 530,000 Version One tokens and the 916 Version Two tokens off the marketplace, we'll have achieved enough Ethereum to produce all 24 episodes in Season One along with the BSofA DAO, which has separate tokenomics.

Any collector with one token can make "memes of production" off the strength of content in the show and sell them as NFTs through a system involving The @TopBrassDAO and our Smart Contract.

We're building this, and we need your help!

Any collector with at least 25 editions, in total, of V1 and V2 combined can make "memes of production" up to 4:30 seconds, and sell them as NFTs.

Hell, some might be so good, they'll be added to the #PressPass canon by token-holder governance.

Any collector with at least 10,000 editions, in total, of V1 and V2 combined qualifies to participate on the property as a credited Co-Producer.

Co-Producers help guide our marketing initiatives for the show, and must attend two meetings a month for 9 months, or until full wrap.

Any collector with at least 53,091 editions, in total, of V1 and V2 qualifies to participate on the property as credited Executive Producer.

EPs give notes on at least 1/2 the season output of 1st drafts / rough cuts. Office on set is optional, but provided, with SOP agreemeent.

We're looking for individual token collectors!

V1 is like $15.
V2 is about $33.

We're looking for graduated collectors. We're looking for Co-Producers and EPs.

We're looking for Company Owners, 200 at a time, using art to anchor their equity and enforce their rights.

Join us here!
discord.gg/njzs7Teu9d

@threadreaderapp unroll please, thanks