Halluceon
Monetize films on the internet with Tickets, and split fees with your viewers.
Films published on Halluceon can be previewed for free, but require a Ticket to watch in full. Fees from Tickets are streamed back 50/50*less a 2.5% platform fee to the film’s publisher and its audience, using a formula that increases distribution rewards based on how early someone finds the film.
We believe this novel rewards mechanism incentivizes word-of-mouth marketing for a film. We also believe that ticketed monetization is the only business model that incentivizes for one-off, cinematic works — as opposed to subscription fees, which incentivize for episodic media, or ads, which incentivize broad mass-market content.
A publisher releases a film
A publisher uploads their film, answers a few questions, and pays a 0.0025 ETH fee to publish it. Films can live on their own or be attached to a series of films.
- video file
- bobs_big_adventure.mp4
- film poster
- bob_poster.png
- title
- Bob’s Big Adventure
- desc.
- Bob, you know him, and he’s about to embark on quite the series of adventures.
- theater
- new theater
- ticket supply
- 1.67M Ticket NFTs
- ticker
- BOBBYBIGXHAL
+ what that one fee does
- 1 uploads the film
to our servers — and the film’s poster, as the NFT art for its ticket.
- 2 mints a Theater Admin Token
to the publisher, who “owns” the film and its theater through it. The token is transferable.
- 3 creates the film’s Ticket NFT
by adding the film’s metadata to the Ticket NFT contract, capped at 1.67M tickets in five groups: 20K, 50K, 100K, 500K and 1M.
- 4 deploys the Points token
an ERC-20 contract named for the film, with the ticker the publisher chose — BOBBYBIGXHAL.
Viewers buy tickets
The film lives at its own page, and anyone can watch a free preview — 30% of the film, or 90 seconds, whichever is shorter. To watch the full film, a viewer mints a Ticket NFT and activates it to open a 12-hour watch window. Total ticket supply is capped, and sold over five increasing price curves, with the first starting at $0.25 a ticket.
the five groups of ticket sellout back to back, each on its own price curve. hover for any ticket's price and Points mint; click a group to zoom in.
Every ticket mints Points
Each ticket minter also receives “Points” tokens — in our example, BOBBYBIGXHAL (an ERC-20). How many Points a minter receives is calculated with the formula below; half of all Points distributed go to the publisher.
- group weight
- ×8 · ×3.4 · ×1.7 · ×1 · ×1 for Groups 1 through 5 — the earlier the group, the heavier the mint.
- decile multiplier
- each group is cut into ten equal slices; a ticket in the first slice mints ×10, stepping down to ×1 in the last.
Every mint is then split in half: one half to the ticket’s minter, one half to the film’s publisher.
| group ↓ / decile → | ×10 | ×9 | ×8 | ×7 | ×6 | ×5 | ×4 | ×3 | ×2 | ×1 |
|---|---|---|---|---|---|---|---|---|---|---|
| group 1 ×8 | 80 | 72 | 64 | 56 | 48 | 40 | 32 | 24 | 16 | 8 |
| group 2 ×3.4 | 34 | 30.6 | 27.2 | 23.8 | 20.4 | 17 | 13.6 | 10.2 | 6.8 | 3.4 |
| group 3 ×1.7 | 17 | 15.3 | 13.6 | 11.9 | 10.2 | 8.5 | 6.8 | 5.1 | 3.4 | 1.7 |
| group 4 ×1 | 10 | 9 | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 1 |
| group 5 ×1 | 10 | 9 | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 1 |
| ticket | the math | minted | to its minter |
|---|---|---|---|
| #1 · the very first | ×8 × ×10 | 80 | 40 |
| #20,001 · first of Group 2 | ×3.4 × ×10 | 34 | 17 |
| #1,670,000 · the very last | ×1 × ×1 | 1 | 0.5 |
Ticket fees stream to Points holders
As tickets are minted, the fees automatically stream back to all Points holders, based on their holdings. Holders can claim these rewards whenever they like; multiple claims roll into a single claim.
- ticket #1 costs
- $0.25
- and mints
- 80 Points
- 40 to its minter · 40 to the publisher
- streamed to those 40 Points by a sellout
- ≈ $38.04
- over 1.67M tickets
On every later sale, the fee streams to the Points in existence at that moment — so the first minter’s share of each fee is large at first and dilutes as the film mints more Points. A model at the curve’s prices, held the whole way; not a promise.
The business model is the medium
The business model of a platform determines what succeeds on that platform — and a ticket costs real money up front. On YouTube, ~300M views earns a creator $1M. On Halluceon, ~1M views earns $1M — a 300× improvement. The media that will succeed will be what people are willing to pay for.
- Ads
incentivize for content with mass appeal.
- Subscriptions
incentivize for repetitive, formulaic content.
- Tickets
incentivize for niche, singular works.
the business model is the medium is the message.
+ the longer argument
Halluceon is really just a collection of ticketed movie theaters — some with a single film, others with a collection of films (up to 50).
In classical Hollywood, where films were monetized with tickets, early word of mouth was often fundamental in creating sleeper hits. We build on this concept — but using the incredible power of crypto tokens, we are able to monetarily account for and reward those early adopters of a new film, and incentivize their evangelization to be as impactful as possible.
Marshall McLuhan famously said that the medium is the message, and we are excited to create a medium for filmmakers creating singular works, and not content factories. We believe that in order to create this medium, the business model needs to be one which is designed to reward the singular creator. At Halluceon, we extend McLuhan’s line to read: the business model is the medium is the message.