# Overview
Other languages: [中文版本](https://whitepaper.frak.id/zhong-wen-ban-ben-the-sybel-ecosystem-white-paper/) | Français (soon) | Deutsch (soon)
{% hint style="info" %}
**Frak is Defi Protocol to build the Future of Creator Economy**
{% endhint %}
The **Frak Protocol** is the world’s first Consumption-based Defi Protocol, designed to align the interests of creators and their community by more fairly distributing the value of content.
By investing in derivatives, named "Fraktions", tied to a specific content, users can earn a yield based on their consumption. Frak relies on a Proof-of-Consumption (PoC) consensus mechanism for processing transaction.
Fraktions are derivatives that are tied to specific content, such as a YouTube channel. The yield of these derivatives depends on three factors: the consumption of the content by the derivative owner, the consumption by the entire community of derivative owners, and the consumption by referees (people whom the derivative owner shared the content with).
The rewards for consuming content are distributed as follows:
* 35% goes to the derivative owner for each minute of content consumed
* 10% goes to a content pool that is shared among all the Fraktions owners at the end of the day,
* up to 30% goes to referees
* the remaining balance goes to the content owner if the content has been claimed.
All transactions within the Frak Protocol are conducted using the FRK utility token. Holders of FRK can exchange their tokens for other cryptocurrencies or for fiat currencies such as dollars or euros.
Advertisers can purchase advertising space using FRK, the received FRK are redistributed to the community via the Frak Foundation.\
\
For their part, the holders of the FRK tokens are able to capture a fundamental value through its main utilities, receiving special deals from partners who accept FRK as payment, and gaining access to exclusive content from content owners in exchange for FRK.
# Smart-Contracts and Audit
###
# Essential Terms
Definitions
* **Creator:** any entity engaged online who creates work shared online either for free, with or without advertisements, or in exchange for a certain amount of any currency (cryptocurrency or FIAT). This can be via a one-time payment or through a recurring subscription fee.
* **User:** any entity engaged online who consumes a Creator’s work online either for free, with or without advertisements, or in exchange of a certain amount of any currency (cryptocurrency or FIAT), with a one-time payment or through a recurring subscription fee.
* **Advertiser:** any publisher, marketer, business, organization or charity that needs to promote itself and are willing to pay for it.
* **Content/Creator Work:** any work shared by a Creator to their Community including texts, images, graphics, audios, videos. . .
* **Governance and Utility Token:** FRK
* **Social Media Platforms:** any platform such as Discord, Telegram, Facebook, Twitter, and Instagram where the User has friends, fans or followers and the advertiser pays to distribute their content.
* **Community:** the people that a Creator knows, where the relationship is managed on any online channel/platform. It does not refer to any particular social platform.
* **Creator Economy:** similar to the gig economy, a system where Creators are rewarded or are sharing content to their social network.
* **Smart Contract:** business instructions that are programmed in the blockchain and executed along with a transaction to enforce the terms of a relationship.
* **Qualified Interaction:** interaction made by a User with a Creator Work counted in the purpose of paying Users and Creators (ie watching a Youtube video).
* **Standard Period :** period of reference to calculate Revenue Sharing with Creators. Originally set at 1 (one) week.
* **Initial Price:** Price for the minting of one Fraktion during the first Standard Period.
* **Current Price:** Recalculated price for the minting of one Fraktion the first Standard Period.
# Context
Creators have played a central role throughout history, creating works such as paintings, books, music pieces... that have become a part of human history. However, for centuries, creators have been dependent on centralized entities such as states, kings, religious leaders, and rich patrons to commission their work. This trend has accelerated in the 20th century with the rise of arts such as cinema, music, and literature, where movie directors, authors, and musicians are controlled by centralized organizations like studios, publishers, and music labels, earning only a fraction of the value they create through their work.
The internet brought hope for creators to reach a wider audience without the need for centralized organizations, but it soon became clear that the value generated by their work was being captured by large platforms. This has led to creators earning a fraction of what they deserve.
Frak Protocol aims to change this by creating a decentralized relationship between creators and users, where creators can earn a fair share of the value they generate and users can also benefit from the value they contribute. The Frak token serves as a conductor in this relationship. Additionally, centralized commissioning in the cultural world often leads to censorship, Frak Protocol aims to break away from this centralization.
> **Why shouldn't creators and users also receive the dividends generated by these services?**
Frac is the name of the orchestra conductor outfit. Frak token aims to orchestrate the relationship between Creators and Users.
And we also know that sometimes centralized commissioning in the cultural world is synonym with censorship. In 1978, the famous series "Battlestar Galactica" had to find a world instead of the censored "fuck".
> **So let's frak the centralization !!!**
# Genesis
To enable Creators to really benefit from the value they create and also reward Users who contribute to creating that value, **Frak Protocol** is setting up a fully decentralized and transparent environment built on a scalable and secure blockchain with decentralized protocols.
# Who are we?
## The founders
Virginie and Matt founded a company in the Creator Economy: **Studiofy**, a multi channel network, which becavme the biggest digital talent agency in France before being diverted to one of the biggest global Multi-Channel Network (**Studio71**). \
Before that, Matt cofounded two other companies: **Makever**, one of the biggest producers of series and films in France sold to a leading European production group, and **Linkee**, a nonprofit platform to redistribute unsold food to charities.
Three years ago, Virginie and Matt cofounded their second venture together, **Sybel**, an podcast platform. They brought their experience in the Creator economy to podcasters and help them reap their fair share of financial benefits Sybel has more than 50k subscribers and has already distributed $3M to Creators in less than a year .
During the summer 21, by creating an algorithm and a smart contract in order to split the royalties between every creators, Virginie and Matt thought about an Defi Protocol enabling all stakeholders of a content to get paid fairly : Creators and Users. It was the embryon of **Frak**.
## Our Vision
Our vision is to give Creators the rightful place they deserve in society. The value must be shared equally between those who create, those who fund and those who consume Content. By empowering all these people to govern and to be rewarded for the value they create, whether that be through work, investment or engagement, Frak Protocol uses Blockchain technology as the ideal way to make that happen.
## Our Mission
Admittedly, we are only at the beginning. What we are developing with our technology is has much broader implications. We are building a real revolution. And we mean it in the same exact sense as it was once employed for the Industrial Revolution. In less than 10 years, we will enable all workers to own their working tool by building an equitable redistribution system between investors, workers and users. Thanks to our technology, we’re able to track any interaction and compensate people at their fair value. Imagine a world where Creators’ earnings are directly connected to the consumption of their work, in a transparent way. Imagine a world where Creators share a part of those earnings directly with their community. Imagine a fair and sustainable world, where the value goes to those who help create it rather than intermediaries. This world is called **The Frak Ecosystem**.
# An algorithm to decentralize the content monetization
The core of the reactor of Frak Protocol is based on two pillars:
* A utility and governance token ($FRK) that allows Creators and Users to vote for some decisions, benefit from Frak's partnerships, can be traded with other cryptocurrencies and that allows to be rewarded respectively for their work and commitment.
* The possibility for Creators to mint their work and build content derivatives based on the consumption of their own content. In return, Creators earns a substancial share of the yield of the derivatives. Users invest in those derivative depending on the content they like, consume, share. Indeed, the main principle of Frak is :
> ### "The yield only start with you commitment"
# Why Frak?
There are already dozens of projects around for Creators, mainly for musical artists. But none of them bring what **Frak Protocol** offers:
* A unique Defi protocol based on the content usage to invent an innovative and incremental way to monetize content, based on the content usage as underlying data.
* A total decentralization of economic rewards, but also a decentralization of the governance of the ecosystem. Token holders can decide the level of revenue sharing with Creators with no minimum nor maximum. They can choose the economic models to access content (subscription, free, advertising, one-time payment, gamification...). They can also choose the features to be developed. But above all, they can profit from all the benefits offered by the platform. All of this is impossible with social tokens platforms or music NFTs marketplaces.
* No go to market phase: **Frak** has already revenue and this revenue is shared with Creators.
# How to enter Frak
Any entity who receives an **invitation** can enter Frak Protocol. Our world is a world that rewards engagement.
Thus, any user performing interactions in the ecosystem will be rewarded: \
as soon as a User has an interaction with one Content already registered, they automatically receive a **Standard Fraktion** of this content. This Fraktion enables both Creator and User to start earning tokens. The yield of a Fraktion depends on different variables with specially the usage of the community.
However, Content Creators and Fraktions owners will be more rewarded thanks to an incentive system that multiplies profits and rights (see [*Earning Model*](/frak-protocol/wallets)).
# What is the extension for?
The extension is your new best friend.
The extension is a plug-in installed in your browser to indicate your earnings by following your content consumption.
Screenshot of the Frak extension installed in the browser
# How to install the extension?
From December 13th, 2022, go to frak.id
# How to use it?
# Wallets
When a Creator registers on Frak, a custodial wallet is created to host the Creator NFT and all the referred revenue.
For the users, a wallet is created either if the User bought a Common Fraktion or higher, or if the revenue exceed FRK100.
Frak uses [Fireblocks](https://www.fireblocks.com/) as a custodial solution to run the wallets and provide maximum security.
# Meet the Fraktions
One Derivative for both Creator and Users
The Fraktions are content derivative based on the consumption of the content as underlying data. In other words, the Fraktions are financial products whose profitability depends on the usage of a given content. Then, with Fraktion comes the new notion of active income as opposed to most products and investments that yield passive income.
Fraktions with different profitabilities
When you buy a share of Google, you can expect the increase of the share price or to get paid with some dividend. But those potential revenue don't depend on you, your skills or your actions. They are passive.
Otherwise, the Frak Protocol invented a dynamic APY that is directly impacted by the usage of the Fraktion's holder but also all the referees to whom he has shared the related content, and in a lesser proportion, also from the rest of the community.
The following chapter will detailed all the algorithms behind the Frak Protocol.
# Creator Work and NFT
# Why NFTs on FRAK?
Before thinking about monetizing Creator Work, Creators must guarantee their community that they are interacting with the original work from the Creator, and not a copy. This is why **Frak** gives Creators the possibility to easily mint their work and, in this way, certify the authenticity of their work.
**This NFT, owned by the Creator, enable to receive all the revenue linked to the content. If the NFT is transfer to another wallet, the revenue will be transfer on this new wallet.**
# IP Certification
Thanks to an open-source ERC1155 compliant token, Creators mint their work as a unique NFT. This NFT is a certificate that prove the ownership of the work. **Frak** is responsible for making all the necessary checks to guarantee the authenticity of the ownership to the community.
To this end, Frak connects via API to the providers that distribute the content in order to verify that the creator is the owner of the Youtube channel or the podcast, for example.
# Revenue Sharing
Frak's ERC1155 Smart Contract rewards all stakeholders every time a content is consumed. Obviously with token holders, who invested in Fraktions, but also with other rights owners who may have a claim on the royalties.
Frak's Smart Contracts offer the most secure, frictionless, fast and transparent way to pay their dues to rights owners.
# Creator Work Minting
# Initial Content Minting
For each piece of work, as soon as the Creator is signing in in **Frak**, a personal NFT is minted, owned by the Creator, present in the Creator's custodial wallet.
Then, Fraktions are dropped and can be purchased by users. The number of dropped Fraktion and their type are decided by the [Fraktion Supplier](/frak-protocol/creator-work-minting/fraktion-supplier):
* Diamond
* Gold
* Premium
* Common
* Free
Each type matches with a profitability. More profitable Fraktion are rarer.
One **Free Fraktion** is automatically minted for **free** as soon as a User claims it after having interacted with the content.
Every Fraktion is minted once bought by a User or an Investor. **The Initial Price** is the same for each Creator and for each work. It is defined as below :
Initial Price
Diamond
FRK3000
Gold
FRK1200
Premium
FRK500
Common
FRK90
Free
One for Free
# Fraktion Price Index Formula
The Current Price (CP) of a fraction a Content *i* with a rarity *j* is recalculated every week depending on $$\gamma\_k$$ :
$$
CP\_{ij}(w)=Max \bigg(, (\gamma\_j)^2 \times CP\_{ij}(w-1), , 0.8\times CP\_{ij}(0)\bigg)
$$
$$w$$: current week\
$$\gamma\_j(w)$$***:*** gravity coefficient
Creators can choose to supply their fraction at once or within a defined period of time. The Current Price is always at the moment of the minting.
{% hint style="danger" %}
The Current Price is always at the time of the minting. If a Fraktion is supply at week $$w$$ but minted at week $$w+2$$, the price will be $$CP\_{ij}(w+2)$$.
{% endhint %}
If the number of Fraktions minted is equal to the number of fractions supplied, THEN the price depends only on the consumption.
# Fraktion Supplier
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This function allows to fix automatically every week the new supply of fraktions for a given content and a given profitability
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### Free Fraktion
Free Fraktion are minted only once when a user is consuming the content for the first time. There is no supply before the minting.
### Initial Supply
The number of Fraktions for the initial drop is the same for every content : `Date 0`
| Profitability | Initial Drop | Initial Price |
| ------------- | ------------ | ------------- |
| Common | 20 | FRK 90 |
| Premium | 7 | FRK 500 |
| Gold | 3 | FRK 1200 |
| Diamond | 1 | FRK 3000 |
### New Supply
Every week (`Date 0` + `7 days`), we check for every profitability if all the fraktions have been sold.
**Case 1 : If all the fraktions haven’t been sold**
No more fraktion are supplied
The price of the fraktions that haven’t been minted yet is recalculated depending on the algorithm decribed [here](https://www.notion.so/Update-du-27-09-22-85d3073e47554ab5807babf20b947f77).
**Case 2 : All the fraktions have been sold**
New fraktions are supplied.
The number of new fraktions $$n\_w$$ supplied depends on :
* the number of fraktions minted during the former week
* the velocity at which the fraktions were minted
{% hint style="success" %}
$$n\_w$$ is in the range of 80% and 200% of the number of fraktions minted the last week, $$\rho\_{w-1}$$.
{% endhint %}
Let $$t\_k$$ the timestamp when the fraktion $$k$$ is minted
Let $$t\_0$$ the timestamp of the last weekly anniversary (when the new fraktions were supposed to be supplied the last week). $$t\_0=t-168$$.
$$t\_0$$ and $$t\_k$$ are set in hour
$$
n\_w=m\_{w-1}\times\bigg(80%+(200%-80%)\times \mu\_{w-1} \bigg)
$$
where
$$
\mu\_{w-1}=1-\frac{\sum\_{k=1}^{m\_{w-1}}(t\_k-t\_0)}{m\_{w-1}\times24\times7}=1-\left(\frac{\sum\_{k=1}^{m\_{w-1}}t\_k}{m\_{w-1}}-t\_0\right)\times\frac{1}{168}
$$
Example :
{% embed url="" %}
# The gravity coefficient
A coefficient used in the calculations of the earning model is tied to each Creator's account : the Creator Badge. The evolution of the Content Badge depends on the gravity coefficient $$\gamma\_k$$.
The gravity coefficient of a given content $$k$$ is a function with two variables : $$\Delta\_k$$and $$\Omega\_k$$.
Symbol
Percentage of minted Fraktions out of the the total number of the supply
\Delta_k
Relative Growth of the consumption of the content k
\Omega_k
$$
\gamma\_k=\Delta\_k \times \Omega\_k
$$
For a given week $$w$$, the gravity coefficient is calculated as below:
$$
\gamma\_k(w)=\Delta\_k(w) \times \Omega\_k(w)
$$
#### Percentage of minted Fraktions $$\Delta\_k$$
$$\Delta\_k(w)$$ is calculated like below:
$$
\Delta\_j(w) =\cfrac{\sum\_{k=1}^{w-1}\rho\_{j}(k)}{\sum\_{k=1}^{w-1}\sigma\_{j}(k)}
$$
with:
* $$\sigma(k)$$: number of Fraktions of content $$j$$ supplied during week $$k$$
* $$\rho\_j(k)$$: the number of Fraktions of content $$j$$already minted at week $$k$$
If $$\sum\_{k=1}^{w-1}\rho\_{j}(k)=0$$ or $$\sum\_{k=1}^{w-1}\sigma\_{j}(k)$$=0 then $$\Delta\_j(w)=1$$.
$$\Delta\_j(1) =1$$
#### Growth of the consumption $$\Omega\_k$$
$$\Omega\_k$$ is the relative growth of the number of $$CCU$$, ie the ratio between the growth (positive or negative) of units of content consumed last week divided by the total number of units of content consumed from the beginning:
$$
\Omega\_j(w)=1+\cfrac{\Delta CCU\_{j}}{\sum\_{k=1}^{w-1} CCU\_{j}(k)}=1+\cfrac{CCU\_{j}(w-1)-CCU\_{j}(w-2)}{\sum\_{k=1}^{w-1} CCU\_{j}(k)}
$$
with $$CCU\_j(w)$$, number of Consumed Content Units (Number of minutes played for video and audio, Number of minutes read for text) of content $$j$$ during the week $$w$$.
If $$CCU\_j(w-2)=0$$ or $$CCU\_j(w-1)=0$$ then $$\Omega\_j=1$$
# Content Badge
Then, the Creator Badge for the $$Creator\_j$$ and the week $$w$$ is calculated every week depending on the parameters defined above.
$$
{B}*{Content\_j}(w)= Max \bigg(\gamma\_j \times {B}*{Content\_j} (w-1),,1\bigg)
$$
$$B\_{Content\_j}(1)= 1$$
{% hint style="info" %}
If the number of Fraktions minted is equal to the number of Fraktions supplied, then the Badge depends only on the consumption of the content.
{% endhint %}
:warning: If a content is only owned by investors (who are not engaged with the content), then the Badge decreases.
# Rights granted through the ownership of a Fraktion
Example of right granted through the ownership of on fraction of NFT
Right
Governance (micro DAO)
User can participate to collaborative decisions with the Creator
Exclusivity
Users can benefit from some content exclusive or dedicated live
Discount
On chain and off chain discount to attend a live event for instance
Extra Profit Sharing
Creators can give to fraction owners access to extra revenue, as advertisement or subscription revenue
# Earning Model
By creating Content for the Creators and interacting with content for the Users, The Frak Ecosystem is a flying wheel that enables rewarding those who create value.
# Token Generator Factor
The sustainability of the Tokenomics
In order to create a sustainable economy and increase the value of the $SYBL, it will always be more and more difficult to mint new token. Then earnings depends on the $$TPU$$, the Token Per Unit. $$TPU$$is a logarithmical function depending on the number already minted. **It is recalculated every month depending on the number of tokens already minted.**
$$TPU(m)$$for the month *m* is calculated like below:
$$
TPU(m)=TPU(m-1)\times \bigg( 1-\cfrac{Total , Minted}{Total,Supply}\bigg)
$$
with **:**
$$TPU(m-1)$$: Token Per Unit for the month *m-1*
$$Total , Minted$$*:* the number of tokens already minted at the time of calculation
$$Total,Supply$$: the number of tokens supplied for the community $$1.5 ,. ,10^9$$
$$TPU(0)=2$$
****
# Creator Earning Model
Creators are at the center of **Frak**. Users keep interacting with their content on platforms but few platforms reward them at fair value.
Creators get paid in two ways :
#### $FRK Earning
Each unit of content consumed within the ecosystem gives Creators the right to earn $FRK. The amount of $FRK earned is calculated following the formula below. It is based on the number of Fraktions minted.
$$
n\_{k}=B\_{Creator}(w) \times \beta\_k \times CCU\_k \times TPU\times \xi\_k
$$
$$n\_k$$: number of $FRK earned for the Fraktion holder *k*\
$$B\_{Creator}$$: Creator’s badge coefficient (defined [here](/frak-protocol/creator-work-minting/content-badge))\
$$\beta\_k$$: Earning factor for the fraction holder $$k$$ depending of the rarity of the Fraktion
Profitability
beta
Diamond
2
Gold
1
Premium
0.5
Common
0.1
Free
0.01
$$CCU\_k$$ : Number of Consumed content Units (Content Played for video and audio, Content Read for text) by the fraction holder *k*\
$$TPU$$: $FRK per $$CCU$$ (*see* [*here*](/frak-protocol/earning-model/token-generator-factor))\
$$\xi\_k$$: Content support factor depending on the support of the content
| Support | xi |
| ------------------------------- | --- |
| Video (not music, video Twitch) | 2 |
| Podcast | 1 |
| Music | 0.2 |
| Twitch | 1 |
#### Total Number of FRK earned
Then the Total Number$$N\_{$FRK}$$ of $FRK earned is defined like below:
$$
N\_{$FRK}=B\_{Creator}\sum\_{k \in T}\bigg(\beta\_k \times CCU\_k \times TPU\times \xi\_k \bigg)
$$
Maximum of tokens minted at the end
#### Revenue Sharing
For every subscribers who consume one piece of Creator Work, Creator earn a share of the subscription fee depending on this subscriber’s whole consumption during a Standard Period.
A Smart Contract is coded to allow Creators to get paid directly on their wallet.
At first, it considers an ensemble $$E\_j$$extracted from U (all users) containing all the n users $$u\_{ij}$$who made a Qualified Interaction with the Content Work *j* (ie the Number of Consumed Content Units of Creator Work *j* by User $$u\_i$$ is positive) :
$$
E\_j={u\_{ij} \in U | CCU\_{ij}>0}
$$
For a given User $$u\_i$$, the share of revenue received by the Creator of the Creator Work *j* is :
$$
SR\_i \times \frac{CCU\_{ij}}{CCU\_i}\times(1-Fee)
$$
Where
$$SR\_i$$ : means the revenue actually received by Sybel, directly connected to providing a Paid User access to the Sybel subscription service, including direct subscription fees and indirect subscription payments received via third party co-operations, excluding VAT and other governmental taxes and fees and deducted payment services charges. If the User ui is a free user, $$SR\_i$$ = 0 \
$$CCU\_{ij}$$: Number of Consumed Content Units of Creator Work j by User i\
$$CCU\_i$$: Total Consumed Content Units by User i \
$$Fee$$: Fees charged by Sybel going to $FRK Ecosystem (*see below*). Originally set at 30%
Thus, the all revenue earned by a Creator for a Creator Work *j* is:
$$
\sum\_{i\in E\_j}^{}SR\_i \times \frac{CCU\_{ij}}{CCU\_i}\times(1-Fee)
$$
# User Earning Model
Users keep interacting with content on a platform but the most engaged users are barely rewarded for their engagement like they could be in real life. By listening to, watching, reading, Users bring value to the content. Every unit of content consumed in the ecosystem gives the right to Users to earn $FRK. This earning is calculated thanks to the formula below. It depends on the rarity of the fractions owned, the engagement and the platform used to consume the content.
$$
\mu \times\sum\_{k\in T}^{} RC\_k
$$
$$T$$: Ensemble of all Fraktions owned by the User\
$$\mu$$: Revenue Sharing Rate for a given Fraktion (originally set at 35%)\
$$RC\_k$$: Revenue earn by a Creator coming from the interactions made by the User who owns the given Fraktion *k*
# Creator's Pool
Coming Soon
# Referral Pool
{% hint style="info" %}
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.
{% endhint %}
### 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
{% hint style="info" %}
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.
{% endhint %}
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](/frak-protocol/creator-work-minting/initial-content-minting) 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 :
$$
\sum\_{k=1}^{n}\left(\frac{4}{5}\right)^k \times 6% \times R\_i
$$
{% hint style="warning" %}
The Share of revenue given to the referees cannot exceed 30% ($$n=\infty$$)
{% endhint %}
# Earning Caps
In order to prevent bot and cheating system, while incentivizing power users, every **Standard Period**, a Power Number of UCC is calculated based on the average of consumption by the top 5% of active users.
Therefore, the number of Consumed Content Unit CCU is calculated with the formula below:
$$
CCU=\max \left( 1, \left( \frac{CCU\_{5%}}{CCU\_{real}} \right)^{CCU\_{real}}\right)
$$
$$CCU\_{5%}$$**:** average consumption of the top 5% of active users (last Standard Period)
$$CCU\_{real}$$**:** number of Consumed Content Units reported by different players
Then, the distribution of the consumption is defined by the **Chi-squared distribution** ($$\chi^2$$-distribution).
# Ecosystem Fees and Royalties
**Fees**
**Frak** will charge fees to various In-ecosystem Activities as indicated:
| In-ecosystem Activities | Fees (%) |
| ------------------------ | ----------------------------------- |
| Fraktion 1st sale | 2 (no flat fee) |
| Fraktion 2nd sale | 2 (no flat fee) |
| Content Related Revenue | 2 (no flat fee) |
| Advertisers and Partners | 2 (no flat fee) |
| Withdrawals | 2 (no flat fee, minimum of FRK1000) |
#### Royalties
**Royalties for Creators’ Work** is a flying wheel that enables Creators to finance the development of their next works. NFT platforms like the leading one, Opensea, announced new optional creator royalties and will maybe cut creator royalties, whereas [Creator Royalties](https://nftevening.com/ethereum-nft-creators-earned-over-1-8b-in-royalties-report/) has been an industry standard across the web3 space almost since the beginning.
That's why, Frak invented an innovative way to compensate Creators. It allows them to benefit from the advantages of royalties in any case, even if the Fraktions are sold many times on different platforms.
The percentage of creator royalties depends on two factors :
* the profitability of the Fraktion
* the number of levels of referral above the user who consumes the content.
The percentage of creator royalties is in range between 25% and 70%.
# Anti-cheating System
Three mechanics are used to stop cheating in the ecosystem, which includes the cheater’s account being punished:
* Random ask for interaction
* Percentile data analysis through gaussian elimination
* Machine learning to detect cheating through data simulation
Using devices that have been jailbroken, rooted, or with an altered OS will result in Frak not working properly.
# Tokenomics
# Why a utility token
$FRK is a utility and governance token allowing Creators and Users to be rewarded for their work, loyalty and engagement. It allows Creators and Users to vote for some decisions and which may be traded with others cryptocurrencies.
# The token: $FRK
$FRK token is a ERC20 token minted on the Polygon Blockchain. It is the store of value of the Frak ecosystem.
$FRK tokens have a fixed supply of 3,000,000,000.00000 units.
$FRK shall be listed on both decentralized and centralized exchange on the future and shall be publicly tradable.
Creators and Users will always own a majority of tokens and be able to make decisions through the DAO (*see below*)
#### $FRK Minting
$FRK earning will vary over time based on the usage and actions taken by the community.
Creators and Users can earn $FRK every time a user interacts with any content registered in the Frak Protocol. The only way $FRK can be minted is by consuming some content.
#### $FRK Burning
$FRK has a limited supply therefore, no burning mechanisms are set up. However, in specific case of inflation burning could be decided by DAO (cf [Hedging against inflation](/frak-protocol/tokenomics/hedging-against-inflation))
Besides, DAO could also decided to create an inactivity fee with automatic burning algorithm. For example, if Owners do not interact with the ecosystem and/or tokens during a long period of time, FRK token owner will have to pay an inactivity fee.
#### $FRK Initial Drop
| Description | Percentage | Number of tokens | Vesting Schedule |
| ------------------------------------- | ---------- | ---------------- | --------------------------------------------------------- |
| Private Presale | 11.67% | 350,000,000 |
|
| Advisors and Marketing | 7.67% | 230,000,000 |
Cliff : 6 months Vesting linear over 18 months
|
| Educational Program\*\*\* | 2.00% | 60,000,000 | N/A |
| Creator Grants\*\*\* | 2.00% | 60,000,000 | N/A |
#### $FRK Lock up period for Private Sale
Package
Vesting Schedule
Issuance
Price
Supply
Private Presale Tier 1
Cliff : 12 months Vesting linear over 24 months
1,168,092
$0.0096337396
0.2%
Private Presale Tier 2
Cliff : 12 months Vesting linear over 24 months
64,267
$0.0240843491
0.2%
Private Presale Tier 3
Cliff : 12 months Vesting linear over 24 months
1,135
$0.0337180887
0.2%
\* 1,000,000 FRK are minted every time the balance of the Treasury Wallet is below 10,000 FRK
\*\* FRK are granted for every new developers involved in the development and the maintenance of the ecosystem
\*\*\* Those supplies are blocked and will be released after a decision made by the DAO.
# Hedging Against Inflation
#### What is inflation ?
Inflation is defined as the **growth in the money supply** less the **growth in the total value of goods and services in an economy**. This can be represented as:
$$
\pi= \frac{\Delta M\_S}{M\_S} - \frac{\Delta Y^*}{Y^*} = g\_{M\_S} -g\_{Y^\*}
$$
#### The Downside: Inflationary Spiral
Although it could seem easy to avoid an inflationary spiral, targeting inflation is in fact an imprecise and indirect process subject to uncertainty.
In traditional economies, Central Banks are responsible for increasing or decreasing the money supply — one could think of it as “printing” or “burning” money; though, it is actually the Treasury which physically does this. The objective of Central Banks is to ensure financial stability. For the vast majority, this is accomplished through their mandate to stabilize inflation through explicit target rates or ranges. There are 2 primary ways that Central Banks target inflation: 1) buying or selling assets, and 2) adjusting the interest rates they charge to banks — together known as monetary policy.
Unfortunately, these tools have a limited pass-through to prices and interest rates within the economy. The ability of Central Bank policy to affect inflation is known as the transmission mechanism — characterized by long, variable and uncertain time lags. Thus, it is [difficult to predict the precise effect](https://www.ecb.europa.eu/mopo/intro/transmission/html/index.en.html) of monetary policy actions on the economy and price level.
#### What are the positive outcomes of a growing money supply?
It is important to note that a growth in the money supply does not necessarily lead to inflation **if there is an equal growth in the value of the goods and services in an economy**. In fact, it could be argued that a productive and growing economy requires a growing money supply to support it. Though such a system can be more productive over time, it is prone to financial instability due to the debt cycle (business cycle fluctuations) and the difficulty in targeting inflation.
Despite this difficulty, the vast majority of economies choose to target some amount of inflation. This has a couple benefits for Central Banks and Governments — as it decreases the cost of debt over time and allows for monetary policy flexibility. Perhaps even more important: **a growing money supply encourages investment in productivity growth in the short run**.
#### **How can a growing token supply support the growth of a token-based economy?**
Just as a growing money supply supports the productivity and growth of a traditional economy — a productive and growing token-based economy requires a growing token supply to support it. A growing supply of the token will create incentives for more consumption and investment within the network and lead to greater productivity and value in that economy in the long run.
As well, a growing token supply, when used to pay for the work and security of the network, supports the growth of the token-based economy. **It enables the network to achieve its highest value**.
Let’s take an example of a network that rewards Validators of transactions. To achieve an optimum level of transaction load (*to achieve the highest value of the economy*), [both fees and growing token supply should be used](https://blog.ethereum.org/2016/07/27/inflation-transaction-fees-cryptocurrency-monetary-policy/) as expenditures of the network. Meaning, Validators are paid fees by users for validating transactions — and they are also rewarded with the growing token supply. If only fees were used to pay for transactions, the system would reach a lower equilibrium value and incur a deadweight loss for this security payment. When this security payment comes from both fees and a reward from a growing token supply — a more favorable equilibrium is reached.
#### How FRK is hedging against inflation ?
*A limited supply*
One of the main principle to hedge against inflation is the limited supply of FRK described [here](/frak-protocol/tokenomics/the-token-usdfrk). This a maximum of 1.5 billion tokens attributed to the community and an increase of the value captured by the ecosystem, the inflation will be always contained.
*Slowing the minting*
As described in the [Creator Earning Model section](/frak-protocol/earning-model/creator-earning-model), the calculation of the $$TPU\_{Creator}$$ increases the difficulty to mint new FRK. Thus, the number of FRK minted reach an asymptote.
*A entropic value creation in the ecosystem*
The main sources of revenue of the ecosystem come from partnerships, advertisers and exclusive content purchases. These exogenous incomes will keep growing and will exceed the endogenous revenues within the first 24 months.
*Maintain the growth of the number of* FRK *minted below the value created in the ecosystem*
What makes a difference with most of *xxx-to-earn* mechanism is our permanent recalculation of the fractions price and the $FRK earnings model in order to avoid an acceleration of the inflation. The $FRK earnings is permanently linked to value captured by the ecosystem.
*Burning mechanisms*
Like in the traditional economy, burning mechanisms can be necessary in critical cases.\
Frak Foundation can use its reserves to burn tokens.
# Governance
#### Introduction to Governance
Integral to achieving this mission is a decentralized governance protocol, whereby Creators and Users are individually and collectively enfranchised in decision making about protocol changes and upgrades. In the spirit of creating a community-owned and operated streaming protocol, these key actors should be empowered to shape, mend and modify underlying parameters of the Frak protocol including but not limited to:
* Features and Product Evolution
* Data sharing
* Royalty Fees
* Fee Pool Allocation
* Tokenomics
* Staking Rewards
Everything in Frak is governable, and all $SYBL tokens staked in the protocol automatically receives governance weight as described in section 9.2. Governance will look to present both technical and nontechnical proposals, giving all users the ability to properly voice their beliefs without needing to have a deep technical under- standing of the FRak tech stack.
By creating a framework for Users to adjust the direction of the protocol in line with their shared beliefs, Frak will curate governance to the most value-added actors, possibly tying in incentives to those who are most active.
#### Bypassing
There is a bypass process that allows both 1) proposals to be passed without broader vote if urgency requires, e.g. during active exploitation of a vulnerability in the protocol, and 2) proposals to be vetoed if they are not consistent with the philosophies outlined in this paper. This bypass capability will be controlled by a community multisig with an initial set of signers. Additional signers can be voted into place via the open community governance process. The community, at any time, can vote to remove the ability to bypass governance if they choose, and the controllers of the bypass multisig have committed to not veto said proposal when the time comes to relinquish control. The project team added this functionality to the governance process with the intention for it to be removed— it is up to the community to decide when it makes sense to take off the training wheels or whether it makes sense to have this functionality at all.
#### Voting Power
By locking the staked $FRK, Creators and Users will get higher voting power:
| Locking Period | |
| -------------- | -- |
| 1 month | 1 |
| 3 months | 4 |
| 6 months | 8 |
| 1 year | 16 |
| 2 years | 32 |
| 3 years | 34 |
#### Micro DAO
*coming soon*
# 概述
{% hint style="info" %}
Sybel.io是一个具有Creator-Fi、Social-Fi和一些Game-Fi元素的Web3内容应用程序和生态系统。
{% endhint %}
Sybel生态系统的建立是为了使创造者和他们的社区的利益保持一致，以重塑知识产权货币化市场。创作者将他们的作品铸成NFT，并可以将其分割成不同的稀有性代币，为他们的社区提供购买一些股份的机会，以换取利润、奖励甚至是治理权（微型DAO）。 然后，当用户在他们选择的平台上与内容互动（通过听、看、读......）时，创造者会赚取代币（TSE），与用户分享。重复的互动将推动用户进入下一个级别，为他们赢得特殊的NFT。 创造者和用户的TSE收入存储在为他们创建的应用内托管钱包中。保管钱包有一个内置的交换功能。
# 背景介绍
创造者是历史的中心。今天人类历史的遗迹是创造者工作的结果。谁是洞穴壁画背后的创造者，谁是纪念碑、城堡、桥梁的建筑师？画家为我们留下了镜子，向我们展示了我们无法看到的时代。作家为我们讲述故事，帮助我们想象一个早已消失的世界。
然而，历史并不总是对创作者友好。几个世纪以来，他们一直依赖于那些决定是否委托其作品的中央实体（国家、国王、宗教领袖、富有的赞助人......）。
这种趋势在20世纪加速发展，如电影、音乐或文学等艺术。电影导演、作家和音乐家受制于集中化的组织，如电影公司、出版商和音乐公司，为他们做出选择。而这一切只是为了赚取他们通过作品创造的价值的一小部分。
随着互联网的出现，巨大的希望出现了。所有创作者终于可以向最多的人提供他们的作品，而不需要经过少数集中化组织的选择过程。然而，几年后，创作者们再次意识到，他们只是得到了短板。他们创造的大部分价值都被大型平台所占有。直到几个月前，Netflix的估值比他们投资在内容上的钱高15倍。Spotify的估值比该平台支付给唱片公司的费用高10倍。这比艺术家的收入高100倍。对于Tik Tok来说，这个比例是1000倍!
只要创作者依赖集中式平台，他们就会继续得到最小的一块蛋糕。
举例来说，在播客领域，创作者平均每年赚取不到500美元！而在产业链的另一端，用户拥有他们所贡献的服务的0%。 而在产业链的另一端，用户完全拥有他们所贡献的服务的0%。
> 为什么他们不应该也获得这些服务所产生的红利？
# 我们是谁？
### 创始人
Virginie和Matt在创造者经济中创立了一家公司。Studiofy，一个多渠道网络，在被转移到全球最大的多渠道网络之一（Studio71）之前，成为法国最大的数字人才机构。 在此之前，马特还与他人共同创办了两家公司。Makever，法国最大的剧集和电影生产商之一，卖给了一家领先的欧洲制作集团；Linkee，一个将未售出的食物重新分配给慈善机构的非营利性平台。
两年前，Virginie和Matt决定创建Sybel，一个音频平台，将他们在创造者经济中的经验带给播客，帮助他们获得应有的经济利益（Sybel在不到一年的时间里已经向创造者发放了300万美元）。
然而，与我们的股东一起，Virginie和Matt在几个月前决定，这个平台也应该属于所有为支持这个平台作出贡献的利益相关者。创造者、用户、投资者、开发者、广告商......
## Our Vision
Our vision is to give Creators the rightful place they deserve in society. The value must be shared equally between those who create, those who fund and those who consume Content. By empowering all these people to govern and to be rewarded for the value they create, whether that be through work, investment or engagement, the Sybel ecosystem believes that Web3 is the ideal way to make that happen.
## Our Mission
Admittedly, we are only at the beginning. What we are developing with our technology is has much broader implications. We are building a real revolution. And we mean it in the same exact sense as it was once employed for the Industrial Revolution. In less than 10 years, we will enable all workers to own their working tool by building an equitable redistribution system between investors, workers and users. Thanks to our technology, we’re able to track any interaction and compensate people at their fair value. Imagine a world where Creators’ earnings are directly connected to the consumption of their work, in a transparent way. Imagine a world where Creators share a part of those earnings directly with their community. Imagine a fair and sustainable world, where the value goes to those who help create it rather than intermediaries. This world is called **The Sybel Ecosystem**.
# 创世纪
为了使创造者能够真正从他们创造的价值中获益，同时奖励为创造该价值做出贡献的用户，Sybel正在建立一个完全去中心化和透明的环境，该环境建立在一个具有去中心化协议的可扩展和安全的区块链上。
# Sybel第一版
Sybel的第一个版本运行在一个经典的只有Web2的环境中，可用于手机、平板电脑、桌面，也可用于机顶盒、智能音箱以及谷歌汽车，专门用于汽车（如雷诺汽车）。Sybel允许创作者通过订阅平台来实现其内容的货币化。70%的收入会返还给创作者。这促使Sybel的生态系统自然地向Web3发展。 事实上，智能合约允许平台上的所有创作者之间进行无缝和不可更改的收入分配。
**Sybel拥有超过50,000名付费用户，年收入已经超过200万美元。**
# Pushing decentralizationeven further
The core of the reactor of Sybel Web3 version is based on two pillars:
* A utility and governance token ($SMT) that allows Creators and Users to vote for some decisions and can be traded with other cryptocurrencies and that allows to be rewarded respectively for their work and commitment.
* The possibility for Creators to mint NFTs (ERC 1155) from their work and financialize them. Creators will also be able to fractionalize the NFT into shares that Users can then buy in exchange for future revenues and rights. As a result, each User can own a share of the Creator’s Work which confers to them both economic and democratic rights (*see below*).
# Why the Sybel Ecosystem?
There are already dozens of projects around for Creators, mainly for musical artists. But none of them bring what **The Sybel Ecosystem** offers:
* A total decentralization of economic rewards, but also a decentralization of the governance of the ecosystem. Token holders can decide the level of revenue sharing with Creators with no minimum nor maximum (*see details below*). They can choose the economic models to access content (subscription, free, advertising, one-time payment, gamification...). They can also choose the features to be developed. But above all, they can profit from all the benefits offered by the platform. All of this is impossible with social tokens platforms or music NFTs marketplaces.
* No go to market phase: **The Sybel Ecosystem** has already revenue and this revenue is shared with Creators.
* The possibility to fractionalize their content to allow their community and investors to own a part of the Creator's Work and engage with them.
# How to enter Sybel Ecosystem
Any entity who receives an invitation can enter The Sybel Ecosystem. Our world is a world that rewards engagement.
Thus, any user performing interactions in the ecosystem will be rewarded: \
as soon as a User has an interaction with one Content already tokenized, they automatically receive a **Standard Fraction** of the Creator's NFT. This fraction enables both Creator and User to start earning tokens.
However, Content Creators and fNFTs owners will be more rewarded thanks to an incentive system that multiplies profits and rights (see *Earning Model*).
# 创造者工作和NFT
# 为什么Sybel的NFTs？
在考虑将创造者的作品货币化之前，创造者必须保证他们的社区与创造者的原创作品进行互动，而不是复制。这就是为什么Sybel生态系统为创作者提供了为他们的作品打蜡的可能性，并通过这种方式来证明他们作品的真实性。
**这个NFT由创造者拥有**
# IP Certification
Thanks to an open-source ERC1155 compliant token, Creators mint their work as a unique NFT. This NFT is a certificate that prove the ownership of the work. **The Sybel Ecosystem** is responsible for making all the necessary checks to guarantee the authenticity of the ownership to the community. KYC (Know your customers) are at the center of this certification.
By minting this NFT in all blockchains, **The Sybel Ecosystem** prevents plagiarism.
# Revenue Sharing
Sybel's ERC1155 Smart Contract enables Creators to directly share their revenue with all stakeholders. Obviously with token holders, who own a fraction of the NFT, but also with other rights owners who may have a claim on the royalties.
Sybel's Smart Contracts offer the most secure, frictionless, fast and transparent way to pay their dues to rights owners.
# 造物主的工作 铸币
# Creator Badge
A coefficient used in the calculations of the earning model is tied to each Creator's account : the Creator Badge. This Creator Badge depends on the evolution of different parameters :
Symbol
Percentage of minted fractions out of the the total number of the supply
\Delta
Number of fractions minted
\Theta
Engagement of the Fractions Owners
\Omega
# Creator Badge Calculation
To calculate, the Creator Badge, we need first to determine $$\Theta\_j , \Delta\_j , \Omega\_j$$for the Creator j :
$$
\Theta\_j = \cfrac{\rho\_{j}(w-1)}{\rho\_{j}(w-2)}\
$$
with $$\rho(k)$$, number of fractions minted during week *k*
$$
\Delta\_j =\cfrac{\sum\_{k=1}^{w-1}\rho\_{j}(k)}{\sum\_{k=1}^{w-1}\sigma\_{j}(k)}
$$
with $$\sigma(k)$$, number of fractions supplied during week *k*
$$
\Omega\_j=\cfrac{CCU\_{j}(w-1)}{CCU\_{j}(w-2)}
$$
with $$CCU\_j(w)$$, number of Consumed Content Units (Content Played for video and audio, Content Read for text) during the week $$w$$.
Then, the Creator Badge for the $$Creator\_j$$ and the week $$w$$ is calculated every week depending on the parameters defined above.
$$
{B}*{Creator\_j}(w)={B}*{Creator\_j}(w-1) \times (x+\Delta\_j)^{y+\Theta\_j}\times \Omega\_j
$$
$$x,y$$: System Parameter
# Content-Minting
For each piece of work, as soon as the Creator is signing in in **The Sybel Ecosystem**, a NFT is minted, owned by the Creator, present in the Creator's custodial wallet.
By burning TSE and SMT, Creator can supply some fractions of this NFT with different rarities :
* Legendary
* Epic
* Rare
* Common
* Standard
One **Standard Token** is automatically minted for free as soon as a User claim it after having interacted with the content.
For the rest of the different types of fraction, Creator must burn :
Rarity
Tokens burned to supply one fraction
Legendary
200 SMT
Epic
100 SMT
Rare
50 SMT
Common
10 SMT
Standard
0
Every fraction is minted once bought by a User or an Investor. **The Initial Price** is the same for each Creator and for each work. It is defined as below :
Initial Price
Legendary
400 SMT
Epic
200 SMT
Rare
100 SMT
Common
20 SMT
Standard
One for Free
**Fraction Price Index Formula**
The Current Price (CP) of a fraction a Content *i* with a rarity *j* is recalculated every week depending on different variables :
$$
CP\_{ij}(w)=CP\_{ij}(w-1) \times \left( x + \cfrac{\sum\_{k=1}^{w-1}\rho\_{ij}(k)}{\sum\_{k=1}^{w-1}\sigma\_{ij}(k)}\right)^{\left(y+ \cfrac{\rho\_{ij}(w-1)}{\rho\_{ij}(w-2)}\right)}
$$
$$w$$: current week\
$$\rho(k)$$***:*** number of fractions minted during week *k*\
$$\sigma(k)$$: number of fractions supplied during week *k*\
$$x, y$$: System Parameter
Creators can choose to supply their fraction at once or within a defined period of time. The Current Price is always ta the moment of the minting.
# Rights granted through the ownership of on fraction of NFT
Example of right granted through the ownership of on fraction of NFT
Right
Governance (micro DAO)
User can participate to collaborative decisions with the Creator
Exclusivity
Users can benefit from some content exclusive or dedicated live
Discount
On chain and off chain discount to attend a live event for instance
Extra Profit Sharing
Creators can give to fraction owners access to extra revenue, as advertisement or subscription revenue
# 挣钱模式
By creating Content for the Creators and interacting with content for the Users, The Sybel Ecosystem is a flying wheel that enables rewarding those who create value.
Therefore, two different Earning Models coexist in the Ecosystem.
# Creator Earning Model
Creators are at the center of **The Sybel Ecosystem**. Users keep interacting with their content on platforms but few platforms reward them at fair value.
Creators get paid in two ways :
#### $SMT Earning
Each unit of content consumed within the ecosystem gives Creators the right to earn $SMT. The amount of $SMT earned is calculated following the formula below. It is based on the number of fractions minted.
$$
n\_{k}=B\_{Creator} \times \beta\_k \times CCU\_k \times TPU\_{Creator}
$$
$$n\_k$$: number of $SMT earned for the fraction holder *k*
$$B\_{Creator}$$: Creator’s badge coefficient (defined above)
$$\beta\_k$$: Earning factor for the fraction holder *k* depending of the rarity of the fraction
| Rarity | beta |
| --------- | ---- |
| Legendary | 2 |
| Epic | 1 |
| Rare | 0.5 |
| Common | 0.1 |
| Standard | 0.01 |
$$CCU\_k$$ : Number of Consumed content Units (Content Played for video and audio, Content Read for text) by the fraction holder *k*
$$TPU\_{Creator}$$ : $SMT per CCU (*see below*)
#### Token Generator Factor : the sustainability of the Tokenomics
In order to create a sustainable economy and increase the value of the $SMT, it will always be more and more difficult to mint new token. Then, $$TPU\_{Creator}$$is a logarithmical function depending on the number already minted. **It is recalculated every month.**
$$
TPU\_{Creator}= c \times \left( \frac{1}{2} \right)^{\frac{x\times 6}{S} }
$$
$$x$$: number of token minted for the community at the time of calculation
$$c$$: constant of minting = 4.22489710056
$$S$$: total Supply for the community ($$1.5\*10^9$$)
#### Total Number of SMT earned
Then the Total Number$$N\_{$SMT}$$ of $SMT earner is defined like below:
$$
N\_{$SMT}=B\_{Creator} \sum\_{k \in T}\left(\beta\_i \times CCU\_i \right) \times TPU\_{Creator}
$$
Maximum of tokens minted at the end
#### Revenue Sharing
For every subscribers who consume one piece of Creator Work, Creator earn a share of the subscription fee depending on this subscriber’s whole consumption during a Standard Period.
A Smart Contract is coded to allow Creators to get paid directly on their wallet.
At first, it considers an ensemble $$E\_j$$extracted from U (all users) containing all the n users $$u\_{ij}$$who made a Qualified Interaction with the Content Work *j* (ie the Number of Consumed Content Units of Creator Work *j* by User $$u\_i$$ is positive) :
$$
E\_j={u\_{ij} \in U | CCU\_{ij}>0}
$$
For a given User $$u\_i$$, the share of revenue received by the Creator of the Creator Work *j* is :
$$
SR\_i \times \frac{CCU\_{ij}}{CCU\_i}\times(1-Fee)
$$
Where
$$SR\_i$$ : means the revenue actually received by Sybel, directly connected to providing a Paid User access to the Sybel subscription service, including direct subscription fees and indirect subscription payments received via third party co-operations, excluding VAT and other governmental taxes and fees and deducted payment services charges. If the User ui is a free user, $$SR\_i$$ = 0 \
$$CCU\_{ij}$$: Number of Consumed Content Units of Creator Work j by User i\
$$CCU\_i$$: Total Consumed Content Units by User i \
$$Fee$$: Fees charged by Sybel going to $SMT Ecosystem (*see below*). Originally set at 30%
Thus, the all revenue earned by a Creator for a Creator Work *j* is:
$$
\sum\_{i\in E\_j}^{}SR\_i \times \frac{CCU\_{ij}}{CCU\_i}\times(1-Fee)
$$
# User Revenue Sharing
Users keep interacting with content on a platform but the most engaged users are barely rewarded for their engagement like they could be in real life. By listening to, watching, reading, Users bring value to the content. Every unit of content consumed in the ecosystem gives the right to Users to earn $TSE. This earning is calculated thanks to the formula below. It depends on the rarity of the fractions owned, the engagement and the platform used to consume the content.
$$
\sum\_{k\in T}^{}x\_k \times RC\_k
$$
$$T$$: Ensemble of all fractions owned by the User\
$$x\_k$$: Revenue Sharing Rate for a given fraction, depending on its rarity (*see below*)\
$$RC\_k$$: Revenue earn by a Creator coming from the interactions made by the User who owns the given fraction *k*
Revenue Sharing rate *x* depending on the rarity:
| Rarity | x |
| --------- | ---- |
| Legendary | 50% |
| Epic | 25% |
| Rare | 10% |
| Common | 5% |
| Standard | 0,1% |
# Yield Calculation
Coming Soon
# Earning Caps
In order to prevent bot and cheating system, while incentivizing power users, every **Standard Period**, a Power Number of UCC is calculated based on the average of consumption by the top 5% of active users.
Therefore, the number of Consumed Content Unit CCU is calculated with the formula below:
$$
CCU=\max \left( 1, \left( \frac{CCU\_{5%}}{CCU\_{real}} \right)^{CCU\_{real}}\right)
$$
$$CCU\_{5%}$$**:** average consumption of the top 5% of active users (last Standard Period)
$$CCU\_{real}$$**:** number of Consumed Content Units reported by different players
Then, the distribution of the consumption is defined by the **Chi-squared distribution** ($$\chi^2$$-distribution).
# Ecosystem Fees and Royalties
**Fees**
**The Sybel Ecosystem** will charge fees to various In-ecosystem Activities as indicated:
| In-ecosystem Activities | Fees (%) |
| ----------------------- | -------- |
| NFT fractions 1st sale | 5 |
| Marketplace Trading Fee | 2 |
| Content Related Revenue | 20 |
#### Royalties
**Royalties for Creators’ Work** is a flying wheel that enables Creators to finance the development of their next works. Sybel ecosystem allows them to benefit from the advantages of royalties. Royalty Fees are a tiny percentage charged for every consumption or buy of a content.
| In-ecosystem Activities | Royalty Fees (%) |
| --------------------------------- | -------------------------------- |
| NFT fractions 1st sale | 95 |
| NFT fractions sales on a exchange | 4 |
| Content Related Revenue | 80 (split by concerned Creators) |
| Interact-and-earn | see Creator Earning Model |
# Anti-cheating System
Three mechanics are used to stop cheating in the ecosystem, which includes the cheater’s account being punished:
* Random ask for interaction
* Percentile data analysis through gaussian elimination
* Machine learning to detect cheating through data simulation
Using devices that have been jailbroken, rooted, or with an altered OS will result in Sybel not working properly.
# 代币经济学
# Token
**$SMT**\
\
$SMT is a utility and governance token allowing Creators and Users to be rewarded for their work, loyalty and engagement. It allows Creators and Users to vote for some decisions and which may be traded with others cryptocurrencies.
# $SMT
$SMT token is a ERC20 token minted on the Polygon Blockchain. It is the store of value of the Sybel ecosystem.
$SMT tokens have a fixed supply of 3,000,000,000.00000 units.
$SMT shall be listed on both decentralized and centralized exchange on the future and shall be publicly tradable.
Creators and Users will always own a majority of tokens and be able to make decisions through the DAO (*see below*)
#### $SMT Earning
$SMT earning will vary over time based on the usage and actions taken by the community.
There are 3 ways to earn $SMT:
* for each interaction with any content (earnings for the user and the creator).
* for a User, by owning fraction(s) of NFT(s) (in this case, Users earn $SMT only when they interact with the content related with the NFTs they own)
#### Burning Mechanics
* Owners can burn $SMT to go up a level
* Creators can burn some of their tokens in exchange for services (content hosting/storage, promotion...)
* If Owners do not interact with the ecosystem and/or tokens during a long period of time, SMT token owner will have to pay an inactivity fee. Subscribers are not subject to SMT token burning.
#### $SMT Initial Drop
| Description | Percentage | Number of tokens |
| ------------------ | ---------- | ---------------- |
| Advisors | 7% | 210,000,000 |
| Private Presale | 10% | 300,000,000 |
| Public Sale | 8% | 240,000,000 |
| Ecosystem Rewards | 50.1% | 1,500,000,001 |
| Teams | 10% | 299,999,999 |
| Technology & Devs | 10% | 300,000,000 |
| Exchange liquidity | 5% | 150,000,000 |
#### $SMT Lock up period for Investors
# 治理
#### Introduction to Governance
Integral to achieving this mission is a decentralized governance protocol, whereby Creators and Users are individually and collectively enfranchised in decision making about protocol changes and upgrades. In the spirit of creating a community-owned and operated streaming protocol, these key actors should be empowered to shape, mend and modify underlying parameters of the Sybel protocol including but not limited to:
* Features and Product Evolution
* Data sharing
* Royalty Fees
* Fee Pool Allocation
* Tokenomics
* Staking Rewards
Everything in Sybel is governable, and all $SMT tokens staked in the protocol automatically receives governance weight as described in section 9.2. Governance will look to present both technical and nontechnical proposals, giving all users the ability to properly voice their beliefs without needing to have a deep technical under- standing of the Sybel tech stack.
By creating a framework for Users to adjust the direction of the protocol in line with their shared beliefs, Sybel will curate governance to the most value-added actors, possibly tying in incentives to those who are most active.
#### Bypassing
There is a bypass process that allows both 1) proposals to be passed without broader vote if urgency requires, e.g. during active exploitation of a vulnerability in the protocol, and 2) proposals to be vetoed if they are not consistent with the philosophies outlined in this paper. This bypass capability will be controlled by a community multisig with an initial set of signers. Additional signers can be voted into place via the open community governance process. The community, at any time, can vote to remove the ability to bypass governance if they choose, and the controllers of the bypass multisig have committed to not veto said proposal when the time comes to relinquish control. The project team added this functionality to the governance process with the intention for it to be removed— it is up to the community to decide when it makes sense to take off the training wheels or whether it makes sense to have this functionality at all.
#### Voting Power
By locking the staked $SMT, Creators and Users will get higher voting power:
| Locking Period | |
| -------------- | -- |
| 1 month | 1 |
| 3 months | 4 |
| 6 months | 8 |
| 1 year | 16 |
| 2 years | 32 |
| 3 years | 34 |
#### Micro DAO
*coming soon*
# 去中心化的钱包
#### Wallet
The Sybel Ecosystem provides each account with a unique custodial Wallet to ensure the conservation and the use of Collectible and Cryptocurrency within the Sybel Ecosystem. Transactions are gas fee free between two custodial wallets.
Creators and Users are also able to connect their own wallet (such as ArConnect). External wallets rely on an experimental technology independent of **The Sybel Ecosystem**. Therefore, **The Sybel Ecosystem** should not be held liable for any technical default, hacking or loss of the data stored on the Wallet.
Creators and Users are free to use the Wallet to execute transactions within **The Sybel Ecosystem**. They may credit or debit the Wallet with their own Cryptocurrency and Collectibles at any time, within the limits defined by the Service.
Credit card payments made through **The Sybel Marketplace** are handled by the electronic money institution listed in **The Sybel Marketplace** (the "Electronic Money Institution").
You contract directly with the Electronic Money Institution for the processing of such payments by accepting its terms and conditions by means of a checkbox.
#### Stages
Stage 1 Custodial Wallet (Q2 2022)
1. Is built into the platform. Private key owned by the platform
2. Can accept $TSE and fractionalized NFT (ERC1155)
3. Supports one chain’s asset: Polygon
4. Has a Swap (Trade) function with liquidity. No gas fee between two custodial wallets
5. Wallet backup function
Stage 2 : Custodial Wallet (Q4 2022)
1. Link with Creators’ and Users’ private non-custodial wallets.
2. Offers multi-chain asset deposit and withdrawal.
# 团队
#### 核心团队
Virginie和Matthieu创建了**Sybel**，这是欧洲最强大的播客平台之一。专门从事媒体和创造者经济的连续创业者，他们创立了**Studio 71 France**，管理成千上万的**Youtube**创造者，以及**Makever**，欧洲最具成长性的电视剧制作公司之一，于2018年出售给**Mediawan**。
Matthieu Viala
* Mathematics and Finance Engineer
* Serial Entrepreneur
* Managing a Tech team of 10 people
Virginie Maire
* Creator Economy specialist
* Communities specialist
* Serial Entrepreneur
#### 技术团队的主要人员
| Name | Skills |
| ---------------- | ------------------------------------ |
| Gregory Kapustin | CTO \| Node.js |
| Quentin Nivet | Solidity \| Smart Contract \| Kotlin |
| Boris Jerrar | Solidity \| Smart Contract \| React |
| Leo Giroux | Solidity \| Smart Contract \| Swift |
#### Advisors and Investors
Name
Type
Description
Mangrove Capital Partner
Investor (VC)
Wix | Skype | K-Health | Flow. . .
Frédéric Montagnon
Advisor and Investor
Arianee
Julien Romanetto
Advisor and Investor
Arianee
Sébastien Borget
Advisor and Investor
The Sandbox
Thibault Elzière
Advisor and Investor
3Founders
Laurent F. Chemla
Advisor and Investor
Reel NFT | Estatoken | Saga 1
# 公司历史
#### 2020
* Beta launch of Web2 Sybel first version
* Podcasts Platform Player
#### 2021
* Launch of Subscription paywall and Revenue Sharing with Creators
* 1M+ Users, 51k Subs, 24mth+ LTV
* 10.000+ onboarded creators
* Marketing plans and tools
* Dedicated dashboard for creators
#### Q1 2022
* Whitepaper
* Smart Contract for Revenue Sharing (ERC20 ERC1155)
* Custodial Wallets for Creators and Users
#### Q2 2022
* MVP of Listen to Earn ecosystem MVP release to on-board Podcast creators and enable them to tokenize & fractionalize their podcast.
* Initial minting launch (100 NFTs) + Fractionalization
# 路线图
#### Q3 2022
Release of SMT governance token Launch of the Listen-and-Earn ecosystem (Apple Podcast) \
\
2nd Minting Batch (with curated Podcasts) NFTs listed on marketplaces (OpenSea. . . )
#### Q4 2022
Launch of PODCAST AS AN NFT platform V1 \
\
Launch of Listen to Earn ecosystem on Spotify and Google Podcast Launch of Sybel Marketplace
#### 2023
Launch of Listen-and-Earn ecosystem on all podcast platforms
Launch of Listen-and-Earn ecosystem for music content
Launch of Watch-and-Earn ecosystem with video Creators Launch of Read-and-Earn ecosystem with Novelists and Journalists
# 碳抵消
**碳抵消**
Sybel将通过燃烧碳信用捐献其利润以应对气候变化，详情请访问：[www.nori.com](http://www.nori.com) 此外，它将选择迁移到 "碳中和 "区块链上。
捐赠系统（开发中）
用户可以选择捐赠他们的SYBL收入，这将被交换到USDC/Fiat，并捐赠给碳信用购买/燃烧。捐赠是自愿的。
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