TopKid Entertainment is reducing the risk of film investing by bringing the opportunity to fractionally invest in A-list Hollywood films to retail investors via digital security tokens. To achieve this, TopKid has created a bespoke compensation structure.

The product we are building is a Soroban-based smart contract protocol tailored for our bespoke compensation structure that will:

1. Calculate disbursements to investors according to our bespoke model.
2. Calculate pro rata disbursements according to the time a digital security is held before being sold.
3. Track the ownership of the digital security tokens sold to ensure the correct party receives the correct disbursement.
4. Automate the distribution of those payments.

The product will form the core of TopKid’s web3 media financing business and will later be applied across multiple verticals (e.g. music, gaming, merchandising) once it has been proven for use in the film space. TopKid is uniquely placed to create the product as its business is the financing of feature-length films, allowing it to ensure the product is tested, refined and utilised within the film financing industry.

Problem:

The infrastructure for issuing, selling and trading digital security tokens already exists, but the infrastructure for distributing royalties earned from holding those security tokens is still emerging and is not sector specific.

Solution:

As we have created a bespoke financing structure for film which doesn’t wholly accord to industry norms, a bespoke protocol needs to be created that is film specific. This protocol will firstly serve TopKid’s investment vehicles and their investors, but once it has been tested and refined, can then be applied to the Production companies that sit above TopKid’s investment vehicles for the handling of investments, production payroll for staff, crew and talent, and for revenue distributions.

Audience Served:

Firstly, the audience served is TopKid and its investors, but as the use case for our financing model grows, the opportunity for the protocol to be used by third-party film financiers, producers and production companies emerges as it alleviates the need for costly accounting and banking fees for film productions worldwide. Benefits include:

1. Lower cost of making disbursements.
2. Greater speed and automation of disbursements.
3. Trustless payment calculations and distributions.
4. Auditing security.
5. Choice of currency: payments in fiat, stablecoin, XLM or other cryptocurrencies.

Impact and Value to Stellar Ecosystem:

This project will demonstrate Stellar and Soroban's potential in automating and enhancing transparency in financial transactions, particularly in niche markets like film finance. It showcases the adaptability of Stellar's blockchain in diverse sectors, contributing to its ecosystem's growth.

1. Deliverable 1:
   1. Groundwork to design the smart contract architecture via flow diagrams and detailed technical diagrams describing the relationships between each entity and stakeholder.
   2. Groundwork completed and ready to begin development.
   3. 2 weeks.
   4. $15,000.
2. Deliverable 2:
   1. Development of smart contracts.
   2. Code created, and payment flow tested using XLM.
   3. 3 weeks.
   4. $25,000.
3. Deliverable 1:
   1. Finalisation of code and deployment to testnet.
   2. Payment flows tested and bugs resolved. Code is finalised and contracts are deployed to testnet.
   3. 1 week.
   4. $10,000.

Up to $500,000.

Next Milestones:

Creation of platform token and tokenomics.

Creation of Digital Security Tokens and first Reg D offerings.

Integration with KYC/B/T platforms and appropriation of licenses if needed.

Creation of Debt token and staking pools which earn yield from film lending activities (real-world yield).

Creation of digital merchandising for films financed.

James Oakley - Founder / CEO

Head of Investor Relations at Invicta Capital, James has extensive knowledge of tax-based film financing structures

and rights management in both the independent and studio spaces. He managed all 28 of Invicta’s film Partnerships,

containing over 100 films and TV shows, over 1500 retail investors and totalling £1.4B of film financing, 80% of which was

institutional lending. Independently James has advised several debt, bridge and production funds on structure and the sourcing of finance, as well as individual film projects.

Greg Buron - CFO

A Certified Public Accountant (CPA) and management consultant with a decade of experience in the financial services and

blockchain industry. He has worked at KPMG, CohnReznick, the Lionpoint Group and advised numerous blockchain projects through his consulting firm AlpineBlock.

Advisors:

Dr. Martin Hiesboeck - Head of Research at Uphold and Uphold Institutional.

Elliot Suthers - Former Head of Global Communications at Coinbase.