Referral Pool

Two kind of referrals have been developed.

1/ The classic one where a referrer and a referee are rewarded when the referee registers and creates a wallet in Frak.

2/A far more sophisticated and rewarding one with which the referrer shares a given content to his/her referees and will be rewarded for every earnings made by the creator, at any referral level.

Reward for a new Wallet Creation

For every wallet created by a referee, the referrer and the referee’s wallets are credited with FRK50 each. The users can find in the app a personal code (the user_id) that they can share very simply with their friends.

Every time a new user signs in, fills in the referrer’s personal code and creates a wallet in FRK, both wallets received the FRK50.

n-Level Reward by sharing a Content

When users share a content to their contacts, they create some value for the content. Therefore, Frak offers them to capture a share of this value because they act as a distributor/reseller.

Let’s take a given content $P_i$ and a user $A_1$ that shares the content with the users $A_2$, $B_2$ and $C_2$. The user $C_2$ shares the content with the users $A_3$, $B_3$ and $C_3$.

As a big picture, when the user $C_3$ interact with the content$P_i$, the user $C_2$ will earn 6% of the earnings of the Creator and the user $A_1$ will earn 80% of what $C_2$ earned : 4.8% of the earnings of the Creator.

If the user $A_1$ had haven a referrer, this referrer would have earn 3.84% of the earnings of the Creator (80%x4.8%).

Use Case : Share purchase

Let’s take a case where the user $C_3$ purchase a share of the content $P_i$ at given price $R_i$.

20% goes to the Frak Foundation. Then, the Creator earns a gross revenue before referral reward equal to 80% of $R_i$.

As $C_2$ is the referrer of $C_3$ at level 1 and $A_1$ referrer at level 2, $C_2$ and $A_2$ earn those amount :

$$C_2 : R_{C_2} = 10\% \times R_i$$

$$A_1 : R_{A_1} = \frac{1}{2} \times 10\% \times R_i$$

Thus, the Creator earns a net revenue equal to :

$$Creator P_i : R_{P_i} = (80\% \times R_i) - (R_{C_2} + R_{A_1}) = 65\% \times R_i$$

Use Case : Earnings thanks to the consumption

Let’s take a case where the user $C_3$, owning a Diamond Fraktion of the Content $P_i$, watches to the content $P_i$. The Creator earns the revenue $R_i$.

Then,

• the Creator shares 35% of $R_i$ with $C_3$.

• 10% of $R_i$ go to in the Content Pool.

• 6% of $R_i$ go to the Referral Pool.

As $C_2$ is the referrer of $C_3$ at level 1 and $A_1$ referrer at level 2, $C_2$ and $A_1$ earn those amount :

$$C_2 : 6\% \times R_i$$

$$A_2 : \frac{4}{5} \times 6\% \times R_i = 4.8\% \times R_i$$

Thus, the Creator earns :

$$Creator : (100\%-35\%-6\%-4.8\%) \times R_i = 44.2\% \times R_i$$

General Formula

$$\left(\frac{4}{5}\right)^k \times 6\% \times R_i$$

The share of earnings given to all the referrers :

$$\sum_{k=1}^{n}\left(\frac{4}{5}\right)^k \times 6\% \times R_i$$

The Share of revenue given to the referees cannot exceed 30% ($n=\infty$)