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ICO Alert Quick Facts
- Decentralized ecosystem for digital video
- Price per PROPS token to be finalized after Pre-ICO (roughly $0.125)
- Pre-ICO: December 11, 2017 — December 18, 2017
- 200,000,000 total available / 1,000,000,000 total supply
- A community with 40 million registered users
What is PROPS?
PROPS is a decentralized ecosystem for digital video. Our motivation is to create a video application ecosystem built to empower users and to deliver on the internet’s original promise. The PROPS ecosystem will fairly reward developers, content creators, and consumers for their contribution to the growth of digital media networks by digitally creating, sharing, consuming and engaging with content. The PROPS digital token innovates by providing the video infrastructure and financial foundation that is available for integration for other developers and media applications that participate in the ecosystem.
— Yonatan Sela, SVP of Business Development and Product
Q&A with Yonatan Sela, SVP of Business Development and Product
ICO Alert: How does the PROPS token (PROPS) function within the platform and why is it needed?
PROPS: Users hold the PROPS token to promote content (getting it in front of more users), access exclusive features and premium content, and signal status across media apps. Using the PROPS token aligns all ecosystem participants around the long-term growth of the network, without relying on any single entity to control its operation. A large reward pool will incentivize users and partners who develop and popularize the network. The larger the network becomes, the more valuable the benefits the token provides.
ICO Alert: What is the relationship between PROPS and YouNow?
PROPS: YouNow is a community of thousands of creators/influencers and millions of users who create and engage with video content, with the vast majority of activity happening on mobile. Users and content creators are spending and earning digital currency today in an economy that currently grosses $24 million a year in spend on its digital currency (62,000 transactions per day). This community and economy will be transitioned to Rize, the first app in the PROPS ecosystem, which is the next generation platform for the YouNow community. Rize runs on a new video infrastructure that supports many-to-many video and is open for developers to build a wider variety of use cases. Rize is part of a decentralized economy and ecosystem powered by PROPS, which is the underlying digital currency of Rize. Our evolution from YouNow to PROPS is an evolution from a rigid livestreaming template with a single use case to an interactive video platform that is open for developers and is part of an ecosystem of media applications that will share a currency, an identity layer and other elements (see more in our whitepaper at propsproject.com). It is a shift from a world in which less than 6% of users are on camera and can earn social and economic currency to a world in which all users can actively participate on camera, engage with others and be fairly compensated for the engagement they generate on the network.
ICO Alert: Why is it important that digital media becomes less centralized? How will PROPS look to solve the issues currently facing this market?
PROPS: In our view, the world needs a decentralized digital media ecosystem for a few primary reasons:
Disproportional allocation of value: Social platforms have fundamentally changed the way in which we interact with the world around us, which is why they are now worth hundreds of billions of dollars. But, those same multi-billion dollar organizations that dominate our social interactions have succeeded despite operating within a broken business model. The strength of the network depends on users creating and sharing content on the platform, but their lucrative revenue model depends on heavily taxing those users or not compensating them at all. Contributors — conscious of their value to the network and frustrated with their lack of organizational and earning power — have begun to question today’s reality. On PROPS, most of the economic value generated by the network is captured by the developers, content creators and other contributing creators that constitute it, rather than any single entity that runs the network. Those contributors are algorithmically, transparently and fairly rewarded with a token that gives them a personal stake in the community they are building, and a real potential for growing their financial upside if the network grows.
Media distribution is currently controlled by a few large companies, leaving decisions about the content the world gets to see in the hands of a small group of people. By creating an open platform for developers to build on and a decentralized economy with strong incentives for contributors, multiple developers are able to build apps that are part of the same network (PROPS), resulting in a digital media network that is not controlled by any single entity.
In order to bring the PROPS Project to fruition, a practical implementation path of decentralization over time will be required, and we’re starting with the economy. Mainstream digital media users are accustomed to using apps that are free, readily fast, available on their smartphones, run on the most advanced video infrastructure, and have easy access to in-app purchases. Decentralization of the digital media components that can work just as well as centralized apps is a long-term effort requiring advancements in the development of a decentralized infrastructure layer. Our approach allows us to ship mass market applications — easy to use and accessible on everybody’s device — with a tokenized, decentralized digital media economy This way, we exploit the distribution efficiencies of tightly managed mobile apps that enable participation by mainstream users. Read more about our path to decentralization here and here.
ICO Alert: Live streaming is becoming more and more popular in mainstream media. Do you see this becoming the most popular mode of media consumption moving forward? How is PROPS set up to take advantage of this emerging market?
PROPS: Indeed, live streaming is becoming more popular, and we’re proud to have pioneered the live streaming business in the U.S. We designed a highly gamified environment that includes user levels, trending lists, status badges, leaderboards, and rewards and spurred a thriving two-sided in-app virtual economy averaging over 62,000 in-app currency transactions per day. At the intersection of media, entertainment, and gaming, it’s the perfect candidate for the tokenization offered by blockchain.
That said, the PROPS Platform is more than a live streaming app. Live is only a segment of video and PROPS is a versatile infrastructure built to support a wide variety of use cases, including VOD, video chat, linear/premium content, multi-user live video and more. For instance, we are deep in discussions with a number of major content distributors to add linear content to the platform. The platform ensures that partners can build highly customizable experiences for their audiences and earn in PROPS when they drive engagement, just like anyone else. Watching sports with friends, participating in video-enabled games with family, or just hanging out are all viable. PROPS is about enjoying and engaging in life together all the time, no matter where you are.
ICO Alert: Rize is set to be the first app on the PROPS platform — can you describe the application and give us an update on its current progress? Are there any other apps committed to PROPS?
PROPS: Rize is an extensible, open platform for interactive video and will be PROPS’ first large-scale adopter, seeded with the YouNow community. In designing Rize, we implemented our learnings from running YouNow and its virtual economy at scale (more than 40 million registered users and a constantly growing virtual economy running on a digital currency). Rize leverages the PROPS video infrastructure, which has been developed for over 18 months. Users will leverage Rize’s many-to-many video technology to participate in custom video experiences and get rewarded in PROPS. Rize will employ a new model, different from YouNow, in which the in-app purchase revenues are used to buy the PROPS token, which is in turn rewarded to content creators, curators, and developers who generate value for the network. Rize is currently being tested in a closed alpha and will be available for download on iTunes and Google Play on the day the Token Distribution Event concludes.
In addition to Rize, developers are actively working with the PROPS video infrastructure, building social video games and other interactive experiences to be released in 2018. These apps share a currency and identity layer, with each use case further driving user growth and token demand. We will continue to work closely with developers building on PROPS before opening up this option to any developer out there, leveraging what we learned in the process of working with the first few. We will publish more details on this at the beginning of 2018.
ICO Alert: Can you detail the Partner Rewards program and describe how it is essential to the project?
PROPS: Our goal is to get PROPS tokens into the hands of people who will most benefit from them: developers, content creators, their supporters and enthusiasts who are excited about building PROPS. The Decentralized Media Foundation is a non-profit entity that programmatically and transparently distributes tokens over multiple years to developers who contribute value to the ecosystem. These Partner Rewards are PROPS distributed by the foundation to apps in the ecosystem to help boost their Rewards System, and increase the early financial utility to PROPS Ecosystem contributors. The Foundation reserves 50% of the total token supply. As a result, the majority of tokens will be distributed over time to partners and the public. Please see a detailed description of the Partner Rewards Program and the transparent way in which Partners receive reward tokens in our whitepaper here.
ICO Alert: How do developers, content creators and users interact within the PROPS platform? Can you take us through a specific user case?
PROPS: Developers can leverage PROPS’ video infrastructure and create video apps that run on PROPS. They can be of multiple types, whether it is on demand video, pre-recorded short form video, many-to-many live video, and other forms of media. Developers enjoy two streams of PROPS: one that comes from their native business model, and one that comes from the Foundation’s reward pool. Content creators can create content on these apps, and earn in PROPS. Both developers and content creators therefore gain a personal stake in the network. As for users, PROPS is intended for use by mainstream users, who may be entirely unfamiliar with crypto, and they must still be able to consume content, interact, and spur demand for the token. There remains a steep learning curve and technical speed bumps in dealing with crypto-tokens for the average consumer. Users should not immediately be asked to understand, hold, or transact in crypto-tokens before they are allowed to participate in the economy. Therefore, PROPS utilizes existing mainstream monetization strategies as the initial key driver for token demand. We write extensively about that in our whitepaper at propsproject.com.
To walk through a specific use case, let’s take Rize as an example, the first platform in the PROPS ecosystem (two additional apps are under development by other developers working closely with our team, with a planned launch in March 2018). Rize will put multi-participant broadcasting use cases “center stage” enabled by brand new many-to-many video technology developed over the past 12 months. With a simple drag, users can be up on stage with their favorite creator, or jump into a private video chat with their friends for social viewing. Creators will be able to engage with users in real-time like never before and any user will be able to video chat with friends, send and receive likes, and earn PROPS. First-time users will be able to interact, engage, and create content, without being required to set up a wallet or interact with the cryptocurrency right away. They will be prompted to do so once they begin earning by generating engagement and growth for the PROPS network (all earnings and rewards on Rize are paid out solely in PROPS). Chris Burniske, renowned founding partner at blockchain investment firm Placeholder, and and author of the book Cryptoassets, said in an interview to Bloomberg that Rize “could be the best user experience application we’ve seen in the crypto space.” This video shows the user experience on Rize.
ICO Alert: The Ethereum network has occasionally suffered from slow transaction times. Is there any concern that this may affect the PROPS platform?
PROPS: We are ensuring that the user experience is easy for mainstream users, including those who may not have deep knowledge of crypto economics. These users don’t need to set up a crypto wallet or own PROPS to participate, as they can engage for free or by buying non-crypto gameplay coins from the appstore (the way they do on YouNow today). All active contributors and participants on the platform are proportionately rewarded on a daily basis based on the amount of engagement and coins they receive. This setup allows many people to participate and contribute. This is a key way to ensure the transaction volume can be handled because it would not be practical to do 60,000 transactions a day (the number of daily transactions on YouNow) on-chain. It also creates an ongoing stream of incoming fiat (e.g. USD) used as demand for PROPS. A benefit of this is the architecture itself creates ongoing demand pressure for PROPS, and a lot of utility within the platform for holding the token.
ICO Alert: As a non-PROPS question we like to ask for unique predictions for the ICO and crypto currency space in the future. Where do you see both in the next 3–5 years?
PROPS: Given the speed of innovation in the blockchain and cryptocurrency space in the last few years, we would be remiss to make any confident prediction on exactly where things will shape up in the next 3–5 years. Directionally, we do feel confidently that these technological innovations will only continue to grow in importance and relevance, hopefully due in part to the evangelization of crypto by the PROPS community and its tech-savvy digital media consumers and creators. There will likely be many more use cases for the technology. Similar to how the startup world has been for decades, many companies will have an ICO and fail, but others will grow to be extremely important companies. The great thing about this space is that the blockchain knows no bounds in its potential application, and thus has the potential to disrupt multiple industries, by way of its economic model, the advantages of decentralization in some areas, or both. It will likely take longer than 3–5 years for most industries, but we expect to see many incumbents feeling the pressure of disruption as early as next year given the talent in the crypto space already. We are excited to be apart of it.
The PROPS presale will begin on December 11, 2017 and will end on December 18, 2017. There are a total of 200,000,000 PROPS tokens (PROPS) available during the main Token Distribution Event, representing 20% of the total PROPS supply. A hard cap of $25,000,000 is set for this period.
CoinList (accredited investors) and Republic Crypto (non-accredited investors) have partnered with PROPS to host the PROPS presales:
If you’re an accredited investor, sign up on CoinList to ensure you get regular updates on registration (November 29-December 11) and the sale (December 11) designed for accredited investors.
If you’re an non-accredited investor, please follow the PROPS blog for information about how to sign up on Republic Crypto for a separate pre-sale closer to the sale date (December 11).
$0.125 = 1 PROPS token. Current accepted currencies for PROPS include ETH, BTC, and USD.
PROPS is an ERC-20 token, so it’s important that contributors use ERC-20 compatible wallets to send funds to the ICO smart contract, and to receive the PROPS tokens.
Token Distribution Information
There are a total 1,000,000,000 PROPS tokens being created, with 200,000,000 available during main ICO. Contributors will have their tokens distributed shortly after the end of the ICO. Visit the PROPS website for more information and the contribution address.
Use of ICO Proceeds
View the PROPS website here.
View the only comprehensive list of active and upcoming ICOs here.
(1) Props Website, Props by YouNow, (2017)
(2) Props Whitepaper, Props by YouNow, (2017)